Māori land programme boosts productivity and profitability

30 August 2016
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Māori land programme boosts productivity and profitability

Māori land trustees can now sharpen their business skills and increase the productivity – and profitability – of their land with the help of a specially developed decision-support programme.

Māori land trusts face increasing pressure to act in the best interests of their owners to develop land in ways that meet the diverse aspirations and needs of their owners. Proposed changes in legislation are the subject of debate and discussion, but an increasing demand for Māori to have greater autonomy and control of their land makes the programme a timely and invaluable resource.

The Mana Whenua Project, www.manawhenuaproject.nz , funded through the Ministry of Primary Industries’ Sustainable Farming Fund, is the result of a three-year programme with two Māori land trusts, one of which has since gone on to tap into the growing Mānuka honey and adventure tourism industries.

Project leader Shona Jones, of Hinemanu Solutions, says land managed by Māori trusts is often under-utilised due to the complex ownership structure, unsucceeded interests, or the fact that the land itself may be land-locked or uneconomic in size.

“We know that there are many trusts who are proactive in managing their lands and others less so. The aspirations of the owners for their land always take precedence, whether it be to provide housing, training and employment, cultural and spiritual connection and a link to whakapapa or, in some cases, to increase productivity of the land,” she says.

“Often, trust boards reflect the whānau ownership base, have clear cultural goals and aspirations but what can be missing around the table is a depth of leadership, governance and decision-making skills or financial literacy skills that are important to develop new initiatives for the longer term benefit of owners.”

Before the project, lands managed by the participating trusts were generally leased or licensed to other commercial parties, and the returns were lower than what could be achieved if they were actively managing the land themselves.

Ms Jones and governance specialist Dr Karen Cooper developed the decision-support programme to up-skill trustees and help them to identify and develop alternative land use opportunities.

Dr Cooper says the aim of the project was to support trusts to become “business-ready”.  “We wanted to put the control – and the benefits – back in the hands of the trustees and their beneficiaries.”

The Owhaoko C Trust, which has an extensive land-holding in the central North Island, took part in the Mana Whenua Project. The outcome for the trust was to move from a passive to a more active model of management of their land resource. This has led to a new collaborative Mānuka honey venture with a commercial partner, resulting in benefits for the land owners such as employment and training opportunities.

Former trustee, Marei Apatu says the trust was seeking to increase its productivity.  “We have become more proactively involved. In relation to the Mānuka honey industry, [the project] has had a very significant and positive effect.”

Trustee Peter MacGregor said that participating in the project had helped trustees to see the benefit in extending the business further than just one area. He said that in addition to the honey opportunity, the trust was moving into a tourism-driven business on the land and was now better prepared to seek venture partnership for this activity.

Dr Cooper says that the responsibilities on trustees’ means that they are under pressure to demonstrate best practice and competency in their governance. “It is important that trustees’ decision-making is based on sound evidence.”

The programme could become a key tool for Māori land trusts, particularly as legislation affecting Māori land changes is under consideration.  The programme could also benefit other Māori trusts as more post-settlement governance entities are established when Treaty of Waitangi claims are settled.

The Mana Whenua website www.manawhenuaproject.nz has tools to assist trustees in any type of trust in a wide range of areas, including decision-making, communications and risk management. Māori land trustees can also identify useful contacts and learn about potential funding sources through the site.

There are 27,500 blocks of Māori land, each with an average of 106 owners. The blocks comprise 1.45 million hectares of New Zealand. About a third of Māori land is under-utilised.

ENDS

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