The iwi power rankings: who are the most powerful iwi in 2013?

Pita Sharples and Ngai Tahu members with reprsentatives
 from the China Development Bank

Pita Sharples claims that the Maori economy is worth $37b. BERL calls the Maori economy a “sleeping giant”. Jamie Tuuta characterises the Maori economy as a “developing economy within a developed economy”. What does it all mean? It means that the Maori economy is a synonym for Maori power.

The Maori economy can’t be separated from a discussion on iwi power. But power is more than that: it’s cultural, political and it might be esoteric. I’ve adopted a fluid definition. Iwi power is measured against three factors: cultural power, economic power and political power. Each ground is subjective – I might value profitability over asset value while another person might reverse that – but I’ve tried to apply each consideration consistently.

The Breakdown

That Ngai Tahu topped the rankings will surprise no one. In the year to June 30 2012 the tribe enjoyed a net profit of 95.7m. In the year to June 30 2013 the tribe declared a net profit of 77.9m. Ngai Tahu Holdings Corporation owns assets worth almost $1b.

But Waikato-Tainui can claim similar numbers. Ngai Tahu emerged at the top on the strength of two factors: its stability and support for its members. Ngai Tahu isn’t burdened with cumbersome governance structures nor plagued with internal warfare. Parts of Ngai Tahu Holding’s profit will be spent on funding a superannuation scheme with 18,000 iwi members. Waikato-Tainui is behind the ball on these counts.

But others made the list for different reasons. Ngati Porou only recently settled, but they exercise a disproportionate pull on Maori politics. The highest ranked Maori minister in Cabinet – Hekia Parata – is from Ngati Porou. The highest ranked Maori minister in the last Cabinet – Parekura Horomia – was Ngati Porou. Some of Maori society’s most celebrated politicians – think of Ngata – were Ngati Porou.

Te Arawa isn’t the wealthiest iwi, but Rotorua is the centre of Maori culture. Thousands of tourists pass through Mitai, Te Puia, Tamaki and Whakarewarewa. They experience a few aspects of Maori culture, but it’s Maori culture presented through Te Arawatanga. Don’t underestimate the power of that.

Nga Puhi is the largest iwi. And here’s an interesting fact: the Maori mythology that’s presented in society often reflects Nga Puhi mythology. When Mataku - the drama series – dealt with Maori death the show used the Nga Puhi perspective that spirits depart from Te Rerenga Wairua. In Struggle Without End Ranginui Walker (despite being Whakatohea) uses Nga Puhi traditions to pin point the location of Hawaiki. Nga Puhi’s conception of the Maori world has a disproportionate influence on how we see ourselves and how others perceive us.

The Rankings

List of iwi

      1. Ngai Tahu

One of the headlines of the year goes to the Christchurch Press for this effort: The Wisdom of (Mark) Solomon. Make that Sir Mark Solomon.

Ngai Tahu sits on the Land and Water Forum. The Christchurch Earthquake Recovery Authority is obligated to consult local and regional council and Ngai Tahu. The government is also paying out what’s owed under Ngai Tahu’s relativity clause. Solomon has been critical in each respect.

Ngai Tahu is strategic. It helps having the capital and labour (in the form of young Ngai Tahu tradies) that the government needs for the Christchurch rebuild, but Ngai Tahu knows better than any how to put its economic leverage to work.

Ngai Tahu also secured the hosting rights to the next Te Matatini Festival. It might seem insignificant, but Te Matatini is Maori Society’s equivalent to the Rugby World Cup.

Ngai Tahu’s influence reaches across South Island: from aquaculture in Southland, farms in Kaikoura, tourism in Queenstown and property in Christchurch. There’s only one other iwi with such widespread economic influence…

      2. Waikato-Tainui

On July 3 Waikato-Tainui announced its annual result at The Base – the iwi’s $99m mall at Te Rapa. Waikato-Tainui is on track to become the most important component of the Waikato economy.

Ngai Tahu tends to go it alone. Waikato-Tainui hasn’t. In the last decade Waikato-Tainui has developed strategic partnerships with Accor Hotels, Auckland International Airport and several other companies. Those partnerships allowed Waikato-Tainui to build the Novotel Hamilton and the Novotel Auckland Airport.

Partnerships are crucial to iwi development. Waikato-Tainui appears to recognise this better than most. Iwi can’t raise capital through share or bond offers. It’s also iwi policy to maintain a debt ceiling of 30% and retained earnings (the money that is retained by Tainui Group Holdings rather than distributed) are not as high as you'd immediately expect. That makes joint ventures crucial to financing iwi investments like the inland port at Ruakura.

But it’s that ambition – coupled with the notorious instability mentioned earlier – that puts Waikato-Tainui in 2nd place. Ambition could turn to overreach and internal instability could do the rest. The inland port and associated developments at Ruakura are estimated to cost $3.5b. The Herald reports that:

[Waikato-Tainui will] develop a massive commercial inland freight hub… 6000 to 12,000 jobs will be created, more than 2000 houses will be built and the Waikato area's GDP will increase by $4.4 billion.

$3.5b appears to be a cost that Waikato-Tainui’s balance sheet can’t bear. Ngai Tahu appears to be in a (comparatively speaking) more sustainable position. But I hope to be humiliated in 10 years’ time when the development is finished and it’s proven that Mike Pohio was right to say “don’t bet againt our ambition”.

      3. Ngati Porou 

Forget the economy for now. Ngati Porou is powerful for different reasons – cultural and political reasons.

Ihimaera's Whale Rider

Some of Maori society’s best are and were Ngati Porou. Best thinkers (Moana Jackson); best writers (Witi Ihimeara); best composers (Derek Lardelli); best speakers (Kāterina Mataira) and best politicians (Apirana Ngata).

Ngati Porou have had and still have a disproportionate sway over Maori society. 

When the Foreshore and Seabed Act 2004 was passed Ngati Porou managed to negotiate a "comprehensive package of rights and protections" (with the help of two of their sons in Cabinet – Parekura Horomia and John Tamihere). No other iwi did so. In fact, it might not have crossed their minds. Ngati Porou can tap its talent in government to achieve the outcomes it needs. A rare thing. 

In the current government the highest ranked Maori minister is from Ngati Porou.

      4. Nga Puhi

122,000 Maori, or around one in five, identify as Nga Puhi. Nga Puhi is power in numbers.

For much of the 19th century the North was the home of British power. Nga Puhi hosted the first Christian Mission, Kororareka became the first European settlement and the Bay of Islands had become one of the most important ports in the country. Shrewd Nga Puhi leaders took advantage of that. But power has shifted south to Auckland and Wellington, but Nga Puhi retains a pull on Maori society and the national consciousness.

Enter Waitangi Day. Arguably, Nga Puhi has the power to determine the mood of the nation on our founding day. Will it be protest and a mood of indignation or peace and a mood of reconciliation? Nga Puhi has pedigree in the Maori renaissance too. Many of its former leaders and leading lights – for example Hone Tuwhare – and current leaders – Hone Harawira – are Nga Puhi. Nga Puhi is pervasive and through weight in numbers it manages to influence Maori society iwi more than most other iwi.

      5. Ngati Tuwharetoa

Geothermal power is New Zealand’s most reliable renewable energy source and Ngati Tuwharetoa controls most of New Zealand’s geothermal fields. (For clarity, Ngati Tuwharetoa doesn’t control the geothermal energy itself - there are various statutes which deal with that – but they own the land where many bores are located).

Ngati Tuwharetoa also plays an important role in the Kingitanga. Iwikau Te Heuheu, the paramount chief of Ngati Tuwharetoa at the time, was approached to take the Kingship. He declined. In theory, the Kingitanga could pass to Ngati Tuwharetoa. After all, the Te Heu Heu whanau still play an important role in Ngati Tuwharetoa, the Kingitanga and Maori society.

The iwi is also making inroads with tourism ventures in Taupo and they’ve engaged former Deputy Prime Minister Michael Cullen as a Treaty negotiator. Shrewd. Having already settled in the Treelords settlement and the Sealords settlement, Ngati Tuwharetoa is poised to become one of Maori society’s most powerful iwi. They sit on strategic resources and they're set for a significant cash injection. I wouldn't bet against them.

Honourable Mentions: 

• Ngai Tuhoe
• Te Arawa
• Ngati Whatua o Orakei
• Ngati Kahungungu 

Where to now? 

If Waikato-Tainui call pull off their inland port at Ruakura they'll dominate the rankings for years to come. Ruakura will be a strategic resource. It's going to be at the mid-way point between Auckland and the Port of Tauranga (New Zealand's largest freight port), located on the Waikato Expressway, built on the East Coast Main Trunk Railway and close to Hamilton (which for some reason is one of New Zealand's fastest growing cities).

Ngai Tahu will remain solid. They're in a sustainable position and the Christchurch rebuild has presented incredible opportunities for iwi development (both financial development and development for whanau through job creation, papakainga housing and so on).

The most interesting movement will be among iwi like Te Arawa, Tuhoe and Ngati Whatua o Orakei. Tuhoe are soon to settle for $170m and are in an incredible position on self government issues. In that respect, Tuhoe will be a template for other iwi. Ngati Whatua o Orakei is in an interesting position too. Auckland is growing rapidly and Ngati Whatua o Orakei are asserting themselves as a central part in that development. Watch this space.

Is Tuhoe Mana Motuhake the next step?

Defining iwi - Iwi is a modern concept. For the most part, Maori society organised itself along hapu lines. But for ease of reference I’ve used iwi in its ordinary sense. But the term becomes problematic: for example Waikato-Tainui is a confederation. It’s made up of various iwi and those iwi are made up of various hapu. Iwi is the overlay. For the purposes of this post, iwi is used as synonymous with the settlement body (i.e. “the large natural grouping”).

This isn't a wholly serious exercise: don't get carried away with this or gutted with the analysis. This isn't a definitive list. It's more of a discussion. Feel free to add your opinions in the comments section. 

Disclaimer: I primarily identify with Ngati Awa and they didn't make it - there's no bias here.  

Dirty words: (re)distribution

Meka delivered her maiden speech on Tuesday. I’ve embedded it below:

It’s a proud day for her, her whanau, hapu, iwi and Ikaroa-Rawhiti. All power to her.

However – and this isn’t necessarily a criticism – a Maori Party MP could've delivered the speech without without fuss. On close examination there’s little that separates Labour’s Maori Caucus from the Maori Party. The divide is more circumstantial than ideological. The greater divide is between Mana and Labour. Mana offers a working class critique of Maori society and the Maori economy. Generally speaking, Labour favours the capitalist co-option approach that the Maori Party has adopted.

There’s a wealth of talk over the “Maori economic renaissance”, but precious little discussion on how we can ensure the fair distribution of the benefits of that renaissance. Iwi should have strategies to avoid replicating inequality. We don’t want the gap between Maori and non-Maori replicated on a micro-level or iwi level. The discourse has to shift and include development and fair distribution.

Jones advocates mining

Shane Jones is running an interesting line – a pro-mining line:

The Labour Party says it might come as a revelation to some that not all Maori are opposed to mining and oil drilling.

Maori Economic Development spokesperson Shane Jones says there is a fossilised view that Maori aren't interested or capable of making pragmatic decisions.

While he acknowledges there are been pockets of resistance, Mr Jones says there's a variety of views - not a monolithic one.

He’s right in one respect: there isn’t a singular view. However, I would guess, that the vast, vast majority of Maori oppose mining. Case in point, the almost universal opposition of the East Coast against oil prospecting, let alone oil drilling. In 2010 iwi leaders also rejected government suggestions to mine Maori land and Northland iwi sent a strong message that exploratory miners will be treated as “trespassers”. I think Dayle Takitimu’s open letter to the Maori Party represents Maori feeling well.

It’s interesting to see Shane Jones searching for what he keeps terming “pragmatic” ideas. Jones should be applauded for stepping out, but advocating mining, as I have said previously, runs contrary to Maori values (think kaitiakitanga) and David Shearer’s (read Labour’s) vision for a clean, green and clever economy.

I come back to the idea of hypocrisy. We, as Maori, share a special connection with the land and we like to remind people of this. However, Maori advocacy for mining is out of step with our claims to be the kaitiaki of the land. We cannot, on the one hand, denounce mining as a crime against Papatuanuku, while on the other hand, one of our leaders trumpets mining as a panacea.

Surely other options for economic development exist. For example, aquaculture, like this aquaculture set up in Opotiki, may provide economic growth for Maori on the East Coast. Maori have generations of experience in primary production, therefore, we probably have a competitive advantage when it comes to food production. Aquaculture products, like the sea cucumber which is a sought after delicacy in Chine, are value added products. Any operation on the East Coast would have to deal in value added products as the operation would lack the ability to produce high volumes of product. Therefore, value added products like sea cucumber, lobster/cayfish and so on fit nicely in a low intensity operation.

It isn’t harmful to have a debate about mining. Either way, I think Jones’ idea would be soundly rejected.

The Maori Economic Summit

The Maori Economic Summit has walked into a storm of criticism from Phil Goff, Meteria Turei and Syd Keepa. Keepa claims the Maori Economic Taskforce, established by the Maori Party, focussed only on how “Maori corporates can break into international markets rather than what is happening in the community”. This is good point I think. It reminds me of Tuku Morgan’s fixation with international financial markets. I remember an episode of Native Affairs where Tuku took a Maori Television team to New York to cover a glorified visit to the New York stock exchange. Tuku barked on about how Maori need to become global players and the way to do that is break into international financial markets. That is all well and good, but Maori should not jump ahead of themselves. We need to sort our own house out first – then we can worry about becoming “global players”.

As I said Phil Goff and Meteria Turei have come out hard against the taskforce and the summit. Turei called on the summit to address the needs of small rural Maori communities rather than “think big projects”. Goff ran a similar line; however he slammed the summit even before the first karakia was uttered.

Keepa, Turei and Goff made valid criticisms and suggested valid areas of concern, but I tend to think they were a bit quick in writing it all off.

Now, you might think the summit was all negative. It wasn’t. Bill English addressed the summit and he had this to say:

Maori businesses stand to benefit from the rebalancing of the economy his government is attempting, especially if they focus on exporting.

Does that mean Maori business stand to gain from asset sales, privatisation of social services and so on? Theoretically, Maori business will benefit, but do we want that benefit to come at the expense of all New Zealanders?

Economist Ganesh Nana also addressed the summit and said:

Investment in science and innovation in the Maori economy could create up to 150,000 new jobs by 2061 - while doing nothing will lead to a reduction in jobs.

This deserves serious consideration. I have always thought the Maori economy needs to refocus. The Maori economy is still based, for the most part, on primary production. I would like to see a shift towards investment in growth industries, like science and technology, rather than expanding the primary sector of the Maori economy. Essentially, structural change is required.

The central message coming out of the summit was Maori cannot afford to do nothing. According to the taskforce if the recommendations were to be followed 150,000 jobs could be created and the Maori economy could be lifted by $12 billion over 50 years. By contrast, doing nothing would cost 185,000 jobs and leave Maori lagging behind economically. It’s a clear choice.