Federation of Maori Authorities calls for greater action to ensure Maori economic potential achieved

Date: Thursday May 5, 2011

Federation of Maori Authority chairman Traci Houpapa has called for greater action to ensure the momentum of the Maori economy highlighted in a Berl report released today continues.

Ms Houpapa said while the scale of growth in the Maori economy is impressive, the report provides dire warnings for the country if work is not done to raise science and innovation investment in the Maori economy to the same level as the rest of the country.

The Berl report - The Maori Economy, Science and Innovation – Scenarios of potential, opportunity and value – released today estimates the value of the Maori economy at $36 billion.

“The report provides figures that demonstrate the momentous gains the Maori economy has made in recent years. It also provides figures to show the value - $20 billion annually - Maori workers provide to the national economy.

“While the gains are significant it is crucial to note that the country will lose more than $15 billion in GDP annually by 2061, and more than 180,000 job opportunities if greater effort is not made to lift Maori science and innovation investment to the same level as the rest of the country.

Ms Houpapa said it was crucial that the appropriate government agencies and those involved in the science and innovation sector worked harder to get alongside Maori to understand the complexities and challenges Maori businesses face.

“There needs to be greater understanding and co-operation. While the mantra of “one-law-for-all” is starting to emanate again from some tired political circles the reality at the flax-roots is much different.

“Maori grapple with many complex and unique challenges in maximising the potential of their businesses.”

These include managing the limitations of raising capital when assets are in collective ownership, a collective shareholder aversion to selling land, and disparate and often unconnected landholdings. There are the challenges of managing a shareholder base that is dispersed and disenfranchised as a result of massive historic injustices, Ms Houpapa said.

“There is major benefit for the nation in providing support to ensure the Maori economy is achieving its potential. These are crucial benefits that must be maximised if we are to continue to compete in an increasingly global economy.

“FoMA applaud the gains Maori have made, and we stand ready to work with those who share our passion for assisting Maori and the country to achieve our potential.”

About FoMA

FoMA is a national collective of Maori authorities, businesses and entities focused on promoting and supporting the interests and opportunities of its more than 150 members. Its members operate across a range of sectors including forestry, agribusiness, horticulture, energy, tourism, property and viticulture, and have a collective net worth estimated in 2006 at between $8 and $10 billion.

Established 25years ago FoMA has worked alongside its members to lift the value to our member shareholders and to remove barriers that have prevented Maori from achieving our economic potential.

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