Beyond Treaty Settlements: growing our assets for future abundance

Transcription

1 Beyond Treaty Settlements: growing our assets for future abundance Discussion Facilitated by Leon Wijohn at the August 2011 Nga Kaitatau Maori Hui-a-Tau

2 Partnerships with Maori What we will discuss: Why are Partnerships with Maori Important Te Rarawa Examples Where Does Corporate Finance Fit In Maori Partnership Facilitation General Hints

3 Plans to grow our assets should consider world trends Ageing Population Environmental Issues - Global warming - Natural Disasters - Sustainability Energy needs growing Potential food shortages Niche businesses vs. achieving economies of scale USA decline / EU Issues / Asian growth

4 Common issues facing Maori beyond treaty settlements Managing Expectations - The settlement is only the start of development - Still Asset rich/cash poor - The need to grow capital vs. delivering on social needs Organisational Transformation - Lots of small entities - Rapid Growth - Diverse operations - Training and human capital needs Leaders in bad statistics - Need to rebuild local communities - Need to utilise local assets - Still need to invest in people

5 Partnerships with Maori are good way of growing our assets for future abundance

6 Partnerships with Maori Maori have a history of working in partnership - Original Treaty - Orakei Reserves Board - JV s - Joint Treaty Claims (i.e. CNI / Te Hiku) Potential Partners - Anyone that can add value - Money / Expertise / Training - NZ Corporations / Foreign Organisations - Other Iwi / Shared Services Maori aspirations and values need to be built in upfront

7 Maori like working and playing together

8 Maori mix with other cultures very easily

9 Maori Success = Success for all New Zealanders

10 Two Te Rarawa Examples ICP TNL

11 ICP Case Study General background - AFL agreements - Trend in quota prices - Need to manage risk - Need to manage quota better - Need to participate in the whole value chain - Executive committee set up Dean Stebbing / Mark Ngata / Shane Heremaia Tiaki Hunia / Maru Samuel / Leon Wijohn

12 ICP Case Study Who was original involved in the Iwi Collective Partnership? Could not have happened without efforts of representatives from all the Iwi - Te Rarawa - Taranaki - Ngati Ruanui - Ngai Te Rangi - Te Arawa - Ngati Manawa - Ngati Whare - Ngaitai - Ngati Porou - Ngati Tuwharetoa - Ngai Tuhoe

13 ICP Case Study Stated Aims: - Creating economies of scale through collectivization of Iwi Ace. - Obtain Optimal Returns on ACE. - Create Opportunities that build capacity, capability and participation within the Fisheries Sector. - Improve understanding and capacity to understand and manage risk. - Promote Kaitiakitanga and sustainable practices within fisheries. - Improve business performance through developing a strategic direction that is realistic, logical, and achievable.

14 ICP Case Study Long-term strategic partners identified 3 Initial Limited Partnerships Tuakana-Teina principals

15 TNL Presentation Acknowledgements - Rodger McDonald - Te Rarawa Team Haami Piripi Kevin Robinson - Other Iwi Representatives Commercial Investment vs. Social Investment

16 Where does Corporate Finance fit in? The Roles of Accountants cannot be put in a box anymore - Accounting / management / governance - Deloitte Accounting and Advisory (we do everything) Typical Corporate Finance Roles - Financial modelling NPV / CSN Nil margin / TNL / PPP s - Valuations - Business Sales - Independent Feasibility Studies / Due Diligence - Structure Advice / Asset Protection / Taxation - Industry Specialists - Obtaining finance / terms / guarantees - Project facilitation

17 Maori Partnership Facilitation General Hints Know what you want to achieve Who is a good fit Look for a Win-Win Start by making it a condition of each partnership that: - Our people are trained to take over - We have the ability and right to increase our percentage ownership - That our values and aspirations are built in to the agreements If we have a long-term view, the NPV of our needs and aspirations can cost just $1

18 Maori Partnership Facilitation General Hints You can achieve great things if you do not care who gets the credit Build the right Team - mixture of skills - traditional and new - good driver required - resourced doers - trusted and respected - well connected Consulting and Communication - keep it visionary Your heart and wairua is important

19 Maori Partnership Facilitation General Hints Partnerships and Collaborations do not just happen Need good proven reasons and benefits Understand the costs involved New ventures still take 2-5 years Human Capital is our greatest asset and our greatest opportunity to grow our asset base - Cash settlements are not really much per person Know when to bring in help and independent advice - Call Leon on

20 Partnerships with Maori What was discussed: Why are Partnerships with Maori Important Te Rarawa Examples Where Does Corporate Finance Fit In Maori Partnership Facilitation General Hints