Rural economy is buoying Māori economy after Budget cuts to development funding
The total number of filled jobs for Māori authorities was 11,870, down 170 jobs or 1.4% annually. The total value of earnings for Māori authority employees was $212 million, a decrease of $8.7m or 4%. This shows the reduction in hours occurring across the rest of the economy is also reaching Māori businesses.
When examining the business sales data of Māori firms, the same problems observed across the wider economy are also present. Professional, scientific, technical, administrative and support services were down $18m or 13%. Meanwhile, primary industries were up $11m or 3% annually.
The rural economy is supporting the Māori economy as much as primary industries' buoyancy is helping out anywhere else in Aotearoa.
The second insight comes from ANZ's Te Tirohanga Whānui Report. That data confirms 2024 was a tough year for Māori businesses. However, it also confirms Māori businesses are 'performing better' than 'many of the country's largest listed companies'.
Despite challenges, Māori businesses are performing better than many large companies, showing their resilience. Photo / Alan Gibson
There is a resilience not seen in other parts of the economy. As ANZ notes, 'When the Māori economy grows, it strengthens the whole of the New Zealand economy.'
Visit Whakatāne and see how Ngāti Awa has underwritten the local economy to the benefit of all.
Given the increasing size of the Māori economy – its asset base having nearly doubled to $126 billion in 2023 – you'd think it would form a key part of the Government's economic agenda. But it's not mentioned once during the Minister of Finance's Budget speech.
In the last Budget, $20m was cut from Māori economic development initiatives. The only new funding for the entirety of Vote Māori Development was $3m a year for Māori Wardens and the Māori Women's Welfare League.
The Government's 'Going for Growth' economic development plan says the Māori economy is important – but that is it.
There are no specific programmes to help it grow. There is nothing to help Māori businesses grow into new sectors or help capitalise on their intellectual property. In short, it is left alone.
He Kai Kei Aku Ringa: the Māori-Crown Economic Growth Partnership – written initially in 2013 under National and revised in 2023 under Labour, was abandoned when the coalition took office.
It looks increasingly likely that the economy is heading backwards again. The Reserve Bank is now forecasting that the economy declined 0.2% last quarter.
You would think the Government would be pulling every lever to make sure there was new economic activity and new employment. But this is a Government that has a complete blind spot when it comes to anything Māori.
Some $88m was cut in total from direct Māori funding at the last Budget, on top of $97m last year.
There is an urgent need to change thinking. The Government is content with ever higher numbers of Māori being in prison, homeless or unemployed.
That is not the 'growth, growth, growth' many were hoping for. It does nothing to support a unique and growing part of the New Zealand economy. Nothing to help enterprises and authorities that may be able to reach where other government actions have failed.
It is time for a better plan – and one that recognises a remarkably simple fact. The scale of the opportunity in the Māori economy is not being grasped by the Government.
We will have spent more on landlord tax relief over the next four years ($2.9b) than we have on the entirety of the Treaty settlement process to date ($2.8b).
Budgets are about choices. Choices show values. The Government should value the Māori economy better. That way we all benefit.
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