Jason Mika: Auckland University Professor of Māori Management on the growth of the Māori economy

Iwi-owned entities have emerged in good shape following the country's economic downturn. 

ANZ’s annual Te Tirohanga Whanui report reveals iwi surveyed saw asset values grow a median 4.1% in the 2023-2024 year.  

Auckland University Professor of Māori Management Jason Mika told Andrew Dickens iwi have focused on being prudent when it comes to treaty settlements. 

He says they only get one shot, so they're doing all they can to be careful while also being innovative with how they manage these assets. 

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Episode Transcript

Speaker 1 (00:00):
New research by A and Z shows eWeek owned commercial
entities are outpacing some of the country's largest corporations. The
data shows that Maori enterprises have fared better in the
economic downturn and are emerging in good shape. And it
follows an MB report earlier this year which showed the
Mari economy more than doubling in the five years to
twenty twenty three. So, doctor Jason Meeker is the professor

(00:22):
of Maori Management at Auckland University. Good mording to you,
Jason gold Andrew, what are they doing so well?

Speaker 2 (00:31):
Well, I guess, I guess they're they're developing a scale,
a confidence and growing in their ability to you know,
to manage air sits and to grow sits of the
scale that they are. It's certainly it's through settlements. Tribes

(00:57):
are able to have been able to, you know, to
I guess, be in control of assets of that scale
that you know, and they and they're in the process
of really sort of catching up on a one hundred
and eighty years of development as a result of those settlements.

Speaker 1 (01:15):
So many other many other, many many other you know,
other businesses, not Mali or e we led businesses. You know,
funded fund from the treaty settlements have had had terrible time,
but somehow Mary is doing well. And do they have
a trick to their business acumen?

Speaker 2 (01:33):
Well, they're really they're really focused on being prudent, being
careful because you know, these settlements, these treaty settlements are
sort of full and final and this is there one shot.
So they they're really doing all they can to be careful,

(01:54):
to be but also to be innovative in terms of
how they manage these So they're increasingly being I guess
sort of taking the more hands on approach to managing
their assets, initially starting out as cash exits, but being
more involved in actively managing their assets and as a

(02:15):
result getting better. At ten.

Speaker 1 (02:17):
They also have Maria authorities benefit from a concessionary tax
rate of seventeen and a half percent. Now that's lower
than the standard company tax rate. So is this actually
a proof that a lower corporate tax rate actually helps business?

Speaker 2 (02:31):
The minor authority tax rate is lower than the standard
corporate tax rate because the you know, the beneficiaries that
their own shares and interests in Mardi Land tend to
have a lower marginal tax rate, and so it makes
sense for them to ev a concessionary text rate, and

(02:56):
so you know that's definitely of assistance to mary authorities
who are administering mary Land, which has a lot of
other kinds of challenges associated with it, including difficulties in
terms of access in finance and raising debt on Marty Land.

(03:18):
So you know, that's that's why we sort of have
that sort of different approach to mary authority tax rate.

Speaker 1 (03:26):
Jason, thank you so much for your insight today. And yes,
I've had a bit to do with Tai Nui and
yet they do actually manage their assets very well. A
load of people are texting me right now. While if
you don't pay tax, obviously it's really easy for business.
But as I point out, Mario authorities are subject to
income tax laws like everybody else. They must file annual
income tax returns. Yes they do have a special concessionary
tax rate of seventeen point five percent, but yeah, they're

(03:50):
going for it, and that's that's a good thing for everyone.

Speaker 2 (03:53):
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