Mull on this – Business is Beautiful

Mull on this – Business is Beautiful

By Wayne Mulligan

What an eventful few months FOMANA has had. Our crystal ball is sending numerous messages that 2010 and a good part of 2011 could be defining years for New Zealand.
Why? Because change is hard to accept. In this article I will discuss some of the key changes occurring. Then, I will discuss the history of land wars in Taranaki, and finally, about a program to advance export earnings, Tekau Plus.

Change
Some of the key variables impinging upon New Zealand both as an economy and society are summarised as:

Demographics
Ageing non-Mäori population
Young Mäori, Pacific and Asian populations

Immigration
Growing Asian populations

Income levels
NZ household income levels are 30% on average lower than Australia

Education
Becoming more expensive and competitive and highly educated people are highly mobile

Resources
Resource protection and utilisation will see competing interests and highlight supply and demand thus lifting prices out of the reach of New Zealanders. Examples: Mining the Conservation Estate; Water use, plans and rights in Canterbury, Food Supply (potential China investment in dairy farms in NZ)

International
Geo-political shift from west to east.

Technology
Radical changes in technology and how developing nations are early adopters.
What we have before us now is not just a post-recession environment where the government has to manage tight budgets, but there exists the real potential that a foreign buy up ‘tsunami’ will hit New Zealand. This tsunami will be driven by the dual aspects of supply and demand. International businesses will be focused on securing supply of resources such as:
• natural resources
• energy resources
• food and beverages
• minerals
• a safe environment for residents (future immigrants)

International market demand for the above is beyond the comprehension of most New Zealanders. Moreover, money is not a barrier for these businesses, as many of them are backed by huge sovereign funds and wealthy governments offering incentives. A new international colonisation is occurring. This is neither a good nor bad thing; it is just something that is happening.

History Repeats
Is it not ironic how history seems to repeat and old biases re-emerge? I recently attended the 150-year commemoration in New Plymouth, Waitara and Püniho of the commencement of the Taranaki land wars. The Puke Ariki Museum in New Plymouth launched an exhibition illustrating the Taranaki land wars, a must see for all New Zealanders:
Te Ahi Kaa Roa, Te Ahi Kätoro Taranaki War 1860–2010
Our Legacy – Our Challenge from 17 March – 1 August
www.pukeariki.com/Exhibitions/TaranakiWar

150 years ago, the print media then portrayed Mäori as the aggressors (for wanting to maintain their land and other property rights), as lacking commercial acumen (albeit Mäori prior to the land wars were the economic engine) and a nuisance (cost) to colonial advancement.

On the same day as the Puke Ariki exhibition opened, two significant events occurred – both Te Atiawa and Taranaki Iwi signed Terms of Negotiations with the Crown. These Terms of Negotiations outline the approach for conducting negotiations. There were powerful statements made by the Prime Minister and the Minister of Treaty Negotiations. Whilst there were statements concerning unjust takings and sackings, etc. – considerable talk was about a new future, a new relationship and building future prosperity.

The hospitality accorded by the local Iwi to government, both central and local, was intriguing given the level of the unjust confiscations of land and other resources by central and local government.
That aside, it dawned on many that are tribally connected to both Te Atiawa and Taranaki Iwi that our histories, our stories, and our contribution to New Zealand has never been fully articulated in mainstream media.

After the signing ceremonies there was a 30 second TV report on the news and articles in some of the papers, but those reports are event-based and do not give the full richness of history and the future focus of building future potential. Yet, the media is never slow in reporting, correctly or not, stories of Mäori aggressiveness, protests, crime statistics, alleged unethical business or poor business acumen or the classic waste of taxpayer money. We can learn a lot from the colonisation and reading old media. History repeats.

Export Potential
I have recorded my admiration of companies that export and that are driven by business leaders and entrepreneurs who endeavour to build high growth, high value businesses that earn foreign revenue for New Zealand. In this edition and previous editions of KOHA, we outlined a number of companies that are collaborating and working through a program called Tekau Plus. So what is Tekau Plus? The overall objective is to create ten Mäori niche global companies, each earning NZ$10mn within ten years. The strategy is to create common interest clusters of Mäori businesses from which the ten will be cultivated.

Tekau Plus is governed by three organisations:
The Mäori Trustee, Poutama Trust and the Federation of Mäori Authorities (FoMA) collectively operating as the Tekau Plus Board. They contract to Te Puni Kökiri.
FOMANA provides contract services to the Tekau Plus Board. FOMANA reports to the Tekau Plus Board. The Tekau Plus Board reports to TPK. It is widely known that the government has just finished a review of the value of Tekau Plus and this is welcomed. It is important in the value view that any paradigm dominated by simply focusing on processes and inputs is balanced with building capability, collaboration and current and future fiscal revenue potential.

Another important matter is that over the past decade there has been limited focus, and consequently limited support and investment in developing a pipeline of Mäori export businesses. But why have Mäori exporters?
Firstly, another segment of the business community that can provide experiences and/or goods and services that brings in valuable foreign earning to this country is a no brainer.
Secondly, when it comes to the next 10–20 years Mäori are not only going to be significant primary resource holders of farms, fishing, forestry; Mäori will also be business leaders in fashion, film, food and technology, energy and natural resource holders for tourism.
Thirdly, Mäori are connecting to international distribution networks and channels and investors, this therefore opens up communication, relationship and investment channels.

Finally, what helps differentiate New Zealand from other nations? At this year’s World Trade Expo in Shanghai, China, Native images and senses to New Zealand are to the forefront. There is a carved waka, greenstone, waiata, reo and, “dear” I say it, Mäori. Ka pai tena!