The Government will hand over $5.4 million to an aerospace centre south of Christchurch, an investment it said will create jobs and return $2.4 billion back to the economy.
The grant, which will go to the Tāwhaki Joint Venture - which runs the Tāwhaki Aerospace Centre at Kaitorete - will fund a sealed runway and hangar facilities, which the Government said will encourage investment, growth and continued research and development in New Zealand's aerospace industry.
Infrastructure Minister Megan Woods said she was pleased to support a project that "so obviously benefits New Zealand".
"The aerospace sector works alongside our world class universities and Government agencies to help drive economic growth, innovation and new jobs."
She said the funding meant Tāwhaki could "immediately look at opportunities to scale up the site and help the aerospace industry in New Zealand continue to take off".
Woods said Tāwhaki predicted that over the next 10 years the development would contribute to over 1300 highly skilled, high-paying jobs and up to $2.4b in economic benefits.
“Without this investment there is risk that some flagship aerospace companies would move offshore. We want this sector to continue to thrive here, directly benefitting the local community in Canterbury, and wider New Zealand economy.”
She said New Zealand had natural advantages in aerospace which could help secure its position as a "leading place" to safely test, trial and adopt aerospace technologies.
“Aerospace technologies will greatly improve how we respond to issues like climate change, emergency management and monitoring our ecosystems and natural resources.”
The current facility at Kaitorete is already being used by local companies including Kea Aerospace, Aerosearch and Swoop Aero, as well as the University of Canterbury, and its expected the new infrastructure will be used by a wider range of aerospace companies onshore and abroad, and research institutes, with the aim to scale up over time.
Tāwhaki is a Māori-Crown partnership between Kaitorete mana whenua - Te Taumutu Rūnanga and Wairewa Rūnanga - and the Crown, with a dual kaupapa to "heal and rejuvenate" the unique whenua at Kaitorete and advance Aotearoa’s aerospace industry, the Government said.
The partnership, which was signed in May 2021, meant the Crown and Kaitorete Limited owned 50/50 shares in Kaitorete Land Holding Limited which owned 1000 hectares of land at Kaitorete, 50 minutes’ drive from the Christchurch CBD.
The $5.4 million funding will help build a $6.1 million sealed runway and hangar infrastructure at Kaitorete. The $700,000 co-funding will be provided by Tāwhaki.
Tāwhaki chief executive Linda Falwasser said the new investment to scale up its facilities would place Aotearoa more firmly on the world aerospace map.
“We have one of the world’s best locations to take flight, to launch and discover new horizons at Kaitorete. Its 25 kilometres of expansive land is flanked by the Pacific Ocean and Te Waihora and it has clear skies and access to a wide range of orbits. The facilities at Kaitorete and the robust regulatory environment our country offers provide an opportunity for testing and developing technologies that will have far-reaching benefits.
"We are already fielding interest from international companies who are excited by our kaupapa and values-led approach. We’re absolutely thrilled that this new infrastructure means our local aerospace innovators can continue their rapid growth and technology development onshore and will support attracting new business to Aotearoa.
Tāwhaki Board Member David Perenara-O’Connell partnership between mana whenua and the Crown, and and its "weaving together" of mātauranga Māori and cutting-edge innovation in aerospace and environmental rejuvenation, was "world-leading and unique".
“The companies we can support and the data and insights the technology can deliver with this new infrastructure have the potential to make a global impact. Building that capability here at Kaitorete means we can retain the benefits for our people, region and country.”
Construction for the runway is due to start immediately, a Tāwhaki statement said, and expected to be completed this summer.
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