the intergenerational challenge: balancing present and future needs september 2014
TRANSCRIPT
There is a shift occurring• Deficit to potential
• Grievance to forward-looking
• Compliance to performance
• Adversarial to collaborative
• Passive to active
• Capability & capacity
• Time & exposure
• Focus and emphasis is shifting!
The Māori economy is growing fast
2006
$16.4bn(estimate)
2010
$36.9bn
$10.6bnInstitutions
$5.4bnSelf-employed
$20.8bnEmployers
Māori contribution to NZ’s Primary Sector
National sheep and beef stock estimates(Source: MAF, 2011)
10 -15%
37%
NZ total fish quota
8-10%
National milk solids production(Source: MAF, 2011)
Pre 1990 forests
36%
A snapshot of Māori
Series1
Increasing Māori Asset Base
Decreasing Māori Wellbeing
Valu
e
Time
Disparity between our economic growth and social wellbeing
Māori have a youthful population
Source: Statistics New Zealand (2013)
Investing in young Māori In comparison to the total NZ
population
Understanding the Maori Demographic
2006
$16.4bn(estimate)
$10.6bnInstitutions
$5.4bnSelf-employed
$20.8bnEmployers
80% of Maori land isunderperforming orunutilised.
The opportunity
1.5m hectaresMāori freehold land
Well developed(300,000ha)
Unutilised(600,000ha)
Under performing(600,000ha)
Potential is hugeLifting performance to average industry benchmark levels would bring
over 10 years:
• $8 billion additional gross output
• 3,600 new jobs for the primary sector
• $3.7 billion contribution to GDP
But
• Just under $3 billion investment required
The task is large• The task is too big for us to do it by ourselves• For example, in the East Coast region• Maori population of 47%• 7 of 11 areas score 10 on the scale of relative deprivation• Median Maori income for the district is $3,100 per annum lower
than the regional median – up to $6,100 per annum in the rural East Coast
• There is a disproportionately older population in the rural East Coast
• experienced negative population growth since the 2006 census• has generally poor infrastructure and public services
We are in this waka together
• If we are going to make a difference we cannot do it by ourselves - and shouldn’t be trying to do so
• We are still capital constrained
• We largely occupy the producer space and, with the exception of the fishing industry, have limited investment in other parts of the supply chain and value chain
• The survival of our communities is closely connected to the success of the wider community, especially in the regions
We have something to Offer
Maori Inc NZ Inc Aotearoa
Inc
• New Zealand needs new solutions• Governance MUST support and drive change• Our interests are aligned• We want to do better together
Maori/Iwi and entities have sufficient economic security to be able to participate in, and choose from, all consumer and
investor options available
In so doing, they choose to identify culturally as Maori/Iwi
Maori Success
Maori Asset Ownership Objectives• Perpetual (taonga) Assets vs other assets• How to avoid commercial or environmental outcomes where
involuntary loss of ownership and control occurs• Appropriate risk and management processes• Does perpetual ownership and control over certain assets is a Maori
objective that shapes attitudes and behaviour of Maori owners in a way that is significantly different from the norm.
“The trustees of endowed institutions are the guardians of the future against the claims of the present. Their task in managing the endowment is to preserve equity among generations.”
James Tobin 1974
Mobilising Māori land and assets to create this generation’s legacy.
Utaina te waka, hāpainga ko te hoe, kia tuputupu te whai oranga.
Our vision
Connect with
our people
Capitaliseassets
Grow assets
Mobilising Maori Assets
Capabilitypeople and the Assets
Collaborationat all levels
Commitmentto a long term strategy
Capitalfinancial and non financial resources
Conclusion• We face the dilemma of a growing asset base without increased overall
well-being for Maori• The future for Māori economic development and growth though is
brighter than ever• When balancing present and future needs we need to consider:
• The quadruple bottom line – financial, environmental, cultural and social
• The aspirations of this generation, and the legacy we want to leave
• Investment in our capability – workforce education, management and governance
• Increased collaboration among Maori and non Maori – skills, capital, partnerships
• The role of leadership