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RR RUEHDT RUEHPB
DE RUEHWL #0031/01 3600430
ZNR UUUUU ZZH
R 050430Z FEB 09
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 5673
INFO RUEHNZ/AMCONSUL AUCKLAND 1844
RUEHBY/AMEMBASSY CANBERRA 5378
RUEHAP/AMEMBASSY APIA 0533
RUEHDN/AMCONSUL SYDNEY 0793
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE

UNCLAS SECTION 01 OF 02 WELLINGTON 000031 
 
SIPDIS 
SENSITIVE 
 
STATE FOR STATE FOR EAP/ANP 
PACOM FOR J01E/J2/J233/J5/SJFHQ 
 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM KDEM NZ
SUBJECT:  GOVERNMENT DISCUSSES ECONOMIC RISK TO MAORI 
 
WELLINGTON 00000031  001.2 OF 002 
 
 
¶1. (SBU) Summary.  The New Zealand Government recently sponsored an 
Economic Workshop dedicated to finding a response to the risk 
created by the worsening economic climate to indigenous Maori. 
Among New Zealanders, Maori remain particularly susceptible to the 
economic downturn as many work in low-income jobs and in industries 
that are quick to suffer from adverse economic conditions.  At the 
Workshop, the Minister of Maori Affairs, Dr. Pita Sharples, 
announced his intention to establish a special taskforce to help 
Maori weather the economic crisis.  The Workshop is symbolic of the 
John Key-led Government's emergent relationship with Maori and 
underscored the influence Maori have in government and New Zealand 
politics.  End Summary. 
 
Workshop Examines Economic Threat to Maori 
------------------------------------------ 
 
¶2. (SBU)  On January 28, the Ministry of Maori Affairs hosted an 
Economic Workshop in Wellington that focused on proposing ideas to 
mitigate the risks facing the indigenous Maori population in the 
current economic climate.  Roughly 80 attendees joined the Workshop, 
and included Maori business and tribal leaders, the private and 
public sector.  The Workshop represented the first stage of a 
broader program to advance economic development for Maori. 
 
Establishment of Maori Economic Taskforce 
----------------------------------------- 
 
¶3. (SBU)  The Minister of Maori Affairs, co-leader of the Maori 
Party Dr. Pita Sharples, delivered the Workshop's keynote speech and 
announced that he will establish a Maori Affairs Ministerial 
Taskforce to help Maori weather the economic crisis.  Sharples, 
whose party is a coalition partner of Prime Minister John Key's 
National Party, stated that "the role of the taskforce will be to 
capitalize on the information and the opportunities which will 
emerge (from the workshop)".  He conceded, however, that he had yet 
to run the idea past Key, but believed he would be supportive.  Key 
has not yet formally committed to the Taskforce.  Sharples said he 
would chair the taskforce himself, with a full-time secretary based 
in his ministerial office.  This, said Sharples "is an indicator of 
the absolute importance I give to this initiative." 
 
¶4. (SBU)  Sharples also raised the prospect of government loans for 
those Maori businesses that found themselves in difficulty. 
However, the opposition Labour Party's Maori Affairs spokesman, 
Parekura Horomia, believed that loans by themselves were not enough 
and Maori leaders must focus on keeping their people in the 
workforce. 
 
Maori Remain Vulnerable to Economic Pressures 
--------------------------------------------- - 
 
¶5. (SBU)  Although Maori are in a better economic position today 
than in previous recessions, they remain particularly vulnerable to 
shifts in economic fortunes.  Maori wealth and assets have increased 
to NZD 16.5 billion in 2006, but 52 per cent of those assets were in 
the primary industries, making Maori prone to global fluctuations in 
export prices.  Additionally, many Maori are employed in highly 
vulnerable, low-skilled occupations such as construction and 
manufacturing.  The Maori Development Ministry, Te Puni Kokiri, 
expects Maori unemployment to reach 12 per cent to 15 per cent by 
2010, the highest figure in a decade.  As nearly half of all Maori 
children live in welfare dependent or low-income families, Sharples 
spoke vividly about the risks to Maori posed by elevated levels of 
unemployment and poverty created by economic downturn. 
 
Call to be Bold and Employ Comparative Advantage 
--------------------------------------------- --- 
 
¶6. (SBU)  Sharples noted that in general, Maori business and 
investment strategies are conservative and cautious.  However, he 
called for Maori leaders to consider bold initiatives to address the 
impact of the economic crisis on Maori.  Sharples asserted that in 
order for Maori to face the economic challenges in worsening 
economic times, a strategy of capacity building and capital 
development must be exercised.  This will, he asserted, offer "a 
strong platform to bring forward infrastructure, community and 
education programs."  He also urged Maori to exercise the "Maori 
Edge" - the historical Maori business acumen expressed in terms of 
resilience, flexibility and an inherent and acquired trading 
capacity.  Sharples warned, however, that a narrow focus on business 
and economic development at the expense of the environment is not 
sustainable.  (Note:  The concept of guardianship - of respect for 
the land and water - is central to Maori tradition and custom.  End 
Note). 
 
 
WELLINGTON 00000031  002.2 OF 002 
 
 
Workshop Symbolic of Key's New Partnership with Maori 
--------------------------------------------- --------- 
 
¶7. (SBU)  The Government-sponsored Workshop was a tangible sign that 
the Government is attentive to the particular economic threats 
facing Maori and that it values the Maori Party, which is a partner 
in government.  The Workshop also served to underline the existing 
goodwill between Maori and the National Party, a relationship that 
has not always been positive in recent times.  Significantly, the 
Workshop came shortly before Waitangi Day on February 6, New 
Zealand's National Day, which routinely prompts an internal 
examination of the state of the often tense relationship between the 
government and Maori.  The current relationship is arguably the best 
it's been in many years thanks largely to Key's invitation to the 
Maori Party into government, which Sharples asserted enabled Maori 
to feel valued by the NZ government. 
 
National-Maori Bond Puts Pressure on Labour 
------------------------------------------- 
 
¶8. (SBU)  Comment.  Key is likely to consent to the establishment of 
Sharples' Taskforce.  He won't want to risk a backsliding of the 
hitherto affable relationship he enjoys with his coalition partner 
and Maori writ large.  He will also need continued Maori Party 
support for his economic policies in the coming months, and the 
Workshop should go far to ensure a sense of government interest in 
Maori concerns.  The current harmony enjoyed by the Government and 
Maori will be of political concern to Labour.  Prior to the 
formation of the Maori Party in 2004, Labour held a near monopoly on 
the Maori vote.  Helen Clark and Labour spurned the Maori Party as a 
potential government partner after the 2005 election.  Labour's new 
leader, Phil Goff, has to now find a way to regain the support of 
the Maori Party as a possible future partner in government, and 
break National's growing relationship with Maori voters.  End 
Comment. 
 
Keegan