Merging the Maori Council

It’s commonly accepted that the New Zealand Maori Council is redundant. With the rise of the Maori Party, the Mana Party and the Iwi Leaders Group, the Maori Council find their position threatened.

For consultation purposes, the government prefers to deal with the Iwi Leaders Group. The government prefers to deal with an organisation that’s ideologically sympathetic. I think it's fair to describe the iwi leaders as neoliberal. For example, they support asset sales, PPPs and so on. However, what cements the Iwi Leaders Group as the advocacy and consultation group of choice is money.

The Iwi Leaders Group are a multi-billion dollar collective. The Maori Council, however, is anchored by an Act of Parliament and an act that is due to be reformed or, quite possibly, wiped off the statute books. The Iwi leaders are secure. On the other hand, the Maori Council is subject to the whims of the government of the day.

In my opinion, the Maori Council still have an important role. The Iwi Leaders Group largely represents the commercial interests of iwi, with some notable exceptions, whereas the Maori Council’s focus is more broad. It is, after all, the Maori Council who are lodging the water claim. In contrast the iwi leaders are engaging in backroom dealing in an attempt to secure a political solution. The iwi leaders are taking a pragmatic approach, arguably the best approach, but I prefer the Maori Council’s approach. Before engaging in deals, I’d prefer to know the legal position. Then again, an adverse finding undermines your bargaining power. The threat of legal action is persuasive, but neutralised when the Court has or will find against you.

Perhaps the water claim issue illustrates the need for the Maori Council and the Iwi Leaders Group to merge. Both sides are taking opposite approaches and, in the process, undermining each other. The Iwi leaders already perform many of the Maori Council’s functions, only with economic leverage and political connections that an Act of Parliament can’t give. Surely the only option, or the most sensible option at least, is to merge.

On a slightly different note, there are claims that the revival of the Maori Council is merely a power play on behalf of Donna Hall and Sir Eddie Durie, the co-chair and Hall’s partner, and a useful vehicle for other Maori power players, for example Rahui Katene. I don’t put much stock in this. I rate the integrity of Sir Eddie Durie too highly.

Ultimately, I think a merger has to be on the cards. The Maori Party, Mana Party and the Iwi leaders perform what the Maori Council once did, only more effectively. There isn’t any space for the Maori Council.

Mark Solomon on asset sales

Ngai Tahu’s Mark Solomon joined Kathryn Ryan today in discussing asset sales. Here’s the link. Solomon outlined Ngai Tahu’s thinking on asset sales (as well as the broader Iwi leaders position). I found the following quite interesting: Solomon informed us that at the beginning of National’s first term he and other iwi leaders, by other iwi leaders I assume he means Tuku Morgan, met John Key, Bill English and other senior members of Cabinet. Presumably they met to talk about treaty settlements (relativity clause maybe?) and broader Maori issues. It should be noted the iwi leaders were accompanied by Pita Sharples which indicates that the Maori Party were working to open doors for iwi. Then again I think Ngai Tahu have used Saunders Unsworth in the past so it could be their work. Anyway, in the discussions Key said the government was cash strapped. In response Solomon put forward the idea of asset sales. Apparently he was rebutted with Key informing him that asset sales are off limits in the first term, however Key (or whoever) indicated their willingness to explore the sales in the second term. So it appears that iwi were interested in asset sales before the idea was floated publicly, or at least confirmed publicly. I think this is interesting.

Rino Tirikatene pointed out last night on Native Affairs that iwi should be exercising some entrepreneurial thought rather than relying on the government floating safe assets for them. I agree.

Solomon also acknowledged during the interview that individually iwi cannot hope to become major players; however Solomon holds that iwi can become major players as a collective. He argues iwi could obtain between 10-15% of any assets. This is optimistic, especially given Ngai Tahu’s position as a major infrastructure investor in Christchurch. I don’t think they have the ability to dip into state assets as well as infrastructure in Christchurch. The only other iwi with the financial clout to participate is Tainui, but they’re sinking a lot of money in to other commercial ventures like shopping malls (Te Awa, the Hamilton CBD etc).

Solomon, who I should note seems to be leading the asset sales charge instead of Tuku, believes iwi are the perfect buyers. Long term investors with exclusive interests in New Zealand. This is hard to argue with I guess. However, the other arguments against iwi involvement in asset sales still stand. For example, asset sales will, in all likelihood, lead to a decrease in government services. Iwi, as “major” investors, surely have an obligation to negate the effects of decreased services on Maori. However, iwi don’t have the economies of scale (nor the experience for that matter) to provide what government once did.

Ngai Tahu, and to a lesser extent Tainui, are positioning themselves well. For example Tainui, apparently, own half of the Tainui CBD. Nagi Tahu are positioning themselves to take a similar position in Christchurch. In fact Ngai Tahu own large tracts of the South Island (including many rural stations). The next step is for iwi is a slice of New Zealand’s strategic resources. Power companies are the obvious, and cheapest, choice. The first step essentially. I wouldn’t be surprised to see Ngai Tahu make a move for a stake in Christchurch Airport. Tainui already own and operate the only hotel at Auckland Airport and the natural progression from there is a stake in the airport itself. Apparently Tainui’s biggest interest is in Air New Zealand at the moment.

Both Ngai Tahu and Tainui have a relativity clause. When they invoke the clause I think we could see them become huge players in the New Zealand economy.

Invoking the relativity clause

The Treaty settlement process is moving along nicely under Chris Finlayson (and was moving well under Michael Cullen too). The total value of all Treaty settlements to date exceeds $1 billion – or by my estimation at least. This is hardly a revelation, but consider this:

As part of their settlement agreements Ngai Tahu and Tainui have a relativity clause. A relativity clause is a “special top up mechanism” designed to ensure Ngai Tahu and Tainui maintain their high position relative to other Iwi. The relativity clause comes into effect when the sum total of treaty settlements exceeds $1 billion in 1994 dollars (the clause has effect from 1994 to 2044).

Unfortunately, I can’t find the text for the full Ngai Tahu and Tainui settlement agreements, but it is my understanding that Ngai Tahu and Tainui can invoke the relativity clause and that gives them the right to return to the negotiating table. I believe they can only negotiate a top up cash payment as opposed to the return of more land, management agreements or anything else.

An extra payout will have interesting political consequences. Many New Zealanders will be baffled that the already rich, and that is a subjective term, Ngai Tahu and Tainui can double dip. Non-Maori New Zealanders will ask aren’t settlements meant to be full and final. What I’m getting at is that a redneck backlash will occur. Maoris this Maoris that sort of stuff. The sort of stuff that will give the Tories, and the Labour Party too, the shivers.

No government wants to be perceived to be pandering to Maori. As a result the government has engaged in some creative accounting in an effort to avoid exceeding $1 billion and, consequently, avoid reopening a political can of worms. However, the government, no matter how they twist it, cannot avoid exceeding the very low threshold that is $1 billion – especially with the looming and large Nga Puhi and Tuhoe settlements.

I hope the Ngai Tahu and Tainui return to the negotiating table soon. Both Iwi accepted paltry sums ($170m), then again they couldn’t be expected to squeeze out much more in the circumstances. Hopefully a top up payment gives the two Iwi the financial power they need to form the buying consortium that Tuku Morgan is pushing. Tuku is looking to form a sort of Maori conglomerate in response to assets sales. The plan is that Iwi will combine their purchasing power in an effort to acquire sizable chunks of New Zealand’s strategic resources. I must admit, this is one of Tuku’s better ideas (not saying I agree with asset sales because I don’t). Ngai Tahu will also need a cash injection if they want to play a lead role as a private investor in the Christchurch rebuild.

The rise and rise of Iwi is inevitable. Tainui and Ngai Tahu are already the economic powerhouses of their regions (Waikato and the South Island respectively) it is only a matter of time before Iwi like Nga Puhi, Tuhoe and Ngati Porou become the driving forces behind their regional economies. Makes you wonder when all Maori will benefit from the strength of Iwi. 

Maori Council, John Key and Maori Business

Mita Ririnui has something interesting to say about the Maori Council:

Labour list MP Mita Ririnui says it's likely the New Zealand Maori Council will merge with the Iwi Leaders Forum.

The Maori Affairs Select Committee looked at how the Maori Council operates, during its last year into the Maori Development Act.

It found that the council has played a crucial role in representing the interests of Maori, but there are concerns it's become redundant with other Maori groups taking over that work.

Mr Ririnui, who's on the committee, says it may be productive for the council to join the Iwi Leaders Forum.

The Maori Council is becoming increasingly irrelevant. The Iwi Leaders Forum (ILF) is now the vehicle of choice for the National Government. If Mita’s comments are indicative of feeling within Labour, or at least the Maori Caucus, then I think the ILF will be cemented as the Maori organisation of choice for consultation, research opportunities, ppp’s and so on. If this happens then there will be no room for the Maori Council. It is convenient for the government to have a one-stop shop for external advice on Maori issues. It also suits the government when that organisation is ideologically sympathetic and, in the case of the Nat’s and asset sales, supportive of a key policy plank. For an in depth discussion re the nature of the ILF see this post on the “Iwi Elite” from earlier in the year.

----------

I don’t care really care that the Prime Minister did not use te reo in his opening speech at the RWC opening ceremony. His staff obviously overlooked it and Key himself probably doesn’t give the content of such a pedestrian speech much thought. I’ve always imagined that Key just parrots the lines he receives. Having said that, it is personally embarrassing for Key to ignore the use of te reo, which is such an integral part of New Zealand identity, when the head of the IRB, a Frechman no less, uses te reo with some skill and grace. On the whole, Maori can stand proud given the important role we played in the opening ceremony. The highlight for me was the waka fleet – it was a majestic scene.

----------

From RNZ:

The newly appointed Head of Maori Business for the Bank of New Zealand, Pierre Tohe, says there is plenty of economic activity to chase beyond the corporate arms of iwi.

Maori business continues to grow steadily. In most cases Iwi are involved in some way or another, but independent Maori businesses are beginning to grow. Off of the top of my head I can think of several small and successful independent Maori businesses, but I don’t think Maori have anything on the medium scale yet. The corporate arms of Iwi could, by my definition, be termed medium sized corporates. I think Maori business will come of age when we move away from profiting off of government contracts and instead move towards playing a greater role in the private sector.