The intergenerational challenge: Balancing present and future needs September 2014

Business Consulting Commercial Law Economic Development Why? Source: Tuia Group Mike Taitoko

Our past....

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 $10.6bn Institutions $5.4bn Self-employed $20.8bn Employers

Māori contribution to NZ’s Primary Sector National sheep and beef stock estimates (Source: MAF, 2011) % 37% NZ total fish quota 8-10% National milk solids production (Source: MAF, 2011) Pre 1990 forests 36%

A snapshot of Māori Increasing Māori Asset Base Decreasing Māori Wellbeing Value 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) $10.6bn Institutions $5.4bn Self-employed $20.8bn Employers

80% of Maori land is underperforming or unutilised. The opportunity 1.5m hectares Māori freehold land Well developed (300,000ha) Unutilised (600,000ha) Under performing (600,000ha)

Potential is huge Lifting 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

Reframing success Economic Social Environmental Cultural

Reframing success Social Cultural

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

1.5 million hectares Māori land 5.5% of NZ total land mass

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 Connect with our people Capitalise assets Capitalise assets Grow assets

Connect 37 countries

Capitalise

Grow – opportunities

Mobilising Maori Assets Capability people and the Assets Collaboration at all levels Commitment to a long term strategy Capital financial 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

He waka eke noa We are all of us in this together