Suggested models for Maori business

Tu Tangata, Issue 36, 1 June 1987, Page 14

Suggested models for Maori business

NG A TAKE

Several models for Maori business success have been researched by the Centre for Maori Studies and Research at the University of Waikato. The work was done for the Maori Economic Development Commission, a body that has been entrusted to come up with the goods in the business world through the Mana Enterprise Development Scheme.

The university research unit headed by business consultant Robert Mahuta, was given the brief to find simple business guidelines that have already worked for Maori people in the commercial world.

Success was gauged on Maori terms, not only profitability in the accounts. Economic development and human resource development were seen as essential for cultural survival. All thirty three models researched were seen to be fulfilling the needs of their beneficiaries and what they saw to be worthwhile. Further research on the activities of Maori incorporations and trusts (the predominant Maori business grouping) showed that the ingredients for an interlinked Maori economy exist. All the models displayed Maori values in successful management, from the uniting of land titles for sharecropping to whanau and hapu gathering as a combined labour force. The following models have been selected from the thirty three to give examples of the range of Maori business. Tai Tokerau Rangihamama Development Scheme The Rangihamama Development Scheme was developed by the Department of Maori Affairs in the 1960’s under Part XXIV of the Maori Affairs Act. Until 1980, activities were confined to sheep and cattle, when a small gardening project was started using work skills trainees. In 1981, the project was expanded into a large scale development of 44ha. The objectives of the scheme are to provide training that will lead to permanent work both outside of and on Rangihamama with the establishment of permanent orchard crops of export

potential. It is important that Rangihamama build itself into a strong and profitable enterprise which would give the owners a strong economic base to launch into future development expansion providing jobs for the local community. The development options have been kept as broad as possible. The scheme could, for example, cut out 5-10 ha blocks to be run by individual trainees on a share crop basis. There is also the possibility of a cooperative developing a packhouse, an irrigation system, and a coolstore complex.

Trainees are taught the ‘how’ aspect of the work by their supervisors, while MAF experts and the local community college would teach the ‘why’ part. Trainees have established the shelter belts, grown the seedlings for permanent plantings, laid the irrigation systems, erected the packhouse, built the kiwifruit structures and started landscaping the whole area.

6,000 export trays of kiwifruit were marketed in 1986 making the venture extremely successful. Other crops to be developed with export potential include Asian pears, persimmons, tamarillos and avocados. To date about 70 trainees have been through the scheme; 10 have permanent jobs in horticulture, 12 outside the industry and 10 of the present trainees are to go onto the permanent staff to run the horticulture unit. The WSDP trainees have produced an assistant manager, a packhouse quality controller and 2 foremen. At the present progress rate, a profit is

expected by 1988/89 and the scheme is on target to consider share cropping units in approximately 3-4 years.

The trainees on the scheme have shown real pride in their achievements. The girls have consistently stood out as the most suitable and best performers while the team work situation has brought out one of the real strengths of Maoridom the ability to excel in group situations.

The collective ownership of Maori lands suits the type of development undertaken. It still leaves incentives for top performers to enjoy extra benefits from share cropping without having to borrow crippling amounts of capital. Share cropping will also avoid the alienation of Maori land that would occur if freehold units were used. The opportunity to embark on cooperative style ventures is built into this enterprise.

The type of project can be duplicated provided that: 1. Suitable physical resources are available; 2. There is an established enterprise backing the project to support debts and overdevelopment stages; 3. Work skills trainees are available or Labour Department support; 4. Use of experienced people with expertise in both technical and administrative areas; 5. Development is market oriented. Waikato Huakina Huakina is a Development Trust based on Te Puaha ki Maanuka. (Maanuka is the original name given to the harbour about 1350 by Hoturoa, captain of the Tainui canoe, now called Manukau). It is essentially a conference of representatives of all the communities of the south Manukau, the Awhitu Peninsula and the Lower Waikato. Te Puaha ki Maanuka undertook to investigate and be concerned with any issues relating to development at the New Zealand Steel Company whose major steel production plant draws its raw materials from

the north headland area of the mouth of the Waikato. Their smelter is at Glenbrook which discharges treated effluent into the Manukau. So that the concerns of the people could be clearly seen, the Company commissioned a report on Maori issues. The Centre for Maori Studies and Research at the University of Waikato prepared this report after consultation with the local people. This report surveyed ten marae (five on the river and five on the harbour) of the twenty or more historic communities of the area. The report urged the generation of development plants and strategies for the marae concerned (and any others who wish to participate). It surveyed resources and considered the present status of the people in respect of jobs, education, health and social services. In the three years since its inception, Huakina has acquired assets and has set up several operations: Huakina House is its base of operations. This is a central city building in Pukekohe which serves as an office, work base, meeting house, skills training centre, and as a visible presence in the area.

Huakina Farm: Is a dairying and dry-stock unit. It is presently being developed to full production potential with advice from the Department of Maori Affairs. It uses labour from the pool of workers in the Huakina employment programme and this gives training in basic farming skills. Huakina Gardens: Through a local church organisation, Huakina leased five acres of first class productive land in Pukekohe for horticulture. Employment, horticultural and basic work skills training were the major objectives rather than production for profit. Marae Projects: The translation of the information in the Huakina Report into development plans for each of the constituent marae is being implemented progressively.

Development Levies: Under New Zealand statute, any private developer engaged in a development costing SIOO million or more, must contribute .5 percent to a social amenity fund. Local authorities compete for the funds thus created. The New Zealand Steel expansion will yield $2 million in such funds. Huakina has been granted only SIOO,OOO.

Taharoa C Incorporation Since the earliest days of European settlement, New Zealand’s vast deposits of

black sand such as that at Taharoa were known to be rich in iron ore. By the late 1940’s this knowledge brought hope that the Taharoa reserves would some day provide the raw material for a New Zealand steel industry. This it did, but also surplus sands could be exported.

The Taharoa project is based on such export. It became a reality in 1971 when New Zealand Steel Limited, some 700 Maori landowners and major Japanese steelmakers, shipping companies and trading houses signed agreements which formally marked the start of the undertaking.

The population, now exceeding 400, have a new source of income and new standards of living.

Most of the 75 homes in the community are equipped with modern facilities. Better roads and transport services provide ready access to and from the large centres of Hamilton, Te Awamutu and Otorohanga.

This Incorporation has a joint venture with New Zealand Steel mining. The company mines iron-sand concentrate for export to Japan. The community provides workers and the Incorporation receives royalties, a proportion of which are ploughed back into the share capital of New Zealand Steel. The Incorporation contracts with the company for other operations, for example, planting and afforestation on mine tailings. The Incorporation is gradually moving away from complete dependence on ironsand in its efforts to provide stable and long term income and dividends to shareholders. If it continues to follow its present policy of dividends and investment, it will not be too long before it is no longer completely dependent on ironsand for its income.

Tauranga Moana Ngai Tukairangi Development Scheme The present area for the Tuukairangi Development Scheme totals 57.73 hectares. The land is situated at Matapihi in close proximity to Tauranga and Mount Maunganui. This land is of high quality and is located close to a large Maori work force. With the development of kiwifruit in the Bay of Plenty, the value of this land rose dramatically, as did the rating. The land was being used at a low economic level, in the form of dry stock farming. At a meeting of owners of eight blocks, a resolution was passed to bring the land owner under the Maori Land Development Provisions (Part XXIV) of the Maori Affairs Act 1953, and to amalgamate the titles. The blocks varied from 2 hectares to 15 hectares. To establish an economic development

scheme, it was necessary to amalgamate the titles. Gazetting subject to Part XXIV enabled the Department to administer the property but it was agreed that five owners’ representatives would work in close association with Departmental representatives.

The scheme set a precedent for a great expansion in Maori horticultural development over 5 years: Year 1 Plant all shelter Year 2 Plant five hectares of kiwifruit and six hectares of avocado Year 3 23 hectares of kiwifruit planted and 2.5 hectares developed to Market gardening Year 4 7 hectares of kiwifruit planted Year 5 3 hectares of kiwifruit planted The enterprise has a permanent labour force comprising a manager, assistant manager, and 7 permanent staff. The scheme is also employing horticultural trainees from the Tauranga Community College. Over the 5 years, substantial numbers of young people have been employed under work schemes as orchard labour. This scheme is seen as a future provider of Maori labour skilled in the seasonal operations associated with orchards.

Ngai Tukairangi demonstrates what can be done by amalgamation of multiple titles. The conversion of virtually idle Maori land has turned into a viable, economic enterprise, contributing to employment and promising a substantial profit to the owners and their families. This development has set an example in Maori-Departmental partnership in terms of technical, management and administrative skills, and has put the Tauranga area in the forefront of land use. Te Awanui Huka Pak Co-operative Limited Te Awanui Huka Pak Limited commenced operations in April 1985. It is strategically located on 6.5 hectares of land in close proximity to the wharves and rail at Mount Maunganui. The Company was established to facilitate in the first instance, the handling of kiwifruit productions from Maori orchards in the Tauranga/Te Puke areas. The orchards are being developed with loan finance from the Department of Maori Affairs and the Rural Bank. 300 hectares will come into production and approximately 2 million trays are forecast within 8-10 years. Feasibility studies have been completed to substantiate the promotion of TE AWANUI

HUKA PAK CO-OPERATIVE LIMITED. The required shareholding has been taken up and the first stage of the complex is complete. The initial complex will cost approximately $1.6 million with a packhouse capacity for over 300,000 trays and a coolstore capable of handling over 500,000 trays. Approximately 10 million trays will go in 1986 through the Port of Mount Maunganui and the coolstore will have surplus capacity for in-transit fruit. It is also designed to provide coolstorage of processed fruit. The present complex will require second stage extensions in 1988. Te Wai Pounamu Nga Hau e Wha Kokiri The Nga Hau e Wha Marae Trust is the administrative body of a Christchurch based multi-racial community project. The marae complex is built on an area of approximately 6 hectares. Up to 300 young people have been employed on Labour Department work and training schemes. The programmes included—1. Hostess/Guides 2. Horticulture 3. Chef/Catering 4. Carving (wood, bone and jade)

5. All types of weaving and embroidery 6. Kowhaiwhai and graphic arts 7. Vehicle maintenance 8. Eeling and Kaimoana 9. Hydroponics 10. Clerical 11. Welding 12. Carpentry Proposed poultry farming, pig hunting and crayfishing enterprises are under consideration. There are 40 young people on call who are part of the cultural entertainment team. In addition, a further eleven labouring projects are under way including timber milling and forestry work. The latest on-site project is a joint community and Health Department ‘drug and alcoholic’ rehabiliation project. On site are 1500 sq metres of greenhouses. Contracts have been let with the Hospital Board and the United State’s Operation Deep Freeze for the supply of tomatoes and green peppers. Other fundraising projects are social club activities, produce sales (carvings etc), concerts, tourism, grants, donations and subsidies. In the last twelve months, 200 young people who have passed through this centre have found permanent jobs.

George Potae Enterprises Milton Mr Potae runs a shearing contract enterprise in the Otago/Southland area. This services over 300 farms and has a gross turnover in excess of $2,900,000. Over 80 people are employed fulltime, with at least 75 percent of the workers being of Maori descent. When the shearing season is at its peak over 200 staff are employed. At least 50 unemployed young people from throughout New Zealand, most of whom are Maori, are employed every year. The referrals are made mainly through North Island contacts or the Labour Department in Dunedin. Over the years, Mr Potae has built up a relationship of trust with the management of the local freezing works, who employ Potae staff during the shearing off-season. Approximately 100 of his staff have a continuity of employment. Potae Enterprises has diversified to include ownership of retail shops, a travel agency and 20 vehicles. In addition the business includes 10 hectares of kiwifruit and a mussel farm in the Coromandel area. The diversification has included purchase of a computer to assist with the administration of the various enterprises.