May-June 2009 Newsletter
Kia hiwa ra- May-June 2009
Chief Executive Message
The Central North Island Forest settlement represents the single largest settlement of Treaty claims in New Zealand’s history. It provides for the transfer of nine Crown licensed forests and more than $280m in accumulated rentals to the CNI Iwi Holding Company.
The CNI settlement also embodies several of the proposals the government is currently discussing with iwi as options for accelerating the settlement of Treaty claims. As well as being a negotiation with a group of iwi on a regional basis, the CNI settlement demonstrates the opportunities available to iwi who decide to negotiate collectively, both in terms of the redress on offer and as regards the allocation of this redress being determined by iwi, not the Crown.
The nine forests will be vested in the CNI Iwi Holdings Company (the Company) on 1 July 2009. On or about 1 July 2009, the Trust will transfer the associated accumulated rentals to the Company. This money will then be apportioned by the Company to the eight members in accordance with the proportions set out in the Central North Island Forests Land Collective Settlement Act 2008. Hence the current urgency among the CNI member iwi to establish their post-settlement governance entities in order to receive their portion of the rentals as soon as possible after the transfer. This process takes care of the accumulated rentals. What is left to be determined afterwards is the ownership of the forest land. This is arguably the core task that remains to be completed in order to conclude the settlement.
Under the settlement 90% of the nine forests will be owned by the CNI member iwi. The remaining 10% is known as the ‘Crown agreed proportion’ and is available to settle the claims of other groups who are not members of the CNI Iwi Collective and provide cultural redress to CNI member iwi with respect to Crown forest licensed lands (CFLLs). If any land from the Crown agreed proportion is not used in settlement with non-Collective groups or as cultural redress for CNI member iwi it will be made available to the Collective for purchase.
What is yet to be determined is exactly where on the ground the 90% of the forests which the CNI Collective own lie, what portion will each member iwi own, and where and what proportion of the 10% will be used to settle the claims of non Collective claimant groups with respect to CFLLs.
Under the Act, the CNI member iwi and the Crown agreed that the ownership of the 90% is to be determined on a ‘mana whenua’ basis via an allocation process to be decided by the member iwi. This process commences on 1 July 2009 after the forests are transferred to the Company. The Act stipulates that the forest land will be allocated to the member iwi on the basis of mana whenua and the agreements reached between iwi in a kanohi ki te kanohi process or otherwise determined by the resolution process described in the Act.
So, what does this process involve? Firstly, and importantly, each member iwi is required to participate. Under the Act, ‘mana whenua’ is described as "
the mana that iwi traditionally exercised over the land, and will be determined according to tikanga including, but not limited to, take whenua, demonstration of ahi kā roa, ahi tahutahu or ahi mātaotao.” Stage 1 of the 3 stage allocation process will take place from 1 July 2009 to 1 October 2009 when the member iwi will advise the Company the areas of the CFLLs they claim interests in and the nature of their claims, i.e., the basis on which they claim an interest in these areas. Each iwi can use the evidence which they consider relevant such as korero, whakapapa, waiata, tribal history, Native Land Court evidence and research reports or other records.Our Research team is currently working with various iwi members to complete the research and the maps they require to participate in this process. Because time is short (we can only fund these projects until 30 June 2009) this has required considerable and intensive facilitation in terms of developing the projects, working with the iwi to put highly skilled teams of iwi members and professional historians together, and providing detailed oral and written advice relating to conducting the research and producing the draft reports.
Under the Act each iwi is required to ‘provide maps to the Company indicating the extent of their mana whenua interests over the CNI Forests Land’ by 31 August 2009. By 30 September 2009 the Board of the Company will identify:
Any areas that cannot be agreed on will then proceed to Stage 2 which is the kanohi ki te kanohi negotiation stage and lasts from 1 October 2009 to 30 June 2010. The expectation is that this will involve korero rangatira (with tikanga agreed between the participants). No expert advisors, and in particular, no lawyers and historians, will participate directly in this process.
Following the completion of stage two, any areas that are still not agreed will either be referred to mediation or adjudication. A decision will be reached by one or other of these processes no later than 25 June 2011 with the final allocation agreement being completed in Stage 3 by 1 July 2011. After this date all land will be held by the Company unless the governance entity of any of the member iwi asks for land allocated to them under the process to be transferred to them or their nominees.
Any land from the Crown agreed proportion that is not allocated to any of the non-Collective iwi by 1 July 2015, (or provided as cultural redress), will be made available to the Collective for purchase and will be required to go through the allocation process.
Central North Island (CNI) Numbers Snapshot
$475,000,000+/- | The total value of the CNI Iwi Settlement |
$280,000,000+ | The total amount of accumulated rentals that CFRT will transfer to CNI Iwi on 1 July 2009 |
$195,000,000 | The value of Crown forest land that will be returned to CNI iwi |
176,000 | The number of hectares of Land that will be returned |
100,000+ | The number of people in the CNI iwi collective who will benefit from the settlement |
50+ | The number of CFRT staff and contractors who have contributed to this settlement |
Financial Position
In the next couple of weeks all claimants will be sent the Trust’s Annual Report to Appointors updating them on the financial position as at 31 March 2009. It will show that the Trust’s Financial Position is robust.
However there are some very important medium and long term factors which have significant impact on the Trusts Balance Sheet. For example:
Funding by Region
The table below presents the groups that CFRT funds (by TPK/OTS region) and the accumulated funding provided for settlement negotiations to 31 March and the funding that has been forecast for this financial year (around $31.5 million).
This funding does not include WT preparation and hearings for which CFRT has budgeted $10.5 million for the 2009/10 year. The final column presents the total funding to claimants for both Waitangi Tribunal Hearings and negotiations with the Crown since 1990.
Region | Groups CFRT funds | Negotiation funding to 31 March 09 | Forecast 09/10 business plan | Funding since 1990 (WT & SN processes) |
Te Tai Tokerau | Te Hiku o Te Ika iwi Forum; Ngati Kahu; Te Aupouri; Te Rarawa; Ngai Takoto; Ngati Kuri; Ngapuhi | $2,959,000 | $5,752,000 | $7,761,000 |
Tamaki Makaurau | Runanga o Ngati Whatua , Ngati Whatua o Kaipara; Kawerau-a Maki | $700,000 | $3,303,000 | $6,349,000 |
Waikato | Hauraki; Raukawa, Maniapoto | $1,225,000 | $3,196,000 | $6,704,000 |
Te Moana a Toi | Ngati Rangitihi; Ngai Te Rangi; Ngati Ranginui; Ngati Pukenga; Ngati Makino; Ngai Tuhoe; Ngati Whare; Waitaha | $4,834,000 | $4,790,000 | $16,189,000 |
Te Arawa/CNI | Ngati Whakaue; Ngati Tuwharetoa; Ngati Rangiwewehi; Ngati Manawa; Ngati Rangiteaorere | $14,208,000 | $6,565,000 | $29,543,000 |
Te Tairawhiti | Ngati Porou; Te Tira Whakaemi o Te Wairoa; Turanga Manu Whiriwhiri | $3,122,000 | $4,609,000 | $8,838,000 |
Takitimu | Ngati Pahauwera; Ngati Hineuru; He Toa Takitini; Ahuriri; Mangahararuru Tangitu; Wairarapa | $705,000 | $2,328,000 | $6,589,000 |
Te Tai Hauauru | Tanenuiarangi Manawatu Inc, Ngati Apa | $3,134,000 | $280,000 | $9,245,000 |
Te Whanganui a Tara | Ngati Toa Rangatira; Kurahaupo Trust; Tainui Taranaki ki te Tonga | $8,343,000 | $3,953,000 | $13,309,000 |
Te Waipounamu | Ngai Tahu | nil | nil | $1,149,000 |
The Changing Enviroment
The Crown has embarked on a consultation process to discuss with Maori ways of expediting the Treaty settlement process and to confirm its commitment to settling all historical claims by 2014. This process began with a national summit on 22 April attended by trustees where the government proposed seven ways to accelerate settlements.
The Governments seven proposals for accelerating Treaty settlements are:
Since the April hui the Office of Treaty Settlements has organised a series of regional hui in order to provide claimants with an opportunities for further discussion of the seven ideas. This series of hui will culminate in a further national hui in Wellington on 10 June 2009 where claimants will present their views to the Crown and workshop the ideas.
A number of the Government’s proposals are a reflection of current practice rather than innovations. That said, whether they will actually accelerate the pace of settlements remains to be seen. Rather than being substantive changes, it could be argued that the proposals really just ‘tinker’ with the process and that fundamental change is still required to facilitate the just and durable settlement of historical Treaty claims by 2014.
The overwhelming response from claimants is that they support the notion of accelerated settlements. However, they consider that the work will be a lot more intensive thus requiring commensurate levels of funding support from the Crown.
Budget 2009
OTS received new funding in the 2009 budget over the next four years to assist in meeting the Government’s Treaty negotiation priorities. The extra funding includes $22.2 million in operating funding and $133,000 in capital expenditure.
No new funds have been set aside in Budget 09 for the Waitangi Tribunal.
The Legal Services Agency has had a 10 percent cut to their annual funding. How that will affect the Treaty sector is unclear at this point.
Strategic Issues
There has been ongoing external debate recently around revisiting the Trust Deed to allow those without CFL interests to seek funding support from the Trust. The Trustees’ current position, based on robust legal advice, is that the Trust cannot directly support these claimants to advance any aspect of their claims.
Trustees agree that decisions around retrospective funding and funding groups without claims to CFLs are issues that may require amendments to the Trust Deed and therefore the agreement of both the Crown and Maori Appointors.
Current Review of Internal Trust Processes
The Trust is currently reviewing how the Trust might align its funding policies and processes to support the Government’s goal of achieving just and durable settlements of historical Treaty claims by 2014. A draft report has been circulated to the executive team for comment with a final copy to be presented by 30 June 2009.
The Trust has also completed Project Pohutukawa which sets out a number of ways the Trust can improve its operations and its administration of claimant funding.
Sector Partnerships
The Trust’s support to the sector has extended to undertaking a robust secondments exercise over the past 12 months to build organisational capability and understanding of its sector partners.
Chief Historian, Leah Campbell, works closely with the Minister for Treaty of Waitangi Negotiations office and attends weekly briefings.
Kelly Dunn and Lorena Stephen have both had stints at the OTS. Meanwhile, Policy analyst Patrick Southee is currently seconded to the Treasury. Kani Edward has also moved from the Trust to assist Ngati Manawa in-house until the CNI handover.
Regional Review
Ngapuhi are currently discussing hapu representation regarding settlement negotiations. A Judicial Conference was held in May 2009 and Te Paparahi o te Raki and initial hearings are scheduled to commence in October 2009 on Te Whakaputanga o Te Rangatiratanga o Niu Tireni and Tiriti o Waitangi. The statement of issues has been finalized.
Te Hiku o te Ika remains in negotiations with the Crown. We acknowledge the progress made by the forum and look forward to further progress in the coming months.
The Trust is providing assistance to Te Kawerau Iwi Tribal Authority, Te Runanga o Ngati Whatua, and Ngati Whatua o Kaipara ki te Tonga who are engaged in negotiations with the Crown.
Central North Island
Ngati Rangiwewehi, Ngati Rangiteaorere and Tapuika have formed a single body named Te Toko Toru for negotiations with the Crown. This group is currently in a fast track process of meeting with the Crown to complete Agreement in Principle.
Eastern Seaboard
Te Tira Whakaemi o Te Waiora have completed their mandating hui and anticipate submitting a Deed of Mandate to the Crown shortly. Ngati Pahauwera is continuing to negotiate towards a Deed of Settlement. Mana Ahuriri Inc is the final large natural grouping within Mohaka ki Ahuriri to have their Mandate Strategy endorsed by the Crown where they join Ngati Hineuru and Mangatuhauru Tangitu.
Te Runanga o Ngati Porou is due to sign their second high level agreement in June 2009. The Tribunal is presently considering urgency applications regarding Te Runanga o Ngati Porou’s mandate.
South-West Region
Northern South Island groups Kurahaupo, Tainui Taranaki ki te Tonga and Toa Rangatira signed letters of Agreement in February 2009. We look forward to these three groups reaching Deed of Settlement in late 2009/early 2010.
Whanganui completed week 13 of hearings.
Te Rohe Potae is continuing their work towards their inquiry. The Trust is working with claimants to prepare relevant research. The Tribunal have a scheduled a Judicial Conference for 7 July 2009 at Te Tokanganui a Noho Marae in Te Kuiti.The Tribunal convened a Judicial Conference on 16 April 2009 at Raukawa Marae in Otaki to ascertain interest in commencing a Tribunal inquiry in the Taihape ki Kapiti area. Parties have recently made submissions to the Tribunal regarding dividing this district into two and deciding what the appropriate boundaries might be. We await the Tribunal’s decision.
Emissions Trading
The Trust has commissioned two reports which will assist claimant leaders and negotiators with an overall understanding of the economics of alternative enterprises and land uses on Crown forest licensed land and their future obligations as owners of Crown forest licensed land under the New Zealand Emissions Trading Scheme.
The first report provides a comparative analysis of the economics of a number of pastoral enterprises with that of forestry, and commercial options for the future management of Crown forest licensed land. A companion report discusses how the Emissions Trading Scheme works in New Zealand and how it applies to Crown forest licensed land. These reports will be available on the Trust’s website soon.
Ben Dalton
Chief Executive
Crown Forestry Rental Trust
