Ma¯ori businesses under threat
The grim economic picture forming in Aotearoa in the wake of the coronavirus pandemic will hit some Ma¯ ori hard, with some wha¯nau businesses unlikely to survive.
Gaylene Findlay, principal of accountancy firm BDO Taranaki, said the impact of the nationwide lockdown, which came into force at 11.59pm on March 25, would be felt at the wha¯ nau business level most.
As a result of being closed down if deemed non-essential, the lockdown would prove ‘‘fatal’’ with most not surviving the financial impact, she said.
‘‘While some will survive, I think we are going to see dire outcomes in our small business market, to which Ma¯ ori contribute,’’ Findlay said.
The Government has already forecast that the economic impact of coronavirus on New Zealand will outstrip the financial turmoil created by the 2008 Global Financial Crisis (GFC).
Unemployment levels would exceed the 6.7 per cent reached during the GFC and the nation’s gross domestic product would also be affected, Finance Minister Grant Robertson told the Epidemic Response select committee principal of BDO, Taranaki
last week.
Economic consultant Cameron Bagrie, who was chief economist of ANZ for over 11 years, didn’t mince words when talking about the financial future for the country.
‘‘There are certainly a whole lot of economic challenges.
‘‘The outlook is poor and that’s a polite way of putting it,’’ he said.
He said he did not think there would be too many businesses completely immune to the impact of coronavirus but it would just be a matter of degree.
‘‘There are going to be a lot of failures out of this and for a lot of businesses, there is no future.’’
Bagrie said those with a strong exposure to the tourism market faced few prospects but those involved in the digital economy were ‘‘probably going to get turbocharged’’.
While those who are cashed up, with strong balance sheets, could be in a position to snap up cheap assets which become available, he also pointed to the disproportionate impact a higher unemployment rate would have on Ma¯ ori.
Findlay, a Ma¯ori business mentor, said Taranaki would not be hit as hard as others.
She said regions such as Northland which relied heavily on forestry and tourism will feel the pinch; however plenty of local businesses will still be impacted.
For iwi, Findlay said there would be a varying impact and that depended on where settlement funds were invested commercially.
‘‘However, the social arms of these entities will continue on as an essential business in supporting their people and communities.’’
In terms of hapu¯ , she said they tended to be landowner based and involved in primary industries, like food production.
She said these groups tended to be conservative and carried minimal debt and Findlay expected them to carry on normally.
Findlay said business will look very different post the coronavirus pandemic but there was also ‘‘huge opportunity’’ for innovation.
‘‘Now is the time to pull out that strategic plan and consider what the new normal will look like.’’
‘‘While some will survive, I think we are going to see dire outcomes in our small business market, to which Ma¯ori contribute.’’
Gaylene Findlay