Maori Resource Management the development of skills

Tu Tangata, Issue 34, 1 February 1987, Page 32

Maori Resource Management the development of skills

na Eugene Rewi Massey University,

(The Role of the Department of Maori Affairs in developing Maori managers]

Craig Norgate District Accountant Department of Maori Affairs Hastings

The under-utilisation of Maori resources is something the Maori people are now becoming aware of. With an increasing desire to close the economic gap between the Maori and Pakeha people , various schemes have been implemented to promote Maori economic development and develop management skills in order to guide the people in developing the available resources. The development of their own management skills is a must if progress in closing the economic gap is to be achieved.

The Department of Maori Affairs has recognised the need for sound financial and management skills. Under the guidance of the Director of Finance, the District Accountants from the Takitimu, Waikato-Maniapoto and Aotea Districts set out on the months of June and July to recruit potential graduates in the fields of accounting and management.

It is intended that these potential graduates will not only work within the Department of Maori Affairs but will also have a leading role in advising on the economic development of Maori resources. It is to this end that the team of Director of Finance John Gill and District Accountants, Craig Norgate, Lance Cross and Paul Smithies put

their heads together to come up with an induction programme for prospective recruits, taking on developments within the Aotea District and a new tourist complex south of Rotorua.

On Monday the 18th of August the team met with students from Massey and Waikato Universities in New Plymouth. This was the beginning of an intensive induction programme. That evening the group were introduced to various speakers involved with developments in the Taranaki sub-district. The Chairman of Parininihi Ki Waitotara Incorporation, Charlie Bailey and Secretary Peter Charleton spoke to the group about the history and present developments of Parininihi Ki Waitotara’s resources.

In the past, Maori Reserves land was leased at a set rental, renewable every 21 years. Increasing inflation has meant that the rentals now being received are generally well below market rates. Parininihi Ki Waitotara would like to see a new basis of renewing rental rates. They propose that a renewal period every seven years is more appropriate and the returns to beneficiaries more realistic. Barriers preventing such a desired change have evolved from Parliament in the form of legislation. Maori Authorities are now attempting to have the legislation changed.

Parininihi Ki Waitotara also leases a block of shops in the heart of the New Plymouth shopping centre and a building in Waitara occupied by Westpac and a Video Centre. The rentals on these buildings are based on market rates, therefore the beneficiaries are getting a fair return.

Rangitaawhi Enterprises was represented by Grant Knuckey who spoke to the group about the Patea Meat Processing Plant and MANA. Rangitaawha Enterprises has set up a meat processing plant in Patea, due to the closure of the local freezing works. The intention was to create jobs for the local Maori people affected by the closure, and it is proving to be a successful venture. Mr Knuckey then went on to tell the group about MANA. MANA is a scheme designed to promote Maori enterprise development. The scheme has received 13.125 millions dollars for use in the 1986/87 year. It is intended that loans will be made available to Maori people already in business and those wanting to start up a business enterprise. The applicants must show that their prospective business is a viable venture.

Unemployment among the Maori people is a serious problem. The MANA scheme is providing finance with the emphasis upon the applicants creating jobs for Maori people. Apart from the viability of the venture, the most important criteria for all applications, is to providing as many jobs as possible for the Maori people.

Day 2 began with a visit to the New Plymouth Office of Maori Affairs. This is a sub-office of the Aotea District. The group then visited the site of the Egmont Steam Flour Mill project.

The old flour mill is a commercial development instigated by the Maori Trustee and the Taranaki Maori Trust Board and Parininihi Waiototara Inc. The building is currently being refurbished, and the lessee hopes to be operating by the end of September. The whole complex takes in a restaurant; a disco; coffee bar; lounge bar and facilities for conferences and wedding receptions. The main structure of the building is being retained to maintain the character of stone walls and kauri timber.

The tenant for the building is Lion Breweries and it is anticipated that the return to the owners will be approximately 11% initially. The Maori Trustee will eventually dispose of its interest to the Taranaki people. Parininihi Ki Waitotara has also become involved in the joint venture.

The group then visited a hydroponics venture in Manaia. It is run by the Tawhitinui Marae Trustees and is partly funded by MANA. The venture involves the growing of tomatoes in water, and currently has 1,600 plants. The trustees intend to expand their operations in the future.

Wanganui was our next stop, with a visit to the District Office. District Accountant Paul Smithies explained the functions of the Finance Division, which involves such things as assessing loan proposals; trust and estate accounting; farm accounting; taxation; business appraisal; spreadsheet computing and routine accounting duties. We then sat in on a Court case in the Maori Land Court.

Maori Land Court Judge Ashley McHugh then spoke about the role of the Maori Land Court. A great majority of the cases involve the appointment of trustees for various Trusts. He then went on to explain Part 24 of the Maori Affairs Act 1953, and Section 438 Trusts. Under Part 24, Maori land comes under the control of the Department of Maori Affairs. The land is then developed with the intention of handing it back over to the owners.

The Maori Affairs Act under Section 438 allows a group of Maori land owners to amalgamate their land. They then form a Trust, and have the power to appoint trustees to act in their common interests.

Day 3 took us through to Turangi for a visit to the Tuwharetoa Trust Board. The Secretary, Steven Asher spoke to us about the Trust Board’s involvement in the Tuwharetoa District. When Lake Taupo was sold to the Government in 1926 the original agreement was an annual rental of £6,000, and half of the fishing licence fees. This agreement has not been changed and currently

guarantees a substantial income. Tourism is another area that the Tuwharetoa Trust Board is looking into. With resources such as Lake Taupo, wild game hunting; thermal areas and skiing, tourism offers a lot of potential.

Mr Asher outlined his feelings with regard to Maori economic development. He emphasised the need for qualified Maori people to eventually return home and assist their people to harness the vast potential of their assets.

Station visits in the afternoon were hindered by the weather. However, the group managed to visit Whakarawa, a farming station on the western shores of Lake Taupo. This particular station is run by a farm manager on behalf of the owners. It was developed under Part 24 and currently earns a substantial income.

The final day of the induction programme took in a visit to the Tumunui Station. Tumunui is 15 minutes south of Rotorua and is owned by the Tumunui Trust.

Tumunui North and South cover an area of 7,925 acres (3307 hectares). Earlier trustees foresaw diversification as the answer to the development of their land. Today Tumunui runs sheep, cattle, red deer and angora goats. Land unsuitable for grazing has been planted with trees for milling and firewood. To top it all off Tumunui is also tapping into the tourism market with farm tours, bush walks and horse treks. It also has a facility for conferences.

Tumunui is farmed by a most experienced farm manager who has had a lot to do with its success, Mr Charlie

Perrot, who spoke to the group about the history of Tumunui and its future. A video was also shown which covered all areas of the farm.

Tumunui is located in the heart of the tourism route, with Rotorua and Taupo close by. The Waipa Mill is only 10 minutes drive from Tumunui, making forestry an attractive investment. Also close by is the Ngongataha stock yards where most of the farm’s stock are taken to be sold.

Tumunui provides many jobs for the Maori people as farm shepherds, shearers and contractors. These workers are involved in all of the activities of the station. Housing is provided on the station for the farm shepherds. Because of the size, Tumunui is managed in two parts, North and South. Tumunui also takes on a number of Maori farm cadets with the most promising cadets being sent to Massey University to attend courses.

The visit to Tumunui ended the induction programme. Many places were visited and it is evident that steps are being made to close the economic gap between the Maori people and the nonMaori people.

The words of Steven Asher are worth repeating however, for if the maximum potential of Maori assets is to be realised then some of those Maori people with the necessary financial management skills must return home to help their people.

The Department of Maori Affairs is offering these people experience in all relevant fields so that our future Maori managers are both suitably qualified and have the experience to help their people fully develop their resources.