LIFT ALL BOATS?

Joseph Los'e examines what role booming Ma¯ ori business can play in New Zealand’s financial future

Ma¯ ori Development Minister Willie Jackson says the Ma¯ ori economy is growing and iwi who have built up assets and wealth have a major role to play in New Zealand’s financial future.

Jackson said the Ma¯ ori economy has grown from $16 billion to $70 billion in 20 years and, with projected growth of 5 per cent per annum, that’s expected to reach $100 billion in assets by 2030.

He said the Ma¯ ori contribution to the New Zealand economy is multifaceted, and includes the primary sector, natural resources, enterprise and tourism.

Last month Statistics NZ released new figures on the Ma¯ ori economy: Tatauranga umanga Ma¯ ori —

Statistics on Ma¯ ori businesses 2021.

And the second Te Matapaeroa report from Te Puni Ko¯ kiri found almost 40 per cent of Ma¯ ori-owned businesses have wahine Ma¯ ori as owners and identified 23,300 economically significant Ma¯ oriowned businesses.

On a population proportional basis, Ma¯ ori enterprise is still only 8 per cent of all enterprises in Aotearoa, pointing to opportunities for growth in income from businesses and opportunities for talent development.

Jackson said the 2022 Ma¯ ori Budget package of $1 billion had built on previous investments in education, employment, economic development, health, tamariki, and wha¯ nau wellbeing.

“The challenge, of course, is that there must be a flow-on effect. That is still happening far too slowly for my liking,” Jackson told the Herald.

He said the Te Puni Ko¯ kiri-led

Ma¯ ori Economic Resilience Strategy ensures a coordinated government response to support Ma¯ ori economic resilience across skills and workforce, community resilience and infrastructure and enterprise.

“The Progressive Procurement initiative intends to improve economic outcomes for Ma¯ ori businesses and employees and help make the government procurement landscape more accessible for Ma¯ ori businesses,” Jackson said.

Progressive Procurement has an initial target for 5 per cent of supply contracts for mandated government agencies to be awarded to Ma¯ ori businesses. Provisional results from July 1, 2021, to December 31, 2021, show that 5.7 per cent of contracts were awarded, with an approximate value of $871 million.

Jackson said there are still a number of areas for Ma¯ ori growth.

“There is still significant opportunity for Ma¯ ori growth in highvalue primary industries like horticulture and generally bringing non- or lower-productive lands into high value primary production,” he said.

Ma¯ ori are also under-represented in digital/ict and creative industries, Jackson said, although there are good examples of Ma¯ ori entrepreneurs starting to make waves in this space.

Domestically, sectors like construction and infrastructure would be important and the progressive procurement policy was a key lever, Jackson said.

While singing the praises of the

Ma¯ ori economy, Jackson was also reticent because of the negative statistics that continue to hold many Ma¯ ori in a headlock.

“It seems ridiculous that we have a Ma¯ ori economy worth $70 billion

It seems ridiculous

that we have a Ma¯ ori economy worth $70 billion and yet Ma¯ ori still have far and away the worse statistics in health, education,

housing and employment. Willie Jackson, Ma¯ori Development

Minister

and yet Maori still have far and away the worse statistics in health, education, housing and employment,” he said.

“While we are seeing improvements particularly in employment, our strategies of how we fund and who we fund need to be constantly reviewed. We have seen our best results come when we have funded iwi and communities directly.

“The ‘by Ma¯ ori, for Ma¯ ori’ strategy has given us clear and direct results

... never better exemplified through the Covid crisis, we must learn from that. We must also remember that the mana whenua perspective while important, it is not the be-all and endall for urban Ma¯ ori.”

He said said the iwi who had invested wisely with settlements must start the trickle-down of funds to support members of their tribe who are struggling.

“This Government will honour mana whenua obligations but those obligations cannot override

Ma¯ ta¯ waka rights for those Ma¯ ori who are not part of the local iwi or hapu in Auckland or Wellington but have lived in those cities for generations and also have rights that have been recognised by the Waitangi Tribunal and courts.

“Many of those Ma¯ ori have formed their bond with their local marae, community provider, kohanga reo, Maori Wardens, Maori council or Urban Maori Authority and those groups represent their day-to-day interests.

“We must continue to support these groups and in fact increase our support if we really want to see major improvements for Maori economically.”

The three tribes setting the standards are Auckland-based Nga¯ ti Wha¯ tua O¯ rakei, Waikato’s Tainui and South Island based iiwi Nga¯ i Tahu.

Nga¯ ti Wha¯ tua O¯ rakei — who got an $18 million Treaty settlement — now has a $1.6 billion bottom line.

Nga¯ i Tahu and Tainui were first movers in the settlement queue receiving $170 million each in cash and assets. They were were also fortunate to invoke a ratchet clause to their settlements. That meant as soon as the Crown passed its $1 billion fiscal cap, those two iwi get a percentage of all new settlements.

That means every new iwi settlement past the $1b earns Tainui and Nga¯ i Tahu a healthy bonus from the Crown.

Nga¯ ti Wha¯ tua Orakei ¯ deputy chief executive Ngarimu Blair said all of their iwi descendants must whakapapa to Tuperiri, who established mana over the central Auckland Isthmus and Upper Waitemata¯ in the mid 18th century.

He took land through traditional warfare but also through peace marriages and continued occupation of the whenua through to today.

Tuperiri commanded with his wives Hine Te Wairoa and Kuraroa from the summit of Maungakiekie at his Pa¯ called Hikurangi.

There are approximately 7000 Nga¯ ti Wha¯ tua O¯ rakei tribe members.

“Our quantum for the immense losses endured by our people was $18m for central Auckland and Upper Waitemata¯ . We effectively selffunded our wider settlement through negotiating the purchase of surplus Crown lands such as the former Railways land in downtown Auckland and defence housing land on the North Shore which we have significant bank debt over,” Blair said.

“We have a Right of First Refusal across wider Auckland, however this is shared with other iwi from as far away as Thames and to date we have seen only a trickle of opportunities flow through to us.”

Blair said the iwi invests in “our people” to ensure profits will futureproof Nga¯ ti Wha¯ tua O¯ rakei Iwi for generations to come.

“We are focused on housing for our people with over 200 houses in our village now and many more on the way. We invest heavily in cultural restoration programmes, private health insurance for all wha¯ nau and a tribal investment and savings schemes, as well as many other support services to help our people,” he said.

He said the best advice he has for other iwi settling is to surround yourself with people who have good values and listen to their advice.

“There are plenty of sharks ready to separate us from our hard-earned pu¯ tea. Knowing who is a shark and who is not is most of the battle.”

While a relatively small iwi, Nga¯ ti Wha¯ tua O¯ rakei hold mana over the Auckland rohe, despite another 18 iwi who are registered across the region.

“We learned to separate commercial governance from social, so that our respective governance entities are able to focus on those areas that they are experts on.

“We have learned from very hard lessons that nothing is certain without clear strategy and a plan. Ours is to invest heavily in our own tribal district and city and not stray from that.

“In our past we, as an iwi and our people, have endured the spectrum of adversity and disappointment as well as victory and success, we must prepare for the best, but be able to endure and overcome the worst if it comes. If we remain humble, focused and driven by what is best for our people and by doing what is tika, then we have a very bright future ahead of us.

“Money provides the means to support our own and those most in need in our wha¯ nau. In days gone, the currency was simply different. When we were almost landless and impoverished, we were cast aside by many, we were almost invisible in our own lands. This no longer is the case and it will never ever occur again.”

His message to iwi yet to settle is simple:

“Do not let the settlement process corrupt your tikanga and spread your net far and wide into others’ territories in the hope of boosting your cash settlement and influence,” Blair said.

Down the road in the Waikato region, Tainui are another iwi who have built up their asset base through good sound investments.

Tainui have around 80,000 tribe members.

In 1995, they received a settlement of $170 million in cash and assets. Today, they have a balance sheet of $1.7 billion and total assets around the $2b mark.

But not all Tainui investments have been financially beneficial — like their buy-in to the Warriors rugby league club in 2000.

After spending millions, Tainui cut their losses and got out. Their reasoning for purchasing the Warriors was sound, as Tainui chief negotiator Sir Robert Mahuta wanted a pathway for young gifted Ma¯ ori rugby league players. That is still a kaupapa many are striving for today.

Tainui chairman Tukuroirangi Morgan said they have learned some very important and harsh lessons along their settlement journey.

“We always strive to learn from our investments,” Morgan said.

“Our values are underpinned by an unwavering dedication toward maintaining the principles of Kiingitanga,” he said.

“Our iwi is populated by individuals who have a wide range and diverse set of skills and expectations. We absolutely value the input from all tribal members.

“We have a bright future and will continue to grow our asset base so that we can support the dreams and aspirations of our people. Whakatupuranga 2050 sets out our success measures which we will continuously monitor ourselves against.

“Our expectations is that all of our projects will prioritise our people including our tribal businesses — it is an integral part of how we conduct business.”

And his message to iwi yet to settle: “This is a decision that they must make themselves. We are happy to provide advice on settlement mechanisms and processes but not the internal politics that inevitably accompany settlement discussions.”

In the South Island, Ngai Tahu is the third iwi to have made good financial decisions.

Nga Tahu are the first people of Te Waipounamu who journeyed on the Uruao waka and settled in Ka¯ Pa¯ kihi Whakatekateka o Waitaha – the Canterbury Plains.

Through warfare, intermarriage and political alliances a common allegiance to Nga¯ i Tahu was forged. Nga¯ i Tahu means the “people of Tahu”, linking to the ancestor Tahu

Po¯ tiki. Like Tainui, there are about 80,000 members.

In 1998, Nga¯ i Tahu received a settlement of $170 million made up of cash and assets. Last week Nga¯ i Tahu Holdings declared a net profit of $233m for the 2021-22 financial year. They have total equity of $1.9 billion and total assets of $2.3 billion.

Since settlement, Nga¯ i Tahu has invested $742m into tribal development, including grants for tertiary education and scholarships, language revitalisation, environmental projects, marae projects and programmes that advance the wellbeing of the iwi.

Nga¯ i Tahu chairwoman Lisa Tumahai said the iwi is pleased with the result.