DIA Overhauls Lottery Grant System, Cuts Committees

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Fewer Committees in Lottery Grants System Under New Reform

The Department of Internal Affairs (DIA) is shaking up how lottery grant decisions are made, and it’s a pretty big structural shift.

Starting July 1, the system that once included 11 regional committees, six specialist committees, a national committee, and a separate online gambling distribution sub-committee is being streamlined into just six regional committees plus one national committee.

Officials say the goal is simple: make the whole process easier to navigate and more efficient, not change who gets funded or how much money is available.

According to DIA deputy secretary Hoani Lambert, the funding rules themselves stay locked in under the Gambling Act 2003. That means decisions still have to follow existing community-purpose guidelines, including support for M?ori, Pacific peoples, ethnic communities, women, youth, and people with disabilities.

Lambert also emphasized that Crown and statutory funding bodies won’t be affected by the overhaul. The core funding priorities remain intact.

But not everyone is convinced it’s a smooth upgrade.

Community sector leader Katie Boxall from Hui E! warned that removing specialist committees could blur how targeted funding gets allocated. Her concern is that smaller groups—and especially already underrepresented communities—might struggle to get fair consideration once “ring-fenced” funding is absorbed into broader pools.

Key concerns raised include:

  • Loss of specialist decision-makers with deep sector knowledge
  • Less clarity on how applications will be assessed
  • Risk that smaller or marginalized groups miss out
  • No clear public consultation on the change

Boxall also pointed out the move appears to go against earlier review recommendations that called for more equity in funding distribution.

On the government side, Internal Affairs Minister Brooke van Velden defended the overhaul as purely administrative. She said applicants won’t lose access, and existing applications will still be valid—just routed through the new committee structure.

She also reassured that the new regional and national committees will still be responsible for considering the needs of key communities, including M?ori, older people, Pacific communities, women, youth, and disabled people.

In short: fewer committees, simpler structure—but debate continues over whether the new system improves fairness or just reshuffles how decisions are made.