Collaboration for Economic Growth
Mark Solomon
Kaiwhakahaere (Chairman) of Te Runanga o Ngai Tahu
Speech Notes
I want to start off today by giving you some background information on Ngai Tahu. I'm unsure how much you know or don't know about us.
Around 1000 years ago Ngai Tahu settled in the South Island. In 1840 the tribe became a signatory to the Treaty of Waitangi and by 1848 the Iwi had begun highlighting violations of the Treaty by the crown.
This battle was to continue until 1998 when Ngai Tahu and the New Zealand government agreed upon an apology and settlement for these violations. The settlement included cash of $170 million as well as mechanisms for cultural redress and management of tribal taonga.
Te Runanga o Ngai Tahu is the organisation that services the tribe's statutory rights and ensures that the benefits of the settlement grow for future generations. It was established by the Te Runanga o Ngai Tahu Act 1996.
Te Runanga o Ngai Tahu is the 18 member tribal council that governs Ngai Tahu. Members are elected from each local Runanga or tribal council.
Returns on investments allow Te Runanga o Ngai Tahu to build for the future and to invest in health, education, social and economic well being, culture and identity.
Ngai Tahu Holdings Corporation, our investment/financial division has strategic investments in many strands of the South Island economy - and it is the work of this unit that I want to focus on today.
All major investments proposed by Holdings Corporation are approved by Te Runanga o Ngai Tahu.
So, following the settlement, Ngai Tahu had taken the first step in ensuring economic security but this was quite literally just the first step.
After the settlement formalities were over we began re-settling into a post- grievance - life. We set about considering "where to from here?"
As I mentioned Ngai Tahu as an Iwi takes in much of the South island so we recognised very early on that we had a role to play in many regions throughout the South Island.
Since Settlement Ngai Tahu has grown so that our Holdings Company is now the largest private property owner in the South Island and we have significant investments in the Seafood industry and tourism ventures mainly focused in the South. During the 2001/02 financial year Te Runanga o Ngai Tahu reported another successful financial year announcing a net surplus after tribal programmes and Runanga expenses of $2 million to the end of June 2002.
Tribal equity increased over that time by $3 million from $269.8 million to $272.8 million.
Total tribal assets at that time were $372 million with Ngai Tahu Holdings Corporation producing a Pre distribution surplus of $19.5 million. This exceeded budget by $0.7 million.
Total revenue increased 8.4% to $114.6 million and cash flows from operating activities were a positive $6.8 million.
I apologise for having to share older figures with you but we have a policy of ensuring our tribal members are the first to receive financial information and as yet our annual report for the immediate past financial year has not been posted to whanau. I can however assure you that we had another successful year.
In addition to our key investment areas managed through Holdings Corporation we have a strong commitment to growth in the regions through our Kaihiku project. We recognise that through collaboration between our central corporate body, Te Runanga o Ngai Tahu, and our regional contacts or Runanga and through collaboration between Ngai Tahu and others in the community we can make a difference and we can have a strong influence and impact at a regional level.
With the Ngai Tahu takiwa lying within the South Island, economic development for Ngai Tahu is focussed on both regional and national development. The core business activity for Ngai Tahu is defined as to:
"Own, operate and protect businesses that add value to Te Waipounamu natural resources."
Economic development must be directed equally to long-term growth and the immediate requirements of funding the aspirations of the Iwi for cultural and social development. Economic development takes place at two levels:
- The runanga communities
- The corporate investment group of companies, Ngai Tahu Holdings
Development for Ngai Tahu is based on a set of key organisational values, which dictate the priorities for Ngai Tahu in all aspects of our activity including business growth and codes of practice. These are:
- Rakatirataka
- Whanaukataka
- Manaakitaka
- Tohukataka
- Kaitiakitaka
- Kaikokiri/Manut?riori
Collaboration to develop mana, support for one another, expertise, excellence, stewardship of our resources and leadership is crucial to our success.
The Ngai Tahu investment focus is to develop an overall strategy for long-term development to the year 2025 and beyond. There are two equally important aims:
- To ensure we have profitable businesses to fund the development of the Iwi
- To grow the tribal assets for future generations
The core business operations are grouped within five "pillars" of business activity:
- Equities
- Property
- Seafood
- Tourism (which owns the majority of listed Shotover Jet Ltd and a minority share of Whale Watch Kaikoura Ltd, two New Zealand tourism icons)
- Tribal Services, providing commercial and financial services to build economic development at a Runanga community level.
Development at any level involves adding value.
Partnership, whether it be with runanga communities, with other iwi or with other commercial parties, must involve a win/win situation, and this is one way in which we are developing our strength and focussing on long-term growth.
We have seen our Tourism pillar go from strength to strength. On the West Coast we have developed cooperative ventures with Franz Joseph Glacier Guiding, with Whale Watch in Kaikoura and with Hollyford Valley Walks. These all add value to our natural resources and build the future for Ngai Tahu with growth of profitable companies and increasing assets. The Tourism group currently employs 199 staff throughout the South Island.
Our Seafood company has provided leadership in the face of political adversity through its recent acquisitions of Globe Fisheries, Paua Supplies and Cook Strait Seafoods. It is now among the leading seafood companies in New Zealand, with partnerships extending to other Iwi and commercial operators. Its vision has seen Ngai Tahu gain recognition in trade awards for new products, and it is committed to building a sustainable future for our Iwi. The company employs 280 staff throughout New Zealand and work we had completed last year by Price Waterhouse demonstrates that the direct economic impact of NTSG's activities is $11 million in 2001. This figure increases to $60 million when the flow on effects of the NTSG's activities are taken into account - for example purchase of goods and services from suppliers.
On 1 July 2003, Ngai Tahu Seafood purchased the business and assets of Cook Strait Seafoods Ltd based in Wellington. Ngai Tahu Seafood also purchased 50% of the assets of Pacific Trawling Ltd and entered into a Joint Venture with this Napier based fishing company.
Cook Strait Seafoods operates across the seafood industry from owning quota through to wholesale and retail supply.
Pacific Trawling operates fishing vessels out of Napier and Wellington. It has been the principal supplier to Cook Strait Seafoods. From 1 October 2003, the business will be operated jointly by Pacific Trawling and Ngai Tahu Seafood.
This investment will establish a platform for Ngai Tahu Seafood to grow both the scope and scale of its operations, achieving the direction set out in Ngai Tahu's vision - Ngai Tahu 2025.
This acquisition and joint venture doubled our turnover, increased our access to quota and a greater range of species, diversified our business, gave us greater access to both global and domestic markets and increased our processing capacity. We are now able to effectively compete in the Seafood industry.
Our Property company has significant investments in the bulk retail market, the residential property market, commercial and industrial tenancy markets. Building strong customer-focussed relationships is consistent with the organisational values and the long term strategy for Ngai Tahu.
The most recent development for the Holdings Group is the establishment of its Tribal Services pillar, and this is where the concept of regional development is enhanced at a community level. It brings a set of commercial resources and expertise and marries this with the aspirations of the Runanga to provide the opportunity for self-determination.
The Commercial Development Unit was established to provide professional services to support runanga development in the regions.
Each runanga comprises an established commercial entity. The process of developing investment strategies that link to the economic development opportunity that exist within each Runanga is assisted by the Commercial Development Unit. The Unit evaluates the economic opportunities with each Runanga in terms of its unique assets, human resources and potential opportunities. With these identified, the Unit can then assist with the necessary processes for startup. This can include the opportunities for linking cooperatively with other parties.
Examples of the internal and external collaboration for regional development can be seen in the following:
- Partnerships between runanga and Ngai Tahu Holdings to maximise local knowledge and commercial expertise. Examples are in the tourism sector, the West Coast runanga of Makaawhio are working with Shotover Jet and Franz Joseph Glacier Guides on business opportunities surrounding Franz Joseph Glacier region. Ngai Tahu Seafood and Awarua runanga are working together in the Awarua Tio (oyster) Development Company to grow business based on Ihu Bluff Oysters.
- Joint venture arrangements with Crown Research Institutes and commercial partners to create Intellectual Property for new business ventures.
- Resource Management Consultancies, where various runanga work collectively to provide services to councils and local businesses for resource consent applications. For example Te Ao Marama, Kai Tahu ki Otago and Aoraki Environmental Consultants.
The success of such initiatives depend upon the establishment of robust business practises, matching the market opportunity and available resources. It is sensible, therefore, to collaborate to achieve positive outcomes for all parties.
The Ngai Tahu Holdings Group of companies has grown rapidly, with a staggering increase in net asset worth from $139,000 in 1990 to $276 million in 2002, including a $170 million Treaty of Waitangi settlement. Its strategy for the future is to build strong, long-term investments and profitable businesses to provide for the aspirations of the Ngai Tahu people.
Ngai Tahu is encouraging development across all levels of business, from community initiatives to corporate investment, with the focus to add value to South Island economies.
We have been part of the South Island landscape for generations and we believe that through this collaborative and co-operative approach we will be part not just of the landscape but also the economy for future generations.
|
