The Implications of a Recession for the Māori Economy
Table of contents
Māori Asset Base5
Summary: In 2005/06, total Māori-owned commercial assets were estimated to be worth $16.5 billion, 52% of which were invested in primary industries, 8% in secondary industries, and 40% in the tertiary industries.
- Total Māori-owned commercial assets were estimated to be worth $16.5 billion in 2005/06, an increase of $7.5 billion or 83% since 2001. In 2005/06, 52% of Māori commercial assets were estimated to be invested in primary industries, 8% in secondary industries, and 40% in the tertiary industries. This contrasts with the total economy which invests 10% in primary, 9% in secondary and 80% in tertiary.
- In 2005/06, Māori commercial assets amounted to 1.5% of the reported value of the total New Zealand business sector, an increase from 1.2% in 2001. The largest percentage increase in Māori commercial assets between 2001 and 2005/06 was in Māori Trustee land assets, which increased by 310%. This increase is partly due to general dairy and grazing and price increases.
- The largest dollar value increase during this time has been in Māori businesses, which increased by $4.8 billion, or 83%. This increase is partly due to greater numbers of Māori employers and Māori self-employed.
5 The Māori Asset Base, Te Puni Kōkiri, February 2008
- The key risk to the Māori asset base is that its value is expected to decline in the short term due to a combination of factors:
- The presence of the majority of Māori assets in the primary and secondary sectors means that they are exposed to global fluctuations in demand and commodity prices;
- It is expected that the boom in the dairy sector will slow which will impact on the value of Māori land assets; and
- Māori businesses, as owners of Māori assets, are expected to be impacted by the recession as described below.