Ngati Whakaue Tribal Lands Inc

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Rick Vallance CEO Ngati Whakaue Tribal Lands
Inc.

• Examining new strategies for Maori organisations
  a personal opinion

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Pre Modern times, changes were slow and the land,
directly for centuries

• Provided food, clothing, tools, shelter
  security
• Was the basis of the wealth of the tribe, the
  base economic resource that sustained the people
• Was the corner stone of culture, the mana of the
  tribe, hugely respected
• Defending that resource and managing it well
  determined the success and well being of the
  people
• Culture, leadership and people developed to do
  that well

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The journey over last 200 years

• Gigantic waves of changes, increasing wave
  frequency, biggest yet to hit
• Increasing impact of people, technologies coming
  in from industrial Europe, America and now Asia
  and Pacific
• Development through forestry, farming,
  aquaculture, manufacturing and high tech
  industries and tourism
• Development of modern cities and urban life
• The shift of the people off the land and into the
  cities
• Political structures and power distribution
  changing

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Today, the World, the Cities modern jobs
Directly

• Provide food, clothing, tools, shelter security
• Are the immediate source of wealth for most
  people
• May or may not be based on or be linked to the
  land
• The success and wellbeing of people depends more
  on their families and their own individual
  ability to successfully engage in this new,
  largely urban world
• The personal capacities and aspirations needed
  are different and the potential is far greater
• The challenges are also greater and need to be
  faced and overcome
• There is a growing distance between many Maori
  and their land assets

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Even Greater Changes Approaching

• Environmental global warming, land use and
  water controls, regulation and government
  responses
• Huge demographic changes NZ population baby
  boomers selling businesses retiring
• Huge world population changes
• Huge economic changes
• Huge challenge but huge opportunity

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Role of Iwi and Hapu Organisations

• This change requires new strategies and new roles
  from Iwi and Hapu organisations to survive and
  prosper
• Old ways change to meet new needs as they always
  have done through history successful cultures
  adapt to the world around them, frozen cultures
  are no longer with us
• The land has new roles to play in some cases as
  well as keeping the old in others - flexibility
• It may involve shifting some assets from land to
  urban investments
• Its a new ball game -the speed of change in the
  rules for success is dramatic
• To avoid positive response is to invite decline

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Developing a Vision to deliver on the Aspirations
of the owners

• Who is it all for?
• What do they really want in life?
• What do they need to get it in todays world?
• Personal development and capacity building to
  reach full potential as individuals in the modern
  ever changing world
• This will take using the Iwi Hapu in more
  productive ways to provide the necessary wealth
  to deliver on the vision education, values,
  skills, confidence, angel finance
• Its about understanding the world, understanding,
  leading and developing the aspirations of the
  owners and their ability to achieve their
  aspirations

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Complex World, rapidly changing all the time
impacts land resource owners

• The wealth generation required to deliver on the
  vision is large and time matters
• Standing still is to go backwards
• Simple farming or forestry may or may not be the
  single best employment of resources
• Environmental issues placing a cap and reducing
  future without scientific solutions
• May need new farming or forestry systems
• May need to leverage, change, spread risk,
  relocate some assets into urban investments,
  modern technologies
• NWTL has 3 and one smaller one major research
  programmes with CRIs to find new sustainable
  land uses options

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There is more than one way to skin the cat with
land use strategies

• Farming animals new systems with reduced
  nutrient impacts.
• Farming Trees both production forest amenity
  native bush adding landscape value
• Farming People rural wilderness tourism,
  selective environmentally enhancing high value
  subdivision.
• Farming Crops Herbs Extracts
• Farming energy bio-energy crops and thermal.
• Collaborate within Iwi and Hapu to leverage off
  each other
• Relocate some of the land balance sheet into high
  yielding urban assets and technologies
• the modern Mana may well be more in the modern
  outcome than the original land

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Ngati Whakaue Tribal Lands Inc. Land Use
Analysis Model Researching with Scion

• There are sophisticated tools available to design
  solutions to maximise wealth from sustainable
  land use and land management change, including
  into urban developments

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Goal Sustainable Land Use

• Reduced soil movement less P
• Reduced nitrogen loss to groundwater
• Reduce land slipping
• Sequestered carbon
• Increased biodiversity
• Increased scenic values
• Improve economics

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Sustainable Land Use ultimate goal..
but requiring trade-offs between environment and
economic benefits, new ways of thinking, new ways
of generating wealth from land resource

• Economic benefits
• Social benefits
• Environmental benefits

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OCTOPUS Land Use Modelling System
Radiata pine
Lamb
Beef
ECONOMICS by Level
NUTRIENT flows
Dairy
BIODIVERSITY
Primary Production SIMULATIONS
WATER YIELD
Future Market scenarios
SEDIMENTS
URBANISATION
CLIMATE
ADJACENCY
TOPOGRAPHY
SOILS
Optimal Catchment Trade Offs Production, Utilities
, Services
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Collaboration Opportunities

• At the national economy level great investment
  opportunities are going to come on stream from
  baby-boomers opportunities for JV investments
  by larger iwi organisations
• At the Regional Level e.g. NWTL has been
  working with Te Arawa FOMA and Rotorua-Taupo
  Federated Farmers joining together to form
  Rotorua Lakes and Land Trust worth millions to
  land owners helping to achieve pure lakes while
  defending the future for Maori and Pakeha land
  owners similar baby-boomer sales to pick up
• At the IWI level there are increasing
  opportunities for joint investments into major
  sectors of the NZ economy. Iwi level
  organisations are as well placed as any to take
  part with each other and with other Pakeha
  players
• At the Hapu level many Trusts are owned by the
  same people. It would seem sensible that where
  individually they are struggling, to join hands
  and work together to achieve economies of size
  and scale, avoid financing and cash flow risks.
  The rewards can be huge

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The Value of Collaboration

• Leveraging Commercial Size at farm level, city
  business level, regional and national level in
  investments, financing and risk management
• Accessing greater knowledge and expertise
• Bringing on Independent Directors with relevant
  experience in the new investment developing
  Maori commercial experience
• Networking with go-ahead Maori and Pakeha
  organisations and people in new fields of
  interest
• Increasing political clout though increased
  commercial clout

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Preserving Identity and Mana

• Collaboration does not require any loss of
  control or Mana
• There are structures that leave participants
  separate but able to work together to increase
  advantage for each
• Understanding the risk exposures and getting good
  advice is essential
• Understanding value of contribution of say land
  is essential to get fair share of cake
• There is an opportunity for developing
  collaboration of experience in this area to
  assist with the quality and integrity of projects

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e.g. Unincorporated Joint Ventures

• Each party remains separate but jointly own a
  management company as their agent
• Allows getting the best from a partner, bringing
  in expertise and experience and linkages but
  preserving separateness and identity

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Aim High

• To really make a difference, to achieve the
  wealth needed to provide the cash needed to
  really help develop capacity of the individual
  members, the numbers are large so aim for them.
• Iwi level organisations need to aim to grow into
  100 -200 million plus size to deliver
  substantial benefits
• Hapu organisations need to aim to grow into 20
  to 50 million size to deliver substantial
  benefits
• By aiming high, working together where sensible,
  being prepared to change, its all quite
  possible.
• In life, we reap what we sow there are
  tremendous opportunities in front of Maori
  organisations

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