Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori

Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori
Māori me te Ao Hangarau 2015
The Māori ICT Report 2015
Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori

Ka tangi te tītī — The migratory bird that searches
the globe for economic opportunities, it is connected
to the home, but with a global view.

Ka tangi te kākā — The bird of the forest resources
the domestic market.

ISBN: 978-0-947497-16-3
Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori
Māori me te Ao Hangarau 2015
The Māori ICT Report 2015
Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori
Matilde Tayawa Figuracion, Research and Evaluation, Ministry of Business, Innovation and Employment, for writing the report.
Te Puni Kōkiri, NZ Trade and Enterprise and Callaghan Innovation for providing feedback and information for the report.
Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori
Mihimihi.......................................................................... 6
Executive Summary....................................................... 8
Key Findings................................................................... 9
Introduction..................................................................... 10
New Zealand ICT landscape compared globally............ 12
Māori access to ICT....................................................... 14
Māori use of ICT............................................................. 19
Māori in ICT Education................................................... 22
Māori in ICT Employment............................................... 24
Māori business in ICT..................................................... 27
Social impact of ICT....................................................... 30
Māori ICT Companies..................................................... 34
Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori

In bygone days, Māori with a special knowledge of agriculture, geography, war, sailing and mysticism spent
much time studying their art and discipline. For astronomy, Māori studied the movement of the stars and
learned that it followed a seasonal cycle, as did the Earth below, so that their rising and setting marked the
progression of the seasons.

Our pantheon of gods, Ranginui the sky father and Papatūānuku the earth mother and their children such
as Tāne, Rongo, Tāwhirimātea and Tangaroa reflected our acute awareness of there being a greater purpose
to our existence. The twelve celestial heavens in Māori lore provided spiritual perspective to help define our
understanding of man’s place in the physical world and the universe. These same beliefs and values not only
form the basis from which Māori society has flourished today but also help qualify our understanding of the
natural world.

As an illustration, in 1986 Dr Huirangi Waikerepuru on behalf of Ngā Kaiwhakapūmau i te Reo Māori
challenged the Crowns lack of due process before introducing the Bill, the Māori Language Act, to Parliament.
The Crowns actions at the time also further denied Māori access to radio frequencies and a television channel
for Māori language broadcasting. As such in 1990 a further claim brought by Sir Graham Latimar on behalf
of the New Zealand Māori Council sought findings that Māori have rangatiratanga over the allocation of radio
frequencies. And in 1999 Mrs Rangiaho Everton also challenged the need for a portion of the management
rights of radio spectrum be reserved for Māori. As a consequence, the Crown acknowledged and reserved
some frequencies nationwide for the promotion of the Māori language and culture.

The actions of these few rangatira laid the platform for new opportunities that resulted in Māori taking an
ownership stake in mobile communication operator 2Degrees and greater support for Te Reo through the
Mā Te Reo fund administered by Te Taura Whiri.

He Kai Kei Aku Ringa is an expression of Māori resilience, determination and innovation based on our
whakapapa, tikanga and kawa. It was used often in reference to extreme conditions such as the two world wars,
the great depression and more recently during the late 1980s and 1990s where Māori unemployment ballooned.

Ka Tangi Te Tītī is call of the sooty shearwater as it annually traverses from Aotearoa to the Arctic and back
again, an aspiration for Māori to be internationally connected and recognised.

Ka Tangi te Kākā is the squawk of the parrot in the nearby forests epitomising the rising volumes and visibility
of economic activities by Māori enterprises while Ka Tangi Hoki Ahau speaks of SME and individual efforts to
join the new commercial and technical highways.

Māori radio, television and the ICT networks have been able to accelerate all “tangi” mediums to great success.
The haka is still the defining icon for New Zealand and reverberates throughout the world frontiers of sport,
politics, culture, war and commerce. The reverberations through Māori ICT will exponentialise those Kiwi classics.
Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori
Like our ancestors before us we have embraced this new technology and have welcomed the challenges that these
new technologies offer our people. Our children are the early adopters of this technology and regularly participate in
social networking and play a guiding hand in helping their parents and kaumātua embrace these taonga.

We are also reminded of the benefits that these new technologies bring to enhancing our role as kaitiaki for
our natural environment and its resources.

Consequently we now see the emergence of Māori enterprises leading the world in new technological
developments and showcasing their expertise to global audiences.

However we should not be complacent and be like the huia forever to be lost in the memory of time.

Like the ICT sector, we too need to push the boundaries and continue to explore new horizons. We should not
be satisfied to be just the end user or the administrator of a workplace network. We should aspire to be present
in all facets of the value chain and seek to continually acquire higher skills, experiences and qualifications.

At the same time we should not forget who we are nor from where we have come. Our past does offer unique
insight and knowledge that can inform how we shape our future.

Finally I would like to acknowledge the great work and the analysis to complete this report. The findings will
offer useful information and will hopefully guide government policy. It will also stimulate further discussion and
investment into our communities so that they may thrive and provide greater contributions to our economy and
country – this is indeed the promise of He kai kei aku ringa – The Crown-Māori economic growth partnership.

Ngāhiwi Tomoana
Māori Economic Development Advisory Board
Panel Chair
Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori
Executive Summary
Māori households have lower
internet access than other
New Zealand households.                                  Only
                                                                2.5%     of the total Māori workforce is
                                                                         employed in the ICT Sector in 2014.

    68%                          83%
                                                                                       Māori household
                                                                                       and individual
                                                                                       to mobile
                                                                        National       phones is on a
 Māori Households               National Average                Māori   Average        par or above the
68 per cent of Māori households have access to                                         national average.
the Internet (roughly 438,000) 15 percentage points
lower than the 83 per cent national average.

                                                                                   Māori professionals in
Māori are more likely to use the                                                   ICT occupations earn

internet for social media and                                                      almost double the Māori
                                                                                   median income, but
networking, downloading or                                                         they earn less than their

listening to music and obtaining education
                                                                                   non-Māori counterparts.

information online.
This may reflect the younger Māori demographics.
                                                                             Māori experienced a three
                                                                  3%         percentage points growth
                                                                             rate in internet usage

                                                                             over three years. Compared
                                                                             to the New Zealand average,
                                                                             fewer Māori have internet
                                                                             access at home.

There is a significantly
low proportion of Māori                Māori are
people studying for ICT                less likely to use internet
qualifications.                        to operate a home office
Māori participation in ICT             business or to work from home
qualifications is concentrated
in the lower level qualifications.
Less than one per cent of
Māori in tertiary education are
studying for ICT qualifications
– most are in diploma and post
graduate courses.
Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori

Key Findings
Māori ICT access                                                          ICT Statistics
Māori households have lower internet access than other New                Statistics on ICT access, usage,
Zealand households. Sixty eight per cent of Māori households              employment and education show
have access to the Internet (438,000), 15 percentage points               that Māori lag behind other New
lower than the 83 per cent national average. Māori household              Zealanders. Less is known about
and individuals’ access to mobile phone is on a par or above              Māori business in ICT, which remains
the national average.                                                     a data gap. Rapid advances in ICT
                                                                          have led to a significant increase
Māori ICT use                                                             in the adoption of technology and
                                                                          related services by households,
Māori are more likely to use the internet for social media and            individuals, businesses, educational
networking, downloading or listening to music and obtaining               establishments, and the government.
education information online. This likely reflects the younger            But this has adverse implication to
Māori demographics.                                                       those without internet access or
                                                                          even to those with access but don’t
Māori are less likely to use internet to operate a home office
                                                                          use the internet. This puts to the
or to work from home.
                                                                          fore the issue of digital divide.

Māori in ICT education
Relatively fewer Māori people are obtaining ICT qualifications. Less than one per cent of Māori in tertiary
education are studying for ICT qualifications, and they are concentrated in diploma and post graduate courses.

Māori in ICT employment
Māori make up 12.5 per cent (309,600) of the overall New Zealand workforce in 2014. They work predominantly
in manufacturing, wholesale and retail services, utilities and construction. Māori employment is less concentrated
in the ICT sector. In 2013, there were 7,800 employed in the sector.

Māori are more likely to be employed in the lower skilled ICT occupations. Of the 7,800 Māori in ICT occupations,
2,000 were ICT professionals, 2,800 were Engineering, ICT and Science Technicians and 3,000 were Design,
Engineering, Science and Transport Professionals. Fewer Māori are also in highly paid ICT occupations
(managers and professionals) than non-Māori.

Māori ICT income
On average, Māori ICT professionals ($60,000) earn almost double to the median income of a Māori worker
($36,500) in 2013.

Māori business in the ICT sector
Data on Māori business in ICT remains a data gap. However, there are anecdotal evidence that Māori
businesses are early adopters of technology and are engaged in the ICT sector.
Māori me te Ao Hangarau 2015 - The Māori ICT Report 2015 - Planet Maori

Information and Communications Technology (ICT) has been a catalyst of change and growth in a number of
countries. ICT has also opened opportunities for individuals, shaping what they do and how they work with others.

In modern society, ICT is becoming more powerful, more accessible, more widespread and more socially
relevant. It is therefore important to examine its effects upon certain segments of society, Māori in particular.

This Māori ICT report aims to pull together existing information and data to provide a picture of Māori in the
ICT sector. The picture can be an important resource to whānau, hapū and iwi Māori for understanding issues,
challenges and opportunities. It can also be important for work-related imperatives, such as in informing priority
programmes and projects for Māori.

Report Structure
The report begins with a general picture of the New Zealand ICT landscape, which is then followed by a
discussion of Māori internet access and affordability, Māori participation in ICT education and employment,
and other impacts ICT may have on Māori individuals, households and businesses.

The structure of the report is based on the ten measures used in the Networked Readiness Ranking Report1, the
executive summary of which is presented in infographics format. Sections covered in detail include the following:
»»   Māori access to ICT;
»»   Māori use of ICT;
»»   Māori in ICT education;
»»   Māori in ICT employment;
»»   Māori business in ICT; and
»»   The social impact of ICT.

Why this report?
The recent ICT Sector Report of 2015 highlighted how ICT in New Zealand is growing fast. Growth is seen in
the number of IT businesses established, in exports of IT services, and in increased investments in Research
and Development (R&D) and faster internet connection.

A number of studies compare New Zealand against other developed countries. Benchmarking studies show
that New Zealand has solid rankings in a number of ICT readiness indicators relative to others. According to
the World Economic Forum, New Zealand has the best political and regulatory environment in 2015. Other
international ICT surveys found New Zealand to be competitive against Scandinavian countries, Singapore,
US and Canada.

This report describes where Māori is at in terms of access, use and participation in the ICT sector.

This report identifies gaps in information, particularly on uptake of ICT by Māori business sectors.

1    See Appendix one for the comprehensive discussion of the 10 pillars and the component indicators of each pillar.

Data sources for this report                                                                 IT Businesses
Data used for this report are from the Census 2013, Household Use                            The number of all IT busin-
of ICT 20122, Household Labour Force Survey (HLFS), Education                                esses topped 10,000 for the
Counts, Business Operations Survey (BOS), Annual Employment                                  first time in 2014. Employment
Survey, Tatauranga Umanga (Māori Authorities, Statistics New                                 in the ICT sector grew by more
Zealand) and sources available locally and internationally.                                  than 2,800 in the year to June
                                                                                             2014. Exports of IT services
                                                                                             have grown at a compound
Caveat/Data Limitation                                                                       annual growth rate of 14 per
Usable data on Māori in ICT business are limited, a gap that is yet                          cent in the six years to 2014.
to be addressed. Because of this limitation, anecdotal stories on                            Computer services are leading
Māori businesses participation in ICT or on Māori ICT businesses are                         growth in business investment in
provided in this report to give a fuller picture.                                            R&D in New Zealand. Only five
                                                                                             years ago the value of listed IT
The 2012 Household Use of ICT Survey is one of the key data                                  stocks on the NZX was virtually
sources for this report. It should be noted that some questions in                           nothing. Currently IT stocks
2009 were not comparable in the 2012 survey. This study has minimal                          total 10 per cent of the value
comparative analysis of the two year periods.                                                of all listings.

Key themes in the ICT sector summarised
The 2015 ICT Sector Report released by the Ministry of Business, Innovation and Employment identified a
number of key themes emerging in the ICT sector. These themes relate to increased investment, demand for
skills, research and development (R&D) and innovation, uncapped data plans and UFB, mobile connectivity
and developing capabilities.

While these themes are more reflective of the IT segment of the ICT sector, they highlight the importance
for individuals and firms to be in the ICT space – to access ICT, use it and understand how it could assist in
growing their business.
»» The ICT sector attracts increasing interest from angel, venture and private equity investors on the NZX;
»» Increased use of ICT across the economy generates employment growth across a range of skill-sets, including
   software engineering and development, project management, marketing, sales, administration and business analysis;
»» Information and communication technologies provide a platform for innovation across all sectors;
»» Internet service providers offer uncapped broadband plans, connections to ultra-fast broadband plans and connections
   to the ultra-fast broadband fibre (UFB) networks taking off;
»» Rapid uptake of smartphones, tablet computers and other mobile devices;
»» Builds local and international business networks in support of export growth

2   The 2012 Household Use of ICT Survey targeted a 75 percent response rate. The survey achieved an actual response rate of
    76 per cent, which represented 13,046 households.

New Zealand ICT landscape
compared globally
New Zealand scores quite well in ICT readiness compared to the rest of the high income countries.
However, we need a faster, better and more affordable internet with a higher-skilled ICT workforce if
we want to be more competitive globally.

New Zealand is well placed against the high-income countries
New Zealand scores quite well on nine out of ten ICT readiness indicators. The only pillar that it was ranked
lower than average on was affordability. Overall, New Zealand ranked 17 among 143 countries. Countries in the
top ten were Singapore, Finland, Sweden, Netherlands, Norway, Switzerland, US, UK, Luxembourg and Japan.
New Zealand’s political and regulatory environment has been ranked as the best compared to the high-income
countries. Specifically, New Zealand has been ranked as the best in terms of effectiveness of law making bodies,
laws relating to ICT, judicial independence, efficiency of legal system in settling disputes, efficiency of legal
system in challenging regulations, intellectual property protections, software piracy rate, number of procedures
and days to enforce a contract.

New Zealand also ranked highly and with an upwards trajectory for other international ICT barometers, ICT
ranking bodies and surveys. The World Wide Web Foundation 2012 ranked New Zealand 7th in the world in
terms of connectivity, 10th in the world in terms of institutional infrastructure (e.g. institutions, government support
to promote web access) and 17th in terms of the ability to extract economic value. NZ also ranked 4th in the Global
Open Data Barometer, released in London by the World Wide Web Foundation and Open Data Institute.

These comparative rankings show that New Zealand is competitive against other OECD countries in terms of
the key pillars, measures and indicators that enable ICT to flourish.

Faster, better internet for New Zealand
The internet has fundamentally changed the way we live, work, learn and connect to the world, our families
and communities. Being connected and online has become an essential part of our everyday lives. There is an
increasing expectation of not only 100% connectivity but also of fast broadband connection and mobile coverage.

While there is good broadband access, New Zealand is ranked poor on price and speed. To address faster
internet connectivity, the Government invested in ultrafast broadband and in the regional broadband initiative.

In 2014, the Government invested $2 billion into two major initiatives: the Ultra-Fast Broadband (UFB) Initiative and
the Rural Broadband Initiative (RBI). Together, these two programmes aim to bring the benefits of improved internet
connectivity to 97.8 per cent of New Zealanders (but no specific target for Māori), opening up a huge range of
business, educational, community and other opportunities (MBIE, 2015).

Affordability of broadband and mobile phone
The Networked Readiness Index ranked New Zealand low on affordability indicators (i.e. for pre-paid mobile
cellular tariffs, fixed broadband Internet tariffs, and Internet and telephony competition) compared to developed
countries. Advertised pre-paid mobile cellular tariff ranged from 20 cents per minute call (Skinny Mobile) to
49 cents per minute (Spark) with 2 Degrees and Vodafone in between. Compared to Singapore which is ranked
first, New Zealand had a higher tariff rate.

Skill shortage in the NZ ICT sector
New Zealand has identified a skill shortage in ICT, with many organisations choosing to adopt overseas
recruitment strategies due to a lack of available domestic sources. Computer design firms reported more
vacancies than any other sector in the economy (MBIE, 2015). Eighty nine per cent of the vacancies were
managerial, professional or technician levels. Job prospects in the ICT sector remain strong. The Ministry
of Business, Innovation and Employment Occupation Outlook Report 2015 identified ICT job prospects as
some of the best in New Zealand, with a likely strong growth in the sector. For software developers, for
instance, the projected employment growth was forecast to be around 4.8 per cent per year from 2013-18
and 4.3 per cent per year to 2023.

Māori access to ICT
Māori have lower internet access at home relative to the Europeans,
with a three per cent growth rate in internet use in three years

                           86%                              84%                              89%
                                               77%                              73%

             Individuals with internet          Recent internet users            Recent internet users
                 access at home                                                    using broadband

                                             Māori                European

Source: Household use of ICT 2012, Statistics New Zealand

In 2012, 86 per cent (or 1.66 million) of all households       seven per cent lower than the national average of
were connected to the internet. This is equivalent             84 per cent. Of the 2.38 million recent internet users,
to 3.45 million individuals. Māori households have             337,000 are Māori. In 2013, the Māori population was
lower access to the Internet than other New Zealand            598,600. Europeans have higher percentage of new
households, only 68 per cent, equivalent to 438,000            internet users at 84 per cent compared to Māori.
individuals. This is about 18 per cent lower than the
national average (86 per cent).                                Compared to the 2009 survey, there was a slight
                                                               growth in internet use, increasing from 74 per cent
Similarly, Māori have a lower proportion of new internet       in 2009 to 77 per cent in 2012, a three percentage
users compared to the general population. Māori are            points growth rate in three years.

Māori, along with Pacific peoples, lag behind in the number
of broadband users

            92%                          89%                   National average = 87 per cent

                                                                 73%                       73%

         Other ethnicity                 European                 Māori               Pacific peoples

Source: Household use of ICT 2012, Statistics New Zealand

Seventy three (73) per cent of recent Māori internet           The national average is 87 per cent. Dial up use
users access the internet via broadband. This                  is similar with the national average at around four
compares with 89 per cent for Europeans.                       per cent.

Māori have lower access to telecommunication services compared
to non-Māori but higher than average in mobile phone access
                    Satellite Dish (%)     Telephone line(%)      Cable(%)      Mobile device (%)       Other (%)

 European                   3                       78               3                 4                   8

 Māori                      1                       78               2                 6                   8

 Pacific peoples            1                       82               2                 3                   9

 Other ethnicity            1                       80               2                 5                   8

Source: Household use of ICT 2012, Statistics New Zealand

Across all ethnicities, a fixed copper connection is           of accessing the internet via a smart phone but are
the most common form of internet access. Ninety two            above average in accessing internet via games
(92) per cent of recent Māori internet users also have a       machine/other device. This could be due to the
mobile phone, which is in line with the national average.      younger Māori demographics.

Across devices, Māori are more likely to access                The 2013 Census data also shows 32 per cent of
the internet via a laptop or tablet (53 per cent) and          Māori households did not have internet access at
desktop (38 per cent) but their rate of access is below        home compared with 14 per cent nationally in 2012.
national average (61 and 44 per cents, respectively).          Strong broadband growth over the past two years
Māori are comparable to national average in terms              means this will have changed.

Internet access decreases as age increases, peaking at mid to late
thirties and dipping at early family years

Source: Household use of ICT 2012, Statistics New Zealand, in percentage

The general trend on the relationship between internet       note that internet use for 20-29 year-old Māori and
use and age for both Māori and non-Māori is similar.         non-Māori go down. This could possibly be explained
It peaks in teenage years and at ages 35-39, and then        by the circumstances of people at this age – i.e.
decreases as the person matures. It is interesting to        having a life outside of home or busy earning a living.

Northland Māori have low internet access and high material deprivation

Sources: Household Use of ICT 2012, Statistics New Zealand and NZ Deprivation Index 2013, Otago University; map by MBIE

Māori internet coverage is quite variable by region,                  Manawatu-Whanganui (61 per cent) and Waikato
with Northland showing the lowest level of internet                   (63 per cent). Northland Māori have low internet
access at home (around 56 percent), followed by                       access and high material deprivation3.

Māori with Internet Access by Regional Council
                                       Total number        Percent of Māori with Internet                  Percent of Māori who are
Regional council                         of Māori                access at home                             recent Internet users(1)
                                           (000)               (000)                    %                  (000)                   %
All individuals                             438                 299                    68                   337                    77
Northland                                    39                  22                    56                   26                     68
Auckland                                    106                  80                    75                   87                     82
Waikato                                      56                  35                    63                   42                     75
Bay of Plenty                                52                  34                    67                   39                     75
Gisborne/Hawke’s Bay                         34                  23                    68                   25                     74
Taranaki                                     12                  8                     70                    9                     79
Manawatu-Wanganui                            35                  21                    61                   23                     68
Wellington                                   55                  41                    74                   45                     82
Nelson / Tasman /
                                             10                  8                     77                    8                     81
Marlborough / West Coast
Canterbury                                   24                  16                    66                   19                     78
Otago                                        11                  8                     71                    9                     83
Southland                                    5                   4                     73                    4                     77
Source: Household use of ICT 2012, Statistics New Zealand             1. Recent users are those who have used the Internet in the past 12 months.

                                                                      Note: All numbers in this table have been rounded to the nearest
                                                                      thousand. Due to rounding, figures may not add to the stated totals.

3   The following are the dimensions used to derive the material deprivation index of New Zealanders: communication (internet use),
    income, employment, qualifications, home ownership, support, living space and transport.

The biggest barrier to taking up broadband is its availability in the local area
The biggest barrier for Māori individuals to shift from     projects aim to have 75 per cent of New Zealanders
dial-up to broadband is availability of broadband in        have access to ultrafast broadband by 2019. As of
the local area.                                             July 2015, more than 106,000 users have connected
                                                            to the ultrafast broadband fibre and more than 269,000
The internet coverage, including access to faster           users are able to access improved rural broadband.
internet, has likely changed because of the Ultrafast       Thirty five towns and cities can now access ultrafast
Broadband (UFB) and Rural Broadband Initiative              broadband. Efforts to provide faster internet access is
(RBI) project of the government. The UFB and RBI            now 100 per cent complete for Whangarei.

Source: MBIE UFB and RBI Project Update, July 2015

Māori are least likely to cite ‘cost’ as a barrier to access
Māori were the least likely to cite ‘cost’ at 34 per cent   and other sites such as family member’s home (‘other’
relative to 48 per cent nationally. Other ethnicities       – 32 per cent).
regard cost as a barrier in accessing the internet (at
mid-sixties). Dial-up access was considered sufficient      Access at places of education and community internet
by 28 per cent of Māori.                                    facilities by Māori has increased from 31 per cent to 42
                                                            per cent for education and 25 per cent to 33 per cent
A number of Māori access free internet at community         for community internet facilities, respectively. These
spaces facilities like marae education facilities and       results likely suggest that cost may be an issue.
outside their homes. Sixty per cent of Māori who
access the internet also access it outside of the           Affordability issue particularly matters if they access
home. Relative to other ethnicities, a significantly        internet through a faster yet expensive connection
lower percentage (52 per cent) access the internet          like broadband. Also, internet access at a marae is
at work. Māori also have above average likelihood to        therefore important as it provides another community
access it at a community internet facility (33 per cent)    space for Māori access to the internet.

Māori use of ICT
The top three reasons why Māori use the internet                    are more likely to be using computers with internet
were social networking, entertainment and access to                 access every day for personal reasons, and to use
education information. The primary use for the internet is          them for social networking, downloading/streaming
for social media. More than 70 per cent use it for social           music and videos and playing video games. The study
networking – well above the national average, which
                                                                    also found that the level of engagement decreased
may reflect the demographic age of Māori internet users.
                                                                    with age for social networking, entertainment,
This is consistent with Te Puni Kōkiri’s Media User                 downloading/streaming music and videos, and
Survey4 where the findings show that young Māori                    content creation.

Māori are more likely to use the internet for social media

Source: Household use of ICT 2012, Statistics New Zealand

Relative to other users, Māori are less likely to make a           In terms of leisure and entertainment activities, Māori
purchase online, do internet banking, use Government               have a higher adoption of online music and playing
websites, sell goods, or operate a home business/                  video games. Māori internet users are seven per
work from home. This suggests that Māori are less                  cent higher relative to the national average. Watching
likely to use the internet for transaction purposes.               movies and peer to peer file sharing is aligned to
Face to face transaction could be the preferred option             the national average. Reading books/newspapers is
for Māori, and may also imply preference for multi-                seven per cent below the national average at 35 per
modal delivery of service for Māori.                               cent. Again, this is consistent with the characteristics
                                                                   of younger Māori demographics.

4   See http://www.tpk.govt.nz/en/a-matou-mohiotanga/broadcasting/use-of-broadcasting-and-e-media-maori-language-and/online/2

Māori are also less likely to access government websites to download
forms and make online payments

Forty five per cent of Māori individual users have been     These results have implication on access to online
recent users of government websites, lower than             information and services, especially for Māori who still
the national average (of 52 per cent). Māori are also       have low uptake of these digital services.
slightly below the national average in using government
websites to download forms (51 per cent vs 57 per cent,     ….but they have slightly higher rate of increase as
respectively) and make payments online to government        users of government websites in three years
websites (26 per cent vs 36 per cent, respectively).
                                                            From 2009 to 2012, Māori rate of increase in
There are also more Māori individuals not using             accessing government websites is three percentage
government websites (32 per cent compared to 29             points higher than the national average (12 per cent
per cent nationally).                                       compared to nine per cent nationally).

Education is another important driver for internet use by Māori


                                             15%                                                    16%
        Formal education or                 Operating a home business                 Working from home
         training activities

                                                  All NZ    Māori

Source: Household use of ICT 2012, Statistics New Zealand

Education is another important driver for internet          sixteen per cent to work from home, well below the
usage for Māori. Māori were four percentage                 national average. Since 2009, formal education
points above average (38 per cent) in using the             has increased from 20 per cent to 88 per cent as
internet for education or training. Only eight per          the purpose of recent internet use, a growth rate
cent cited using it to operate a home business and          matched only by Pasifika.

Internet use increases with income for both Māori and non-Māori

             Māori population with internet use             Non-Māori population with internet use

Source: Household use of ICT 2012, Statistics New Zealand

As income increases, so does internet use. But as               both Māori and non-Māori. Compared to non-Māori, Māori
income peaks, internet use decreases. This is true for          have lower level of internet use across all income groups.

Māori in ICT Education
One of the barriers to greater Māori participation in ICT careers is educational achievement in high school.
Across the country, Māori are leaving secondary education with lower level qualifications than non-Māori. In
2014, 59 per cent of Māori school leavers achieved NCEA Level 2 compared to European at 81 per cent or
Asian at 90 per cent.

Māori participation in ICT qualifications is concentrated in the lower
level qualifications
Less than one per cent of Māori are studying towards an ICT qualification

           26.9%                          21.1%
                                                                           35.9%                          40.3%


                                                                             7.5%                         4.1%
       Certificates 1-4                   Diploma                    Bachelor’s degree          Graduate Diploma & Higher
           n=6100                         n=5510                         n=18850                         n=2930

                                          Māori        European        Other ethnicities

Source: 2013 Education Counts, Ministry of Education

Compared to the national average, Māori are                       14.9 per cent of the total enrolments or 820 students
disproportionately represented in the lower                       out of 5,510 enrolments. The number of Māori
level qualifications (certificate levels 1-4) and                 enrolments in Levels 7 and higher is small, only 7.5
disproportionately under-represented in the higher                per cent of the total Bachelor’s degree in Information
level qualifications, particularly in Bachelor’s degree           Technology enrolments. This is equivalent to a low
(level 7) qualifications or higher.                               1,420 Māori students out of 18,850 total enrolments.
                                                                  The proportion in graduate diploma or higher is
In terms of Māori participation in tertiary education,            significantly low at 4.1 per cent or a total of 120 out of
less than one per cent are studying towards an ICT                2,930 enrolments at this level. Māori accounts for 12.
qualification (i.e. Computer Science, Information                 8 per cent total enrolment in Information Technology
Systems and other Information Technology). Māori                  for all levels.
are concentrated in the certificate levels, representing
33.4 per cent of the total enrolment in Levels 1-4,               Overall, enrolment in higher qualifications is lower for
or a total of 2,040 out of 6,100 enrolments.                      Māori compared to Europeans.

The second highest concentration of Māori in ICT                  Labour market outcomes, employment and earnings,
tertiary education is in the Diploma level (5-6) with             is generally strong in the ICT sector. This provides a

strong incentive to encourage rangatahi Māori (Māori         qualifications (72.8 per cent) and school qualifications
youth between 15 and 24 years of age) to qualify in          (58.4 per cent). Māori with no school qualifications
one of the highest paid professions in New Zealand,          have the lowest employment rate of 46.3 per cent
and where job prospects are very high. Studies have          (Māori Labour Market, 2014).
also shown that employment rates of Māori increases
as their level of education increases (Māori Labour          Building Māori participation in the industry is vital,
Market, 2014).                                               given the projected demographics of falling secondary
                                                             school numbers, an ageing population and an
Education is also positively correlated with                 insatiable demand by the ICT industry for suitably
employment rate. In September 2014, Māori with               qualified and skilled employees. Also, the youthful
degrees or higher qualifications had the highest             Māori population means that Māori are the future tax
employment rate at 85.4 per cent, followed by                payers so there is a need to ensure they earn good
those with certificates, diploma and polytechnic             income to help pay for our ageing population.

Tertiary Education Commission’s ICT Graduate Programme
Information and Communications Technology (ICT) is growing and developing rapidly and becoming an integral
factor in successful economic growth around the world. The Government wants to ensure New Zealand has
people equipped with the ICT skills required to keep pace with developments.

Budget 2014 allocated $28.6m over four years for an ICT Graduate School programme. The programme will
deliver industry-focused education and research that builds connections between tertiary education providers and
high-tech firms. The objectives are to produce graduates with work-relevant and business-focused skills, provide
more direct pathways from education into employment, and help grow New Zealand’s ICT talent to support firm
growth, innovation and productivity.

The initiative will provide funding for education, research and collaborative activities to attract top student,
academic and industry talent with schools proposed for Auckland, Wellington and Christchurch. In Christchurch,
the initiative will be located in the soon to be established Christchurch Innovation Precinct. In the other cities, the
initiatives will need to be integrated with the local innovation system, such as through local innovation precincts or
technology hubs.

In addition to providing education and research in specific locations, the programme will also involve the
development of more broadly applicable ICT education initiatives that can be delivered through affiliated education
providers throughout New Zealand.

Māori in ICT Employment
Overall, labour market outcomes for Māori improved          technicians and trades (10.7 per cent or 3,200
over the year to June 2015. Māori in skilled occup-         workers, clerks (9.2 per cent or 2,700 workers) and
ations total 107,500 in June 2015, an increase of           services (8.7 per cent or 2,500 workers). In contrast,
1,900 workers (up 1.8 per cent) from a year ago.            the biggest falls in employment were in managers
Employment in most occupation groups increased.             (7.5 per cent or 2,300 workers) and plant workers
The biggest increases in employment were                    (7.4 per cent or 1,800 workers).

                          Source: Household Labour Force Survey, Statistics New Zealand

Māori are more likely employed in lower skilled ICT occupations and
less likely employed in the highly skilled ICT occupations than non-Māori

                                                                   Engineering,       ICT
                 Engineering,        Professionals
                                                                   ICT and Science    Professionals
                 ICT and Science     (2,000, 26%)
                                                                   Technicians        (37,900, 30%)
                 Technicians                                       (32,100, 26%)
                 (3,000, 39%)

                                                                        Design, Engineering,
                             Design, Engineering,
                                                                        Science and
                             Science and                                Transport
                             Transport                                  Proessionals
                                                                        (55,900, 44%)
                             (3,000, 39%)

                          Māori in ICT occupations                         Non-Māori in ICT occupations

                       Source: 2013 Census of Populations and Dwellings, Statistics New Zealand

Māori make up 12.5 per cent of the overall New                        The total number of people employed in ICT
Zealand workforce or 309,600 people. They tend to be                  occupations5 as ICT professionals, engineering,
concentrated in manufacturing, wholesale and retail                   ICT and science technicians and design, engineering,
services, utilities and construction. Only about 7,800                science and transport professionals is 13 3,700.
people are employed in the ICT sector, representing                   Proportionately fewer Māori were employed in the
about 2.5 per cent of the total Māori workforce. Non-                 professionals occupation group compared with
Māori has higher proportion of the workforce employed                 non-Māori (see figure above)
in the ICT sector, about 7.5 per cent (125,900).

Māori median personal income in ICT occupations is almost double
the median personal income for employed Māori generally


        $60,000                       $63,400
        $50,000         $52,100




                       Design, Engineering, Science           ICT Professionals                 Engineering, ICT and
                        and Transport Professional                                              Science Technicians

                                       Median personal income Māori       Median personal income Non-Māori

Source: 2013 Census of Populations and Dwellings, Statistics New Zealand

Of the three ICT occupations, the highest paid ICT                    support) and less likely in the highly paid, highly
occupation is being an ICT professional, followed                     skilled ICT occupations (as ICT Professionals, ICT
by Design, Engineering, Science and Transport                         Managers and ICT Engineers/Designers).
Professionals. The lowest paid ICT occupation is
being an ICT technician. Compared to non-Māori,                       Māori earn very well in the sector. As discussed earlier,
Māori are more likely to be employed in the lower                     they earn almost double in ICT occupations than the
skilled ICT occupations (as ICT technicians or                        median income for employed Māori generally.

5   The ICT related occupations underneath these broad categories include ICT managers, ICT trainers, ICT sales professionals, web
    designers, electronics engineers, ICT businesses and systems analysts, multimedia specialists and web developers, software and
    applications programmers, database and systems administrators and ICT security, computer network professionals, ICT support
    and test engineers, telecommunications engineering professionals, electronic engineering draftspersons and technicians, ICT
    support technicians, telecommunications technical specialists, electronics trade workers and ICT sales assistants.

                                                    Māori                                 Non-Māori

 Average Median income all occupations              $36,500                               $42,700

 Average Median income ICT occupations              $51,100                               $63,400

The highest paid income in the ICT sector for Māori                  It pays to be employed in the ICT profession. But,
is being an ICT professional. ICT profession is also the             Māori still earn less than their non-Māori counterparts.
second highest paid income for Māori, the highest being              In part, this is due to the lesser proportion of Māori
as a Chief Executive, General Manager or as a Legislator.            in the highly skilled ICT professions compared to
                                                                     non-Māori. There are more Māori employed as ICT
Even when compared to the median income of all                       technicians and support staff than non-Māori and
New Zealanders, ICT median income for Māori is                       less as ICT professionals and Design, Engineering,
much higher, about $9,500 more. Median income for                    Science and Transport Professional, two ICT
non-Māori is $42,700.                                                occupations that are highly skilled and highly paid.

Te Uru Rangi Māori Technology Scholarships

(Left) Hon Minister Te Ururoa Flavell

(Right) Enspiral Māori Alumni Melissa and Kendall, who both spoke at the launch, NZTE Board member Wayne Norrie (also one of
the speakers), Hemi Rolleston (‎behind – General Manager Māori Economy at Callaghan Innovation who MC-ed), Rohan Wakefield
(front – one of the founders of Enspiral Dev Academy), Liz Te Amo NZTE Māori Customer Director and Jim Wilson Acting Manager,
Māori Business Facilitation Service, Te Puni Kōkiri.

Te Uru Rangi is a scholarship to assist Māori students              The aim is to have 100 students funded through
entering the technology industry created to help more               the 19-week programme over the next three years,
Māori to benefit from the rapidly growing digital economy.          so they learn what it takes to succeed in the IT
                                                                    industry and then connecting them with prospective
It is a collaborative partnership between New
                                                                    employers. The programme involves nine weeks
Zealand Trade and Enterprise, Callaghan Innovation,
Te Puni Kōkiri and Wellingon-based technology                       part-time remote study, nine weeks full immersion in
training organisation Enspiral Dev Academy.                         Wellington, followed by one week career preparation.

Each of the government agencies involved has                        The scholarships are for Māori who have a passion
contributed $20,000 to kick-start the project, and Ngai             for web development, want a career in the Information
Tahu are to provide $25,000. It is expected that other              and Technology sector, and are keen to shape the
iwi groups will also become financial contributors.                 digital economy in Aotearoa New Zealand.

Māori business in ICT
ICT has a positive impact on business growth and productivity
The ICT is a vertical sector (the production and        that firms that use Internet services more extensively
supply of ICT and internet services) and a horizontal   are four years ahead of the average in their industry
enabler (impacts of ICT on other sectors). In 2013,     in terms of business competitiveness. This is a
the sector already represents five per cent of GDP      significant positive impact on businesses.
and has high growth potential (ICT Sector report
2013). Exports in the technology sector have doubled    In the horizontal digital economy, the same study
in the last five years. On average, workers in the      estimates that if firms currently making low use of
sector earn twice the national average. According       internet services became more like high-using firms,
to Statistics New Zealand, labour productivity growth   it could be worth an additional $34 billion in productivity
in New Zealand averaged 1.5 per cent a year from        (initial) impacts for those firms. Few other sectors
1996 to 2012.                                           have the potential to contribute as significantly across
                                                        the economy.
A Sapere study (2014) found that across the
economy, firms that make more extensive use of          The graph below also shows ICT’s contribution to the
Internet services are six per cent more productive      GDP in the last five years to 2013. This was driven
than average firms in their industry. The study noted   mainly by computer system design.

ICT’s contribution to GDP grew by $1.2 billion in the five years to 2013
NZ$ million

Source: Annual Enterprise Survey 2013, in NZ $million

Businesses’ ICT use and their participation in growth-related activities
are strongly linked
In a survey of more than 30,000 economically significant enterprises in New Zealand in 2012, two out of
three enterprises report positive outcomes from ICT, including improved customer responsiveness, better
coordination of staff and business activity and improved efficiency in work processes. ICT was also reported as
an effective marketing tool (Statistics New Zealand, 2012).

The survey also found that businesses that use the Internet to collect sales orders have higher rates of
exporting, innovation and entering new export markets. There also was a strong relationship between using
ICT and carrying out activities that contribute to business growth (Statistics New Zealand, 2012).

Most businesses surveyed use the Internet (96 per cent). Firms seem very comfortable using the internet to
buy goods and services (77 per cent). This is good for geographically isolated New Zealand businesses. They
could benefit from using ICT (e.g. online ordering systems) to break down barriers entering new markets. ICT
use is positively associated with growth activities, and may play an important role in connecting New Zealand
businesses with the rest of the world.

The business sector is a priority rollout for Ultra-Fast Broadband with most businesses expected to have
access to the network by 2015. A key issue therefore is how businesses adapt ICT to develop and grow.

But less is known about Māori in ICT business or Māori businesses
in the ICT sector
Usable data on Māori businesses in ICT is limited. There is not enough information that could be used to
discuss the uptake of ICT by Māori businesses and the impact it has on business growth and productivity.
This is a data gap that has yet to be addressed. This makes it difficult to look at the performance of Māori in
the ICT business or to develop an understanding of Māori ICT businesses.

One area that has been looked into is the data on Māori authorities. However, the number of Māori ICT
businesses is negligible. In 2014, there were only three Māori authorities identified as ICT businesses.
These three businesses only employ 15 staff. In the whole of New Zealand, there were 5,406 ICT businesses
employing 34,400 staff.

While representativeness could be questioned, the findings from a survey of self-identified Māori businesses
on their use of ICT is consistent with the findings of the Business Operations Survey.

Māori businesses are early adapters of technology
The Māori Business Key Insights 20156 found that Māori businesses are early adopters of technology. Forty six
per cent of respondents said that mobile technology had ‘significantly changed’ their business, and 63 per cent
were using social media for business purposes compared to 42 per cent non-Māori.

6    This report is part of the ANZ Privately-Owned Business Barometer of 3,500 business owners. The data for the Te Tirohanga Whānui
     was provided by 336 respondents to the survey who self-identified themselves as Māori in business, or people owning, managing or
     governing Māori businesses. They represent organisations with a combined annual turnover of greater than $1 billion and a range of
     business types.
About Experience
Experience is a leading New Zealand creative digital agency – founded on kaupapa Māori principles, focused
on simplifying and maximising digital experiences to transform how people work, live and learn in a digital age.

Owners Miriame Barbarich (Hauraki, Te Arawa) and John Moore started the company in 2006 – with a vision
to create digital experiences that put people first, not technology. They wanted to create a commercial savvy
creative engine to help grow Māori ICT talent. This is coming to fruition – a third of their staff are Māori and hold
half of the senior positions.

Their clients include large government agencies and corporates, SMEs, not-for-profits and start-ups. We’ve
recently delivered major projects for Chorus, Energy Efficiency Conservation Authority, Ministry of Business,
Innovation and Employment, Ministry of Education, Ministry for Primary Industries, Ministry of Social
Development and Radio New Zealand.

Their services cover all aspects of digital, strategy, brand, design, communications and delivery. We have a senior
team of 15 experts with decades of experience. We also have extensive experience working in kaupapa Māori
environments requiring specific consideration of mātauranga Māori me ona tikanga.

Callaghan Innovation
Established in 2013, Callaghan Innovation is the Government’s Hi-tech HQ for businesses, with a mandate to
help grow the level of research and development by businesses across New Zealand.

Callaghan Innovation connects businesses with the expertise and facilities they need to research organisations
across the innovation system; operates its own research and technology laboratories and specialist equipment
in support of high-tech businesses; and manages more than $160 million a year in government funding and
grants to support business innovation.

Callaghan offers specialist research and technical services for the ICT sector and operates an ICT R&D
National Technology Network, supported by dedicated Network Manager.

Twenty-three per cent of the value of Callaghan Innovation R&D grants awarded in 2013/14 went to ICT
businesses, many of which will be investing in integrating ICT into processes and products.

Other Callaghan Innovation services include the Accelerator Programme, designed to support the rapid
formation of early stage ICT and digital technology start-ups, and the Incubators Support Programme,
which encourages the development of early stage ICT and digital technology start-ups, and the Incubators
Support Programme, which encourages the development of early stage, high growth businesses to generate
employment growth, commercialise intellectual property and grow emerging sectors. This includes support
through the Repayable Grants for Start-ups Programme.

Callaghan is made up of a team of 400 researchers, scientists, engineers, technologists, investment managers
and account managers, working across the country. Visit www.callaghaninnovation.govt.nz.

Social impact of ICT
Literature (SuPERU7, 2013) links ICT to a range of social and economic outcomes of interest. These outcomes may
be seen at the individual or family level, at the community level, at the hapū or iwi level, or at the national level.
»» Health. ICT can provide earlier and better access to health information and services, taking advantage of
   different delivery approaches.
»» Education. ICT offer a range of learning opportunities in both formal and informal settings, with access to
   wider learning communities.
»» Economic opportunities. ICT offer access to information about business development or employment

Rapid advances in ICT have led to a significant increase in the adoption of technology and related services
by households, individuals, businesses, educational establishments, and the government. This has changed
the way we live. There is now a reliance on the use of the internet to access services and programmes.
The government and business services are now being offered and accessed online. But this has adverse
implication to those without internet access or even to those with access but don’t use the internet. This puts
to the fore the issue of digital divide.

The Digital Divide
This digital divide issue was also highlighted in the 2014 World Internet Project. Their research
observed several key findings that have policy implications. They found that:
»» the digital divide between elderly internet users and non‐internet users was more significant than that between
   younger Internet users and non‐users;
»» Internet use frequency and the substitution effect on traditional media was lower for the elderly internet users
   than for younger internet users;
»» the influence of internet use on the interpersonal interactions of the elderly was lower than that for the younger
»» Internet users were happier than non‐internet users; and
»» Internet use increased the level of happiness in the elderly internet users significantly more than in the younger
   population. Last, elderly internet users and younger internet users shared a similar habit using the PC as the
   main device for accessing the internet. In light of these findings we suggest allocating available resources to
   the elderly caught in the digital divide.

7 Formerly Families Commission

Rangatahi Māori in ICT

SuPERU found that rangatahi Māori (Māori youth                 access to information and new opportunities. Through
between 15 and 24 years of age) are generally                  improved access to contacts and information, people
active users of ICT, using social media and other              find job opportunities, learn about services available
applications. The study also identified a link between         to them, and share what they learn or create with
ICT use and improved health, educational, and/or               wider audiences.
economic outcomes for rangatahi Māori though it did
not generally quantify those impacts.                          The study has identified three areas where there
                                                               may be opportunities for ICT investment to benefit
The literature shows that ICT can reinforce the                rangatahi Māori. These three focus areas are:
social networks that connect people and give them

    providing greater connectivity and access to ICT. Both infrastructure and cost issues are involved in providing
     greater access;

    developing greater digital literacy and other skills among rangatahi Māori. Access to relevant material and the
     opportunity to engage with the wider world are insufficient in themselves. Rangatahi Māori must have the digital
     literacy and other skills to work online effectively; and
    promoting wider availability of online content relevant to Māori. Having culturally relevant content makes it more
     likely that Māori engage online as Māori, and have more incentive to take part in the online world.

Māori internet users show a willingness to vote online that is close to the national average and has increased
by the highest margin between 2009 and 2012.

Māori show willingness to vote online in a General Election

                 62%                                                                     60%           60%
         58%                             56%                                                   55%

         European                Māori             Pacific peoples          Other ethinicity   NZ average

                                                    2009             2002

Source: Household use of ICT 2012, Statistics New Zealand

The new communication channels are used to revitalise
use of te reo Māori
Increased use of mobile technology has made working from anywhere a major benefit for 64 per cent of
Māori business respondents, as well as improving access to information for decision making and increasing
productivity. Some Māori enterprises are using these new communication channels as another means of
helping to revitalise the use of te reo Māori. Many smaller Māori-owned businesses have also seized the
opportunity technology provides to live in their iwi rohe/tribal areas while serving a client base that may be
elsewhere, nationwide or overseas (Māori Business Key Insights 2015).

Māori ICT Companies
Kiwa Digital
                               An award winning
                               company producing
                               creative high quality    Whanau Tahi
                               digital content on
                               mobile devices.          Whanau Tahi (WT) offers solutions (software and
                               The market niche         services) enabling collaboration between social
                               is the production of     service and health care providers to support an
immersive and experiential digital books, for youth     integrated seamless support delivery for patient
markets particularly where indigenous or multi-         and family-centred self-management in care.
language requirements exist.                            Recently acquired F700 HSAGlobal to round out
                                                        their solution delivery bringing assets, staff and a
Their primary target customers are publishers and       solid pipeline to WT. Target markets are Australia
other content owners operating in the edu-tainment      and the United States.
space, where learning is delivered alongside
                                                        Owner is NZ’s largest social service provider
entertainment. They have another software product
                                                        Waipareira Trust.
in the voice dubbing and audio digital replacement
industries. Their partners and customers include the
world’s largest film and TV production companies,
primarily in the United States.
                                                        Sentient Software
                                                                                 Sentient is the leading
Owners include: Rhonda Kite (Te Aupōuri) and
                                                                                 Private Cloud enterprise
Steve Renata (Ngāpuhi ki Whaingaroa, Ngāti Kurī).
                                                                                 Portfolio Program Manage-
                                                                                 ment service in Australasia
                                                                                 across a number of diverse
Straker Translations                                                             industry segments. Sentient
                         An award winning global                                 PPM comprises a suite
                         translation company                                     of features designed to
                         with more than 10,000                                   manage all of the key
                         customers. Its cloud-based                              activities across programs
                         translation platform enables   of work, from consistently assessing and prioritizing
                         translations to be delivered   the most important initiatives, successful delivery
                         with speed and simplicity.     of project and programs of work, through to
                         Straker built and owns its     reporting on completed projects and evaluating the
                         technology, which enables      effectiveness of project investment.
                         higher gross margins than      Sentient was founded in 2004 in response to a
the industry average. With global production centres    growing gap in the Portfolio Program Management
in Barcelona and Auckland, Straker supports clients     industry in both the local and global market place.
in nine countries, 24/7, ensuring even the most         Existing enterprise-wide PPM solutions were
urgent translations are delivered without issue.        highly expensive, took years to implement and
Owner includes Grant Straker (Ngati Raukawa).           offered little flexibility. As a private cloud solution
                                                        Sentient PPM is available anywhere, anytime to
                                                        anyone with access to the internet.
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