The Māori economy is booming and will be worth $100 billion by 2030, says Willie Jackson

Māori Development Minister Willie Jackson says the Māori 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 Māori economy has grown from $16 billion to $70 billion in 20 years, and with a projected growth of 5 percent per annum, that’s expected to reach $100 billion in assets by 2030.

He said the Māori contribution to the New Zealand economy is multi-faceted, and includes the primary sector, natural resources, enterprise and tourism.

Last month Statistics NZ released new figures on Māori business Tatauranga umanga Māori – Statistics on Māori businesses: 2021.

And the second Te Matapaeroa report from Te Puni Kōkiri found almost 40% of Māori owned businesses have wahine Māori as owners and identified 23,300 economically significant Māori-owned businesses.

On a population proportional basis, Māori enterprise is still only 8% of all enterprises in Aotearoa, pointing to significant upside for growth in incomes from businesses and opportunities for talent development.

The research shows the contribution of Māori to the wider economy and will inform future policy work to build the Māori economy and help whānau thrive.

Jackson said the 2022 Māori Budget package of $1billion has built on previous investments in education, employment, economic development, health, tamariki, and whānau wellbeing.

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

He said the Te Puni Kōkiri led cross-agency Māori Economic Resilience Strategy ensures a coordinated government response to support Māori economic resilience across skills and workforce, community resilience and infrastructure and enterprise.

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

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

Maori Development Minister Willie Jackson during Question Time in Parliament. Photo / Mark Mitchell

Jackson said the Government to Government Indigenous Collaboration Agreements signed with Australia and Canada will promote and facilitate the economic, social, cultural, and environmental advancements of indigenous peoples through relationship development, improved knowledge sharing, and stronger collaboration.

“Arrangements like these acknowledges a shared commitment to improving the lives and wellbeing of each countries indigenous peoples, who play a pivotal role in the prosperity and wellbeing of their communities, as well as the contribution they make to the national economy.”

Jackson said there are still a number of areas for Māori growth.

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

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

Domestically sectors like construction and infrastructure will be important and our progressive procurement policy is a key lever here, Jackson said.

He said key factors in Māori economic growth are enabling access to capital, resources, support to build enterprise capability and capacity and like the rest of the economy, support to adapt and build resilience in the face of technological change.

“There is no one answer in regards to opportunities available to Māori as each whānau, hapū and iwi have different economic assets, different skills and therefore opportunities. Generally, there are equal opportunities in both export and domestic markets.”

While singing the praises of the Māori economy, Jackson was also reticent because of the negative statistics that continue to hold many Māori in a head lock.

“It seems ridiculous that we have a Māori economy worth $70 Billion 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.

Jackson continued: “The ‘By Māori for Māori ' strategy has given us clear and direct results which was never better exemplified through the covid crisis, we must learn from that. We must also remember that the Mana whenua perspective whilst important, it is not the be all and end all for Urban Māori.”

He said said the Iwi who have invested wisely with their 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 Mātāwaka rights for those Māori 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 Māori 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 Ngāti Whātua Ōrakei, Waikato’s Tainui and South Island based Iwi Ngāi Tahu.

Ngāti Whātua Ōrakei - who got $18 million Treaty settlement - now has a $1.6 billion bottom line.

They have invested wisely their 2011 settlement money and now have a balance sheet of $1.3 billion in equity, and Total Assets of $1.66b.

They, along with Tainui and Ngai Tahu are the three Iwi with the biggest balance sheets.

Ngāi 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 Ngāi Tahu a healthy bonus from the Crown. This has created Iwi jealousy but as seen by all three balance sheets, shows Māori can manage money both fiscally and prudently .

Ngarimu Blair outside the new housing development being built on Ngati Whatua land in Orakei in 2016. Photo / NZME

Ngāti Whātua Ōrakei Trust Board Deputy Chair Ngarimu Blair said all of their Iwi descendents must whakapapa to Tuperiri, who established mana over the central Auckland Isthmus and Upper Waitematā 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 Pā called Hikurangi.

There are approximately 7,000 Ngāti Whātua Ōrakei tribe members.

“Our quantum for the immense losses endured by our people was $18m for central Auckland and Upper Waitematā. We effectively self-funded 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.

We have raised significant concerns with the Crown, who at times seem to avoid the RFR mechanism.”

“We have total Assets $1.66 billion and total equity $1.36b.”

Blair said they invest in “our people” and ensure profits will future proof Ngāti Whātua Ōrakei 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 programs, private health insurance for all whānau and a tribal investment and savings schemes, as well as many others support and services to help our people,” he said.

He said the best advice he has for other Iwi settling is to surround yourself with good - in the values sense - people and listen to their advice.

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

While a relatively small Iwi, Ngāti Whātua Ōrakei hold mana over the Auckland rohe, despite another 18 Iwi who are registered across the region.

“In unity there is strength. When we lack the skills or expertise, do not be shy to seek it out in others. The stakes are too high. In this way also, we are able to learn and grow our internal capability. Also, 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. Also have a clear strategy and plan.

“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 whānau. 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. However, our tikanga and kawa is the essence of who we are, and we are and must continue to be guided by this, at all times, not by money.”

His message to Iwi yet to settle is simple.

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

“That is a short term unsustainable strategy as whakamā, reputation, relationships and whanaungatanga are the currency of Te Ao Maori. The fiscal cap set by the Crown is unjust and itself a breach of the Treaty. Tribes have been pressured into accepting pathetic cash settlements while only a couple continue to receive large relativity payments every time an iwi settles.”

Tukoroirangi Morgan, chairman of Waikato-Tainui's executive board Te Arataura. Photo / File

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 Māori rugby league players.

That is still a kaupapa many are striving for today.

Tainui Chair 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.

He said Tainui are a strong-faithed Iwi.

“Our values are under pinned 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: “It is not for Waikato-Tainui to have a view on the settlement pathway for other Iwi. 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.”

Lisa Tumahai is the Kaiwhakahaere (Chair) of Te Rūnanga o Ngāi Tahu. Photo / Supplied

In the South Island, Ngai Tahu is the third Iwi to have made good financial decisions with their putea.

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

Through warfare, intermarriage and political alliances a common allegiance to Ngāi Tahu was forged. Ngāi Tahu means the ‘people of Tahu’, linking us to our eponymous ancestor Tahu Pōtiki.

Like Tainui, there are around 80,000 members.

In 1998, Ngāi Tahu received a settlement of $170 million made up of cash and assets.

Last week Ngāi Tahu Holdings declared a net profit of $233m for the 2021-22 financial year.

They have total equity: $1.9 billion and total assets $2.3 billion

Since Settlement Ngāi Tahu has invested $742m into tribal development, including grants for tertiary education and scholarships, language revitalisation, environmental projects, marae projects and many more programmes that advance the wellbeing of the Iwi.

Ngāi Tahu Chair Lisa Tumahai says the iwi is pleased with the result.

“With our strong financial result, we can reintroduce several of our popular programmes that were paused in 2020 due to economic uncertainties, such as Te Pōkai Ao which introduces rangatahi to future focused opportunities in the digital world, and Manawa Tītī and Manawa Mui which support emerging tribal leaders,” she said after releasing the Annual Report.

“Ngāi Tahu Holdings has performed very well under challenging circumstances as we continue to strategically invest in assets which will support us as an iwi to ride out the difficult times, such as the ongoing impacts of the Covid-19 pandemic.

“While Ngāi Tahu Holdings has distributed $58.6m of its net profit to Te Rūnanga o Ngāi Tahu in FY22, this will rise to $75.4m next year. The annual distribution funds a variety of mahi to support more than 76,000 Ngāi Tahu whānau.”

Since Settlement, Te Rūnanga o Ngāi Tahu has invested $742m into tribal development, including grants for tertiary education and scholarships, language revitalisation, environmental projects, marae projects and many more programmes that advance the wellbeing of the Iwi.

“We know the increased cost of living, Covid lockdowns, and several significant flooding events have all put pressure on whānau budgets, so I’m pleased we could support 2,885 whānau with Pūtea Manaaki grants and deliver 5,000 Covid care packs to help māuiui whānau recover,” says Lisa Tumahai.

Ngāi Tahu Holdings Chair Mike Pohio says an overarching long-term focus has allowed the business units to navigate the current economic challenges and produce an outstanding result for whānau.

“Our focus remains on growing the pūtea and delivering a dividend for our whānau in the long-term. We are confident that despite the uncertainty in the wider market, Ngāi Tahu Holdings will remain in a resilient position as we move forward.”