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Home / Kahu

Māori entities make up 5 per cent of Auckland's economy

Bernard Orsman
By Bernard Orsman
Auckland Reporter·NZ Herald·
4 Aug, 2015 09:15 PM3 mins to read

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Maori entities and businesses have an asset base of $23 billion in Auckland. Photo / File
Maori entities and businesses have an asset base of $23 billion in Auckland. Photo / File

Maori entities and businesses have an asset base of $23 billion in Auckland. Photo / File

Māori entities and businesses have an asset base of $23 billion in Auckland, or about 5 per cent of the city's total economy, according to a report released this morning.

It found 55 per cent of the national Māori asset base was in Auckland, 27 per cent of the Māori economy operates in Auckland and Māori contribute $4 billion to the city's GDP.

Māori authority assets are concentrated in real estate, financial and insurance services and IT. Ownership is less in retail, construction, wholesale, hospitality, manufacturing, logistics and other services.

About 29 per cent of Māori assets in Auckland are held by Māori Trusts, a similar figure to the rest of New Zealand.

The report was prepared by the New Zealand Institute of Economic Research (NZIER) for the Independent Māori Statutory Board - the Māori body represented on Auckland Council.

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The report identifies the size, issues and opportunities that the Auckland Māori economy provides.

Māori Statutory Board chairman David Taipari said: "The national Māori economy has seen considerable growth since 2010 with a $5.7b increase in the asset base. This report highlights significant opportunities for further growth that we want to share."

"A thriving Māori economy equals a thriving Auckland economy, this means opportunities and benefits for all."

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The report identifies significant opportunities for the Maori economy to grow further.
The key opportunities are:

• Partnership/investment opportunities presented by Treaty settlements (in particular, around return of land and first right of refusal of Crown land) to substantially increase the asset base in the near future and beyond.

• Unlocking and increasing the economic potential of Māori entrepreneurs.

• Investing in Māori youth - a large, young cohort which represents a significant proportion of Auckland's future workforce.

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• Investing in fit-for-purpose interventions in South and West Auckland (Manurewa, Henderson-Massey, Papakura, Otara-Papatoetoe and MangereOtahuhu) where half of Auckland's Māori live which are also economically disadvantaged areas.

• Leveraging Auckland's unique Māori identity (both visibly around the city and as a key part of Auckland's 'brand') to provide a comparative advantage for all businesses.

Mr Taipari said Improving Auckland's Māori participation in study, work and entrepreneurship means significant economic benefits for Auckland.

"For example, raising Auckland's Māori employment rate to that of non-Māori could result in 12,000 more employed Māori and an increase in total personal incomes of around $1 billion per year," he said.

The report was completed by well-known economist Shamubeel Eaqub from NZIER.

Key Auckland Council, corporate and central government agency heads will meet today to discuss the findings of the report.

Māori make up 10 per cent of Auckland's population, comprising 2 per cent Auckland iwi, 6 per cent who affiliate with iwi outside the region and 2 per cent who do not know their iwi.

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Nearly half of Māori live in the Manurewa, Henderson-Massey,Papakura, Otara-Papatoetoe and Mangere-Otahuhu Local Board areas.

Auckland has a large Māori youth population - 34 per cent are aged under 15 - which is disengaged, the report said.

Māori are more likely to be unemployed at nearly 13 per cent of the workforce - nearly twice the rate of the Auckland total of 7 per cent. Māori incomes are 17 per cent lower than the Auckland average.

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