TE RŪNANGA NUI O TE AUPOURI TRUST 2014 ANNUAL REPORT Vision “That Te Aupouri is a united, strong and prosperous iwi” Kia kotahi, kia kaha, kia pakari te tū o Te Aupouri roto i ngā mahi katoa Mission “To nurture and support the spiritual, cultural and economic development of our iwi through mana enhancing initiatives, that ensure security and generate growth for Te Aupouri" Mā te tiaki, mā te tautoko i to tātou iwi i roto i ngā āhua kaupapa o te wairua, te hinengaro me te tinana e ū ai te tū, e maroro ai te tupu o ō tātou tāngata Karakia He kōroria, he hōnore, hareruia ki a Ihoa o ngā mano, te Matua, te Tama, te Wairua Tapu, ngā Ānahera Pono me te Māngai, te kaitautoko. Āianei ake nei ĀE. Tuāuriuri, whāioio, kī tonu te rangi me te whenua i te nui o tōna korōria. Tēnei mātou, te Rūnanga Nui o Te Aupouri, te whakahoki atu nei anō i te reo whakamoemiti mo ngā tini manaakitanga kua whiwhi nei mātou. I roto i te reo karakia, i roto anō hoki i te reo Whakamoemiti, kei ā koe nei anō hoki, e Ihoa, te mauri o ngā mea katoa – te tīmatanga me te whakaotinga o ngā mea katoa e tūmanako nei mātou mo ō mātou oranga tinana me o mātou oranga wairua. Arā mo a mātou tamariki me a mātou mokopuna, ngā uri whakatupu anō hoki. Nei ra e Īhoa me āu Ānahera Pono ka īnoi whakaiti kia manaakitia mai anō mātou katoa, kia paiheretia mai mātou i roto I te here ngaro o tōu arohanoa. Mā te Māngai tonu hei tautoko mai, āianei ake nei ĀE. Mihi E Te Iwi Whānui O Te Aupouri puta noa I ngā Moutere o Aotearoa, a, whiti atu ki taawahi, tēnā koutou, tēnā koutou, tēnā koutou katoa. E mihi tēnei ki a koutou nā Te Rūnanga Nui O Te Aupouri I roto I ngā āhuatanga o te tau hou. Ki te hunga kua wheturangitia nei, haere koutou, haere koutou, haere koutou, ki a tātou hoki ngā waihotanga mai o rātou mā, Tēnā tātou katoa. TABLE OF CONTENTS AGENDA 1. Karakia Agenda ................................................................................................................................. 2 10.00 am 2. Mihi Minutes of the previous Annual General Meeting ................................................................. 4 3. Apologies Te Aupouri Fisheries Management Report ......................................................................... 11 MOTION 1: That the apologies for Te Rūnanga Nui o Te Aupouri Trust Annual General Meeting 2013 are accepted. Te Aupouri Fisheries Management Audited Accounts ........................................................ 16 Te Aupouri Commercial Development Report .................................................................... 29 Te Aupouri Commercial Development Audited Accounts ................................................... 31 4. Obituaries Te Aupouri Iwi Development Management Report ............................................................. 42 5. Outline Election Process 10.30 am Te Aupouri Iwi Development Audited Accounts.................................................................. 44 6. Candidates Address 10.40 am 7. Minutes of the previous Annual General Meeting 16 March 2013 11.10 pm Te Rūnanga Nui o Te Aupouri Trust Chairman’s Report .................................................... 52 Te Rūnanga Nui o Te Aupouri Trust Chief Executive’s Report ........................................... 56 Te Rūnanga Nui o Te Aupouri Trust Annual Plan 2013/2014 ............................................. 65 Te Rūnanga Nui o Te Aupouri Trust Audited Accounts ...................................................... 74 Te Rūnanga Nui o Te Aupouri Trust Consolidated Audited Accounts ................................ 92 MOTION 2: That the Minutes of Te Rūnanga Nui o Te Aupouri Trust Annual General Meeting held on 16 March 2013 are a true and accurate record. 8. Negotiations Report 12.00 pm MOTION 3: That the Negotiations Report is received. 9. LUNCH 12.30 pm 10. Coastline Dispute Report 1.30 pm MOTION 4: That the Coastline Dispute Report is received. 11. Social Accord Report 1.40 pm MOTION 5: That the Social Accord Report is received. 12. Te Aupouri Fisheries Management Company Limited Report 2.00 pm MOTION 6: That Te Aupouri Fisheries Management Company Limited Report for 30 September 2013 is received 13. Te Aupouri Fisheries Management Company Limited Audited Accounts MOTION 7: That Te Aupouri Fisheries Management Company Limited Audited Accounts for 30 September 2013 are received. 14. Te Aupouri Commercial Development Company Limited Report -1- -2- 2.15 pm MINUTES OF THE ANNUAL GENERAL MEETING HELD ON 16 MARCH 2013 AT PŌTAHI MARAE MOTION 8: That Te Aupouri Commercial Development Company Limited Report for 30 September 2013 is received. 15. Te Aupouri Commercial Development Company Limited Audited Accounts 1. Karakia MOTION 9: That Te Aupouri Commercial Development Company Limited Audited Accounts for 30 September 2013 are received. 16. Te Aupouri Iwi Development Trust Report Hohepa Everitt 2.30 pm Roimata Kaaka, Mark Nathan, Waitai Petera, Maahia Nathan, Raymond Subritzky MOTION 10: That Te Aupouri Iwi Development Trust Report for 30 September 2013 is received. 3. Present 17. Te Aupouri Iwi Development Trust Audited Accounts MOTION 11: That Te Aupouri Iwi Development Trust Audited Accounts for 30 September 2013 are received. 18. Te Rūnanga Nui o Te Aupouri Trust Chairperson Report 2.45 pm MOTION 12: That Te Rūnanga Nui o Te Aupouri Trust Chairperson’s Report to 30 September 2013 is accepted. 19. Te Rūnanga Nui o Te Aupouri Trust CEO Report 3.15 pm MOTION 13: That Te Rūnanga Nui o Te Aupouri Trust CEO’s Report to 30 September 2013 is accepted. 20. Te Rūnanga Nui o Te Aupouri Trust Audited Accounts 3.45 pm MOTION 14: That Te Rūnanga Nui o Te Aupouri Trust Audited Accounts 30 September 2013 are accepted. 21. Te Rūnanga Nui o Te Aupouri Trust Consolidated Audited Accounts 4.00 pm MOTION 15: That Te Rūnanga Nui o Te Aupouri Trust Consolidated Audited Accounts 30 September 2013 are accepted. 22. Announcement of newly appointed trustee 4.15 pm MOTION 16: That ____________________, ____________________ and____________________ are hereby declared duly elected as trustees on Te Rūnanga Nui o Te Aupouri Trust. 23. Appointment of Auditor for 2014 Financial Year 4.30 pm MOTION 17: That BDO, Kerikeri be appointed as the Auditor for Te Rūnanga Nui o Te Aupouri Trust and all subsidiaries for the financial year ending 30 September 2014. 24. Trustees’ remuneration 4.40 pm MOTION 18: That Te Rūnanga Nui o Te Aupouri Trust trustee remuneration is set at $70,000.00 per annum for the financial year ending 30 September 2014. 25. General Business 2. Mihi Adam Pink Andrew Ihaka Anna Carpenter Ata Kapa Barry Carey Borodale Everitt Chad Paraone Dave Ratu Duncan Kapa Ebony Duff Gillian Harper Harry Kapa Henare Ihaka Hine Murray Hohepa Everitt Hugh Karena June Subritzky John Tahana Karlene Everitt Kate Petera Keita Te Moana Kapa Louise Mischewski Maahia Nathan Maringinoa Wetere-Wood Maki Oneroa Mark Nathan Michele Wi Mike Stevens Ngainanga Kapa Ngaire Slade Ngawini Smith Pania Subritzky Pereniki Conrad Peter Witana Peter-Lucas Jones Rahuia Kapa Rangimarie Rameka Raymond Subritzky 4. Apologies Betty Reid Ema Dunn Keepa Wiki Kylie Brown Peter Kapa Raewyn Bickword Erica Kapa George Tahitahi Harry Wiki Henry Tahana Jane Allan Karepori Kaipo Maki Harawira Matiu Kapa Moeroa Davis Ngarui Harris Pauline Mitchell Pera Matchitt Shane Jones Tahimoana Kapa Te Aupouri ki Poneke Taku Wiki Teresa Tepania-Ashton Tipene Karena Katie Evans Peta Tahitahi Wayne Evans 4.50 pm -3- Renee Ratu Reweti Witana Rita Carey Richard Witana Ripeka Evans Roimata Kaaka Rosie Conrad Sandra Everitt Shanda Hohepa Shona Pink Sonny Tau Sue Ellis Tania Good Tereiniamu Kapa Teresa Lomas Tui Kapa Waitai Petera Winiata Brown -4- MOTION 1: That the apologies for Te Rūnanga Nui o Te Aupouri Trust Annual General Meeting 2013 are accepted. MOVED: Michelle Wi SECOND: Maringinoa Wetere-Wood CARRIED 5. Obituaries Ralph Hotere Tareta Tattersal James Delany John Everitt Harawira (Hoani) Kaio Witana Danny Jones Pirihira Ruakau Mark Norman Beneficiaries noted that there should be a list of names and would like to acknowledge all Aupouri who have passed away. MOTION 2: That the obituaries for Te Rūnanga Nui o Te Aupouri Trust Annual General Meeting 2013 are accepted. MOVED: Tireiniamu Kapa SECOND: Harry Kapa CARRIED 6. Outline Election Process The Chairperson explained to beneficiaries that there were only 2 valid nominations received for 3 trustee positions before the closing date. Those 2 valid nominations being Waitai Petera and Louise Mischewski. Therefore those 2 nominees were automatically declared trustees on Te Rūnanga Nui o Te Aupouri Trust. There was 1 more vacant seat, therefore a second call for nominations was required to fill this. There are now 4 valid nominations and these candidates will have an opportunity to address the hui just before voting closes. MOTION 3: That WAITAI PETERA and LOUISE MISCHEWSKI are hereby declared duly elected trustees to Te Rūnanga Nui o Te Aupouri Trust. MOVED: Ngainanga Kapa SECOND: Maringinoa Wetere-Wood The hui is concerned about the continuing costs of on-going negotiations. Beneficiaries question how likely is the Crown to provide funding to cover these extra costs and whether a representative should be called to a hui at Pōtahi Marae to stand in front of the iwi. The chairman informs the hui that the Minister is aware that these delays are costing our iwi. The CEO explains that there are various options to consider when seeking reimbursement such as the cost of running two boards and the duplication of costs and if Te Aupouri had received the full quantum on the proposed legislation date than we could have been earning interest on that quantum. The Office of Treaty Settlements has agreed that they will be reimbursing Te Rūnanga Nui o Te Aupouri Trust for continued costs and both parties are currently discussing the issues around this. There were concerns that whether or not the current trustees have the necessary skills to negotiate with the Crown. The beneficiaries suggest that this hui should ratify a formal resolution to present to OTS. The hui is concerned with the lack of communication between the Rūnanga and the hau- kāinga. There are concerns that the Rūnanga only comes back to the people when they need something from them. Beneficiaries ask for more transparency with the Rūnanga activities as there are many skilled people who are willing and able to assist in any way they can. There was also concern at the length of time spent on this one report and question whether or not the Chairman is up to the task of running this hui. The Chairman explains that the trustees were elected by the people to do the job. MOTION 4: That Te Rūnanga Nui o Te Aupouri Trust Chairpersons Report for the 18 months to 30 September 2012 is accepted. MOVED: Peter-Lucas Jones SECOND: Tania Good CARRIED 8. Candidates’ Address The hui is disappointed that the candidates have been given such a brief time to address the hui and that the nominees should be given the respect of a decent opportunity to address the hui. The beneficiaries felt strongly that when we are running out of time we stop and get back on track. It is suggested that the leadership of the Chairman needs to be stronger in order to conduct the meeting in a timely manner. Beneficiaries are asked that if something has already been stated during the hui then please refrain from saying it again. Hugh Karena also spoke to the hui about his time as a transition trustee and was acknowledged by the hui & trustees for his mahi. CARRIED 9. Proposed Annual Plan & Five Year Plan 7. Te Rūnanga Nui o Te Aupouri Trust Chairperson Report The Chairperson read his report to the hui. The hui is concerned at the lack of information in the Chairperson’s Report. There are also concerns that this is a report from the Chairperson only and not the entire board of trustees. The Chairman informs the beneficiaries that all trustees were asked for input and had endorsed what was in the report. The hui is concerned as to why there is no mention of the on-going negotiations in the Chairman’s Report. This is the first Annual Report from Te Rūnanga Nui o Te Aupouri and it should be more in depth with relevant issues such as on-going negotiations. The CEO explains to the hui that the Annual Report is a report on activities of Te Rūnanga Nui o Te Aupouri Trust up until the closing balance date of 30 September 2012 and that a lot of the current negotiations have happened after that date. -5- This is the first AGM and the first Annual Plan presented to beneficiaries. The hui questioned when do the trustees meet and asks that there be more advertising of these dates. There are also questions as to why the Rūnanga doesn’t hold any Hui-a-Marama in Te Kao. Trustees agree that the times and dates of Hui-a-marama will be advertised more and that they will plan to have more in Te Kao in future. The hui is concerned that there has been no budget presented with the annual plan and are unwilling to approve this. The CEO explains that under the Deed of Trust for Te Rūnanga Nui o Te Aupouri the Annual Plan is required to be presented at the Annual General Meeting and not approved. The hui agree to receive the Annual Plan subject to a budget being circulated within a month. -6- MOTION 5: That Te Rūnanga Nui o Te Aupouri Trust Proposed Annual Plan for the year to 30 September 2013 is received, subject to a budget being circulated within a month. MOVED: AGAINST: Ripeka Evans Michelle Wi - due to no budget SECOND: Harry Kapa CARRIED 10. Strategic Plan The hui is disappointed about lack of consultation around the strategic plan. It was explained that the Strategic Plan was presented at a Hui-a-Iwi at Potahi Marae in 2012 and those present were asked to submit any comments within 28 days and no comments were received. MOTION 6: That Te Rūnanga Nui o Te Aupouri Trust Strategic Plan for the five years to 30 September 2018 is received. MOVED: Ngawini Smith SECOND: Joe Everitt are discussed, Raymond, who is the Chair of both TRNOTA and AMTB, stands down and he has no dialogue during the discussion. Another trustee on the Aupouri Māori Trust Board clarifies that when AMTB requires something to be presented to TRNOTA that it is the chairman who speaks on behalf of AMTB. A beneficiary states that they are unfamiliar with any activities which the AMTB is involved in as there has been very little transparency around that board over the years. The hui acknowledge all the work that has been done but questions why there is only the Consolidated Financials presented and not the financials of all subsidiaries not in this report. It is explained that the Deed of Trust of TRNOTA states that TRNOTA is required to present Consolidated Audited Accounts, but a full set of Audited Accounts for TRNOTA and all subsidiaries are available from the office on request. MOTION 7: That Te Rūnanga Nui o Te Aupouri Trust Consolidated Audited Accounts for the 18 months to 30 September 2012 are accepted. MOVED: FOR: Rahuia Kapa 32 SECOND: AGAINST: Harry Kapa 21 & Maringinoa Wetere-Wood CARRIED CARRIED 12. Announcement of newly appointed trustee LUNCH 12.30pm The Returning Officer addressed the hui with the results. Total valid votes received 1092. Richard Witana Ebony Duff Hone Peters Reweti Witana 11. Te Rūnanga Nui o Te Aupouri Trust Consolidated Audited Accounts The accountant for Te Rūnanga Nui o Te Aupouri Teresa Lomas introduced herself and gave a brief explanation on how the financials accounts are set out. Teresa explained that when comparing figures from the previous period to the current period that beneficiaries need to take into account that the previous period was for 12 months and the current is for 18 months. A beneficiary questions why Te Rūnanga Nui o Te Aupouri Trust have not presented the 2011 Audited Accounts for Te Aupouri Fisheries Trust and Te Aupouri Asset Holding Company. The Chairman explains that Te Rūnanga Nui o Te Aupouri Trust was not formed at that time. A beneficiary states that Te Rūnanga Nui o Te Aupouri Trust has a responsibility to produce the previous entities audited accounts and that Te Rūnanga Nui o Te Aupouri Trust cannot have an unqualified audit for 2012 based on 2011 audits that have not been presented to the iwi. A former director of the Aupouri Asset Holding Company and the Aupouri Fisheries Trust states that there were Annual General Meetings convened for both entities in 2010 and 2011 and acknowledged that that would be the final Annual General Meetings for both entities and Te Rūnanga Nui o Te Aupouri Trust would take over and they agree that the previous audited accounts should be presented. There are queries as to why TRNOTA have paid for repairs to a building that TRNOTA does not own. There are also queries as to why the repairs and maintenance expense for the Aupouri Māori Trust Board are so high and the repairs and maintenance expense for TRNOTA own office so low. The Chairman explains that there were urgent repairs needed for the Aupouri House which is owned by AMTB and the AMTB could not afford to carry out these repairs themselves. TRNOTA trustees agreed that as we would inherit the buildings when legislation passed that we should assist in the up keep of it. The Chairman agrees that TRNOTA may have gone about the repairs in the wrong way but trustees believed that in the interest of Te Aupouri as a whole it would be more cost effective to carry these urgent repairs than to wait for the building to deteriorate further. A motion was passed by the TRNOTA to spend $150,000.00 to fix the AMTB assets. 412 304 233 143 Beneficiaries and trustees thanked and acknowledged Ebony Duff for all the expertise, mahi and time she had contributed to TRNOTA over the last 2 years. They also congratulated Rick Witana and looked forward to what he had to offer as a trustee. All candidates addressed the hui and thanked everyone for their support. MOTION 8: That RICHARD WITANA is hereby declared duly elected as a trustee on Te Rūnanga Nui o Te Aupouri Trust. MOVED: Ngainanga Kapa SECOND: CARRIED 13. Subsidiaries Annual Reports & Audited Accounts 13.1. Te Aupouri Fisheries Management Company Limited Annual Reports & Audited Accounts The hui queried as to who the directors were and why they were not present at today’s meeting. Ripeka Evans is a director on the TAFML and was present at the start of the hui but has had to leave and sends her apologies. The hui also query as to what position are Te Aupouri in with coastline agreements now compared to when TRNOTA started. It is explained that Te Aupouri is in the same position except we have contacted TOKM who will be coming up to speak with all three iwi involved. The hui would like it noted in the minutes that as the Chairman for TRNOTA is also the Chairman for AMTB then the Chairman is in a conflict of interest and should stand down from taking part in any discussions involving both boards. A trustee on the Aupouri Māori Trust Board states that when issues -7- Ebony Duff -8- There are suggestions from the hui that Te Aupouri should look into purchasing our own boats, employing our own people and catching our own quota. There are also suggestions that maybe TRNOTA should be looking at other business opportunities to produce income. A beneficiary queries what the Bad Debt is for - The CEO explains that TAFML sold ACE to a company which went into liquidation which was unrecoverable. Beneficiaries question was this a new company that we had not dealt with before. The CEO states that the company referred to had had a long history with purchasing ACE quota from Te Aupouri. MOTION 9: That Te Aupouri Fisheries Management Company Limited Annual Report & Audited Accounts for the 18 months to 30 September 2012 are accepted. MOVED: Duncan Kapa SECOND: Kate Petera CARRIED 13.2. Te Aupouri Commercial Development Company Limited Annual Reports & Audited Accounts MOTION 10: That Te Aupouri Commercial Development Company Limited Annual Report & Audited Accounts for the 18 months to 30 September 2012 is accepted. MOVED: Harry Kapa SECOND: June Subritzky CARRIED Peter-Lucas spoke to the report and also June Subritzky outlined the Te Aupouri Education and Te Reo Strategy work. MOTION 11: That Te Aupouri Iwi Development Trust Annual Report & Audited Accounts for the 18 months to 30 September 2012 is accepted. Rahuia Kapa SECOND: Henry Ihaka CARRIED 14. Appointment of Auditor for 2014 Financial Year MOTION 12: That BDO Spicers, Kerikeri be appointed as the Auditor for Te Rūnanga Nui o Te Aupouri Trust and all subsidiaries for the financial year ending 30 September 2013. MOVED: Sue Ellis SECOND: Ngainanga Kapa MOVED: CARRIED Duncan Kapa SECOND: Pereniki Conrad CARRIED 16. Negotiations Remuneration There was discussion around the on-going negotiation process and the costs associated with this. Trustees were unable to put a dollar amount on what the extra costs would be. The hui agreed that ongoing negotiations were necessary and should go ahead. MOTION 14: That Te Rūnanga Nui o Te Aupouri Trust negotiation process continue with the Crown MOVED: Mark Nathan SECOND: Ngainanga Kapa CARRIED 17. Next AGM date MOTION 15: That Te Rūnanga Nui o Te Aupouri Trust next AGM is to be held on Saturday 15 March 2014 at Pōtahi Marae, Te Kao. MOVED: 13.3. Te Aupouri Iwi Development Trust Annual Report & Audited Accounts MOVED: MOTION 13: That Te Rūnanga Nui o Te Aupouri Trust trustees’ remuneration is set at $70,000.00 per annum for the financial year ending 30 September 2013. Tui Kapa SECOND: Tireiniamu Kapa CARRIED 18. General Business 18.1. Te Reo Irirangi o Te Hiku o Te Ika The Annual General Meeting for Te Reo Irirangi o Te Hiku o Te Ika is coming up soon and Peter-Lucas is seeking the endorsement of Te Aupouri to nominate Tireiniamu Kapa as Kaitiaki Reo Maori. She is the last remaining member of Te Hiku o Te Ika and is always on hand to ring the radio station and correct them on their reo. MOTION 16: That this Annual General Meeting of Te Rūnanga Nui o Te Aupouri Trust endorses Tireiniamu Kapa as Kaitiaki Reo/Patron Maori of Te Reo Irirangi o Te Hiku o Te Ika. MOVED: Peter-Lucas Jones SECOND: Rahuia Kapa CARRIED 18.2. Aupouri Māori Trust Board 15. Trustees’ remuneration Trustees have proposed the trustee remuneration be set at $70,000.00 per annum. Beneficiaries query as to if the $70,000.00 includes travel, accommodation extra. It is explained that the proposed remuneration are fees that are intended to cover regular monthly meetings and other meetings trustees attend on behalf of TRNOTA, not any other expenses. A beneficiary queries how the trustee remuneration was set for the previous period, when the Deed of Trust of TRNOTA clearly states that the beneficiaries will set the trustees’ fees. The trustees had set their own fees at the commencement of TRNOTA and they acknowledge that they have breached the Deed of Trust and endeavour to correct this at this Annual General Meeting. -9- Board Members spoke to a power point presentation updated beneficiaries on the activities of Board from 2006 to today. Meeting Closed: 5.30pm Karakia: Waitai Petera - 10 - TE AUPOURI FISHERIES MANANGEMENT LIMITED STATEMENT OF CORPORATE INTENT TE AUPOURI FISHERIES MANAGEMENT LIMITED REPORT FROM DIRECTORS What is TAFML? General Comments Te Aupouri Fisheries Management Limited is an asset holding company under the provisions of the Maori Fisheries Act 2004. The company receives all settlement quota and income shares allocated to Te Aupouri in accordance with the Act and holds and manages them for the benefit of its shareholder, Te Rūnanga Nui o Te Aupouri Trust. TAFML is prohibited by the Act from holding a fishing permit or undertaking fishing. The NZ seafood industry has continued to face difficult conditions with the dollar overvalued and affecting the value of export returns. This will continue the downward pressure on ACE prices. What are TAFML’s objectives? TAFML’s objective is to manage the settlement quota and income shares it receives under the Maori Fisheries Act, and any other assets it may acquire, in a manner that provides optimum returns to its shareholder, Te Rūnanga Nui o Te Aupouri Trust. What does TAFML do? Commercial fishing quota generates annual catch entitlements (ACE) which are commercial harvesting rights to fish. TAFML sells or trades the ACE generated from its settlement quota, and any other quota it owns, under arrangements that provide the best possible commercial return. Profits generated from the sale of ACE and any dividend payments received from income shares in Aotearoa Fisheries Limited are reinvested in the company or distributed as dividends to its shareholder, Te Rūnanga Nui o Te Aupouri Trust. What dividends were paid by TAFML to its Shareholder? No dividends were paid to the Runanga during the year to 30 September 2013. How is TAFML’s performance measured? The company’s directors will be reviewing performance measures in the current year and seeking agreement from the shareholder on appropriate methods of measuring performance against plan for incorporation into future annual reports. How will TAFML utilise dividends from income shares? As indicated above, any dividends from income shares will form part of the company’s income. Profits from TAFML’s activities will be retained within the company or distributed as dividends to its shareholder, Te Rūnanga Nui o Te Aupouri Trust. - 11 - Sales to China have increased dramatically (by more than 30% in value) and China is now NZ’s largest seafood export market. While sales to Australia remained steady, there are concerns that the Australian economy is slowing and that this may negatively impact on sales into that market. Other major markets have remained steady and, although there are concerns about the Euro zone, the general overall improvement in world economies means that the industry remains cautiously optimistic. We reported last year on the potential impact on ACE prices and company returns of the changes to the Foreign Charter Vessel regime. It is still too early to clearly assess what effects the changes will have. What is known is that a number of charter vessels have been required to undertake expensive refits in order to comply with the new regime and that this will impact on their profitability and ability to continue paying for ACE at the levels of previous years. Of greater concern is that foreign charter operators may withdraw from the NZ fishery leaving insufficient harvesting capacity and wiping out ACE values. We believe that this was a significant contributor to the decline in ACE income this year as against 2012. We also wish to signal that the year to 30 September 2014 will show significantly lower profits than were achieved this year. The reasons for this are: (a) The impact on income from the ongoing coastline dispute with neighbouring iwi and the resulting freeze on allocation of ACE from the quota of fish stocks not yet allocated to iwi from Te Ohu Kai Moana (see below). (b) Losses incurred by Sealord Ltd in its Argentinian investments mean that AFL income shares will not receive dividend payments until the company returns to strength. Coastline Dispute TAFML derives its income from dividends from AFL income shares and from the sale of Annual Catch Entitlements (ACE) derived from quota transferred from Te Ohu Kai Moana under the Maori Fisheries Act 2004. So far, the company has received only a portion of the quota to which it is entitled. Receipt of the remaining quota requires agreement to be reached between Te Runanga Nui o Te Aupouri and the mandated iwi organisations of neighbouring iwi. The company and its directors have no role in this process. In past years, ACE from the “disputed” quota was allocated by Te Ohu Kai Moana under an interim arrangement which allowed TAFML to sell its annual allocation. In April 2013 the Runanga disputed the basis on which the allocations were made and no ACE from the disputed quota will be available to the company until the dispute is resolved. The initial impact on the company was that lobster ACE for the year starting 1 April 2013 was not available for sale. Because the dispute is not yet resolved, there will also be no income from the unallocated ACE for the year starting 1 October 2013. - 12 - Performance: Year to 30 September 2013 Company Constitution Income from ACE sales reduced from $304,515 to $179,192, a decline of 41%. There are a number of reasons for this, including: (a) The impact of changes to the Foreign Charter Vessel regime and the resulting reduction in demand for ACE; (b) The continued high value of the NZ currency and other pressures on industry profitability, resulting in reduced ACE prices paid by fishing companies; (c) The lack of income from April stocks (including lobster) which has previously provided income of around $40,000 pa. The reason for this is explained above. There have been no changes to the constitution of TAFML during the reporting period. AFL Bonus Issue During the year, Aotearoa Fisheries Limited announced a taxable dividend in the form of a bonus share issue recorded in the financial statements as income of $1,731,456. While welcome, we stress that this was not cash income. Financial Results Over the reporting period the company generated a net surplus after tax of $1,519,918. The company is in an extremely healthy position with shareholders’ funds of $6,472,471 or 99.7% of total assets. Settlement Quota At the beginning of the reporting period, TAFML held 2,313,784 quota shares received as settlement quota from Te Ohu Kai Moana. During the period there were no additional quota shares transferred by Te Ohu Kai Moana to the company. No settlement quota was sold or exchanged during the period, nor were there any transactions that resulted in a registered interest by way of caveat or mortgage being placed over any of the company’s settlement quota. No new settlement quota interests were registered against quota shares held by the company during the reporting period. Changes in Activities There were no significant changes to the company and its activities during the reporting period. Interests Register There were no transactions during the reporting period in which directors had an interest. Directors’ Remuneration During the reporting period, directors received fee payments totalling $3,950. Employees Remuneration in Excess of $100,000 No employees received remuneration and/or other benefits in excess of $100,000. Donations No donations were made by the company during the reporting period. Directors Waitai Petera Teresa Tepania-Ashton Ripeka Evans (appointed March 2013) Investments Payments to Auditors The company has not invested funds other than are required for working capital. These are held on deposit in the company’s bank. As at 30 September 2013 the company had $220,000 on term deposit. Audit fees were $6,359 as shown in the financial statements. No additional services were provided by auditors and no additional payments made to them. Income Shares At the start of the reporting period the company held 1,203 income shares in Aotearoa Fisheries Limited. In September 2013, the company received an additional 1,203 bonus shares as a taxable dividend. The company now holds 2,406 income shares in Aotearoa Fisheries Limited. Company Interactions with its Shareholder The company provides regular reports to Te Runanga Nui o Te Aupouri Trust as its shareholder. In addition, the Deputy Chair of Te Rūnanga Nui o Te Aupouri Trust is a director of TAFML. - 13 - - 14 - TE AUPOURI FISHERIES MANANGEMENT LIMITED ANNUAL PLAN FOR 2013/2014 Use and Development of Settlement Quota and Income Shares Directors believe that the long term interests of TAFML will be best served by: Forming and maintaining sound relationships with commercial fishing interests to optimise returns from ACE sales; Assessing and managing risks to TAFML commercial fishing assets and the value of those assets. We have previously indicated in that we were hopeful of negotiating arrangements to secure future sales of ACE in order to optimise our returns over the next few years. We believe that this is in the company’s best interests given current industry and market uncertainty. Unfortunately, the current dispute over coastline which has prevented quota allocation and frozen the allocation of inshore ACE means that we will be unable to negotiate any such arrangements until the dispute is resolved. Pending such resolution the company has no option but to continue annual sales of that ACE we receive through ownership of the quota we have already received from Te Ohu Kai Moana. We have no proposals for the sale or transfer of the company’s income shares in AFL. Reorganisation of Settlement Quota We have no current proposals for reorganising settlement quota. However, directors will periodically review the company’s settlement quota holdings with a view to rationalising its portfolio through the exchange of quota with other iwi in order to enhance returns to the company. Any proposals for exchange will be placed as recommendations to Te Rūnanga Nui o Te Aupouri Trust as the shareholder and to the iwi. Until all quota has been allocated from Te Ohu Kai Moana directors consider it premature to consider the sale or exchange of any quota. Income Shares in AFL We are not expecting a dividend from AFL this coming year because of the losses incurred by Sealord Ltd in Argentina. When dividends will next be paid is currently uncertain. Expected Financial Return on Company Assets In general terms, we expect returns for next year to be substantially lower than those achieved over the reporting period. Last year’s results included income from the sale of ACE from inshore quota. This ACE will not be available for 2013/4 because of the unresolved dispute with neighbouring iwi over coastline entitlements. TAFML Constitution We have no proposals to amend the company’s constitution. - 15 - - 16 - - 17 - - 18 - - 19 - - 20 - - 21 - - 22 - - 23 - - 24 - - 25 - - 26 - - 27 - - 28 - TE AUPOURI COMMERCIAL DEVELOPMENT LIMITED STATEMENT OF CORPORATE INTENT What is TACDL? Te Aupouri Commercial Development Limited was established through the trust deed of Te Runanga Nui o Te Aupouri to undertake the commercial activities of the Trust other than those involving the commercial fishing assets transferred under the Maori Fisheries Act 2004. The company will receive commercial assets from the Runanga and manage them in a prudent and commercial and profitable manner on behalf of the Runanga as its shareholder. What are TACDL’s objectives? TACDL’s objective is to manage commercial settlement assets in a manner that provides optimum returns to its shareholder, Te Rūnanga Nui o Te Aupouri Trust. This includes developing long term plans for the utilisation of those farm properties that will be received by Te Aupouri as a result of the Treaty settlement process. What does TACDL do? TE AUPOURI COMMERCIAL DEVELOPMENT LIMITED REPORT FROM DIRECTORS General Comment The protracted delay in completing the Treaty settlement and seeing the settlement legislation through parliament has been extremely frustrating. We consider it unlikely that TACDL will have access to any commercial assets from settlement during the 2013/4 financial year. Uncertainty about the timing of the receipt of assets has meant that directors have been reluctant to incur expenses. The company has been largely inactive during the 2012/3 financial year other than commissioning AgResearch to undertake a jointly-funded assessment of Te Raite and Cape View. As at 30 September 2013 those assessments had not been completed. The Aupouri portion of the cost of the assessment has been funded by the Runanga. TACDL’s low level of activity is shown in the company’s financial statements. These show that the company received no income. Expenditure of $10,506 has also been funded by Te Runanga Nui o Te Aupouri. TACDL is required to use and administer on behalf of the Runanga those assets that the Runanga makes available to the company. Because the receipt of commercial assets will not occur until after settlement legislation is passed into law, TACDL has no assets to administer. Instead, directors are planning for the optimum utilisation of those assets when they are eventually received What dividends were paid by TACDL to its Shareholder? No dividends were paid by TACDL to Te Rūnanga Nui o Te Aupouri Trust during the 12 months to 30 September 2013. TE AUPOURI COMMERCIAL DEVELOPMENT LIMITED ANNUAL PLAN FOR 2013/2014 As we have indicated, we believe that it is unlikely that any commercial assets will be available to TACDL during the 2013/4 financial year. Nevertheless, we intend to: Complete the assessments of Cape View and Te Raite and use these to develop options for the optimum utilisation of the properties once they are returned; Develop plans for the utilisation of those commercial assets that will be transferred from the Aupouri Maori Trust Board through the settlement legislation including farms and forest interests As required by the Runanga trust deed and the company’s constitution, develop a five year plan for TACDL. How is TACDL’s performance measured? The company’s directors will be reviewing performance measures and seeking agreement from the shareholder on appropriate methods of measuring performance against plan once we are better informed on what assets the company will be managing. These will be incorporated into future annual reports. - 29 - - 30 - - 31 - - 32 - - 33 - - 34 - - 35 - - 36 - - 37 - - 38 - - 39 - - 40 - TE AUPOURI IWI DEVELOPMENT TRUST (TAIDT) STATEMENT OF CORPORATE INTENT What is TAIDT? Te Aupouri Iwi Development Trust was established through the trust deed of Te Runanga Nui o Te Aupouri to receive distributions from the Runanga to enable it to carry out community development activities for the cultural and social development of Te Aupouri. What are TAIDT’s objectives? The trust will use any distributions it receives from the Runanga on behalf of and solely for the benefit of Te Aupouri to: Promote the educational, spiritual, economic, social and cultural advancement or well-being of Te Aupouri including the promotion of Te Reo and tikanga of Te Aupouri; Maintain and establish places of cultural or spiritual significance to Te Aupouri; Recognise the importance of Potahi Marae as a focal point for Te Aupouri; and Any other purpose that is beneficial to Te Aupouri. What does TAIDT do? TAIDT is required to receive and use, on behalf of the Runanga those assets, including cash, that the Runanga makes available to the trust. Because the Runanga has been unable to produce profits in the absence of a completed settlement, the trust has had limited ability to operate. How is TAIDT’s performance measured? The trustees will be developing performance measures and seeking agreement from the Runanga on appropriate methods of measuring its performance in the delivery of benefits to Te Aupouri in accordance with the trust’s objectives. Because it is uncertain when the Trust will receive distributions from the Runanga, or the level of funding that might be received, it has been difficult to determine what the Trust’s activities might be. - 41 - - 42 - TE AUPOURI IWI DEVELOPMENT TRUST REPORT FROM TRUSTEES General Comment The protracted delay in completing the Treaty settlement and seeing the settlement legislation through parliament has been extremely frustrating. We consider it unlikely that TAIDT will have access to any significant funds during the 2013/4 financial year. Uncertainty about the timing of the receipt of assets has meant that trustees have been reluctant to incur expenses. The trust has been largely inactive during the 2012/3 financial year other than supporting applications for funding for projects that are consistent with the kaupapa of the trust. TAIDT’s low level of activity is shown in the trust’s financial statements. These show that the trust received no income. Expenditure of $2,760 has also been funded by Te Runanga Nui o Te Aupouri. TE AUPOURI IWI DEVELOPMENT TRUST ANNUAL PLAN FOR 2013/2014 As we have indicated, we believe that it is unlikely that any significant funds will be available to TAIDT during the 2013/4 financial year. Nevertheless, we intend to: Develop plans for the social services contracts currently being delivered by the Aupouri Maori Trust Board to be transferred to the Trust. Under settlement legislation these programmes will initially transfer to the Runanga. As required by the Runanga and our own trust deeds, develop a five year plan for TAIDT. - 43 - - 44 - - 45 - - 46 - - 47 - - 48 - - 49 - - 50 - TE RUNANGA NUI O TE AUPOURI TRUST CHAIRMAN’S REPORT E mihi ana ki o tātou tini aitua kua hinga nei, kua hinga atu rā. Kua hiki te kohu, kua rei o tātou maunga i a koutou, okioki mai rā e te tini, e te mano, hoki atu rā ki to tātou matua nui te rangi. Kia huri ake ki a koutou e ngā mātua, e ngā tini whanaunga, whanaungatanga o ngā waka ā, ki te hau kāinga, ki Te Aupouri whānui. I am happy to provide this year’s report as Chairman of Te Runanga Nui O Te Aupouri. It concludes a year from 1st October 2012 to 30th September 2013 that has seen gradual progression culturally, socially and financially but noting that there has been more positive movement beyond the September period. STRATEGY PLAN Our forward direction 5 year Strategy Plan came unstuck when our Te Aupouri Settlement legislation was further delayed by Crown insisting, that we wait for our whanaunga iwi to sign off their DOS. This created uncertainty and financial challenge in planning an annual schedule for Mike Stevens our CEO. We are currently reviewing our strategy plan. NEGOTIATIONS: On-going dispute Optimism has been boosted by Ngati Kuri signing a Deed of Settlement. This now means four of the five iwi of Te Hiku can advance to the next phase where legislation will be introduced into Parliament. The year saw Te Runanga Nui O Te Aupouri spend much of its time in ongoing dispute with the Crown for the retention of our rangatiratanga within our rohe. You had advised us to do everything possible to minimise the impact without Aupouri walking away from their Deed of Settlement. Fellow co-negotiators Waitai Petera, Peter Lucas Jones, Rick Witana and I are satisfied that we achieved an outcome relative to what was asked of us. We also acknowledge Matu Ihaka for his dedication and stewardship in assisting our Claims Unit during this awkward time. With his guidance we were able to make a speedy recovery. Nga mihi e te whanaunga. FISHERIES: Inshore and Coastline dispute We have also entered into formal dispute and mediation with Ngati Kuri, Ngai Takoto and Te Rarawa Mandated Iwi Organisation’s regarding our Inshore Coastline Settlements. Fellow co-negotiator Louise Mischewski, our CEO and I are satisfied that progression remains stable and on track. There is a determination by the Inshore Unit to reach an outcome that is fair and durable. I would also like to acknowledge those who have assisted in the last year to get us to this point. I applaud their commitment. TE RAITE AND CAPE VIEW FARMS We have had several inspections of these farms with OTS and Land Corporation representatives. A number of concerns were identified at both properties for negotiation purposes. We have planned to meet regularly with OTS to ensure these issues are rectified prior to hand-over date. - 51 - - 52 - Te Aupouri Commercial Development Ltd will provide an overview of their activities. FINANCES Te Aupouri Iwi Development Trust: a report will be provided by the trustees. Without an asset base to leverage our financial management we were unable to generate income. Our income received was sourced from our investment interest returns and our fisheries quota. Our expenditure was exceeding our income, and as trustees we realised the need to reduce costs where applicable. SOCIAL ACCORD: What is it? Our Te Hiku Iwi informed the Crown that our settlements would not be used to change the current state of our people. Unemployment, social welfare dependence, poor housing and health, under achievement in education are the results of assimilation, and colonization. Initiatives enforced on our people for decades have not worked. We know what the problems are and by working closely with Te Hiku Iwi and Crown agencies, we can make a difference not only for our people but also for others within our communities. The Social Accord was established from the outcome of these negotiations. The Social Accord agreement was signed by the Prime Minister John Key, and Ministers Bill English, Paula Bennett and Pita Sharples. The signing of this agreement enforces 11 ministerial departments to work with Te Hiku iwi toward improving the quality of life in our communities. Minister of Social Development Paula Bennett launched the ‘Make it Happen Te Hiku’ initiative. Various iwi and other ethnic groups were present to hear her opening speech basically saying “I come here with a blank page, tell me how to fix it”. You know what the problems are, tell us”. Since then, all ministerial departments/organisations regional, national, and a high number of locals trained to complete survey forms visited remote communities, gathered data for analysing and to develop a Wellbeing Report. The full report is due 30th March 2014, so watch this space. WHAT WAS APPLIED TO REDUCE COSTS? o o o o o o WHAT FINANCIAL GAINS BEYOND 30TH SEPTEMBER 2013? o o o DEVELOPING RELATIONSHIPS Over the past three years the iwi of Te Hiku has advocated the importance of a working relationship with Regional, Local and Government Authorities. The maturing and solidification of such relationships ensures that the tribe speaks with a representative voice on issues important to our people. Exploring joint commercial and social development ventures with other iwi will consolidate our respective tribal capital bases to achieve greater outcomes. These are initiatives that show great promise and scope and what could become a theme for the tribe as it expands opportunities with like-minded, equally pro-active iwi authorities. Change our monthly meetings to six weekly. Trustees had a choice of a full meeting fee or be paid by the length of the meeting. Teleconferencing (TC) was used more frequently more-so for the negotiation disputes or to seek legal advice. Rather than send the negotiation team to Wellington, decisions made from our TC allowed Ricki and Matu a voice when meeting with Crown. Travelling trustees staying with relatives when we have our six weekly meetings. Trustees volunteering their time without payment. We have recovered from The Crown all negotiation costs. An argument we had with the Crown was on ‘missed opportunities’ for Te Aupouri because of the delay of our legislation. We should have received our entire quantum by now. We had missed the opportunity to qualify for a higher bank interest rate as opposed to the 2.5% interest from the Crown. Continued exertion on the Crown finally agreed to release 80% of our remaining quantum balance equating to $9.4m which we have invested. The balance of our quantum will be deposited into our bank once we are absolutely satisfied with the wording in our legislation that would go before parliament. Special thanks to our Legal Advisor Jennifer Braithwaite for her work throughout the year. Full financial report by our CEO will follow. PROGRESS FOR TE AUPOURI Again, there has been minimal advance in this area due to neighbouring iwi yet to settle with the Crown. As an outcome of the negotiations the whole of Te Aupouri Forest will be managed by a single authority made up of iwi representatives. We have yet to consider the structure for this authority. The tribe is gradually progressing from pre-settlement phase to consolidation. We have undertaken a reassessment of Governance and Constitutional issues. We are also working towards the assessment on how our tribal assets and finances are to be managed. Some of the major milestones reached over the year have been the receipt of our Quantum, development of a TRNOTA Five Year Plan and pro-active planning around the return of the commercial farms. ONEROA A TOHE BEACH ACCORD TE AUPOURI EDUCATION AND TE REO STRATEGY This is high on our priority for iwi to establish control and develop by-laws that would preserve our beach. More work is needed to achieve this. Consultation with iwi groups contributed to our long term strategy and is now forming our implementation planning for our present and future generations. Ngā mihi ki a koutou i tautoko mai tēnei kaupapa a tātou. “Ahakoa iti, he Pounamu“. Strands for this strategy have been sourced from our ancestral past as a focus in redressing our Aupouritanga pathway. Achieving our learning potential is also included in our Te Aupouri Reo and Education Strategy draft booklet published 22 November 2013. We envisage developing initiatives at Te Kao School to grow our Aupouritanga. TE AUPOURI FOREST KOROWAI ACCORD This has yet to be discussed and implemented. - 53 - - 54 - Our learning hub ‘Mihi Pā’; consideration to relocate our Ōhanga Reo Te Piri o Waimirirangi to Te Kao Primary School site; re-establishing our Kura Tuarua; Tertiary study in partnership with ‘Kura-a-Tuhi’; a Wānanga site and our ‘Puna Kōrero’ archive and resource development site. A focus for our future is to be a Kura-ā-Iwi (Indigenous School) by Te Aupouri for Te Aupouri. I thank the Education Team for their hard work and commitment to produce the report. While a report from Te Korito is not yet available, it will be worth reading when it is finally completed. ELECTION OF TRUSTEES The year saw its first bi-elections for the Board. I welcome our new member Rick Witana. Other members include Waitai Petera and Louise Mischewski who continue to serve another term. I also wish the best of luck to all nominees for this term elections. These elections will result in further consolidation and utilisation of the depth of knowledge and experience within the tribe. CONCLUSION In conclusion I would like to acknowledge our CEO and staff for their loyalty and hard work. I would also like to acknowledge our subsidiary Directors Ripeka Evans, Henry Ihaka, Teresa Tepania-Ashton, Errol Murray, Ngainanga Kapa and Kylie Brown for their on-going support and dedication. And a special mention to our Ringawera who have nourished our physical and spiritual well-being here at our turangawaewae and in Kaitaia. As we see the balance of our quantum invested, I encourage iwi to be patient while our finances accumulate interest and allow to us to develop our assets that returned from the Crown. A percentage of our financial returns will be targeted for funding purposes. Our draft Strategy Plan lays out our journey for the next 5 years but we also considered an aspirational plan of how we would see Te Aupouri in 25 years’ time and how Te Kao could be a thriving community with many opportunities. A place where Iwi members would want to return to live and where opportunities are many for current and future generations. Ko ēnei rā ngā wawata kia hoki mai o tātou mokopuna ki te kainga, nō rātou te wā. Me titiro whakamua tatou ki ngā āhuatanga tika, pono hei tiaki i a rātou mō āpōpō. Me pēhea rā rātou e ora ai, he aha pū te huarahi tika mō rātou? Mā tātou e whakatūwhera, kia kaha tātou ki te mau ki ngā tāonga akoranga a ngā mātua tūpuna aue! Me te tiaki tika i ngā whiwhinga moni hoki. Ko ēnei ka ora ai tātou, kia ora ai rātou a tātou mokopuna o naianei ā, rātou kei te heke iho mai. Me tino tūpato te tapuwae atu e to tātou Runanga i roto i tēnei ao hurihuri kia kaua ai tātou e tahuri. E mihi tonu ana ki a tātou e te iwi, Tēnā koutou katoa TE RUNANGA NUI O TE AUPOURI TRUST CHIEF EXECUTIVE REPORT Tena ra koutou katoa. I am happy to present this report on the operations of Te Runanga Nui o Te Aupouri for the 12 months to 30 September 2013. Overall, it would be fair to say that the year was a challenging one with considerable time, effort and cost devoted to finalising the Treaty settlement with the Crown. This will be discussed in greater detail below. My appointment as Chief Executive to Te Runanga Nui started at the end of October 2012. For those of you who do not know me, I whakapapa to Ngati Raukawa ki Te Tonga and Ngati Kauwhata, and have a background of working with iwi as a senior public servant, merchant banker, a member of the executive management team in a large commercial fishing company and as a private consultant. I have lived in the Far North for the past nine years and am excited to be working for Te Aupouri during such an important and significant period. Financial Impact of Delayed Treaty Settlement Te Runanga Nui received payment from the Crown of $4.1m in early 2012 as the initial payment on the Deed of Settlement for Treaty of Waitangi grievances. Obtaining the balance of settlement funds and assets required settlement legislation to be passed into law. That process has been hampered by the Crown’s desire to have settlements for Te Aupouri included in legislation that also covers Te Rarawa, Ngai Takoto and Ngati Kuri. Settlements with Te Rarawa and Ngai Takoto were agreed in late 2012 but, as at 30 September 2013, the Crown and Ngati Kuri were still in negotiations. Concerned about the delay and its impact on the value of the agreed Te Aupouri settlement, Te Runanga Nui has continued negotiating with the Crown in an attempt to secure an early release of remaining settlement funds. We have, during this period, been able to secure an additional $0.2m from the Crown as partial compensation for various costs incurred in the continued negotiations. Runanga income over the 12 month period of the report has otherwise been minimal and consisted largely of interest from investments. Payment of some $65,000 was also received as a distribution on the winding up of a trust that had been established by the Crown in the 1990s as part of the establishment of Moana Pacific Fisheries Ltd. Operational costs have been primarily met through expenditure from the Crown’s initial $4.1m payment. The Runanga will continue to operate at a loss until additional settlement assets are transferred. It is now expected that settlement legislation will be introduced in early 2014 and passed by the middle of the year. This concludes my report. Raymond - 55 - - 56 - (Although it falls outside the scope of this report, I can confirm that an additional $9.4m of settlement funding was received from the Crown in December 2013 and the final payment of $4.3m was received in February 2014. These payments have been placed with funds managers). The need to constrain expenditure to limit the drain on settlement funds has been a major impediment to Runanga operations. The achievement of iwi aspirations will be a slow process that will only be possible once the Runanga is generating profits that can be used for this purpose. This will allow the employment of additional staff to better ensure the organisation and its subsidiaries function effectively and that they deliver both asset growth and benefits to iwi members. Other Group Entities Because settlement assets and cash have not yet been transferred in full, two entities within the Aupouri Group have largely been unable to operate. Te Aupouri Commercial Development Limited (TACDL) was established to manage the Group’s commercial assets, particularly the two farms being returned under the settlement (Te Raite and Cape View) and the commercial properties that are currently assets of the Aupouri Maori Trust Board. The Deed of Settlement specifies that those transfers will not take place until 60 working days (three calendar months) after legislation passes which is unlikely to be before the end of the 2013/4 financial year. Nevertheless, TACDL directors have commissioned reports from professional farm advisors on options for the future utilisation of the two farm properties. As at 30 September the reports are yet to be received. Te Aupouri Iwi Development Trust (TAIDT) was established to receive distributions from the Runanga so that it can undertake community development activities for the cultural and social development of Te Aupouri. Any distributions from the Runanga for these purposes will require the Runanga to be generating profits and this will not happen until further settlement cash and assets are received. For this reason, TAIDT has had limited ability to operate as intended under its own and the Runanga trust deeds. The other commercial subsidiary, Te Aupouri Fisheries Management Limited (TAFML), was established to hold and manage the assets transferred to Te Aupouri under the Maori Fisheries settlement. The company’s ability to operate has been affected by an inability to reach agreement with neighbouring iwi (Ngati Kuri, Ngai Takoto, Te Rarawa) over entitlements to quota. TAFML has received its full share of the quota required by the legislation to be distributed on the basis of iwi population. 75% of deepwater quota was allocated on this basis and TAFML has continued to sell the harvesting rights that come from quota ownership. Entitlement to the remaining 25% of deepwater quota and of all inshore quota is determined on the basis of coastline. In past years, harvesting rights from this quota was distributed by Te Ohu Kai Moana, with Ngati Kuri, Ngai Takoto and Te Aupouri each receiving equal apportionments. - 57 - In April 2012, Te Runanga Nui formally objected to these interim distributions on the grounds that Te Aupouri were entitled, because of the iwi interest in the coastline, to a significantly greater proportion of the quota (and associated harvesting rights) than they had been receiving. As a result, Te Ohu Kai Moana has withheld allocations of interim harvesting rights to all affected iwi until the matter is resolved and relative coastline interests determined. An application to the Maori Land Court to resolve the issue was filed in late September 2013. Until the process is complete and coastline entitlements determined, TAFML cannot access annual harvesting rights and will have significantly lower returns. During this period, the harvesting rights are being sold by Te Ohu Kai Moana and the sales proceeds held in trust to eventually be distributed in accordance with the Court’s determination of coastline entitlement. Financial Performance As indicated above, operating expenditure has continued to exceed income and it is expected that this will continue until settlement assets are received. Nevertheless, the Group made a net taxable surplus of $1,443,538 for the year because of a $1.7m dividend received by TAFML by way of a bonus issue of shares in Aotearoa Fisheries Limited. This surplus compares to a $320,843 loss for the previous 18 months. Total Group assets at the end of the period were $10,272,049, an increase of $1,374,955 from the previous year. The Group remains financially strong, with shareholders’ funds at 97% of total assets. Planning Budget preparation for the year to September 2014 has been challenging because of the uncertainty over when legislation would be passed and further settlement funds and commercial assets received, and uncertainty over when the coastline dispute would be resolved. As timing becomes clearer so will our ability to prepare comprehensive budgets and plans. Trustees have made significant progress in developing a five year plan as required by the trust deed and it is hoped that this will be in place by the date of the AGM in March 2014 as will the budget. Performance against Annual Plan Achieving the targets set out in the 2012/3 annual plan has proved difficult. There are two reasons for this: (a) Many of the targets involve planning that can only be done within the context of a wider five year plan. Completion of that plan was delayed while TPK considered an application to fund the associated costs. Concerned about the delay, Trustees agreed in September to proceed at Runanga expense. The plan is expected to be complete in early 2014. (b) The delay in completing settlement with the Crown has made it impossible to achieve the targets that are dependent on legislation and asset transfers. Uncertainty about the timing of asset transfers and the receipt of settlement funds has meant delaying expenditure that would have been used in achieving planned targets. - 58 - A report on achievement against plan is shown at Appendix 1 of this report. Maori Fisheries Act Reporting Requirements The Maori Fisheries Act 2004 requires the Runanga, in its annual reports, to report to the iwi on certain matters. These are as follows: Increase in Registered Members Between 1 October 2012 and 30 September 2013, the number of registered members increased by 4%, from 5,956 to 6,174. Changes in Member Value Total assets of Te Runanga Nui o Te Aupouri and subsidiaries increased by 15% over the reporting period to $10,272,049. Shareholders’ funds stand at $9,939,401 or 97% of total assets. Profit Distribution As shown in the consolidated accounts, the group showed a net loss over the 12 months to 30 September 2013. Nevertheless, distributions were made in the following areas: Potahi Marae Numberworks n Words Tutoring Education grant (John Kapa) $20,000 $11,620 $1,000 These distributions were, in effect, made from the on-account payment received from the Crown under the Deed of Settlement. Interactions by Te Runanga Nui on Fisheries Matters (a) Discussions continued with representatives of Ngati Kuri, Ngai Takoto and Te Rarawa in an attempt to reach coastline agreements that will allow the release by Te Ohu Kai Moana of the remaining quota they hold on behalf of Te Aupouri. These discussions have been unsuccessful and the issue has now been referred to the Maori Land Court for determination. Representatives of Te Runanga Nui o Te Aupouri and Te Aupouri Fisheries Management Limited, met regularly with representatives of other Mandated Iwi Organisations and Asset Holding Companies to discuss areas of common concern such as the impact of government policies on Maori fisheries. This includes participation in a National Technical Fisheries Forum convened by Te Ohu Kai Moana. (c) With Te Ohu Kai Moana Trustee Limited In addition to the National Technical Fisheries Forum referred to above, we have worked with Te Ohu Kai Moana in an unsuccessful attempt to resolve the coastline dispute with neighbouring iwi. Changes to Constitutional Documents There have been no changes to the constitutional documents of Te Runanga Nui o Te Aupouri during the reporting period. Conclusion My thanks to the Trustees for putting their faith in me to develop the Runanga into an organisation that will move Te Aupouri into the future and for their support during what has been a difficult period. Even more, I’d like to thank my staff, small in number as they are, for their hard work and dedication. Mostly, though, my thanks go to you, the people of Te Aupouri, for welcoming me as one of your own. The next financial year, to 30 September 2014, will be a busy and exciting one. We expect to receive the remainder of the cash portion of the settlement and to see the settlement legislation passed into law. Only then, and when commercial assets and those of AMTB are transferred (most likely in the following year) will the Treaty settlement be complete and we will be able to establish a solid foundation for the continued strength of Te Aupouri. With Other Entities within Te Aupouri Te Runanga Nui worked with the Aupouri Maori Trust Board and Te Aupouri Negotiations Co (TANCO) in support of an application for a taiapure at Waka Te Haua. The Maori Land Court’s decision of 31 October 2012 was in favour of the Aupouri application. The Court recommended to the Minister of Primary Industries that the taiapure proposal should be implemented. This has not yet been actioned by the Ministry. (b) With Other Mandated Iwi Organisations Te Aupouri continues to be represented on Te Hiku o te Ika Fisheries Forum (THOTIFF) by Louise Mischewski. - 59 - - 60 - Asset Growth Utilisation & Income Plan for receipt of Te Aupouri Maori Trust Board assets Plan for optimised utilisation of aquaculture assets Optimised utilisation of commercial fisheries assets Plan for receipt of settlement assets and their subsequent use & development Capital at not less than 75% of total assets Research completed into long-term land development options - 62 - House Management plan for approved by Trustees Aupouri Management plan for Te Kao properties (kaumatua flats, papakainga housing, Te Kao store & Ngati Ruanui building) approved by Trustees Te Aupouri active in Northern Finfish Working Group to develop kingfish aquaculture utilizing Houhora mussel farm site Plan for utilisation of TAMTB farming and forestry properties agreed by Trustees/TACDL. (Note that this will need to be in conjunction with the use of farm and forestry settlement assets) Coastline agreements negotiated with neighbouring iwi and all settlement quota assets transferred to TAFML Regional aquaculture agreement in place Long-term ACE utilisation agreement negotiated and agreed by TAFML Future operation of forestry assets agreed by Trustees/TACDL and by other affected iwi Plan for utilisation of farm properties agreed by Trustees/TACDL - 61 - Statement of Investment Policies & Objectives (SIPO) agreed by Trustees Iwi consultation Communications strategy approved by Trustees Plan for consultation hui agreed by Trustees Deferred because of delay in legislation. AMTB properties will not transfer until the 2014/5 financial year Deferred because of delay in legislation. AMTB properties will not transfer until the 2014/5 financial year Houhora site unsuitable for kingfish. Runanga is member of Northland Aquaculture Development Society Deferred because of delay in legislation. AMTB properties will not transfer until the 2014/5 financial year Agreement timetable deferred by government. Negotiations ongoing. Dispute has been deferred to Maori Land Court for determination Delayed by lack of Ngati Kuri settlement. Still needs discussion with other iwi Not possible until coastline dispute resolved with neighbouring iwi Plan will be developed on completion of research Equity at 97% of total assets Research to be completed early 2014 Still to be developed once five year plan completed Still to be developed once five year plan completed Investment plan still to be approved Registered membership increased by 4% Have been unable to implement –government is still to implement the Court’s decision on the taiapure Runanga actively participated in Te Hiku o Te Ika Fisheries Forum, Te Hiku Iwi Development Trust (through which the Social Accord will be implemented) and Te Hiku Iwi Leaders’ Forum $20,000 koha paid. Policy to be developed by TAIDT for implementation when there is greater clarity about what funds are available Support given to Te Whare Mātoro: Devising a plan to grow and develop a new cohort of native Maori language speakers Results/comments Communications strategy Investment policies and objectives developed to protect and enhance asset values Growth and maintenance of the iwi register Enhanced Communications Planning and developing an iwi approved management process for Waka-te-Haua taiapure Registrations increased by 5% Active protection of traditional & customary rights and Provide support for one innovative project to maintain or increase the numbers of users of the Aupouri dialect Representation and participation within various bodies working in this area, including Te Hiku o Te Ika Fisheries Forum and the Social Accord developed policy Support the growth of speakers of te reo o Te Aupouri Marae support implemented Support to Potahi Marae Iwi Rejuvenation TARGETS 2012/13 STRATEGIES PRIORITIES Performance against Priorities and Targets 2012/13 APPENDIX 1 Organisational Development Governance Monthly reporting of performance against budget implemented Statements of Corporate Intent for each entity in the group approved by Trustees Strategic plans for each entity in the group approved by Trustees Annual plans for each entity in the group approved by Trustees Unqualified audit reports for all entities in the group TAIDT accredited and ready to receive AMTB Social Service contracts - 64 - Independent operational review completed and recommended improvements implemented Sound operational processes/systems policies Accommodation plan agreed by Trustees (what will the Runanga’s requirements be given organizational growth) Comprehensive management developed and in place Staff training needs assessed and training implemented Accommodation requirements reviewed post- Recruitment plan developed legislation operations Plan in place to absorb AMTB functions & staff for the Organisation chart appropriate for Runanga’s needs approved by Trustees - 63 - Annual reports comply with Trust Deed and are provided to iwi members not less than 20 working days before the AGM Robust management policies Appropriate accommodation Appropriate staffing Sound reporting systems Planning Enhanced financial reporting Robust governance policies Work with other iwi and territorial authorities to develop economic opportunities for Te Aupouri Governance policies for Runanga & subsidiaries reviewed and approved by Trustees Budget approved by Trustees Economic development planning All Runanga operational funding requirements met from income Proposal for an economic scan prepared, (either alone or in conjunction with other Te Hiku o te Ika iwi) Income utilisation Runanga is able to take over contracts. Accreditation will be sought for TAIDT Completed. A further review will be necessary as the Runanga expands following settlement completion 90% completed Not possible until five year plan completed Not possible until five year plan completed Not completed In process. Uncertainty about timing makes this difficult. In process. Uncertainty about timing makes this difficult. Current expectation is that AMTB will not be absorbed into Te Runanga Nui o Te Aupouri in the 2013/4 financial year Deferred until five year plan completed. Timing of new recruitment will be dependent on receipt of settlement quantum Uncertain at the time this report written, but unqualified reports expected Unlikely to achieve. Planning documents are still to be completed and accounting system refinement needs to be completed Completed Five year plans form part of the planning process still to be completed Forms part of the planning process still to be completed Reporting format agreed by trustees Preliminary budget approved but will need revision once timing of receipt of settlement funds becomes clearer. Runanga governance policies developed and approved. Still to be adopted by subsidiaries Work in this area is being undertaken through THIDT and Te Hiku Iwi Leaders’ Forum Not possible until settlement quantum received Tai Tokerau iwi economic development scan completed. Te Hiku proposal still in development through THIDT Te Runanga Nui o Te Aupouri Trust Annual Plan 2013/14 CONTENTS 1. Introduction 2. Structure of Te Aupouri Group 3. Purpose of the Annual Plan 4. Introduction to Strategic Plan 5. Timing 6. Priorities & Targets 2013/14 7. Policy on Sales and Exchanges of Settlement Quota 8. Changes to TAFML Constitutional Documents ANNUAL PLAN 2013-2014 - 65 - - 66 - 67 68 68 69 69 70 73 73 Introduction Structure Te Rūnanga Nui O Te Aupouri Trust Te Rūnanga Nui o Te Aupouri Trust was formally constituted on 31 March 2011. Seven Trustees were elected by postal ballot and appointed alongside three Transition Trustees who were representatives of other Te Aupouri entities. The trustees were mandated to negotiate the settlement of historical claims under the Treaty of Waitangi. (7 Elected Trustees) Te Aupouri and the Crown signed a deed of Settlement for all outstanding historical Treaty claims on 28 January 2012. Payment of $4.1 million was made by the Crown on signing and, once settlement legislation is passed, a further $11.8 million will be transferred together with commercial redress properties valued at more than $5 million. The settlement legislation will also transfer to Te Rūnanga Nui o Te Aupouri trust the assets and liabilities of the Aupouri Māori Trust Board. Te Aupouri Custodian Trust (Holds title to all land. Trustees are the Trustees of Te Rūnanga Nui) (Established) Corporate Management CEO (Appointed Nov 2012) Under the Deed of Trust for Te Rūnanga Nui o Te Aupouri annual plans are required for Te Rūnanga Nui and its subsidiaries. There are three subsidiaries, these being: Te Aupouri Fisheries Management Ltd Te Aupouri Fisheries Management Limited (TAFML). This is an asset-holding company under the Māori Fisheries Act 2004 and manages the commercial fishing assets transferred to Te Aupouri under that Act. Te Aupouri Commercial Development Limited. This company will undertake all the commercial activities of the Trust other than those carried out under TAFML. Te Aupouri Iwi Development Trust. This trust will undertake community development activities for the benefit of Te Aupouri. The Annual Plan for Te Rūnanga Nui o Te Aupouri is required to be presented at the Annual General Meeting of the Rūnanga. (Existing entity with 3 Directors) Te Aupouri Commercial Development Ltd (Existing entity with 3 Directors) Te Aupouri Iwi Development Trust (Existing entity with 5 Trustees) There are currently seven elected Trustees: Raymond Subritzky (Board Chairman), Waitai Petera (Deputy Chair), Peter Lucas Jones, Tui Kapa, Louise Mischewski, Maahia Nathan and Rick Witana. An election to reappoint or replace four of these (Raymond Subritzky, Peter Lucas Jones, Tui Kapa and Maahia Nathan) is timed for the AGM to be held on 15 March 2014. There are four full-time employees (including the Chief Executive). The Trust Deed requires that no more than 40% of the directors or trustees of subsidiaries can be Trustees of Te Rūnanga Nui o Te Aupouri. The directors of TAFML are Waitai Petera, Teresa Tepania-Ashton and Ripeka Evans. The directors of TACDL are Maahia Nathan, Henry Ihaka and Teresa Tepania-Ashton. The trustees of TAIDT are Peter-Lucas Jones, Louise Mischewski, Ngainanga Kapa, Kylie Brown and Errol Murray Purpose of the Annual Plan This annual plan is required so that we can: Define areas of immediate focus for Trustees, management and staff, to ensure all operational activities reflect the intentions of the Trust and the priorities shown in the Trust’s strategic plan; and Comply with our obligations under the Deed of Trust and relevant legislation. - 67 - - 68 - $3,000 Other - 70 - Te Kao civil Infrastructure Complete planning for TAIDT: 5 year plan, annual plan, statement of intent Nil Communications Develop proposal through Social Accord Secretariat for community rejuvenation $7,500 Te Hiku Iwi-Crown Social Development & Wellbeing Accord implemented through Te Hiku Iwi Development Trust Te Rūnanga Nui o Te Aupouri operates on the initial $4.1 million received from the Crown on the signing of the Deed of Settlement, and on the income it receives by way of dividends from Te Aupouri Fisheries Management Limited (TAFML). A dispute over quota entitlements has severely reduced TAFML revenue and the company’s ability to pay dividends. Rūnanga activities are constrained by the need to preserve the value of the settlement. At the same time, the Rūnanga needs to ensure that the interests of Te Aupouri are protected. Priorities and Targets 2013/14 Communications strategy approved by Trustees Language revitalisation Timing - 69 - Nil Community services available He Whai Rawa: delivering increased economic value to the Rūnanga It is only when settlement assets are transferred in full that the Rūnanga will have the ability to generate revenue to fully fund its activities. The timing of settlement legislation is still uncertain: it is possible that full settlement will be achieved midway through 2014, but it is also possible that settlement will be delayed for a considerably longer period. This plan, and associated budget, assumes that legislation will not come into effect in the 2013/2014 year. In the event that legislation and asset transfers occur during the 2013/2014 year, the plan will need to be reviewed. Nil $10,000 Learning for all to improve the wellbeing of our Iwi He Tangata He Rohe: leading and influencing the future of our landscape and locality STRATEGIES He Tangata: leading and influencing the future of our people PRIORITIES TARGETS 2013/14 The three priority areas identified in the five year plan are: Develop a mechanism for Te Aupouri appointees on THIDT to monitor and report to Te Rūnanga Nui on issues and activities of importance to Te Aupouri Mana motuhake – enhancing Te Aupouri as a nation Manaakitanga- creating culture that values and supports our people Kotahitanga – united in purpose and drawing on our diverse talents to transform our Iwi Whanaungatanga - strong relationships with each other and a sense of belonging, purpose and direction Identify five Te Aupouri cultural experts to mentor others to grow tribal knowledge The guiding principles for the work of the Rūnanga are: Obtain approval from MSD for TAIDT as a social service provider in preparation for taking over social services contracts “To lead and influence the cultural and economic development of our Iwi to ensure security and growth for Te Aupouri.” Provide internal and external political support for the implementation of the objectives in the Education Strategy COST Rūnanga Trustees have been reviewing the strategic plan and developing a five year plan as required by the Rūnanga Trust Deed. The plan, which is almost in its final form, includes the following principal purpose: Nil Introduction to Te Rūnanga Nui o Te Aupouri Five Year Plan Total Cost Other Prosperity – He Whai Rawa He Rohe Governance Complete settlement negotiations Other Forestry Fishing/Aquaculture Equities Farming - 71 - - 72 - Negotiate early release of quantum Agree draft settlement legislation Develop and implement a comprehensive governance training programme Complete planning for TAFML and TACDL: 5 year plans, annual plans, statements of intent Complete negotiations with the Crown in relation to Ngāti Kuri Complete Statement of Investment Policies & Objectives based on whole of balance sheet Complete assessment of Onepu Forest and develop a plan for its future after AMTB dissolved Prepare plan for future of Houhora Bay Mussel Farm Work with other Northland iwi to reach Regional Aquaculture Agreement with the Crown Work with other Te Hiku Iwi to plan for return and future operation of Aupouri Forest Revalue AFL shares and quota so that accounts reflect true value Seek resolution of coastline dispute through Māori Land Court Liquid assets providing minimum 6% return over 12 month period Place liquid assets in long-term management with agreed funds manager Begin discussions with key partners to explore co– management/joint operations to build scale Complete planning for the post transfer utilization of Te Raite & Cape View and Wairahi Farms Work with MPI to implement taiapure decision Waka-te Hāua Establish agreement with DoC on Te Aupouri involvement in future concessions regime pending Implement regular meetings with DoC establishment of Te Hiku Conservation Board Work with Marae trustees to develop a 5-year Marae operational and capital expenditure budget for approval and then implementation Develop a mechanism for Te Aupouri appointees on Te Oneroa-ā-Tohe Board to monitor and report to Te Rūnanga Nui on issues and activities of importance to Te Aupouri Work with Te Hiku Iwi Leaders’ Forum for early establishment of Te Oneroa-ā-Tohe Board Pōtahi Marae Conservation governance commitments $166,000 $30,000 $10,000 $5,000 $20,000 $7,500 $3,000 $7,500 $7,500 $5,000 Nil $7,500 $35,000 Nil Nil Nil $7,500 Nil Nil Nil Nil Nil Nil Policy on Settlement Quota The Rūnanga is required by the Trust Deed and the Māori Fisheries Act 2004 to incorporate into its annual plan its policy in respect of sales and exchanges of settlement quota and any changes to that policy. Te Rūnanga Nui has asked TAFML directors to periodically review the company’s settlement quota holdings with a view to rationalising its portfolio through the sale or exchange of quota with other iwi in order to enhance returns to the company. Any proposals for sale or exchange will be placed as recommendations to Te Rūnanga Nui o Te Aupouri Trust as the shareholder and to the iwi. The Rūnanga has no plan to change that policy. Te Aupouri Fisheries Management Limited Constitution The Rūnanga is required by the Trust Deed and the Māori Fisheries Act 2004 to include in its annual plan any proposal to change the constitutional documents of any fishing company owned by the Trustees. There are no proposals to change the constitution of Te Aupouri Fisheries Management Limited. - 73 - - 74 - - 75 - - 76 - - 77 - - 78 - - 79 - - 80 - - 81 - - 82 - - 83 - - 84 - - 85 - - 86 - - 87 - - 88 - - 89 - - 90 - - 91 - - 92 - - 93 - - 94 - - 95 - - 96 - - 97 - - 98 - - 99 - - 100 - - 101 - - 102 - - 103 - - 104 - - 105 - - 106 - - 107 - - 108 - - 109 -
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