Christopher Luxon with Louise Upston visiting the geothermal Te Mihi Power Station near Taupō.
Christopher Luxon with Louise Upston visiting the geothermal Te Mihi Power Station near Taupō.
Opinion by Cale Silich
Cale Silich, investment manager, Te Aupouri Commercial Development Ltd.
Auckland will host Prime Minister Christopher Luxon’s Investment Summit 2025.
The Māori economic contribution has grown significantly, with opportunities in forestry and fisheries linked to foreign investment.
Commitment to projects in partnership with Māori is essential for equitable growth and development.
Will Māori benefit from the foreign investment summit?
Auckland is about to receive a large number of global capitalists with spending power amounting to $6 trillion. They are attending Investment Summit 2025, the brainchild of Prime Minister Luxon, which starts today.
Luxon is hoping these visitors will jump-start our economy. You may recall during the last election campaign his mission was to help us find our “mojo”. A term associated with magic, so how will he charm these A-listers?
Promoting New Zealand as a destination for global capital will need more than glossy prospectuses. We are already known as a place of landscape beauty, wholesome food, touristic vistas and an indigenous culture.
Portfolio managers, however, invest in projects and while country uniqueness is relevant, net profit after tax is paramount.
What sectors will government ministers promote? What incentives will boost our attractiveness given the global competition to attract capital?
Presumably, the investors will be told that Kiwis can get very grumpy about massive land sales, although one cannot pick the farm up and take it away, land is a very emotional matter.
It is encouraging that this event coincides with a new report showing that the Māori economic contribution to our economy has grown from $17 billion to $32b over the past five years.
Overseas investment can further advance this figure.
Māori have much invested in forestry. Photo/Supplied.
Māori forestry and fisheries is intertwined with Japanese capital. The land is leased to avoid alienation. Given the large landholdings held by tribes, such as Te Aupouri, many opportunities exist.
A single summit, however, is not sufficient to bring overseas parties together with Māori.
Wellington officials will need to substantially up their game. After the speeches and entertainment who will actually follow through and help seal the deals?
A case in point last year was when the Prime Minister declared that a food security agreement with the Singaporean Government was a top development priority.
A post-Covid concept which dovetails nicely into Māori landowners' aspirations. To date nothing appears to have been achieved.
Geothermal energy development should elevate our country as a desirable investment given the global focus on green energy. Not only does this coincide with Māori aspirations but it provides options for industrial manufacturing.
Making this a reality, however, will require more than political glamour.
Recently, we have witnessed the loss of jobs and enterprises due to unaffordable energy costs. The Japanese are known for their patience, but even they are selling up their manufacturing due to electricity prices.
No company can be guaranteed a successful future. However, Māori assets are predominantly located in provincial locations.
Unless there is affordable energy, it is likely that foreign investment will have a metropolitan bias.
It appears that the investment focus is on infrastructure projects such as the four-lane highway from Auckland to Whangārei.
It would be foolish, however, to think build the road and the billionaires will come.
Cale Silich.
Commitment to develop worthy projects in partnership with Māori is essential. If it lifts the poorest Kiwis, surely no one can disagree with that outcome.
It requires shared responsibility, a proactive Government and matchmakers.
Perhaps this role can be fulfilled by our banking system. Unlikely given their bias towards housing mortgages.
