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Te Aupouri Strategic Plans 2014 – 2019
Te Rūnanga Nui O Te Aupouri Trust Strategic Plan...............................................................................................1
Mission, purpose, values............................................................................................................................2
Introduction, Whakapapa, Te Aupouri Today ....................................................................................................3
Settlement, Rūnanga Model .....................................................................................................................4,5
Te Aupouri Group Structure ......................................................................................................................6,7
Rautaki – The Strategy ............................................................................................................................8,9
Pou 1 People – He Tangata, Pou 2 He Whenua, Moana, Wai Māori, Pou 3 Prosperity – He Whai Rawa ...........................10-15
2014/15 BUDGET ...............................................................................................................................16,17
Appendix 1 – Communicating the Strategy .....................................................................................................18
.......................................................................19
Mihimihi from the Chair ...........................................................................................................................20
Our Organisation ...................................................................................................................................21
Te Aupouri Group and Company Structure, Te Aupouri Group Structure...................................................................22
Te Aupouri Fisheries Management Limited (Statement of Purpose, Operating Principles, Nature and Scope) .......................23
Long Term Strategic Objectives, Governance, Current Situation.............................................................................24
Te Aupouri 5 Year Strategy (Pou 3: Prosperity – He Whai Rawa,) ...........................................................................25
Our Business (asset classes), Analysis (Quota) .................................................................................................26
Strategic Priorities, Annual Plan (2014 - 2015) .................................................................................................27
Annual Budget (2014 - 2015) .....................................................................................................................28
Appendix 1 – Letter of Expectation from Te Rūnanga Nui o Te Aupouri Trust .............................................................29
....................................................................30
Mihimihi from the Chair ...........................................................................................................................31
Our Organisation, Settlement.....................................................................................................................32
Te Aupouri Group and Company Structure .....................................................................................................33
Te Aupouri Commercial Development Limited (TACDL) (Statement of Purpose, Operating Principles, Nature and Scope) .........34
Long Term Strategic Objectives, Governance, Current Situation.............................................................................35
Te Aupouri 5 Year Strategy (Pou 3: Prosperity – He Whai Rawa,) .......................................................................36,37
Our Business (asset classes).......................................................................................................................38
Analysis (Farming, Forestry, Aquaculture, Property, RFR) ................................................................................ 39,40
Strategic Priorities, Annual Plan, Annual Budget (2014 - 2015) ..........................................................................41-43
Appendix 1 – Letter of Expectation from Te Rūnanga Nui o Te Aupouri Trust..........................................................44,45
......................................................................................................46
Mihimihi from the Chair ...........................................................................................................................47
Our Organisation ...................................................................................................................................48
Te Aupouri Group and Company Structure .....................................................................................................49
Aupouri Iwi Development Trust (Statement of Purpose, Operating Principles, Nature and Scope of TAIDT, Long -Term Strategic
Objectives, Governance, The current situation)............................................................................................50,51
Te Aupouri 5 Year Strategy ....................................................................................................................52,53
Annual Plan and Budget (2014-2015)........................................................................................................54,55
Appendix 1 – Letter of Expectation from Te Rūnanga Nui o Te Aupouri Trust..........................................................56,57
Te Aupouri Fisheries Management Company Limited Five Year Plan
Te Aupouri Commercial Development Company Limited Five Year Plan
Te Aupouri Iwi Development Trust (TAIDT)
Contents
Strategic PlanTe Rūnanga Nui O Te Aupouri Trust (the Rūnanga)
2014 - 2019
1
Mission
“Kia kotahi, kia kaha, kia pakari ai te tū o Te Aupouri i roto i ngā mahi katoa”
“That Te Aupouri is a united, strong and prosperous Iwi”
Purpose
“To lead and influence the cultural and economic development of our Iwi to ensure security
and growth for Te Aupouri.”
Values
Mana Motuhake – enhancing Te Aupouri as a nation
Kaitiakitanga – good stewardship of our assets for future generations
Manākitanga- 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
2
Introduction
Whakapapa
Te Aupouri can trace their whakapapa from the ancestor Te Ikanui and his two wives, Tihe and Kohine, daughters of the ancestress Te Amongaariki.
Te Kao, the tūrangawaewae of Te Aupouri and location of the marae, Pōtahi, is a small rural settlement at the southern end of Pārengarenga Harbour.
Te rohe o Te Aupouri extends from Te Oneroa-ā-Tohe (Ninety Mile Beach), on the west coast to Tokerau (Great Exhibition Bay), on the east coast, from Ngāpae (Waipapakauri Ramp), in the south to Te Rerenga Wairua (Cape Reinga), in the north, encompassing the surrounding offshore islands.
Te Reo Māori Te Aupouri means ‘The Dark Cloud.’ According to legend, Te Aupouri came into conflict with neighbouring Te Rarawa. The battle between the two eventually caused two chieftains, to become besieged in their pā in Pawarenga on Whangapē Harbour. To mask their escape, they burnt their possessions and withdrew under cover of the smoke, hence the reference to the dark cloud.
Te Aupouri is one of five Iwi in Te Hiku o Te Ika ā Māui (the tail of the fish of Māui).
Te Aupouri were signatories to He Whakaputanga in 1835 and Te Tiriti o Waitangi in 1840.
Over the ensuring decades of being subjected to numerous suppressive Acts by the Crown and its agents, Te Aupouri were left with insufficient land for their needs and denied access to their coastal environment which caused untold hardship, high debt levels, whānau conflict and loss of whenua tuku iho.
Te Aupouri today
Te Aupouri is an Iwi with more than 9,3001 members, of whom 6,200are currently registered with Te Rūnanga Nui o Te Aupouri (the Rūnanga).
Te Kao is the tūrangawaewae and ahi kā of Te Aupouri. However, more than 85 percent of Te Aupouri members live outside the rohe, in other parts of Northland, Auckland and Aotearoa, with a very small percentage living in other parts of the world. Most Te Aupouri reside in urban areas, with 80 percent living in cities or towns.
The median age is 23, with just 4 percent of the Iwi over 65, half the national average. More than 68 percent of adult Iwi members (aged over 15 years), have a formal educational qualification (this includes a school qualification), with women more likely to be qualified. Like the rest of the Māori population, younger Aupouri are more likely to be formally qualified, and this statistic is growing. About two thirds of adults are defined as being in the labour force, with unemployment around 10 percent.
In Census 2006, 44 percent of those that affiliated to Te Aupouri reported an annual personal income of $20,000 or less, while 5 percent earned over $70,000. The median annual income for Te Aupouri was $23,300 compared to the total Māori population, which was $21,900 and the total New Zealand population, which was $24,400.
1 Statistics New Zealand, Iwi Profiles, Te Aupōuri, Census 2006. Note that this figure does not include iwi members living
overseas 3
Settlement
Te Aupouri ratified its Deed of Settlement with the Crown in January 2012 at Pōtahi Marae, Te Kao, with the support of 97 percent of those who voted (33% of enrolled members).
The Rūnanga is the legal entity, also known as the Post Settlement Governance Entity (PSGE), mandated to manage the settlement on behalf of the Iwi. The Rūnanga is currently in a development phase, as it waits for the Crown to enact the settlement legislation. This appears likely to occur in late 2015. The settlement legislation will consolidate the previous Te Aupouri
entities into a single authority – Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga). The Rūnanga has already taken over the functions, responsibilities, and assets of:
Te Rūnanga o Te Aupouri
Te Aupouri Fisheries Trust (and its subsidiaries)
Te Aupouri Negotiations Company Limited
Once legislation is passed in 2015, the Rūnanga will also take on the assets, liabilities and operations of the Aupouri Māori Trust Board (and its subsidiaries)
The Rūnanga and its subsidiaries are known collectively as Te Aupouri Group (the Group).
On delivery of the settlement assets, it is anticipated the Rūnanga will have commercial assets worth approximately $40million under its management. Wih a conservative return of 5 percent, this will produce an initial annual income of approximately $2million.
Rūnanga Model
The Rūnanga model provides a “separation of powers” between the elected governance – which sets the strategy - and the management and subsidiary companies which implement the strategy. The role of the Rūnanga Trustees will be to provide oversight to management and the subsidiary companies, to hold them to account for delivery of the strategy within agreed levels of resourcing and timeframes.
This structure will ensure commercial returns can sustain distribution programmes and is a tried and true method of building economic wealth for other post-settlement Iwi.
Lessons learned from other Iwi post settlement are:
Create a strategy that is supported by the iwi
Separate the commercial arm from the social development arm
Commercial boards should have a mix of independent and Iwi governors
Iwi should use commercial boards to develop future leaders
Commercial Iwi companies seek trusted investment partners
Work toward getting the benefits to those most in need and most difficult to reach
Summary of Key Advantages
Te Aupouritanga
Commitment to vision
“Licence to operate” exclusively in rohe
Joint partnerships evolving
Settlement within reach 4
Summary of Key Threats
Struggling Northland economy and reliance on primary industry
Inter-Iwi conflict
Failure to adhere to the agreed strategy
Limitations in commercial, governance and managerial experience in large and complex entities
Competing priorities within Iwi
Environmental issues – e.g. oil exploration and mining
Summary of Opportunities
Social and cultural improvement and revitalisation for our people
Opportunity to build a Te Aupouri economic base
Development of trusted partnerships for scale at local and national levels
Taitamariki see good role modelling and leadership opportunities within the Iwi
Develop traditional and contemporary Iwi leadership through skills at all levels
5
Te Aupouri Group Structure
Te Rūnanga
Nui O Te Aupouri
(7 elected Trustees)
Te Aupouri Iwi
Te Aupouri
Fisheries
Management Ltd
Te Aupouri
Commercial
Development
Ltd
Te Aupouri Iwi
Development Trust
6
Te Aupouri Group Structure
Te Runanga Nui O
Te Aupouri
Management & Shared Services
Te Runanga Nui O
Te Aupouri Trust
The Financial engine of the Runanga, working closely to
provide an economic platform for the Iwi
Te Aupouri
Fisheries Management Ltd
ASSET CLASSES:
-
Farming
-
Forestry
-
Aquaculture
-
Property
-
Right of First Refusal
(for the next 172 years)
ASSET CLASSES:
-
Quota/ACE
-
AFL Shares
Te Aupouri
Commercial
Development Ltd
Te Aupouri
Iwi Development Trust
Te Aupouri Iwi
Te Kahui Kaitiaki Rangatiratanga O
Te Aupouri Ltd
7
Rautaki – The Strategy
This strategy covers the development phase of the Rūnanga and is built on the Iwi-wide survey completed in 2009; the strategy published in the 2012 Annual Report; and informed by the Board of Trustees Strategic Planning hui held in Kaitaia on 2 November 2013. It is designed to assist Te Aupouri grow culturally, socially and economically as individuals, whānau and Iwi.
The 25 year vision
Based on previous work, the Rūnanga has also considered an aspirational plan of how Te Aupouri might look in 25 years’ time. This includes Te Kao as a thriving community with many opportunities; a place where Iwi members would want to return to live, work and enjoy the benefits and results of this strategy.
The consequent five key areas will be used as a road map to determine priorities and focused effort for the ensuing first tranche of the Strategic planning process – with a five year timeframe. These will be further reviewed, developed and refined – in consultation with the Iwi, by the end of Year 2.
1. Iwi health and wellbeing improved a. Positive increase in health and wellness statistics b. Aupouri wellbeing and cultural growth assured c. Improved local care for the young and old d. Increased number of people working in higher level employment
e. Employment for our people, wherever they live
2. Realise the educational aspirations of young and old a. Te Aupouri has revitalised te reo in our people b. Range of schools available to support the Iwi c. Marae based learning and wānanga d. Our emerging leaders are nurtured e. Tertiary qualified Iwi numbers are growing f. Scholarships provided to registered members are growing
3. To protect, promote and rebuild Te Aupouri physical estates and assets a. Protect customary interests b. Te Kao store revamped and tourist hub developed c. World class facilities developed d. Mātauranga style facility established with history, stories and whakapapa of Iwi e. Infrastructure is well maintained
4. Opportunities for the prosperity of whanau members and the Iwi collectively are realised a. Employment opportunities are created in the rohe b. Diversification of forestry has occurred – native flora and fauna c. Farming innovation and new ventures developed d. Fishing and aquaculture ventures have increased revenue streams for Iwi e. Horticulture opportunities have developed
5. Meaningful relationships maintained with stakeholders a. Co-management of forestry, beach and fishing b. Commercial partnerships sound c. Resource co-management practices established d. Good working relationship with Ministry of Education established and mutually
supportive strategies collaboratively progressed e. Communication with Iwi members and external stakeholders is regular, informative
and appreciated 8
This long term vision – albeit aspirational, is an important tool to ensure that we maintain our focus, measure our progress and deliver on a collaborative plan. However, just like any plan, it will need to be amended over time to remain relevant.
Rautaki - Five year Strategy
The strategy covers the five-year development phase (from 2014-2019) and is built on three“Pou”, or 3 priority areas:
1. He Tangata - People 2. He Whenua, Moana, Wai Māori - Land & Waterways 3. He Whai Rawa – Prosperity
The objective of the strategy is to establish the business model and mobilise it to commence delivery through Rūnanga management and the subsidiary companies.
Each Pou is explored in a separate section of this document, using a five-year timeframe and with key performance indicators across the three Pou.
Prioritising scarce resources has meant not all opportunities are able to be addressed in the short term, but over time - and with good stewardship - further benefits will be delivered.
Strategy
To grow and support
Iwi development
through three pou
People Prosperity
Place
Rautaki The Strategy
Te Aupouri Iwi
–
9
Pou 1
People – He Tangata: leading and influencing the future of our people
Strategic Direction 5-Year Strategic Goal Key Performance Indicator
People – He Tangata Aupouritanga
Learning for all to improve the wellbeing of our Iwi
1. Provide internal and external political support for the implementation of the objectives in the Education Strategy, including strong advocacy and governance representation.
2. Research a Kura-ā-Iwi education model based on experiences of Bay of Plenty and Waikato Iwi for secondary and tertiary level learning through partnership with institutions such as the Correspondence School, Te Wānanga, Open Polytechnic, Trade training and second chance learning.
3.
Develop a business case for the establishment and ongoing operational costs of an archive and research centre
-
Mihipa
4.
Establish a biennial wānanga
series for Iwi members outside the rohe.
5.
Ensure the cultural security and integrity of Pōtahi
Marae is
maintained through working closely and collaboratively with the Marae Trustees
6.
Promote the idea of Pōtahi
Marae as the epicentre for Te Aupouri.
Community Services available
7.
Build better community awareness of support services available through social service providers.
8.
Work with service providers to ensure quality local delivery of health and other services
Te Aupouri
language revitalisation
9.
Provide internal and external political support for the implementation of the objectives in the Te Reo
Strategy, including strong advocacy and governance representation.
Create Cultural Connection opportunities
10.
Hold tikanga and whakapapa wānanga
every 2 years to build a sense of Te Aupouritanga amongst the Iwi
11.
Create leadership opportunities and identify and document potential successors for Iwi political and operational roles. This to include participation in Māori
National fora and events.
12.
Provide Opportunities for taitamariki
to
connect and engage.
10
opportunities. (see Appendix 1).
Te Kao Civil Infrastructure 14. Advocate and actively pursue opportunities for improvements to Te Kao infrastructure by fostering and growing healthy partnerships with local and central government, government agencies and the private sector.
Organisational
Development
15. Establish Group wide Audit and Risk governance and policies for Te Aupouri Group entities
16. Develop staffing levels appropriate to Group requirements
17. Implement management agreements between Rūnanga and commercial subsidiaries
18. Implement robust reporting systems to support corporate governance
Develop and implement plan for AMTB assets, liabilities and operations
19. AMTB operations embedded with Te Rūnanga Nui or divested
Communication 13. Develop and implement communications plan to ensure that Iwi and stakeholders are well informed of Rūnanga activities and
11
Pou 2
He Whenua, Moana, Wai Māori - leading and influencing the future of our landscape and locality
Strategic Direction 5-Year Strategic Goal Key Performance Indicator
He Whenua, Moana, Wai Māori
Conservation Governance commitments
20. Appointment of Te Aupouri member on Te Hiku o Te Ika Conservation Board.
21. Identify wāhi tapu on Korowai land and develop wāhi tapu framework
22. Appoint Te Aupouri representative to engage with DoC on Te Hiku o Te Ika Conservation Management Strategy, Customary Materials Plan and the Relationship Agreement with DoC
23. Develop and agree customary materials plan with DoC
24. The cultural redress fund of $380,000 is invested in projects of cultural significance.
25. Appointment of Te Aupouri representative to Te Oneroa-ā-Tohe Board.
26. With DoC, develop and implement training and employment opportunities for iwi members.
Iwi Taonga 27. Manage 19 place name changes with NZ Geographic Board - by Year 5.
28. Develop and maintain a relationship with Norfolk Island Museum to facilitate the retirn of two Patu – by Year 5.
Resource management 29. Develop co-management plan with Maunganui Bluff trustees regarding Waka-te-Hauā taiapure and the camping area.
Other 30. Appoint trustees to Te Hiku Iwi Development Trust to ensure participation in the Social Development and Wellbeing Accord.
12
Pou 3
Prosperity – He Whai Rawa: delivering increased financial value to the Rūnanga
Strategic Direction 5-Year Strategic Goal Key Performance Indicator
Prosperity – He Whai Rawa
Farming ($19.1m) asset grown to $25m by 2019
1. Health and Safety culture established as a matter of urgency across Rūnanga and subsidiaries, especially forestry and farming interests.
2. Management plans developed and implemented for Te Raite, Cape View and Wairahi Farms
3. Undertake discussions with key partners to explore co –management/joint operations to build scale.
4. Achieving minimum of 2 percent return on farm assets before inflation.
5. Working capital ratio of at least 2:1 (current assets/current liabilities).
6. Develop a 5-year capital expenditure plan - by Yr 2.
Property (Valuation details to be provided when AMTB asset values are determined)
7. Te Kao School lease back implemented and managed.
8. RFR capability developed in-house with mentoring from Iwi already experienced in successful RFR management.
9. Aupouri House, Ngāti Ruanui Office and Rūnanga Office are developed into more suitable space for Te Aupouri multiple uses and/or lease potential.
10. Te Kao Shop and Te Kao Land Refuse are managed on a commercially viable basis.
11. Te Kao Papakāinga Lands and Housing are effectively managed.
12. Investigate and start implementation of a long term plan for Te Kao store.
Forestry Valuation details to be provided when forest lands and AMTB asset values are determined
13. Onepū Forest is assessed to determine best long term use.Develop co-management plans with neighbouring Iwi to monitor and manage 30% Aupouri shareholdings within Peninsula Forest – by settlement date.
Fishing made up of quota from Te Ohu Kai Moana and Aotearoa
14. Revalue AFL shares by 30 September 2014
15.
Maintain current performance
13
Fisheries Limited shares levels over the 5 year period.Explore if the Rūnanga intends to hold or divest settlement fishing assets then investigate pathways for implementation.
Equities 18. Liquid Assets in long-term management with agreed funds manager.
19. Liquid Assets achieving minimum of 8 percent per annum average growth over five year period.
Other Priority will be given to Farming, Fishing and Forestry before assessing other opportunities
20. Focus on core assets before other opportunities are investigated.
14
The Rūnanga will set performance targets for Te Aupouri Fisheries Management Limited and Te Aupouri Commercial Development Limited through “Letters of Expectation”. These letters will be the accountability and transparency mechanism back to the governing body and Iwi.
Each “Letter of Expectation” will contain the following:
Establish the business model with supporting policies
Financial performance targets
Capital expenditure planning
Shared Services model established
Te Aupouri values embedded across the Group
These Letters of Expectation will be tabled by the Rūnanga at each Annual General Meeting with previous year reported on at the AGM.
Key Risks
The Rūnanga has identified a number of key risks to implementing the strategy, including:
Governance making management decisions, leaving management unsure of their role
Expectations are too high between the Rūnanga and Iwi Members
Inability to work with co-management structures created by the Deed of Settlement
Ability to attract and retain high performing skills, expertise and experience in human resources.
Conclusion
The Crown has in small part addressed its debt to Te Aupouri with final settlement but in doing so it has also guaranteed significant additional work for the Rūnanga, which is not funded. Through the Deed of Settlement central government has devolved much responsibility to the Iwi, but without the commensurate reward.
These commitments in the Deed will need to be well managed by ensuring the central and local government agencies do the work that is required with co-governance through the Korowai Atawhai mo te Taiao, the Social Development and Wellbeing Accord, and the Te Oneroa-ā-Tohe Board.
It will be critical to prioritise what can be done with the resources available and not be distracted by the agenda of central government agencies.
The board should appoint subcommittes of their members to focus and report back to the full Board of Trustees on:
The commitments in the Deed of Settlement.
The audit and risk fundamentals of the Rūnanga
The remuneration of the Rūnanga (Trustees, subsidiary Directors, CEO).
Currently the governance structure far outweighs management and staff in numbers. This will need to be addressed to enable the establishment and initial development phaseto be advanced over the next five years and enable Trustees to be in a position to report back to the Iwi at the 2019 AGM, that all Key Performance Indicators have been achieved.
The costs of this increase in capacity and capability will need to be carefully balanced and continually reviewed within competing priorities and available resource
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.00
AG
M -
Pos
t, P
rintin
g &
Sta
tione
ry (4
12)
$0.0
0$0
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$0.0
0$3
,500
.00
$6,0
00.0
0$3
,500
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$0.0
0$0
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$0.0
0$0
.00
$0.0
0$0
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$13,
000.
00
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it fe
es (3
43)
$0.0
0$0
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$2,0
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0$2
,060
.00
$4,1
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0$4
,120
.00
$0.0
0$0
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$0.0
0$0
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$0.0
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$12,
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00
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k F
ees
(346
/01)
$77.
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$77.
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$77.
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$77.
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$77.
00$7
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$924
.00
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erin
g -
Mee
tings
(356
/06)
$618
.00
$618
.00
$618
.00
$618
.00
$3,0
00.0
0$6
18.0
0$6
18.0
0$6
18.0
0$6
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0$6
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0$6
18.0
0$6
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0$9
,798
.00
CE
O T
rave
l - A
ir (4
49/0
5)$4
00.0
0$4
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0$4
00.0
0$4
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0$4
00.0
0$4
00.0
0$4
00.0
0$4
00.0
0$4
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0$4
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0$4
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0$4
00.0
0$4
,800
.00
CE
O T
rave
l - V
ehic
le (
449/
06)
$400
.00
$400
.00
$400
.00
$400
.00
$400
.00
$400
.00
$400
.00
$400
.00
$400
.00
$400
.00
$400
.00
$400
.00
$4,8
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0
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pute
r E
xpen
ses
(349
)$8
2.00
$82.
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$82.
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$82.
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84.0
0
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ipm
ent L
ease
- P
hoto
copi
er (3
77/0
1)$1
62.0
0$1
62.0
0$1
62.0
0$1
62.0
0$1
62.0
0$1
62.0
0$1
62.0
0$1
62.0
0$1
62.0
0$1
62.0
0$1
62.0
0$1
62.0
0$1
,944
.00
Gen
eral
- P
ost,
Prin
ting
& S
tatio
nery
(410
)$3
09.0
0$3
09.0
0$3
09.0
0$3
09.0
0$3
09.0
0$3
09.0
0$3
09.0
0$3
09.0
0$3
09.0
0$3
09.0
0$3
09.0
0$3
09.0
0$3
,708
.00
Gen
eral
Exp
ense
s (3
66)
$206
.00
$206
.00
$206
.00
$206
.00
$206
.00
$206
.00
$206
.00
$206
.00
$206
.00
$206
.00
$206
.00
$206
.00
$2,4
72.0
0
Insu
ranc
e (3
70)
$0.0
0$3
,090
.00
$0.0
0$0
.00
$0.0
0$0
.00
$0.0
0$0
.00
$1,5
00.0
0$0
.00
$0.0
0$0
.00
$4,5
90.0
0
Inte
rest
- V
ehic
le L
ease
s (3
80/0
3)$2
,008
.00
$1,9
53.0
0$1
,894
.00
$1,8
38.0
0$1
,783
.00
$1,7
21.0
0$1
,663
.00
$1,6
01.0
0$1
,542
.00
$1,4
20.0
0$1
,363
.00
$1,2
27.0
0$2
0,01
3.00
Lega
l Exp
ense
s -
TR
NO
TA
(372
/01)
$4,0
00.0
0$4
,000
.00
$4,0
00.0
0$4
,000
.00
$4,0
00.0
0$4
,000
.00
$4,0
00.0
0$4
,000
.00
$4,0
00.0
0$4
,000
.00
$4,0
00.0
0$4
,000
.00
$48,
000.
00
Ligh
t, po
wer
and
hea
ting
(306
)$1
13.0
0$1
13.0
0$1
13.0
0$1
13.0
0$1
13.0
0$1
13.0
0$1
13.0
0$1
13.0
0$1
13.0
0$1
13.0
0$1
13.0
0$1
13.0
0$1
,356
.00
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- T
e K
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ffice
(42
0)$0
.00
$0.0
0$2
,100
.00
$0.0
0$0
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$0.0
0$0
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$0.0
0$0
.00
$0.0
0$0
.00
$0.0
0$2
,100
.00
Mee
ting
Fee
s -
Tru
stee
s H
ui-a
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ama (3
56/0
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,500
.00
$3,5
00.0
0$3
,500
.00
$3,5
00.0
0$3
,500
.00
$3,5
00.0
0$3
,500
.00
$3,5
00.0
0$3
,500
.00
$3,5
00.0
0$3
,500
.00
$3,5
00.0
0$4
2,00
0.00
Mee
ting
Fee
s -
Tru
stee
s O
ther
(35
6/03
)$6
18.0
0$6
18.0
0$6
18.0
0$6
18.0
0$6
18.0
0$6
18.0
0$6
18.0
0$6
18.0
0$6
18.0
0$6
18.0
0$6
18.0
0$6
18.0
0$7
,416
.00
Min
or A
sset
s (le
ss th
an $
500)
(311
)$1
03.0
0$1
03.0
0$1
03.0
0$1
03.0
0$1
03.0
0$1
03.0
0$1
03.0
0$1
03.0
0$1
03.0
0$1
03.0
0$1
03.0
0$1
03.0
0$1
,236
.00
Offi
ce E
xpen
ses
(400
)$2
06.0
0$2
06.0
0$2
06.0
0$2
06.0
0$2
06.0
0$2
06.0
0$2
06.0
0$2
06.0
0$2
06.0
0$2
06.0
0$2
06.0
0$2
06.0
0$2
,472
.00
R &
M -
Gen
eral
(336
/13)
$858
.00
$859
.00
$858
.00
$858
.00
$859
.00
$858
.00
$858
.00
$859
.00
$858
.00
$858
.00
$859
.00
$858
.00
$10,
300.
00
Sta
ff -
Pro
fess
iona
l Dev
elop
men
t (43
6)$5
00.0
0$5
00.0
0$5
00.0
0$5
00.0
0$5
00.0
0$5
00.0
0$5
00.0
0$5
00.0
0$5
00.0
0$5
00.0
0$5
00.0
0$5
00.0
0$6
,000
.00
Sta
ff T
rave
l - V
ehic
le (4
49/0
2)$3
60.0
0$3
60.0
0$3
60.0
0$3
60.0
0$3
60.0
0$3
60.0
0$3
60.0
0$3
60.0
0$3
60.0
0$3
60.0
0$3
60.0
0$3
60.0
0$4
,320
.00
Sub
scrip
tions
$350
.00
$350
.00
$350
.00
$350
.00
$350
.00
$350
.00
$350
.00
$350
.00
$350
.00
$350
.00
$350
.00
$350
.00
$4,2
00.0
0
Tel
epho
ne (4
46)
$1,3
39.0
0$1
,339
.00
$1,3
39.0
0$1
,339
.00
$1,3
39.0
0$1
,339
.00
$1,3
39.0
0$1
,339
.00
$1,3
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0$1
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$1,3
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0$1
,339
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$16,
068.
00
TR
NO
TA
Veh
icle
$1
00.0
0$1
00.0
0$1
00.0
0$1
00.0
0$1
00.0
0$1
00.0
0$1
00.0
0$1
00.0
0$1
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0$1
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0$1
00.0
0$1
00.0
0$1
,200
.00
Tru
stee
Tra
vel-
Air
(449
/03)
$2,2
00.0
0$2
,200
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$2,2
00.0
0$2
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$2,2
00.0
0$2
,200
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$2,2
00.0
0$2
,200
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$2,2
00.0
0$2
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00.0
0$2
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$26,
400.
00
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stee
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vel-
Veh
icle
(44
9/04
)$2
20.0
0$2
20.0
0$2
20.0
0$2
20.0
0$2
20.0
0$2
20.0
0$2
20.0
0$2
20.0
0$2
20.0
0$2
20.0
0$2
20.0
0$2
20.0
0$2
,640
.00
Ven
ue h
ire-m
eetin
gs (
356/
04)
$300
.00
$300
.00
$300
.00
$300
.00
$300
.00
$300
.00
$300
.00
$300
.00
$300
.00
$300
.00
$300
.00
$300
.00
$3,6
00.0
0
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es$2
0,61
5.00
$20,
613.
00$2
5,76
6.00
$20,
613.
00$2
0,61
5.00
$25,
767.
00$2
0,61
3.00
$20,
615.
00$2
5,76
6.00
$20,
612.
00$2
0,61
4.00
$25,
767.
00$2
67,9
76.0
0
Tota
l Co
st o
f S
ales
$43,
244.
00$4
4,97
8.00
$51,
141.
00$4
7,33
2.00
$54,
722.
00$5
4,42
9.00
$41,
597.
00$4
1,53
8.00
$48,
129.
00$4
1,35
3.00
$41,
299.
00$4
6,31
5.00
$556
,077
.00
Gro
ss P
rofi
t$1
05,9
04.0
0$1
04,5
78.0
0$9
8,90
7.00
$103
,212
.00
$96,
271.
00$9
7,07
0.00
$110
,412
.00
$110
,986
.00
$104
,914
.00
$112
,162
.00
$112
,693
.00
$108
,182
.00
$1,2
65,2
91.0
0
2014
/15
Bu
dg
etT
e R
un
ang
a N
ui O
Te
Au
po
uri
Tru
stO
cto
ber
201
4 to
Sep
tem
ber
201
5
16
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t-1
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ov
-14
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c-1
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an
-15
Fe
b-1
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ar-
15
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r-1
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ay-
15
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n-1
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ul-
15
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g-1
5S
ep
-15
To
tal
Less O
pera
tin
g E
xp
en
ses
Contr
act
Em
plo
yee (
set as
Exe
mpt of G
ST
) (3
30/1
2)
$8,2
40.0
0$8,2
40.0
0$10,3
00.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$26,7
80.0
0
CO
O (
330/1
1)
$0.0
0$0.0
0$0.0
0$5,9
42.0
0$5,9
42.0
0$7,4
29.0
0$5,9
42.0
0$5,9
42.0
0$7,4
28.0
0$5,9
42.0
0$5,9
42.0
0$7,4
29.0
0$57,9
38.0
0
Depre
ciatio
n (
477)
$8,5
87.0
0$8,6
33.0
0$8,6
95.0
0$8,7
39.0
0$8,7
95.0
0$8,8
43.0
0$8,8
99.0
0$8,9
52.0
0$8,9
99.0
0$8,7
10.0
0$8,3
90.0
0$8,4
40.0
0$104,6
82.0
0
Donatio
n -
TA
IDT
(480/0
2)
$0.0
0$0.0
0$200,0
00.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$200,0
00.0
0
IT r
evi
ew
$2,5
00.0
0$5,0
00.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$7,5
00.0
0
Com
munic
atio
ns
pla
n$0.0
0$0.0
0$0.0
0$2,0
00.0
0$3,0
00.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$5,0
00.0
0
AM
TB
Tra
nsi
tion
$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$7,0
00.0
0$7,0
00.0
0$7,0
00.0
0$7,0
00.0
0$7,0
00.0
0$0.0
0$35,0
00.0
0
R &
M -
Pla
nt and E
quip
ment (3
36/3
0)
$100.0
0$100.0
0$100.0
0$100.0
0$100.0
0$100.0
0$100.0
0$100.0
0$100.0
0$100.0
0$100.0
0$100.0
0$1,2
00.0
0
Speci
alis
t A
dvi
ce F
ees
(353/0
3)
$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$8,0
00.0
0$96,0
00.0
0
Tra
vel E
xpense
s -
Fin
al R
eadin
g (
356/1
1)
$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$0.0
0$25,0
00.0
0$0.0
0$0.0
0$0.0
0$0.0
0$25,0
00.0
0
Tota
l O
pera
tin
g E
xp
en
ses
$27,4
27.0
0$29,9
73.0
0$227,0
95.0
0$24,7
81.0
0$25,8
37.0
0$24,3
72.0
0$29,9
41.0
0$54,9
94.0
0$31,5
27.0
0$29,7
52.0
0$29,4
32.0
0$23,9
69.0
0$559,1
00.0
0
Tota
l E
xp
en
ses
$27,4
27.0
0$29,9
73.0
0$227,0
95.0
0$24,7
81.0
0$25,8
37.0
0$24,3
72.0
0$29,9
41.0
0$54,9
94.0
0$31,5
27.0
0$29,7
52.0
0$29,4
32.0
0$23,9
69.0
0$559,1
00.0
0
Net
Pro
fit
$78,4
77.0
0$74,6
05.0
0-$
128,1
88.0
0$78,4
31.0
0$70,4
34.0
0$72,6
98.0
0$80,4
71.0
0$55,9
92.0
0$73,3
87.0
0$82,4
10.0
0$83,2
61.0
0$84,2
13.0
0$706,1
91.0
0
17
Appendix 1 – Communicating the Strategy
Objective: To communicate regularly with Te Aupouri - no matter where they live - and to engage and inform a range of stakeholders. To achieve this, the Rūnanga must communicate and build long term relationships with the following stakeholders through the sustained implementation of a Communications Plan:
Internal Pōtahi Marae Committee
Te Aupouri iwi
Taurahere groups in Auckland, Wellington and Christchurch
Te Aupouri influencers
Staff
Rūnanga Trustees, subsidiary Boards
Suppliers
Church committees
External
Public at large
Māori academics and commentators
Other Te Hiku Iwi – Ngai Takoto, Te Rarawa, Ngāti Kuri and Ngāti Kahu
Local government
Other Iwi
Pan Māori organisations
Māori media
Crown agencies - Office of Treaty Settlement, including Post Settlement Commitments Unit, DoC, CFRT, TPK and other Crown participants in the Social Development and Wellbeing Accord
Māori and Te Taitokerau Members of Parliament
Diverse demographics, geographic spread and scarce resources mean a range of channels will need to be used for both internal and external communication purposes. A dedicated and capable resource should be engaged to develop and implement stakeholder communications. Initially, this may be a shared role with other key responsibilities at the Rūnanga.
Possible communication channels are:
Hui-ā-Iwi with materials to take home
Road shows for those that are unable to attend, but piggy back off another event
Regular e-pānui that goes on the website and Facebook and is sent to registered members via email
Promotional activities run for existing registered members to generate new registrations
among whanau and friends
Utilise whānau and existing networks at Te Reo Irirangi o Te Hiku o Te Ika radio to establish a
regular commentary spot
Brief local media editors from; Northern Advocate, Northland Age, Northern News,
Whangarei Report, Bay Chronicle, Te Karere, Te Kāea, Radio Wātea. Te Aupouri to authorise
one media spokesperson.
Draft and distribute media releases regularly for general distribution and e-pānui, Facebook
etc.
Visit and brief local reporters on Radio NZ and Māori Television
Opinion piece from the Chair/CEO in local paper on matters of relevance to carve out the Te
Aupouri leadership role in the wider community eg. Unitary council, co-management and/or
environmental matters. 18
Te Aupouri Fisheries Management
Company Limited
Five Year Plan 2014 – 2019
19
1. Mihimihi from the Chair
E ngā Iwi, e ngā mana, tēnā rā tatou katoa
Te Aupouri Fisheries Management Limited (TAFML) is a wholly owned but independent subsidiary of Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga).
TAFML was established as a separate entity as required under the Māori Fisheries Act 2004 and is tasked with protecting and maximising the value of our commercial fisheries assets for the benefit of Te Aupouri.
While not the “financial engine”of the group – that is the role of Te Aupouri Commercial Development Limited (TACDL), TAFML will nevertheless play a role in supporting our perpetual tribal development journey.
In effect, we are a quota management company, deriving our income from Aotearoa Fisheries Limited (AFL) dividends and from the sale of Annual Catch Entitlement (ACE) derived from quota transferred from Te Ohu Kaimoana under the Māori Fisheries Act 2004.
At this drafting of our Five Year Plan 2014 – 2019, it is important to note that we are operating in extremely challenging conditions over which the Directors have no control. These include:
the depressed New Zealand seafood industry environment
the Government’s Foreign Charter Vessels legislation
the ongoing coast-line dispute with neighbouring Iwi.
The Rūnanga, as our sole shareholder, will monitor our performance, receive regular reports and ensure we are aligned with its kaupapa. This will be made explicit through a Letter of Expectation from the Rūnanga. The first one was received on 30 September 2014 (See Appendix 1).
I am pleased to deliver TAFML’s Five Year Plan 2014-2019, which sets out the strategic priorities that will direct the company’s activities, ensuring the best uses of its resources to achieve our main objective which is to provide optimum returns to our shareholder.
Due to limited activity and resources, TAFML has no management or staff. Instead, the company will be entering into a management agreement with the Rūnanga under which all work required within the company will be undertaken by Rūnanga staff.
This Five Year Plan is a requirement of the company’s Constitution and the Rūnanga Trust Deed. It must be read with the understanding that much of the external influences on our company’s performance will be beyond the control of the Board.
Dame Alison Paterson Chair Te Aupouri Fisheries Management Limited
20
2. Our Organisation
1 Statistics NZ, Iwi Profiles, Te Aupouri, 2006 Census. Note that this figure does not include iwi members living overseas.
Te Aupouri is an Iwi with approximately 9,3001 members, 6,200 of whom are currently registered with Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga). Mana whenua and mana moana are situated in the far north of Te Ika-ā-Māui (North Island), of Aotearoa.
The Iwi is centred in and around Te Kao. While this is home, more than 80 percent of Te Aupouri live in other parts of the motu and overseas.
Te Aupouri are primarily urban dwellers, with 80 percent living in cities or towns.
Settlement
Te Aupouri formally signed its Deed of Settlement with the Crown in January 2012, with the support of 97 percent of those who voted.
Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga) is the legal Post Settlement Governance Entity (PSGE) that will manage the Settlement on behalf of the Iwi.
The Rūnanga is currently in an establishment phase, as it waits for the Crown to enact the settlement legislation. As at September 2014, the legislation has been delayed again, and is now expected to pass in late 2015.
The settlement legislation will consolidate the previous Te Aupouri entities into a single PSGE authority – Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga).
The Rūnanga has already taken on the assets and functions of:
Te Rūnanga o Te Aupouri
Te Aupouri Fisheries Trust (and its subsidiaries)
Te Aupouri Negotiations Company Limited
On settlement, the Rūnanga will also acquire the assets, liabilities and operations of the Aupouri Māori Trust Board and its subsidiaries.
The Rūnanga has established two commercial subsidiaries – Te Aupouri Fisheries Management Limited (TAFML) and Te Aupouri Commercial Development Limited (TACDL), to manage its commercial fisheries assets (TAFML), and its other commercial assets (TACDL). The Rūnanga has also established Te Aupouri Iwi Development Trust (TAIDT), through which charitable benefits will be delivered to the Iwi. Collectively, these entities are known as Te Aupouri Group (the Group).
21
3. Te Aupouri Group and Company Structure
The following graphic depicts the new post-Settlement structure for the Group.
Te Runanga Nui O
Te Aupouri
Management & Shared Services
Te Runanga Nui O
Te Aupouri Trust
The Financial engine of the Runanga, working closely to
provide an economic platform for the Iwi
Te Aupouri
Fisheries Management Ltd
ASSET CLASSES:
-
Farming
-
Forestry
-
Aquaculture
-
Property
-
Right of First Refusal
(for the next 172 years)
ASSET CLASSES:
-
Quota/ACE
-
AFL Shares
Te Aupouri
Commercial
Development Ltd
Te Aupouri
Iwi Development Trust
Te Aupouri Iwi
Te Kahui Kaitiaki Rangatiratanga O
Te Aupouri Ltd
22
4. Te Aupouri Fisheries Management Limited
Statement of Purpose
Te Aupouri Fisheries Management Limited (TAFML) is a wholly owned subsidiary of Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga). It is an entity established 28 March 2008 and incorporated into the Rūnanga through the Rūnanga Deed of Trust (clause 3.1). It operates under the Companies Act 1993 and is an Asset Holding Company as defined in the Māori Fisheries Act 2004 (MFA).
TAFML is a Māori Authority for tax purposes.
The company’s purpose is to receive all fisheries settlement assets, to hold and manage the Settlement Quota and Income Shares from Aotearoa Fisheries Limited (AFL), for so long as they are to be retained.
Neither TAFML nor any subsidiary established under it may undertake fishing or hold a fishing permit. In the carrying out of its functions it must at all times comply with the MFA.
Any subsidiary established by TAFML must remain 100% owned and controlled by TAFML.
Operating Principles
TAFML has established four principles to guide decision-making and enhance the business relationships it develops:
1. Accountability and transparency 2. Pursuit of excellence 3. Full, open and a ‘no surprises’ approach to communication 4. Where practicable,build the business toward the employment of Te Aupouri people
Nature and Scope of TAFML
Under the Māori Fisheries Act, 75% of deepwater quota is allocated to iwi on the basis of iwi population. TAFML has been allocated this portion of the settlement quota. Due to unresolved coastline disputes with neighbouring Iwi, the Aupouri allocation of all inshore quota and the remaining deepwater quota continues to be held by Te Ohu Kaimoana. Although TAFML is unclear when a resolution will occur, the Rūnanga will work through a legal process to provide finality to the issues and expedite the release of outstanding assets. The company has no role in this process. It is difficult to predict the timing or the effect of a resolution of the coastline dispute although it is expected to result in ownership of more quota from which Annual Catch Entitlement (ACE) will be generated.
Recent losses incurred by Sealord Limited have caused a drop in the value of the shares TAFML holds in AFL, with the likelihood of no or marginal dividends for distribution to Iwi in the forseeable future. TAFML has no influence on when dividends might recommence or the amount that will be distributed to shareholders. The Directors will be seeking to re-value the shares it holds in AFL before the end of 2013/2014 Financial year.
Legislation to further regulate the environment for charter vessels operating in New Zealand territorial waters and challenging trading conditions impacting on the seafood industry are both critical matters over which TAFML has no control but which will add downward pressure on the commercial returns the company will be able to generate in the short term. It is not yet known what the long term impacts will be.
Other factors impacting on the company’s ability to generate substantial income from ACE include global fishing pressures (a good season in the Alaskan pollock fishery means less demand for hoki from New Zealand), the volatile foreign currency exchange rate (seafood products are traded in U.S. dollars), and political intervention (the impending Foreign Charter Vessels Bill which will further restrict TAFML’s ability to trade ACE).
23
Having limited resources and being a relatively small player in the market inhibits TAFML’s ability to influence the value it extracts from its ACE. This has the effect of making the company a price taker rather than a price maker. Nevertheless, the company aims to maintain revenues from ACE sales at historical levels by entering into strategic alliances with other fishing industry members.
TAFML will not use debt to fund any dividend to the Rūnanga.
TAFML will apply the following minimal standards as defined in the Letter of Expectation from the Rūnanga in the way it conducts its business:
- Embedding of Kotahitanga and Te Aupouri values, including Whanaungatanga, Manākitanga, Kaitiakitanga, Tikanga and Rangatiratanga within the culture of the business and its practices.
- At all times following sound commercial practice - Maintaining open and early communication with its shareholder, particularlyin respect
of any potentially contentious matter(s). - Maintaining an autonomous approach to business as usual - Exercising prudent and expertly advised modest capital expenditure. - Being guided by and aligned with the Rūnanga’s strategy (five year plan) at all times.
TAFML is precluded from undertaking other businesses or activities that are inconsistent with the Rūnanga’s Trust Deed, TAFML’s Constitution or any policy the Rūnanga may develop over time.
Long Term Strategic Objectives
The key objective of TAFML is to generate sustainable returns and cash flow required to meet the distribution and operational requirements of the Rūnanga, within an acceptable risk profile. The day to day activities associated with achieving this will be implemented by staff of the Rūnanga as documented in the Management agreement between TAFML and TRNOTA.
Governance
The Board of TAFML is made up of the following: Dame Alison Paterson, Chairman (appointed 23 August 2014) Waitai Petera Director (appointed 20 May 2011) Teresa Tepania-Ashton Director (appointed 20 May 2011) Maahia Nathan Director (appointed 22 August 2014)
The company’s constitution provides for a minimum of three and a maximum of five directors. The Board currently comprises four Directors. It is anticipated that a fifth will be appointed early in the 2014/2015 year. The Constitution of TAFML allows for a Director to serve a maximum of three terms of three years in total. The CEO of the Rūnanga will attend all meetings of the company to ensure mutual continuity of information flow between the parent and its subsidiary.
It is envisaged that for obvious efficiencies, Te Aupouri Commercial Development Limited (TACDL) and TAFML will share the same set of Directors.
The current situation – September 2014
At the time of preparing this Five Year Plan (September 2014), TAFML is a quota management company with AFL shares and limited access to its share of settlement quota due to the unresolved coastline dispute with neighbouring Iwi.
Because the company exists to manage commercial fisheries assets derived from the Māori fisheries settlement, there is a limited ability to grow the company. Further, the company’s performance is largely dependent on external forces.
24
5. Te Aupouri 5 Year Strategy
Pou 3: Prosperity – He Whai Rawa: delivering increased financial value to the Rūnanga
To be delivered by Te Aupouri Fisheries Management Limited
Strategic Direction 5-Year Strategic Goal Key Performance Indicator
Prosperity – He Whai Rawa
Fishing made up of quota from Te Ohu Kai Moana and Aotearoa Fisheries Limited income shares
1. Revalue AFL shares by 30 September 2014.
2. Maintain current performance levels over the 5 year period.
3. Explore if the Rūnanga intends to hold or divest settlement fishing assets then investigate pathways for implementation
· The impact on income from the ongoing coastline dispute with neighbouring Iwi and the resultant freeze on allocation of ACE by Te Ohu Kaimoana
· Losses incurred by Sealord Ltd in its Argentinian investments equating to AFL income shares not generating dividend payments until the company returns to strength.
It is important to note that this Five Year Plan covers the Group's establishment phase, as it waits for the Crown to enact the settlement legislation, now expected to happen in late 2015.On transfer of Settlement assets, TAFML and TACDL Boards will look to appoint a General Manager, to implement their Five Year Plans. Until such time, TAFML is managed by the Rūnanga. It is intended that this interim arrangement will be formalised under a management agreement, as mentioned previously, between TAFML and the Rūnanga.
The strategy covers the five-year development phase (from October 2014-September 2019) and is built on three “Pou”, or 3 foundation priority areas:
The objective of the strategy is to establish the business model and mobilise it to commence delivery through Rūnanga management and the subsidiary companies and TAIDT.
Each Pou is symbolic of the strategic imperatives that will be shared between the Rūnanga and other Group entities, TAFML (Commercial development - managing and growing commercial Fisheries Assets), TACDL (Commercial development – managing and growing other commercial Asset classes) and TAIDT (Non-commercial development – Educational, Cultural, Social, Economic advancement and wellbeing).
Prioritising scarce resources has meant not all opportunities are able to be addressed in the short term. To iterate, although the goals outlined in the table below are aspirational, uncertainty surrounding the timing of the resolution of the coastline dispute and the receipt of the remainder of the fisheries settlement assets will impact on when and how TAFML will contribute to the goals to be delivered. Therefore, it is critical that the Directors review the plan after a year to re-evaluate and decide whether TAFML will be able to meet its objectives in the timeframes provided and make the necessary adjustments where required.The following table has been extracted from the Rūnanga's five year strategic plan and shows the following strategic deliverables which will be implemented by TAFML over the five years from 2014 to 2019:
1. People – He Tangata 3.Prosperity – He Whai Rawa2.Place – He Rohe
25
In the 2014 Annual Report, Directors signalled the year to 30 September 2014 will show significantly lower profits than were achieved in the previous year. The reasons given were:
6. Our Business (asset classes)
Asset Class Business Value (2014)
Quota In-shore (not settled)*
Deepwater (partly settled)*
No recent valuation.
No quota or income from ACE from inshore quota until coastline dispute settled.
No recent valuation.
ACE from deepwater quota has historically generated between $110, 000 - 180,000 in income annually
AFL Shares TAFML holds 2,406 income shares in Aotearoa Fisheries Limited (AFL)
At the time AFL shares were transferred (2008), they were valued at $3,050,904.
TAFML received a bonus share issue from AFL in the 2012/13 year valued at $1,568,468.
No dividends are expected from AFL in the current year.
When dividends will next be paid is uncertain.
TAFML is greatly constrained by external factors:- The dispute with neighbouring iwi over relative coastline interests and entitlement to quota
(see below)- The depressed state of the New Zealand seafood industry, exacerbated by the high value of NZ
currency- The changes to legislation regulating Foreign Charter Vessel s- Losses incurred by Sealord Ltd in its Argentinian investments mean AFL income shares will be
unlikely to receive dividend payments until Sealord returns to strength.
The Rūnanga claims a substantially greater interest in the Te Hiku coastline than has been accepted by neighbouring iwi. The issue of coastline entitlement is currently before the Māori Land Court for determination. It is expected that hearings will take place in late 2015. The outcome of the proceedings will have a major impact on the annual revenues of TAFMLTAFML and its Directors have no role in this process.
Quota
7.Analysis
*In-shore and some deepwater quota placed in dispute approximately one year ago, pending resolution over coastline
allocations.
26
8.
Strategic Priorities (2014
-
2015)
To iterate, the company is a quota management company with no management or staff.This situation will likely continue until the enactment of the settlement legislation, at which point it is likely TAFML and TACDL will appoint a joint General Manager.The Rūnanga will expect both companies to work closely together from that time.The following are two strategic priorities to be focused on:
1. Quota · Encourage the Rūnanga to resolve the coastline dispute with neighbouring Iwi
· Continue trading to maximum advantage, ACE generated from TAFML quota
2. AFL Shares · Be a more active shareholder, engaging with AFL Board
· Revaluation of shares in AFL to more accurately reflect true value
With the enactment of the Te Aupouri Settlement legislation still one year away, at the earliest, and uncertainty over the timing of the coastline dispute resolution it is impossible to develop a traditional Annual Plan.Priority areas for the coming year are:
1. Quota · Encourage the Rūnanga to resolve the quota dispute with neighbouring Iwi
2. AFL Shares · Be a more active shareholder, engaging with AFL Board
· Revaluation of shares in AFL to more accurately reflect true value
9.Annual Plan (2014 - 2015)
27
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28
Appendix 1 – Letter of Expectation from Te Rūnanga Nui o Te Aupouri Trust
30 September 2014
Attention: Dame Alison Paterson Chairman Te Aupouri Fisheries Management Limited Tena koe
Letter of Expectation
I am writing to you on behalf of Te Rūnanga Nui o Te Aupouri Trust (the Rūnanga), acting in its capacity as your shareholder, to set out a number of expectations which should be addressed in your planning documents. This letter is intended to aid your direction and assist in the development of the Statement of Intent, five year strategic plan and annual plan.
We wish you to focus on the following:
1. Performance
The Rūnanga has the expectation that Te Aupouri Fisheries Management Limited (TAFML) will use best endeavours to deliver on outcomes as presented in its Strategic Plan. Matters considered of prime importance in achieving this are:
- Embedding of Kotahitanga and Te Aupouri values, including Whanaungatanga, Manākitanga, Kaitiakitanga, Tikanga and Rangatiratanga within our business and people.
- Following best commercial practice to achieve the company’s commercial objectives. - Of particular importance is ensuring open and early communication is maintained with
respect to any potentially contentious matter. - The Company should maintain an autonomous approach to business as usual and modest
capital expenditure. - The Company is to be guided by the Rūnanga strategy at all times.
2. Portfolio Direction
We recognise that this is a period of transition for TAFML. The difficult trading conditions facing the New Zealand seafood industry are beyond the control of the company. To date, TAFML has received only a portion of the quota to which it is entitled, because of an on-going coastline dispute with neighbouring mandated Iwi organisations. The resolving of this dispute is not in the purview or role of TAFML Directors. The expectation over time is that the company will deliver a reasonable return on equity to the Rūnanga and that this can be benchmarked against other asset-holding companies with comparable quota holdings.
3. Conclusion
If you have any questions during the formulation of your plans please do not hesitate to contact me.
Hei konā rā Rick Witana Chairman
29
Te Aupouri Commercial Development Company Limited
Five Year Plan 2014 – 2019
30
1. Mihimihi from the Chair
E ngā Iwi, e ngā mana, tēnā rā tatou katoa
Te Aupouri Commercial Development Limited (TACDL) is a wholly owned independent subsidiary of Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga).
As part of the Treaty Settlement process, TACDL was established as a separate entity, tasked with maximising the value of the Rūnanga’s commercial assets for the benefit of Te Aupouri katoa.
TACDL will be the “financial engine” that will resource the growth and perpetual tribal development journey.
TACDL’s mission is to be an outstanding investment company , creating wealth for Te Aupouri
whānui, respecting and contributing to the mana of Te Aupouri in all that we do.
The separation of Iwi political governance from commercial development is regarded as best practice in the wider post-Settlement environment.
The Rūnanga, as TACDL’s only shareholder, will monitor our performance against agreed key indicators, receive regular reports and ensure the Company is aligned with its kaupapa at all times. This will be achieved through a Letter of Expectation from the Rūnanga, the first one received on 30 September 2014 (see Appendix 1).
It is therefore my pleasure to present this TACDL Five Year Plan 2014-2019, which sets out the strategic priorities the company will utilise to direct its resources to best achieve our objective of maximising the value of Settlement and other commercial assets for the benefit of Te Aupouri.
Finally, one caveat must be added to this document. The period under focus (2014 -2019) is an establishment phase. It had been the Crown’s original intent to enact our Settlement legislation in 2014, but this has now been delayed until late 2015. There is no guarantee there will not be further delays.
Currently TACDL is a “shell” company, with no assets, management or staff. Therefore, this Five Year Plan, required by the company’s Constitution and the Rūnanga trust deed, must be read with the understanding that Settlement delays beyond the control of the Rūnanga and TACDL will impact materially and negatively on the projected commercial and financial forecasts contained herein.
Maahia Nathan Chairman
31
2. Our Organisation
Te Aupouri is an Iwi with approximately 93001 members, 6200 of whom are currently registered with Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga). Mana whenua and mana moana are situated in the far north of Te Ika-ā-Māui (North Island), of Aotearoa.
The Iwi is centred in and around Te Kao. While this is home, more than 80 percent of Te Aupouri live in other parts of the motu and overseas.
Te Aupouri are primarily urban dwellers, with 80 percent living in cities or towns.
Settlement
Te Aupouri formally signed its Deed of Settlement with the Crown in January 2012, with the support of 97 percent of those who voted.
Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga) is the legal Post Settlement Governance Entity (PSGE) that will manage the Settlement on behalf of the Iwi.
The Rūnanga is currently in an establishment phase, as it waits for the Crown to enact the settlement legislation. As at September 2014, the Settlement has been delayed again, and is now expected to pass in late 2015.
The settlement legislation will consolidate the previous Te Aupouri entities into a single PSGE authority – Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga).
The Rūnanga has already taken on the assets and functions of:
Te Rūnanga o Te Aupouri
Te Aupouri Fisheries Trust (and its subsidiaries)
Te Aupouri Negotiations Company Limited
On settlement, the Rūnanga will acquire the assets, liabilities and operations of the Aupouri Māori Trust Board (AMTB) and its subsidiaries.
The Rūnanga has established two commercial subsidiaries – Te Aupouri Fisheries Management Limited (TAFML) and Te Aupouri Commercial Development Limited (TACDL) – to manage its commercial fisheries assets (TAFML), and its other commercial assets (TACDL). The Rūnanga has also established Te Aupouri Iwi Development Trust (TAIDT), through which charitable benefits will be delivered to the Iwi. Collectively, they are known as Te Aupouri Group (the Group).
On delivery of the settlement assets, it is anticipated the Rūnanga will have commercial assets under management of approximately $40m – some liquid and some not.
A conservative return of approximately 5 percent on average across all asset classes will produce an annual income over time of approximately $2m.
1 Statistics NZ, Iwi Profiles, Te Aupouri, 2006 Census. Note that this figure does not include iwi members living overseas.
32
3. Te Aupouri Group and Company Structure
The following graphic depicts the new post-Settlement structure for the Group.
Te Runanga Nui O
Te Aupouri
Management & Shared Services
Te Runanga Nui O
Te Aupouri Trust
The Financial engine of the Runanga, working closely to
provide an economic platform for the Iwi
Te Aupouri
Fisheries Management Ltd
ASSET CLASSES:
-
Farming
-
Forestry
-
Aquaculture
-
Property
-
Right of First Refusal
(for the next 172 years)
ASSET CLASSES:
-
Quota/ACE
-
AFL Shares
Te Aupouri
Commercial
Development Ltd
Te Aupouri
Iwi Development Trust
Te Aupouri Iwi
Te Kahui Kaitiaki Rangatiratanga O
Te Aupouri Ltd
33
4. Te Aupouri Commercial Development Limited (TACDL)
Statement of Purpose
Te Aupouri Commercial Development Limited (TACDL) is a wholly owned subsidiary of Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga), an entity established through the Rūnanga Deed of Trust (clause 3.3), and the Companies Act 1993.
TACDL is a Māori Authority for tax purposes.
The company’s purpose is to receive the commercial assets owned by the Rūnanga, and administer and undertake all commercial activities associated with those assets other than fisheries settlement assets as defined in the Māori Fisheries Act 2004, which are held and managed by Te Aupouri Fisheries Management Limited (TAFML).
This role will be carried out in a prudent and profitable manner, providing sustainable optimum returns in perpetuity to its shareholder.
The company will do this either by itself and/or through any subsidiary, Trust or other entity established for that purpose, on behalf of and solely for the benefit of the Rūnanga, and in the furtherance of its purposes.
Operating Principles
TACDL has established four principles to guide decision-making and enhance the business relationships it develops:
1. Accountability and transparency 2. Pursuit of excellence 3. Full, open and a ‘no surprises’ approach to communication 4. Where practicable,build the business toward the employment of Te Aupouri people
Nature and Scope of TACDL
TACDL is tasked with the management of the commercial assets transferred to the company from the Rūnanga and is required to do so solely for the benefit of the Rūnanga and in the furtherance of Rūnanga objectives.
The company will apply the following minimal standards as defined in the Letter of Expectation from the Rūnanga:
- Embedding of Kotahitanga and Te Aupouri values, including Whanaungatanga, Manākitanga, Kaitiakitanga, Tikanga and Rangātiratanga within the culture of the business and its practices.
- Following best commercial practice to achieve the company’s commercial objectives. - Open and early communication, particularly in respect ofany potentially contentious
matter(s). - An autonomous approach to business as usual - Prudent and expertly advised modest capital expenditure. - Guided by and aligned with the Rūnanga’s strategy (five year plan) at all times.
TACDL is precluded from operating businesses or undertaking activities that are inconsistent with the Rūnanga’s Trust Deed, TACDL’s Constitution or any policy which the Rūnanga may develop over time. The company is also required to comply with any restrictions placed on the use of commercial assets by the Rūnanga
The Rūnanga, as our sole shareholder, will monitor our performance, receive regular reports and ensure we are aligned with its kaupapa. This will be made explicit through a Letter of Expectation from the Rūnanga
34
Long -Term Strategic Objectives
The key objective of TACDL is to generate sustainable returns and cash flow required to meet the distribution and operational requirements of the Rūnanga, within an acceptable risk profile. This will be achieved by:
Being an inter-generational investor
Ensuring investments are within agreed and appropriate risk and return levels
Ensuring relevant New Zealand market benchmarks are set, met and reported against
Developing investment strategies that reflect Te Aupouri values
Maintaining an appropriately balanced investment portfolio that ensures no one asset or asset class is too heavily weighted
Over time developing an economic competitive advantage for the company
Investigating other investments outside the core assets that show clear commercial potential and provide rates of return greater than is being achieved from core assets
Attracting and retaining key commercial acumen to governance and management roles
Providing the appropriate level of cash flow required to meet the distribution and operational requirements of the Rūnanga
Governance
The Board of TACDL is made up of the following: Maahia Nathan, Chairman (appointed 20 May 2011) Teresa Tepania-Ashton, Director (appointed 20 May 2011) Dame Alison Paterson Director (appointed 23 August 2014) Waitai Petera Director (appointed 22 August 2014)
The company’s constitution provides for a minimum of three and a maximum of five directors. The Board currently comprises four Directors and it is anticipated that a fifth will be appointed early in the 2014/15 financial year. The Constitution of TAFML allows for a Director to serve a maximum of three terms of three years in total. The CEO of the Rūnanga will attend all meetings of the company to ensure mutual continuity of information flow between the parent and its subsidiary.
It is envisaged that for obvious efficiencies, Te Aupouri Fisheries Management Limited (TAFML) and TACDL will share the same set of Directors.
TACDL currently employs no staff. Instead, the company will be entering into a management agreement with the Rūnanga under which all work required within the company will be undertaken by Rūnanga staff.
The Current Situation – September 2014
At the time of preparing this Five Year Plan (September 2014), TACDL is a “shell” with no assets and no management or staff.
It is important to note that this Five Year Plan covers the Group’s establishment phase, as it waits for the Crown to enact the settlement legislation, now expected to happen in late 2015.
On transfer of Settlement assets, TACDL and TAFML Boards will look to appoint a General Manager, to implement their Five Year Plans. Until such time, TACDL is managed by the Rūnanga. It is intended that this interim arrangement will be formalised under a management agreement between TACDL and the Rūnanga.
35
5. Te Aupouri 5 Year Strategy
The strategy covers the five-year development phase (from 2014-2019) and is built on three “Pou”, or 3 foundation priority areas:
1. People – He Tangata 2. Place – He Rohe 3. Prosperity – He Whai Rawa
The objective of the strategy is to establish the business model and mobilise it to commence delivery through Rūnanga management and the subsidiary companies.
Each Pou is symbolic of the strategic imperatives that will be shared between the Rūnanga and its subsidiaries TAFML (Commercial development - managing and growing commercial Fisheries Assets), TACDL (Commercial development – managing and growing other commercial Asset classes) and TAIDT (Non-commercial development – Educational, Cultural, Social, Economic advancement and wellbeing).
Prioritising scarce resources has meant not all opportunities are able to be addressed in the short term. To iterate, although the goals as outlined in the table below are aspirational, uncertainty surrounding the timing of the formalising of the legislation and therefore the receipt of the remainder of the settlement assets will certainly impact on when and how each goal will be delivered. Therefore, it is critical that the Directors review the plan after a year to re-evaluate and decide whether TACDL will be able to meet its objectives in the timeframes provided and make the necessary adjustments where required.
The following table has been extracted from the TRNOTA five year strategic plan, of which the third Pou or foundational priority area has been broken down into the following strategic deliverables which will be implemented by TACDL over the next five years from 2014 to 2019:
Pou 3: Prosperity – He Whai Rawa: delivering increased financial value to the Rūnanga
Strategic Direction 5-Year Strategic Goal Key Performance Indicator
Prosperity – He Whai Rawa
Farming ($19.1m) Assess options – lease; co-management; development potential.”
1. Health and Safety culture established as a matter of urgency across Rūnanga and subsidiaries, especially forestry and farming interests.
2. Management plans developed and implemented for Te Raite, Cape View and Wairahi Farms
3. Undertake discussions with key partners to explore co –management/joint operations to build scale.
4. Achieving minimum of 2 percent return on farm assets before inflation.
5. Maintain solvency
36
37
potential.
9. Te Kao Shop and Te Kao Land Refuse
are managed on a commercially viable
basis.
10. Te Kao Papakāinga Lands and Housing are effectively managed.
11. Investigate and start implementation of a long term plan for Te Kao store.
Forestry (Valuation details to be provided when forest lands and AMTB asset values are determined)
12. Onepū Forest is assessed to determine best long term use.
13. Develop co-management plans with neighbouring Iwi to monitor and manage 30% Aupouri shareholdings within Peninsula Forest – by settlement date.
Other Priority will be given to Farming and Forestry before assessing other opportunities
14. Focus on core assets before other opportunities are investigated.
Property (All assets currently owned by AMTB. Valuation details to be provided when AMTB asset values are determined)
6. Te Kao School lease back implemented and managed.
7. RFR capability developed in-house
with mentoring from Iwi already
experienced in successful RFR
management.
8. Aupouri House, Ngāti Ruanui Office
and Rūnanga Office are developed
into more suitable space for Te
Aupouri mutiple uses and/or lease
6. Our Business (Asset Classes)
Receipt of commercial assets by the Rūnanga (for management by TACDL) and the transfer of the Aupouri Māori Trust Board assets and liabilities will not take place until Settlement legislation is passed in Parliament, now expected late in 2015.
Asset Class Business Value (2014) Farming
1.Cape View Station 2.Te Raite Station 3. Wairahi Farms (currently subject to three leases)
$7.6m $11.5m To be determined
Forestry
1.Peninsula Forest - Settlement asset -30% interest - one of four partners - rentals accumulated - needs joint management agreement AMTB owns two forestry blocks 2.Te Kao 71D 3.Onepū 330ha
Total forestry value yet to be determined.
Aquaculture
The only asset is resource consent for 11ha mussel farm
No assessed value
Property
1.Aupouri House, Kaitaia 60% tenanted by the Group 2.Te Kao Store $20k p.a. rent received 3.Ngāti Ruanui Building $32k p.a. rent received 4.Pōtahi Papakainga -former Housing New Zealand estate $100k p.a. rent received
Currently an AMTB asset. Value yet to be determined Currently an AMTB asset. Value yet to be determined Currently an AMTB asset. Value yet to be determined Currently an AMTB asset. Value yet to be determined
Right of First Refusal (RFR)
Other Kokota Sandspit
Currently an AMTB asset. Value yet to be determined
Investigate potential for utilisation of silica sand in a manner environmentally sound and acceptable to iwi
These will be the commercial assets transferred on Settlement
38
7.
Analysis
Maintaining a balanced risk portfolio across all our assets is crucial. Currently the portfolio is divided across the following asset classes – farming, forestry land, property and aquaculture space, contributing to total assets on Settlement of an estimated $25m. This does not include assets held by TAFML or invested funds held by the Rūnanga.
In order to achieve long term sustainable dividends the over reliance on farming, which has a very low return on asset, will need to be addressed. Nevertheless the Rūnanga has a responsibility under its Trust Deed to secure land that was previously in Te Aupouri ownership.
Farming
The two sheep and beef properties - Cape View and Te Raite - were reviewed by AgFirst and valued by Telfer Young in April 2014.
The current valuations are: Cape View $7.6m Te Raite $11.5m Wairahi $1.2m (Currently leased in three parts. AMTB valuation yet to be updated)
The farms have a very low return on assets of about 1% and need additional investment. On Te Raite, an investment of some $2m would double returns to 2%, still very low. Other investment options or land use opportunities will need to be investigated in the near future if higher returns are to be achieved.
Management, tenancy and possible leasing and other improvements have been recommended in an AgFirst Farm Structure Review commissioned by the Rūnanga and careful attention will be required to improve the returns over the long term.
It is crucial that the land titles sit with TACDL or the ability to undertake capital raising against the asset will be non-existent. The Rūnanga has the right to veto so there is no risk of the commercial company undertaking business contradictory to its Statement of Intent; the annual letter of expectation; and Rūnanga approved strategic objectives.
Forestry
The forestry asset is currently undergoing a valuation process. The asset is shared with other Iwi. It is a requirement of settlement legislation that a Joint Management Agreement with our three neighbouring Iwi is in place prior to settlement.
The asset comprises a 30 percent interest in Peninsula Forest lands and a share of accumulated rentals.
Other forestry assets will transfer from AMTB on settlement and the value and future disposition of these will need to be assessed. However, ownership of Onepū by AMTB and uncertainty around final settlement impacts our ability to plan forward.
Aquaculture
The only current asset is a resource consent (held by the Rūnanga), for 11 hectares of mussel farm. The Rūnanga is seeking a variation of the resource consent to allow trial geoduck farming.
This asset would fall into the high risk and low initial reward category but must be progressed to develop a viable business case in order to preserve the existing resource consent.
39
40
School and a number of former Housing New Zealand properties. These properties are largely leased to third parties.
Regular rent reviews will take place and if inflation increases over the period , rent increases will follow.
Whether these properties are held and developed, or divested, is part of the work programme to be implemented over the next five years. We expect there will be no shortage of ideas and business opportunities presented to the company (and the Rūnanga) and we will continue to critique formal business plans as they are presented and assessed against the investment criteria.
RFR
As this is a strategic asset and very long term (172 years) the company will build a capability that is shared with our Iwi neighbours to make sure we take advantage of any Cr own land or Crown owned body that is disposed of through our RFR (right of first refusal) in our rohe. While nothing is on the horizon at present, this may change over time.
Property
A particular challenge for the company will be to grow its assets beyond Settlement given the economic and geographic challenges of the region. Following settlement the company will own a number of commercial properties including Te Aupouri House in Kaitaia, the Te Kao Store, Te Kao
8. Strategic Priorities (2014 - 2015)
As reported elsewhere in this Five Year Plan, the company is currently a “shell” with no assets and no management or staff.
This situation will largely continue until the enactment of the Settlement legislation, at which time the commercial redress will be transferred from Crown ownership to the Rūnanga and through to TACDL. At the same time assets and liabilities of AMTB will become the property of the Rūnanga and, to the extent they are commercial, transfer to TACDL. As previously stated, the passing of this legislation had been expected in 2014, but has now been delayed until late 2015 at the earliest.
Complicating the situation even further, is the fact that some of the commercial redress assets will go into joint Iwi ownership and therefore joint Iwi management.
This will require significant levels of pre-planning, and setting up of Joint Management Agreements.
The Board has directed that the Five Year Plan, during the transition period, largely focus on preparing for the transfer of Settlement assets and ensuring systems and planning are completed ahead of Settlement legislation.
The following five strategic priorities will be the immediate focus of the Board:
1. Forestry Joint Management Agreement
Develop a Joint Management Agreement with Ngāti Kuri, Ngai Takoto and Te Rarawa to manage Peninsula Block forest lands.
2. Farm & Property Plan
Develop a Five Year Plan to maximise the returns from the Te Aupouri farming and property portfolio. Initiate a process of investigating alternative land use options returning higher yields
3. Aquaculture
Rūnanga to gain extension of resource consent (due to lapse in 2014), and seek a change of use status of resource consent from mussel farming to enable geoduck trials TACDL to secure transfer of resource consent from the Rūnanga. Continue support for Cawthron Institute geoduck trials
4. Identify one R&D opportunity
Research into Swamp Kauri extraction opportunity, from Te Aupouri land once settlement is legislated
5. Management structure Attract and retain commercial management expertise
41
9. Annual Plan (2014 - 2015)
With the enactment of the Te Aupouri Settlement legislation still one year away, at the earliest, it is impossible to develop a traditional Annual Plan.
TACDL will continue to be a “shell” company, with no assets, management or staff, until the tr ansfer of Settlement assets from the Crown. In the interim, the company will be managed by the Rūnanga under a management agreement.
This year will be devoted to preparation and planning for the completion of the Settlement journey.
Priority areas for the coming year are:
1. Forestry Develop co-management plans with neighbouring Iwi to monitor and manage 30% Aupouri interest Identify valuer to assess Onepū Forest to assist information needs to determine best long term use. Ownership by AMTB may restrict our ability to plan forward.
2. Farm & Property Plan Management plans for Te Raite, Cape View and Wairahi Farms to be developed. Property portfolio to be assessed to ensure currently being managed on an ongoing commercially viable basis
3. Aquaculture Rūnanga to gain extension of resource consent (due to lapse in 2014), and seek a change of use status of resource consent from mussel farming to enable geoduck trials TACDL to secure transfer of resource consent from the Rūnanga.
42
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43
Appendix 1. Letter of Expectation from Te Rūnanga Nui O Te Aupouri Trust
30 September 2014
Attention: Maahia Nathan Chairman Te Aupouri Commercial Development Limited
Tena koe
Letter of Expectation
I am writing to you on behalf of Te Rūnanga Nui o Te Aupouri Trust (the Rūnanga), acting in its capacity as your shareholder, to set out a number of expectations which should be addressed in your planning documents. This letter is intended to aid your direction and assist in the development of the Statement of Intent, five year strategic plan and annual plan.
We wish you to focus on the following:
1. Performance
The Rūnanga has the expectation that Te Aupouri Commercial Development Limited (TACDL) will use best endeavours to deliver on outcomes as presented in its Strategic Plan. Matters considered of prime importance in achieving this are:
- Embedding of kotahitanga and Te Aupouri values, including Whanaungatanga, Manākitanga, Kaitiakitanga, Tikanga and Rangātiratanga within our business and people.
- Following best commercial practice to achieve the company’s commercial objectives. - Of particular importance is ensuring open and early communication is maintained with
respect to any potentially contentious matter. - The Company should maintain an autonomous approach to business as usual and modest
capital expenditure. - The Company is to be guided by the Rūnanga strategy at all times.
2. Portfolio Direction
The expectation is that priority will be given to our core assets - Farming, and Forestry - before assessing other opportunities.
Farming - Farming is a cornerstone of our portfolio, in particular supporting the consistent cash
distribution requirements of the Rūnanga. - It is a priority for the Te Raite and Cape View management plans to be developed and
implemented. - Under no circumstances can farm properties be sold or used as security for debt without
the prior consent of the Rūnanga.
44
Forestry
- The use of Peninsula Forest land is to be determined over the long-term and along with our Iwi partners.
- We recognise the requirement to develop co-management plans with neighbouring Iwi to monitor and manage the 30 percent Aupouri shareholdings within the Peninsula Forest, and wish to see this planning completed by settlement date under the legislation.
- Under no circumstances can the Aupouri interest in forest lands be sold or used as security for debt without the prior consent of the Rūnanga.
Property
- It is required that properties are managed on a commercial basis.
3. Conclusion
If you have any questions during the formulation of your plans please do not hesitate to contact me. Hei kona rā Rick Witana Chairman
45
Five Year Plan 2014 – 2019
Te Aupouri Iwi Development Trust
46
1. Mihimihi from the Chairman
E ngā Iwi, e ngā mana, tēnā rā tatou katoa.
Te Aupouri Iwi Development Trust (TAIDT) was established and is controlled by Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga).
As part of the Treaty Settlement process, TAIDT was established as a separate entity in 2012 and tasked with delivering social, cultural and community development benefits for Te Aupouri.
The Trust is charged with developing practical ways of reconnecting Te Aupouri with their traditional lands and culture.
We remain aligned with the kaupapa of the parent trust, through a Letter of Expectation from the Rūnanga, who will monitor our performance. Also, we will provide the Rūnanga with a series of regular reports, as set out in our Statement of Intent, Trust Deed, and that of the Rūnanga.
It is our pleasure to present this Five Year Plan 2014-2019, which sets out the strategic priorities that will direct our Trust to achieve our objectives.
Moreover, it is important to stress that at the time of developing this plan, the Trust had no income, no assets, management or staff. The 5 year time-frame, is an establishment phase.
This has been the case since the Trust’s inception in 2012. During this period of time we have been in planning mode only, to ensure expenses are not incurred prior to income being received from the Rūnanga on the conclusion of the Aupouri Treaty Settlement.
It had been the Crown’s original intent to enact our Settlement legislation in 2014, but this has now been delayed until late in 2015, and there is no guarantee there will not be further delays. This Five Year Plan is a requirement of the TAIDT Trust Deed and that of the Rūnanga. It must be read with the understanding that Settlement delays – beyond the control of the Rūnanga and the Trust – may impact materially on the information and intiatives contained within it.
Errol Murray Chairman
47
2. Our Organisation
Te Aupouri is an Iwi with approximately 9,3001 members, 6,200 of whom are currently registered with Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga). Mana whenua and mana moana are situated in the far north of Te Ika-ā-Māui (North Island), of Aotearoa.
The Iwi is centred in and around Te Kao. While this is home, more than 80 percent of Te Aupouri live in other parts of the motu and overseas.
Te Aupouri are primarily urban dwellers, with 80 percent living in cities or towns.
Settlement
Te Aupouri formally signed its Deed of Settlement with the Crown in January 2012, with the support of 97 percent of those who voted.
Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga) is the legal Post Settlement Governance Entity (PSGE) that will manage the Settlement on behalf of the Iwi.
The Rūnanga is currently in an establishment phase, as it waits for the Crown to enact the settlement legislation. As at September 2014, the legislation has been delayed again, and is now expected to pass in late 2015.
The settlement legislation will consolidate the previous Te Aupouri entities into a single PSGE authority – Te Rūnanga Nui O Te Aupouri Trust (the Rūnanga).
The Rūnanga has already taken on the assets and functions of:
Te Rūnanga o Te Aupouri
Te Aupouri Fisheries Trust (and its subsidiaries)
Te Aupouri Negotiations Company Limited
On settlement, the Rūnanga will also acquire the assets, liabilities and operations of the Aupouri Māori Trust Board (AMTB) and its subsidiaries.
The Rūnanga has established two commercial subsidiaries – Te Aupouri Fisheries Management Limited (TAFML) to manage its commercial fisheries assets and Te Aupouri Commercial Development Limited (TACDL) to manage its other commercial assets. Collectively, with TAIDT, these entities are known as Te Aupouri Group (the Group).
On delivery of the settlement assets, it is anticipated the Rūnanga will have commercial assets under management of approximately $40m – some liquid and some not.
A conservative return of approximately 5 percent on average across all asset classes will produce an annual income over time of approximately $2m.
1 Statistics NZ, Iwi Profiles, Te Aupouri, 2006 Census. Note that this figure does not include iwi members living overseas.
48
3. Te Aupouri Group and Company Structure
The following graphic depicts the new post-Settlement structure for the Group.
Te Runanga Nui O
Te Aupouri
Management & Shared Services
Te Runanga Nui O
Te Aupouri Trust
The Financial engine of the Runanga, working closely to
provide an economic platform for the Iwi
Te Aupouri
Fisheries Management Ltd
ASSET CLASSES:
-
Farming
-
Forestry
-
Aquaculture
-
Property
-
Right of First Refusal
(for the next 172 years)
ASSET CLASSES:
-
Quota/ACE
-
AFL Shares
Te Aupouri
Commercial
Development Ltd
Te Aupouri Iwi Development
Trust
Te Aupouri Iwi
Te Kahui Kaitiaki Rangatiratanga O
Te Aupouri Ltd
49
4. Aupouri Iwi Development Trust (TAIDT)
Statement of Purpose
Te Aupouri Iwi Development Trust (TAIDT) is incorporated under the Charitable Trusts Act 1957. It was established by the Rūnanga to receive distributions for the purposes of undertaking community development activities, as delegated to it by Rūnanga Trustees. These activities are to be for the sole benefit of Te Aupouri and in the furtherance of the purposes of the Rūnanga, to the extent they are compatible with charitable purposes, as follows:
The promotion amongst Te Aupouri of the educational, spiritual, economic, social and cultural advancement or wellbeing of Te Aupouri including the promotion of Te Reo and Tikanga of Te Aupouri
The maintenance and establishment of places of cultural or spiritual significance to Te Aupouri
To recognise the importance of Pōtahi Marae as a focal point for Te Aupouri, and
Any other purpose that is beneficial to Te Aupouri.
Operating Principles
TAIDT has established four principles to guide decision-making and enhance the relationships it develops:
Wellbeing - prioritising Te Reo me nga Tikanga o Te Aupouri as a critical pathway to whanau and iwi holistic health
Environment - a continual role with our responsibilities as kaitiaki
Relationships - nurturing relationships with Iwi whanaunga
Leadership – role modelling wise and principled leadership behaviours
Nature and Scope of TAIDT
TAIDT is tasked with complying with the Rūnanga’s directions, as set out in the Letter of Expectation dated 30 Septemeber 2014 This Five Year Plan is extrapolated from and aligned with the Rūnanga Strategic Plan 2014 – 2019.
TAIDT will apply the following minimal standards as defined in the Letter of Expectation from the Rūnanga in the way it conducts its activities:
- Embedding of Kotahitanga and Te Aupouri values, including Whanaungatanga, Manākitanga, Kaitiakitanga, Tikanga and Rangatiratanga within the culture of the trust and its practices.
- Exercising the level of skill and care that would be expected of a reasonable businessperson in administering the affairs of others
- Excellent Health and Safety standards to be maintained at all times. - Open and early communication, particularly in respect to any potentially contentious
matter(s). - An autonomous approach to business as usual. - Guided by and aligned with the Rūnanga’s strategy (five year plan) at all times.
Where the Rūnanga instructs or requests TAIDT to undertake activities outside this document they must be formally documented as exceptions and accounted for separately.
TAIDT is precluded from undertaking activities that are inconsistent with the Rūnanga Trust Deed; its own Trust Deed, the Charitable Trusts Act or any policy which the Rūnanga may develop over time.
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Long -Term Strategic Objectives
The key long term objectives are:
Develop Te Aupouritanga across the rohe
Develop effective communications with each other
Where synergies exist, support current social, health and education services
Recognise and protect places of cultural and spiritual significance
Support for Pōtahi Marae as the cultural focus for Te Aupouri
Enhance educational achievement for Te Aupouri members
Ensure the governance and policy framework is fit for purpose through regular reviews
Governance
The following people have been appointed as the Board of Trustees: Errol Murray Chairman (appointed January 2012) Peter-Lucas Jones Trustee (appointed January 2012) Ngainanga Kapa Trustee (appointed January 2012)) Renata Kylie Brown Trustee (appointed January 2012)) Tui Kapa Trustee (appointed May 2014)
The Trust’s deed allows a minimum of three and a maximum of five trustees, the majority of whom must be members of Te Aupouri. No more than 40% of trustees can, at the same time, be current Trustees of the Rūnanga. Trustees are appointed or removed by the Rūnanga and hold office for a maximum of three years, although retiring Trustees are eligible for reappointment for further terms.
The CEO of the Rūnanga will attend all meetings of the Trust to ensure mutual continuity of information flow between the TAIDT and the Rūnanga. The CEO may at the discretion of both the Rūnanga and TAIDT Trustees, act in an advisory and managerial capacity or delegate such functions to Rūnanga staff until such time as a Manager is appointed.
The current situation – September 2014
At the time of preparing this Five Year Plan (September 2014), TAIDT had no funding, no management or staff. This will be reviewed as settlement assets are transferred to the Rūnanga and employees are required to implement the long term strategic objectives of the Trust. In the interim, the day to day managerial and administrative tasks will be implemented by the Rūnanga staff as defined under a management agreement between TAIDT and the Rūnanga.
A budget for the first year of operations of $200,000 has been allocated by the Rūnanga for the 2014-2015 financial year, which begins 1 October 2014.
It is important to note that this Five Year Plan is aspirational and covers the establishment phase as the Rūnanga waits for the Crown to enact the Settlement legislation, now expected to happen in late 2015 unless there are further delays to the legislative process.
When Settlement occurs, TAIDT will look at appointing a resource (project manager) to implement this Five Year Plan.
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5. Te Aupouri 5 year Strategy
The strategy covers the five-year development phase (from 2014-2019) and is built on three “Pou”, or 3 foundation priority areas:
1. People – He Tangata 2. Place – He Rohe 3. Prosperity – He Whai Rawa
The objective of the strategy is to establish the business model and mobilise it to commence delivery through Rūnanga management and the subsidiary companies and TAIDT.
Each Pou is symbolic of the strategic imperatives that will be shared between the Rūnanga and the Group entities, (TAFML, TACDL and TAIDT).
Prioritising scarce resources has meant not all opportunities are able to be addressed in the short term. To iterate, although the goals outlined in the table below are aspirational, uncertainty surrounding the timing of the legislation and therefore the receipt of the remainder of the settlement assets will certainly impact on when and how each goal will be delivered. Therefore, it is critical that the Trustees review the plan after a year to re-evaluate and decide whether TAIDT will be able to meet its objectives in the timeframes provided and make the necessary adjustments where required.
The following table has been extracted from the Rūnanga’s five year strategic plan and shows the following strategic deliverables which will be implemented by TAIDT over the five years from 2014 to 2019:
Strategic Direction 5-Year Strategic Goal Key Performance Indicator
People – He Tangata Aupouritanga Learning for all to improve the wellbeing of our Iwi
1. Provide internal and external political support for the implementation of the objectives in the Education Strategy, including strong advocacy and governance representation.
2. Research a Kura-a Iwi education model based on experiences of Bay of Plenty and Waikato Iwi for secondary and tertiary level learning through partnership with institutions such as the Correspondence School, Te Wananga, Open Polytechnic, Trade training and second chance learning.
3. Develop a business case for the establishment and ongoing operational costs of an archive and research centre
4. Establish a biennial wananga series for Iwi members outside the rohe.
5. Ensure the cultural security and integrity of Pōtahi Marae is maintained through working closely and collaboratively with the Marae Trustees to ensure adequate funding is provided for capital works and Marae functioning
6. Promote Pōtahi Marae as the epi-centre for Te Aupouri
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social service providers. 8. Work with service providers to ensure
quality local delivery of health and other services
Te Aupouri language revitalisation
9. Focus, refine and implement the Aupouri plan for Te Reo and language revitalisation
Create Cultural Connection opportunities
10. Hold at least 2 wananga to build a sense of Te Aupouritanga amongst the Iwi
11. Create leadership opportunities and identify and document potential successors for Iwi roles. This to include participation in Māori National events.
12. Opportunities for Aupouri to connect and engage are created.
Te Kao Civil Infrastructure 13. Advocate and actively pursue opportunities for improvements to Te Kao infrastructure by fostering and growing healthy partnerships with local and central government, government agencies and the private sector.
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Community Services available
7. Build better community awareness of support services available through
Annual Plan and Budget (2014-2015)
With the enactment of the Te Aupouri Settlement legislation one year away at the earliest, it is impossible to develop a traditional Annual Plan.
TAIDT will continue to have no management or staff. Therefore, this is a time of preparation and planning for the completion of the Settlement journey.
Furthermore, the Rūnanga has allocated $200,000 for the financial year 2014-2015 (beginning on 1 October 2014), which will allow TAIDT to appoint an interim project co-ordinator to plan and facilitate the following:
Annual Plan and Budget for the coming year (beginning 1 October 2014)
A. Pōtahi Marae
In conjunction with Marae Trustees, develop a capital expenditure plan for the Marae for the next five years.
In conjunction with Marae Trustees, promote Pōtahi Marae as the focal epi-centre of Te Aupouri
$20,000
B. Te Aupouritanga
Assist in the preparation of funding applications to:
Plan and run an annual Te Reo wananga
Support the Mihipa strategy Organise an Aupouri Festival for
2015/16
$140,000
C. Communication
Utilise Rūnanga communication channels (Facebook and quarterly e-panui) to advise Iwi members about TAIDT activities).
Nil
D. Social Improvement
Advocate for improvements to Te Kao infrastructure with the Far North District Council and the Northland DHB
Develop strategic relationships with health and social service agencies in the rohe
$5,000
E. Places of cultural and
spiritual significance
Develop a programme of signage in the hau kainga, acknowledging sites of cultural significance, including Pōtahi Marae
$5,000
F. Governance & Policies
Implement a management agreement with the Rūnanga to provide mangerial and support services to enable A-E, until the appointment of a dedicated Manager
Nil
(after settlement).
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G. Meetings
Minimum four, maximum Six annually, including fees, travel, accounting and audit
Ensure the Trust meets regularly to implement and monitor the plan
Through the Chair, quarterly reporting to the Rūnanga on progress of the plan.
$30,000
Total budget 2014 – 2015
$200,000
Key Risks
The potential risks for TAIDT in the next five years are assessed as follows:
Settlement legislation is further delayed
Funding from the Rūnanga is not forthcoming
A disconnect between Rūnanga and TAIDT objectives
Lack of support from Marae Trustees
Inability to attract effective talent
Conclusion
TAIDT is committed to keeping expenditure and overheads as low as possible whilst ensuring the key priorities are implemented within the restrained budget.
TAIDT does not rely on external funding contracts to operate as it is funded directly from the Rūnanga, Nevertheless, wherever possible, TAIDT will seek additional funding from other sources to assist Trust objectives.
The Trustees maintain that year one of the Five Year Plan is achievable within the annual budget expected to be allocated by the Rūnanga.
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APPENDIX 1 – Letter of Expectation from Te Rūnanga Nui o Te Aupouri Trust
30 September 2014 Attention: Errol Murray Chairman Te Aupouri Iwi Development Trust
Tena koe
Letter of Expectation
I am writing to you on behalf of Te Rūnanga Nui o Te Aupouri Trust (the Rūnanga), acting in its capacity as your shareholding Trustee, to set out a number of expectations which should be addressed in your planning documents. This letter is intended to aid your direction and assist in the development of the Statement of Intent, five year strategic plan and annual plan.
We wish you to focus on the following:
1. Performance
The Rūnanga has the expectation that Te Aupouri Iwi Development Trust (TAIDT) will use best endeavours to deliver on outcomes as presented in its Strategic Plan. Matters considered of prime importance in achieving this are:
- Embedding of Kotahitanga and Te Aupouri values, including Whanaungatanga, Manākitanga, Kaitiakitanga, Tikanga and Rangatiratanga within the culture of the Trust and its practices.
- Following best practice to achieve the Trust’s objectives. - Trustees are expected to exercise the level of skill and care that would be expected of a
reasonable businessperson in administering the affairs of others - Of particular importance is ensuring open and early communication is maintained with
respect to any potentially contentious matter. - The Trust is to be guided by the Rūnanga strategy at all times.
2. Portfolio Direction
The Rūnanga encourages an autonomous approach to the Trust’s business as usual and modest capital expenditure.
In regards to development, it is the expectation of theRūnanga that the Trust will:
- Focus on Mihipa, Te Aupouri educational strategy and the strategy for Te Reo and language revitalisation
- Focus on recognising the importance of Pōtahi Marae as a focal point for Te Aupouri - Protect and Maintain the places of cultural and/or spiritual significance to Te Aupouri
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- Advocate and actively pursue opportunities for improvements to Te Kao infrastructure - Communicate with Iwi members about the mahi the trust is delivering - Promote the economic advancement and well-being of Te Aupouri, including the relief
of poverty - Where time and resources allow, participate in national Māori events - Be guided by the Trust’s strategy at all times. - Provide quarterly reports to the Rūnanga on the progress of outcomes and deliverables
as outlined in your Strategic Plan.
If you have any questions during the formulations of your plans, please don't hesitate to contact me.
Hei konā rāRick WitanaChairman
3. Conclusion
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