Whānau Ora Study
In 2017, the AERU was contracted by Ihi Research and Development to perform a cost benefit analysis of an initiative funded by Te Pūtahitanga o Te Waipounamu under the Whānau Ora programme. The chosen initiative was He Toki ki te Mahi and the AERU was asked to provide an analysis of its economic impact to a high professional standard, taking into account guidelines published by the New Zealand Treasury.
The cost benefit analysis of the He Toki ki te Mahi Initiative found potential economic benefits outweighed the economic costs by a factor above 7 to 1. Total potential economic benefits were above $5,500,000 and total economic costs were $780,000. The analysis was an illustration of the power of a successful intervention in a young person’s life; in this case, the initiative had the potential to increase the lifetime earnings of young people, and enable many to move on to a significantly higher income path when they completed their apprenticeship. The report demonstrated the He Toki ki te Mahi initiative was delivering economic benefits above the costs of its public funding.