Major Govt agency fails to pay bills, faces huge funding shortfall

1News can reveal a major Government agency hasn't been paying its bills and is now facing a huge funding shortfall.

The Office of Māori Crown Relations, also known as Te Arawhiti, oversees and supports Māori seeking customary rights over the foreshore and seabed.

Under the Marine and Coastal Area Act, Māori can apply for Customary Marine Title or Protected Customary Rights through the High Court or directly to the Crown.

They can access funding to do this through the agency's Takutai Moana Financial Assistance Scheme.

But in an urgent letter obtained by 1News, Te Arawhiti has told applicants its $12 million budget for the next financial year won't be enough to meet the demand.

Lawyers have told 1News that means multiple upcoming hearings in the High Court will likely need to be cancelled.

"There are six to eight hearings scheduled for the next financial year," said Lawyer Darrell Naden.

Te Arawhiti has told claimants it can't commit to funding any of them.

Treaty Negotiations Minister Paul Goldsmith said the Government can't continue forking out huge amounts of money for the scheme.

"The previous government allocated $12 million a year for funding these claimants, which is significant funding," he said.

"It blew out to $30 million this year and we can't carry on that level of spending."

But that wasn't the only problem. Te Arawhiti also owes money for work already completed on the claims.

"We've got invoices that are over six months old," said Naden.

"We're waiting on an amount around three quarters of a million dollars."

1News has spoken to several lawyers who said they are also owed money by Te Arawhiti - or have faced lengthy delays in getting paid.

"In addition, we're having to front load salary for our solicitors. We pay for travel costs, for hui and catering," Naden said.

Under Te Arawhiti's funding scheme, up to $458,000 can be accessed for activities like historical research and admin, and additional funding for court-related costs.

Claimants and lawyers can apply for a grant, or request reimbursement.

Goldsmith said managing payments was Te Arawhiti's responsibility: "It's for Te Arawhiti to work through those payments. I have every confidence that they will.

"The sad reality is there are many delays right across the justice system and we are very committed as a government to ensure that things are dealt with in a timely fashion."

"If we don't participate in this process we become invisible and those rights and interests essentially will be lost," said Ngātiwai spokesperson, Aperahama Edwards.

Ngātiwai is one of more than 200 groups that have applied to the High Court for recognition.

"It seems quite perverted, actually, that claimants are starved of essential resourcing required to advance a claim, in terms of natural justice, when the Crown is controlling the tap."

Edwards said it's beyond frustrating that they may face delays in the process.

"Our identity, our mana, is intrinsic with our relationship with the moana and the seabed.

"We are appalled that legislation, not of our design, is being stymied."