Excellence in Maori Farming

Two months ago there was a very special gala event in Rotorua, the presentation of the Ahuwhenua Trophy to the Maori Farmer of the Year – the person who most represents excellence in Maori farming.

The award, established in 1932 by Sir Apirana Ngata, was supported by Meat and Wool NZ, AgResearch, the BNZ, TPK and others, to highlight the significant contribution that Maori agriculture makes to the nation's bottom line.

In the game of blame and shame that has been associated with the name Maori in recent weeks, it is interesting to note that the undeniable successes and achievements of Maori in agriculture seem to slipped by without notice, and so the timing of this Farmers Mutual Group Bill couldn’t have been better placed, to remind the House of this prestigious event on the Maori farming calendar.

This year the three regional finalists were:

The Atihau Whanganui Corporation, whose Pah Hill station runs ten stations between Ruapehu and the Whanganui River;
The Tuaropaki Trust, north of Taupo, which includes a $30 million geothermal power plant; 30 acres of temperature controlled export tomato and paprika; and satellite/wireless communication;
And the Matariki Partnership, north of Ruatoria, which supports 3000 owners, running sheep and beef on 2500 hectares; and planting exotic pine and native bush, while maintaining the growth of manuka.


And as my illustrious co-leader, Tariana Turia was quick to point out, it was the Atihau Whanganui Corporation that took out the title, and I’d be just as quick to say, that they were all winners on the night, for what we know about Maori farming is that it provides us with ample evidence of farming ‘excellence’ – something which this whole House could benefit from.

And so the Maori Party, sees it as entirely appropriate that we are considering the financial mechanisms to protect and assist farmers and other members of the rural community, core services of the Farmers Mutual Group.

This Bill then, looks to preserve the basic status of the Farmers Mutual Group, modernize its governance regime, and expand its authorities and powers, including FMG becoming a reporting entity under the Financial Reporting Act, and confirming FMG’s capacity to give rebates to members.

The two submissions and the Select Committee itself, were all in favour of the Bill, and the Maori Party will also be supporting it, as part of our philosophy of advancing opportunities for Maori, while also noting the primary place, that Maori hold as the largest natural grouping of pastoral farmers in Aotearoa, worth an estimated $7.5 billion.

At another level, 10% of the farming sector workforce are Maori; some 15,500 people working in agriculture, forestry and farming, mostly in horticulture, grain, sheep and cattle.

And if the three finalists for the Ahuwhenua Trophy are anything to go by, the Maori farming sector is demonstrating advanced thinking, strategy and planning; which will lead to increased productivity gains for all sectors of the industry.

Madam Speaker, the Maori farming sector, as with the wider farming sector, needs the support of an organisation that can offer a diverse range of services, meet the expanding financial needs in today’s rural sector, provide greater levels of accountability, and rationalise insurance services, all of which FMG is doing.

And it is a mark of FMG’s success that they have been able to cope with these structural adjustments, and still have the unequivocal support of their membership for the changes put forward in this Bill.

Central to that success of course has been the concept of mutuality, reinvesting profits back into the business for the benefit of all the membership - a concept that resonates well with the Maori values of manaakitanga: the principle of care, generosity and mutual respect, and kötahitanga: the principle of unity of purpose and direction.

Madam Speaker, I don’t want to go over ground already covered by other speakers, but I would like to make reference to issues that Maori farmers might want to see as part of the core business of the Farmers Mutual Group.

The 2004 report of the Controller and Auditor General into the client service performance of the Maori Land Court and Maori Trustee, noted the special challenges facing Maori farmers, and specifically the long-standing, unresolved issues associated with multiple ownership, that have created unwieldy restrictions for Maori landowners, wanting to develop their land.

It noted the difficulty for Maori land owners in getting finance, because of banks and other financial institutions, insisting on unencumbered collateral, such as general land, for any loan or mortgage.

The lack of individual ownership and restriction on the transferability of title make it almost impossible for communal Maori land to be considered as collateral, a strange argument really, when you consider that companies with multiple shareholders can easily get finance for development of their businesses. As a consequence, many Maori farming entities are hindered in their ability to access finance, and consequently, their capacity to succeed is also limited.

That leads to Maori organisations adopting a more conservative approach and risk-averse attitude, and leaving them ill-prepared to take advantage of the entrepreneurial equity market.

It would be of benefit to Maori farmers, and the nation generally, for the Farmers Mutual Group to look at ways to help Maori farmers and organisations achieve productivity gains, for both the sector and the economy as a whole, in targeting productivity levels, improved financial performance, land use efficiency and the increased utilisation of capital assets, as part of the services offered to Maori farmers and the rural community.

The Maori Party will support this Bill to committee stage in the interests of helping the Maori farming sector become more productive, and become more influential players in the national economy.