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David Seymour, Act leader (Photos: Getty Images; design The Spinoff)

OPINIONĀteaSeptember 12, 2024

Seymour is digging his own political grave

david seymour
David Seymour, Act leader (Photos: Getty Images; design The Spinoff)

The Act leader thought he had a winning hand with the Treaty Principles Bill but as the cards are revealed, the gamble isn’t playing out in his favour.

Act’s leadership went all in with the Treaty Principles Bill, confident that their bold attempt to redefine te Tiriti o Waitangi would pay off politically. But as the bill’s proposed principles are unveiled, it’s clear the gamble is far from a sure thing. What was supposed to be a strategic move has backfired, putting Act on a path that could seriously harm both their party and Māori-Crown relations.

The proposed principles released yesterday not only deviate from the text of te Tiriti, but they also stray from Act’s original promises. Facing opposition from government departments, coalition partners and the wider public, the bill seems poised to cause more damage to Act’s political reputation than the party anticipated. The contradictions within the proposed principles are leaving Act in an increasingly precarious position.

Act’s vision of “equal rights for all” appeals to voters frustrated by what they perceive as preferential treatment for Māori, something Act blames on vague judicial interpretations of te Tiriti. The Treaty Principles Bill was a non-negotiable in coalition talks, a cornerstone of Act’s crusade against so-called “divisive race-based policies” and a belief that Māori get special treatment. It’s being sold as a move to reassert parliamentary supremacy and reinforce the rule of law.

While there is discontent with the current political system, many New Zealanders are wary of the extreme positions Act is pushing. The rise of global indigenous rights movements, alongside a growing understanding of New Zealand’s colonial past, means the public is more aware of the nuances of te Tiriti than Act might have expected. By simplifying Treaty principles into an “equal rights for all” framework, Act has misread the wider sentiment that values the Māori partnership and the ongoing reconciliation of historical grievances.

A section of te Tiriti o Waitangi (Image: Wikimedia Commons, CC BY-ND)

A miscalculated hand

Originally, Act promised a clear, unambiguous approach to te Tiriti, one that would cement equality for all. But as the draft principles emerge, it’s clear the party has overplayed its hand. The proposed principles not only contradict Act’s own promises but also diverge from the text of te Tiriti itself. Instead of delivering clarity, they introduce confusion, leaving both supporters and critics wondering what the party truly stands for.

Act’s insistence on reducing the Treaty’s principles to a rigid framework of “equal rights” oversimplifies its role in New Zealand’s legal and political systems. The idea that Māori rights could be equalised without acknowledging their historical and cultural context disregards both legal precedent and the Crown’s obligations under Treaty settlements. It shows a fundamental misunderstanding of how deeply embedded the principles of te Tiriti are in the nation’s governance.

The bill attempts to recognise the rights of hapū and iwi but also insists on “equal rights for all”. This framework pleases no one. Māori rights are acknowledged but only to the extent they’re recognised in legislation or Crown agreements.

As debate over the bill intensifies, Act’s coalition partners have started to fold. Both National and NZ First have publicly stated they won’t support the bill beyond its first reading. With no backing from within the government, Act’s position is weakening. What the party envisioned as a unifying move for New Zealand has become a symbol of division. Government agencies, including Te Arawhiti and the Ministry of Justice, have voiced concerns, warning that the bill could further inflame racial tensions and undermine Māori rights.

What was intended as a calculated political manoeuvre has become a polarising issue. Instead of uniting New Zealanders under the banner of equality, Act risks deepening the rift between Māori and non-Māori.

Both National and NZ First have publicly stated they won’t support the bill beyond its first reading

A risky bet on populism

Populism thrives on division – us vs them, winners vs losers – but te Tiriti is inherently about balancing competing interests in a shared society. Reducing this foundational agreement to a yes/no referendum on principles – which a Cabinet paper released yesterday confirmed would be part of the bill – risks polarising the nation and feeding ideologies that frame Māori as having undue privileges, rather than being partners in a historic agreement that shaped the bicultural foundation of Aotearoa.

Allowing Treaty principles to be the subject of populist rhetoric opens the door to further undermining of Māori rights. A referendum on these principles sets a dangerous precedent. It could enable future challenges to initiatives like language revitalisation, Whānau Ora, or even Treaty settlements themselves. The stability of Māori-Crown relations hangs in the balance and Act’s gamble threatens to unravel decades of hard-won progress.

In the long run, Act’s gamble could backfire. Far from solidifying its political standing, the party risks alienating mainstream voters and shifting towards the political fringes, tainted by divisive, hard-right rhetoric. New Zealanders who don’t fully understand Treaty law may still be wary of populist appeals that undermine social cohesion. Once Pandora’s box is opened, there’s no telling how far the divisions could spread, making this gamble far riskier than Act anticipated.

Seymour and Act are now banking on a referendum to secure a win but they’ve miscalculated how deeply divisive this could be. Pushing for a referendum may seem like a strategic move but it’s turning Treaty principles into a political football – a bet that could erode social cohesion. The party now faces a critical decision: double down on a risky hand, or fold before the damage becomes irreversible.

Act has to now choose whether to push forward with a bill that no one supports or backtrack and risk alienating its voter base. Like a gambler who stays at the table too long, Seymour risks losing everything if he doesn’t walk away soon.

‘He mea tautoko nā ngā mema atawhai. Supported by our generous members.’
Liam Rātana
— Ātea editor
Keep going!
A graphic image with "supplier diversity" written on a piece of paper on the left and "procurement policy" on a folder on the right.
Design: Liam Rātana

ĀteaSeptember 11, 2024

What is supplier diversity, why does it matter and why should I care?

A graphic image with "supplier diversity" written on a piece of paper on the left and "procurement policy" on a folder on the right.
Design: Liam Rātana

It’s playing a key role in the growth of indigenous and minority businesses around the world. In Aotearoa, the journey is just beginning.

Most New Zealanders are likely unfamiliar with the term “supplier diversity”. However, in the business world, ensuring a diverse supply chain is quickly becoming essential – and some say it could be crucial to unlocking the country’s economic potential.

What is supplier diversity?

Supplier diversity refers to a company’s commitment to spending its money with minority-owned and indigenous businesses. This can be everything from choosing a Māori-owned cafe for your office coffee to awarding multimillion-dollar contracts to diverse suppliers. In Aotearoa, the focus is currently on Māori and Pasifika businesses, but globally, supplier diversity includes businesses owned by ethnic minorities, people with disabilities, veterans, and members of the LGBTQI+ community.

Organisations usually address supplier diversity by either committing a percentage of contracts or a portion of their annual budget to diverse suppliers – sometimes, it’s both.

Is this some new ‘woke’ initiative that won’t go anywhere?

No, it already has global impact. Worldwide, minority and indigenous businesses generate trillions of dollars annually. Some countries have established extensive networks that connect buyers – governments and corporations – with diverse suppliers offering goods and services. In some cases, governments have passed laws requiring them to engage with diverse suppliers and often extend this obligation to the companies they buy from.

Over the last two decades, awareness of supplier diversity has increased as consumer preferences have shifted. Today, consumers expect more than just environmentally responsible businesses – they want companies that actively address social inequality. Supporting minority and indigenous-owned businesses is a tangible way for organisations to create lasting social change. As a result, both governments and businesses are now looking at their supply chains for evidence of social impact, alongside environmental factors like carbon emissions.

So why is it important?

Supplier diversity directly tackles the inequalities that minority-owned businesses face. These challenges typically include barriers to winning large government contracts, accessing capital for growth, or entering new markets. The ripple effects of supplier diversity go beyond the businesses themselves – their communities also stand to gain significantly.

‘He mea tautoko nā ngā mema atawhai. Supported by our generous members.’
Liam Rātana
— Ātea editor

Communities benefiting from supplier diversity tend to be those facing the most severe socioeconomic challenges. Across the globe, indigenous and minority groups often appear disproportionately in statistics around poverty, crime, poor health and education outcomes, and wealth disparity. Supplier diversity empowers these communities by providing capital through commerce – offering a “hand up” rather than a handout.

For every $1 spent on an indigenous business in Australia, there’s a $4.41 social impact return, according to research from Supply Nation. Money spent with these businesses typically stays in their communities, driving employment and professional development opportunities for local people. They also tend to reinvest in their communities, creating a positive cycle that improves access to healthcare, housing, education and more. Importantly, it allows people to build generational wealth and break cycles of poverty.

In addition to the direct and indirect community impacts, economies that support supplier diversity benefit from an influx of innovative approaches and diverse perspectives. Minority and indigenous businesses, having often started from a disadvantaged position, bring creativity and resourcefulness to the table. Their unique worldviews, coupled with generations of indigenous knowledge, drive innovation and strengthen economies.

What’s the state of supplier diversity in Aotearoa?

New Zealand’s supplier diversity journey is still in its early stages. Amotai, the country’s leading supplier diversity organisation, was established in 2018 within Auckland Council, helping connect Māori and Pasifika businesses with procurement opportunities (where council contracts are up for grabs) – and levelling the playing field through strategic partnerships between buyers and suppliers.

Businesses with at least 50% Māori or Pasifika ownership can register with Amotai. This gives them access to Amotai’s resources and connects them with a network of suppliers and buyers, making it easier for companies to source diverse suppliers through the Amotai directory.

In 2020, the New Zealand government set a procurement target for 150 agencies to award 5% of their contracts to Māori businesses. While a step forward, critics felt the policy didn’t go far enough. Some pushed for a higher percentage, while others argued that the target should be based on total government spending, not just contracts. By June 2022, 3,200 contracts worth approximately $930m had been awarded to Māori businesses, though this represented less than 2% of the government’s total procurement spend. The target has since been raised to 8%, but the government remains hesitant to commit to a percentage of total spending.

What about around the world?

In the United States, supplier diversity has been a formal policy since the early 1970s. The National Minority Supplier Development Council (NMSDC) was founded in 1972, following President Nixon’s executive order to address racial inequality in response to the civil rights movement. NMSDC certifies minority-owned businesses and supports a wide array of enterprises, including Black, Hispanic, Asian American and Native American businesses.

Ying McGuire speaks at the 2024 Amotai Summit.
Ying McGuire, chief executive of NMSD, speaks at the 2024 Amotai Summit held on August 21, 2024 in Auckland (Photo: Supplied)

Under current chief executive Ying McGuire, NMSDC aims to help its certified businesses generate $1 trillion in annual revenue by 2030, up from $363bn today. Despite challenges, such as political opposition and barriers to accessing capital, NMSDC continues to engage corporate leaders across industries to advance supplier diversity and create generational wealth in communities of colour.

In Australia, Supply Nation has led the way in supplier diversity for more than 15 years, supporting 5,000 indigenous suppliers and over 800 corporate and government members. The Indigenous Procurement Policy, requiring 3% of government contracts to be awarded to indigenous businesses, has been highly impactful. However, Supply Nation continues to advocate for higher targets and stricter definitions of indigenous businesses.

What does the future of supplier diversity look like?

Globally, supplier diversity policies continue to evolve. Advocates argue that procurement policies should extend beyond the public sector to include private corporations bidding for government contracts. By engaging company executives and involving the people with the money, businesses can make supplier diversity a priority, rather than treating it as a siloed initiative.

Indigenous and minority business leaders are also calling for greater international collaboration, with forums such as the World Indigenous Business Forum playing a critical role in connecting these communities across borders. Together, these efforts will drive inclusive economic growth and address long-standing inequalities.

Supplier diversity isn’t just a buzzword, it’s a way to create real social and economic change. By prioritising indigenous and minority-owned businesses, both public and private sectors can help bridge long-standing equity gaps, foster innovation, and support communities that have historically been underserved. In Aotearoa, while the journey is still young, the potential for impact is immense. As global examples show, embracing supplier diversity not only strengthens economies but can build a more inclusive society for all.

This is Public Interest Journalism funded by NZ On Air.