MÃ„Âori Enterprise and the New Zealand Capital ... - Te Puni Kokiri

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– Artistic expressions that find outlets in art, design, music, dance, crafts and other media. – Other intellectual property. • Mäori have disputed claims to tangible and intangible assets including water, geothermal, minerals, air space, radio frequency spectrum etc. Mäori enterprise structure Mäori collective assets are organised under a range of structures including: • Unincorporated structures: – Hapü and whänau. – Unincorporated trusts. • Incorporated structures: – Trusts (subject to Trustee Act (1956)). – Mäori Incorporations and Trusts (Te Ture Mäori Whenua Act (1993)). – Incorporated societies (Incorporated Societies Act (1908)). – Post-settlement Governance Entities (PSGE) that have resulted from Treaty Settlements. – Pan-iwi governance entities that have resulted from resource settlements including: • The Crown Forestry Rental Trust. • The Treaty of Waitangi Fisheries Commission – Te Ohu Kaimoana. • The CNI Forest Iwi Collective. – Iwi (tribal) authorities. – Statutory corporations (e.g., Mäori TV). – The Mäori Trustee. The two key commercial structures that manage Mäori interests in land are ahu whenua trusts and Mäori incorporations. In 2008 there were 129 Mäori incorporations and 5,201 ahu whenua trusts. Under an ahu whenua trust, land owners retain their direct interests in the blocks administered by the trust. With Mäori incorporations, owners become shareholders who hold shares issued by the incorporation. A third structure of importance are whänau trusts. Roughly 15,000 whänau trusts hold interests in about 15 percent of Mäori land. A key feature of a whänau trust is that it consolidates the interests in land for the benefit the descendants of the named tipuna. By preventing any individual disposing of an interest a whänau trust counteracts fragmentation of the family’s ownership interest in land or in Mäori incorporation shares. Mäori land comprises around 1.5 million hectares (five percent of New Zealand’s total land area). 750,187 hectares (or 50 percent of Mäori land) is administered by ahu whenua trusts, and 207,157 hectares (or 14 percent of Mäori land) is administered by Mäori incorporations. In 2007 it was estimated that the asset value of these organisations was around $3,200 million. Around two and a half percent of Mäori land is held under other trusts established under the Te Ture Whenua Mäori Act (1993). Problem definition 54
The problem presented by Mäori enterprises gaining satisfactory access to external financial accommodation has been previous characterised as stemming from a reluctance to offer land as security. It has also been characterised as stemming from a reluctance on the part of lenders to accept such security because of the cultural attachment to land and the alienation barriers imposed by Te Ture Whenua Mäori Act 1993. This problem definition is an incomplete characterisation because: • Some land-owning Mäori enterprises have been able to access debt funding in satisfactory amounts and on satisfactory terms. • Mäori enterprises that have sought capital for ventures that are not materially landrelated have also experienced limitations on their ability to access suitable finance on satisfactory terms. Other aspects of the capital markets are prevented from operating when Mäori enterprises hold controlling interest in assets. The NZIER noted in its 2002 report the problems of Mäori enterprise ownership include the difficulty for outside investors to purchase shares in Mäori enterprises. This reduces profitability because opportunities for mergers and acquisitions do not exist to put pressure on management performance in the Mäori enterprise context. The lack of a market which values the interests in trusts and shares in Mäori incorporations is confusing for beneficiaries and shareholders, yet this limitation is accepted by Mäori because of non-commercial considerations. Mäori access to finance is affected by information gaps and the small size of business ventures as well as cultural and organisational structures that are unfamiliar to capital providers. Expanding role of Mäori enterprises Mäori enterprises are not as tied to land as a primary economic asset as they once were. Mäori enterprises engage in an increasingly wide range of activities, and the trend is ever widening. The range of economic activities includes traditional agribusiness, horticulture and forestry (as well as landlords to others undertaking such activities), commercial fishing, aquaculture, tourism, property development, and electricity generation. Mäori enterprises are also an important source of capital for business investment. However, there is not an organised market as such to link capital providers with suitable target businesses. The goals of the investment process are often not well articulated. In the post-settlement environment iwi organisations have become increasingly prominent in the provision of services to their members and their local communities. Such organisations have come to be significant providers of communications, health care and education services. Such organisations are also an important source of capital for the development of tribal enterprises and infrastructure. The appearance and growth of Mäori tertiary education institutions and pan-tribal organisations in the fishing and forestry sectors should also not be overlooked. Looking to the future 55
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MÄORI ENTERPRISE AND THE NEW ZEALA
Page 4 and 5:
Executive Summary Introduction This
Page 6 and 7: growth. Mobilising resources relies
Page 8 and 9: Importance of perceptions A key que
Page 10 and 11: Mäori enterprises are also an impo
Page 12 and 13: What do they mean by governance We
Page 14 and 15: Conclusion Many Mäori enterprises
Page 16 and 17: providers can point to transactions
Page 18 and 19: Gaining acceptance of the need to c
Page 20 and 21: • Investigating alternatives to o
Page 22 and 23: Alternatives to over-the-counter ma
Page 24 and 25: Recommendation: 1. The priority for
Page 26 and 27: Appendix A Case studies Introductio
Page 28 and 29: Table 1 Comparative Governance Arra
Page 30 and 31: Comparative Governance Arrangements
Page 33: REFERENCE GROUP, INTERVIEWS AND CAS
Page 36 and 37: 1. Introduction 1.1 Purpose This re
Page 38 and 39: participation among Mäori enterpri
Page 40 and 41: • The Mäori economy is more prof
Page 42 and 43: Members are invited to join the ref
Page 44 and 45: The reference group also identified
Page 46 and 47: 5.2 List of interviews A list of in
Page 48 and 49: References Annesley, B. (2005). The
Page 51: FEEDBACK AND INTERVIEWS 1 July 2010
Page 54 and 55: 1. Introduction The Mäori Investme
Page 58 and 59: The position of iwi organisations i
Page 60 and 61: 3. Interviews In this section, we r
Page 62 and 63: “Who knows how to value incorpora
Page 64 and 65: “Why would I lend money to a Mäo
Page 66 and 67: Banks Banks are not confident they
Page 68 and 69: • The current mission of most Mä
Page 70 and 71: interpersonal roles can create inte
Page 72 and 73: Mäori enterprise characteristics T
Page 74 and 75: Even more difficult is to identify
Page 76 and 77: Appendix A Research summaries This
Page 78 and 79: in Mäori trusts and incorporations
Page 80 and 81: Mäori Land Development Report prep
Page 82 and 83: The economic emergence of India and
Page 84: Contact the Taskforce Chair of the
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