SECTION F - MÂORI, THE TREATY AND THE SECTORS
Overview
- A 1997 overview report on Mâori involvement in the economy estimated that Mâori own economic assets worth about $10.78 billion. The second largest component, after equity in Mâori housing, was an estimated $3.034 billion of agricultural assets including freehold land. In addition to this, Mâori -owned forestry land had an estimated worth of $327 million.
- The land-based industries generate significant Mâori employment. The 1996 census showed a total of 12,800 Mâori were employed in agriculture, horticulture and agricultural services. A further 7,545 Mâori were employed in the forestry and forest products industries.
- The economic contribution of Mâori agriculture and forestry is limited by both physical and organisational factors. The Te Puni Kokiri (TPK) Land Information Database shows that out of a total of around 1.5 million hectares of Mâori-owned land, 45.5 percent is in Land Use Capability Classes 7 and 8. With few exceptions, such land can only support extensive grazing or erosion control forestry. A further 34 percent of Mâori land is in Class 6, which is the next lowest productive category after Class 7. Around 20 percent of Mâori land has no formalised administration structure. Other limitations include the uneconomic size of many Mâori landholdings and difficulties in obtaining legal access through neighbouring properties.
- A distinctive characteristic of Mâori land is the system of multiple ownership and legal restrictions on land sales under Te Turi Whenua Mâori Act 1993. The predominant types of organisation are Ahu Whenua Trusts and Mâori Incorporations. Many beneficial landowners have little involvement in governance or management decisions. The Mâori Land Court has broad powers to intervene on landowners' behalf.
- Research has indicated that Mâori have multiple objectives relating to the use of their land. However, obtaining a satisfactory level of profit may be essential to achieving social and cultural objectives as well as economic objectives.
- There is a lack of reliable statistical information on Mâori agriculture and forestry and on Mâori-owned businesses in general. However, a 1994 report to TPK on Mâori land use found that most of the Mâori land blocks surveyed were performing at lower than district averages. This finding has been supported by initial results from current MAF research, which indicates that Mâori-owned farms on the North Island's East Coast have generated significantly lower economic returns, over the last three years, than comparable non-Mâori farms. The results indicate that there may be considerable potential for Mâori landowners to obtain better economic returns from farming. Improved returns will be a key requirement to ensure the physical, economic and social sustainability of farming operations.
- Key factors requiring further investigation include governance, the quality of farm management decisions and access to commercial finance. It is important that trustees and management committees have the knowledge and experience to carry out their governance role. Similarly, farm managers need appropriate knowledge and skills, and should be made clearly accountable for achieving farm objectives. A number of initiatives are currently underway to develop improved training packages for trustees.
- Banks in general are reluctant to lend to Mâori trusts or incorporations, particularly where the only security available is Mâori freehold land. The major concerns of the banks appear to be the legal restrictions on the sale of Mâori land under Te Turi Whenua Mâori Act and perceived governance and management issues.
Crown Lease Forests
- The Crown owns commercial forestry interests, currently valued at $315 million, in 18 forests established between 1964 and 1985 on land leased from Mâori owners. The forests, which are managed by the MAF Crown Lease Forests Group, are all located in the North Island and have a combined stocked area of 43,500 hectares.
- When the Government decided to sell its commercial forestry assets, it was prevented from selling the Crown Lease Forests (CLFs) because the lease agreements did not permit the Crown's interests to be assigned. To overcome this difficulty, the Government proposed selling its interests in the CLFs to the respective Mâori landowners. The policy was developed in detail between 1988 and 1995. Up until 1997, despite considerable time spent in discussions and negotiations, no sales had been completed.
- A full review of the CLF sale policy was conducted in 1997. Following this review, Cabinet confirmed the key elements of the existing policy, including that the Government required a fully commercial return from any sales. It was agreed that the sale process should be commercial but should take account of the principles of the Treaty of Waitangi. Sale or transfer strategies, in which the Crown provided an economic incentive to the lessors to vary the leases, could be discussed with lessors in negotiations. The net sale or transfer price must be considered and approved by Cabinet, prior to any negotiation being completed.
- Over the period 1997-99 two direct sales and one progressive transfer have been negotiated. Crown receipts from the sales came to $47.9 million in 1998/99. Discussions with other lessors are continuing, and there are good prospects for several further sales or transfers being negotiated in the next one to two years. Sale or transfer of the Crown's interests in the Lake Taupo and/or Rotoaira forests could have significant fiscal implications.
- The sale or transfer of the CLFs could result in a significant broadening and deepening of Mâori involvement in commercial forestry. Currently around 14 percent of New Zealand's planted forests are on Mâori land. In most cases, however, the forests are not Mâori-owned. Active participation in forest ownership, management, harvesting and processing may offer an attractive Mâori economic development option. The main groups of Mâori landowners currently exploring this option are located in the Te Aupouri, Ngati Porou and Ngati Tuwharetoa tribal areas.
SILNA
- Lands originally allocated under SILNA are also currently exempt from the sustainable management provisions of the Forests Act. These lands have significant areas of indigenous forests (approximately 22,000ha in total) concentrated largely in Otago and Southland (including Stewart Island).
- These lands have not been included under the relevant provisions of the Forests Act because of the special history associated with them. A claim was lodged with the Waitangi Tribunal (WAI 158) in 1990 which cites the Crown's indigenous forest policy as being in breach of Article II of the Treaty of Waitangi.
- In recent years some SILNA forest areas of high conservation value have been subject of separate ‘settlements’ involving permanent covenants over the land. Examples are the Waitutu and Lords River blocks.
- The current policy towards SILNA forests is to pursue `negotiated settlements' with the owners on a section by section basis (there are over 400 sections in total). These negotiated settlements may include bringing the sections under the Forests Act, agreement to a conservation outcome, and withdrawal from the WAI 158 claim.
- Inclusion under the Forests Act would be on a voluntary basis. The mechanism for this is dependent on the passage of the Forests Amendment Bill currently before Parliament.
- The first stage of this process is to gain the agreement of owners to a one-year voluntary moratorium on logging, on receipt of a small `goodwill payment' from the Crown.
- The Government appointed an independent Lead Crown Negotiator (Mr George McMillan) in July 1999 to pursue negotiated settlements. The Lead Negotiator is supported by a Crown Negotiating Team comprising officials from MAF, the Department of Conservation, Te Puni Kokiri and the Treasury.
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