Perce Harpham: Expanding the Coalition’s Task

The result of the election has been an enormous relief. Especially as clearly many Maori voted against the rush to a coup d’etat which would install tribal governance by their hierarchy.

Also a relief is the fact that the Coalition Agreements undertake to reverse so much that had been done by a Government suffering from a form of delirium induced by experiencing the power of being able to govern alone. They had apparently become desperate to maintain the backing from the Maori seats.

In my book “The Corruption of New Zealand” I trace significant steps in the destruction of the promise of the Treaty of Waitangi to have the same law for all. The largest steps amongst these are the failure to repeal the establishment of the Maori seats as originally intended and the setting up of the Waitangi Tribunal. Again, thankfully, the Coalition has these in its sights.

But reversing all of that will only get us back to the position where 50% of the prison population is Maori with vital statistics for Maori significantly poorer than the average. I am clearly of the view first enunciated by Elizabeth Rata that these issues are because 50% of the whole population live below the poverty line. It is well established that the children of the better-off have better health, live longer and do better at school. That is not surprising.

Even if you only have one child and the cost of a doctor’s consultation is zero the cost of time off work and transport will give you pause in going to the Doctor if you have problems in the normal costs of survival. Similarly with the costs of books and other appurtenances for education.

Thus, while the present list of undertakings by the Coalition are being completed we must act to reduce inequality. And there have been many practices which have quietly become embedded because of the political power of the Maori block of seats. And correction of these practices may contribute a little to go towards reducing inequality.

Consider that, instead of the 28% tax on profits for companies, the so called Maori authority credit is a 15% charge on profits and the cash distribution is then not taxed.

There are stories of Iwi being offered Government properties with a lowered valuation and a further 5% discount. Usually there is said to be no limit on the time for acceptance. So the IWI has time to wait and see if the market value increases and also to make a sale before accepting the offer.

There are also stories of Ngai Tahu having built an office block in Christchurch after the earthquake offering it at such high rentals that there were no takers until the Government departments were ordered to do so.

An interesting Dompost article on 10/3/22 said;“Ngati toa Rangatira has bought 40 school properties north of Wellington as part of the Iwi’s Treaty settlement, making it the largest landlord of the Ministry of education ...........the ownership would provide a perpetual income for the iwi.”

Apparently the valuation had been about $345million but the title was transferred and the properties leased back. The lease of course would be paid from the Education Budget and, presumably, hidden there in the same fashion as the leases for the naval base in Devonport and various other properties transferred to Iwi in Treaty Settlements.

I have no details of any of such leases but this is crafty accounting which misleads the public. The Assets obviously disappear from the Government Balance Sheets and the ongoing costs are, I suppose, mentioned in notes as contingent liabilities. They are probably costed on a discounted cash flow basis. This could, using high school algebra, be calculated as being for perpetuity (infinity) but is likely to only be calculated for a 5 or 10 year term. But the true discounted cash flow cost must be at least the  valuation figure or it would not have been accepted. And such costs will not appear as Government liabilities on the balance sheet. Or so I suppose.

I have had excellent service from IRD and Social Welfare with my OIA ( Official Information Act) requests) but sorting out the total of all these issues would require multiple questions to different departments. I hope that someone will do it. Or, preferably, that separate information will be provided annually for all government leases disclosing the amounts paid from each department and to whom. It is likely that, when interest rates become more normal, it would be better for Government to borrow more money and buy out the leases. We could then see what we really owed and not be led to believe that money is being spent on defence or education when it used to simply be on Government property.

The same problems have also appeared in the dealings of Councils. Porirua recently decided to sell some land, offered it first to their chosen Iwi ( named as a “Partner”) and will only offer it openly if the Iwi decline. They have also chosen “Partners” for plumbing and the like.

In the interests of having not only the same law for all but of administering the laws in the same way I believe that we need a Royal Commission to look at all these issues. Making use of the Serious Fraud Office in some cases.

Perce Harpham, a retired businessman, was a pioneer of the New Zealand computer industry.