Winter Edition 2010 Newsletter

Kia hiwa ra-Winter 2010

Message from the Chief Executive

I have been in this job for coming close to six months now, and I am beginning to appreciate the level of scrutiny that is applied by both the government and claimants to the Trust’s funding policies.

It is worth reminding the sector that the Crown Forestry Rental Trust was set up because Sir Graham et al took the government to task over its planned sale of the state forestry estate in the mid to late 1980s. 

The Trust is an independent funding organisation governed by its Trust Deed. It does not hold Maori funds, nor does it source its funding from the public purse. 

The Trust is by far the largest Treaty sector claimant funder outstripping contributions from both the Office of Treaty Settlements and the Waitangi Tribunal combined.

The Trust is expecting to spend $27.5m on claimants involved in direct negotiations with the Crown over the next year.  This is in contrast with the Office of Treaty Settlements allocation of $10m for claimant funding towards the settlement of historical Treaty claims.

Furthermore, the Trust is allocating $7.5m to claimant groups involved in the Waitangi Tribunal process. The total government appropriation (for the 2010-2011 financial year) to the Waitangi Tribunal is $9.9m, but this is related to the purchase of research and administrative services related to the management of claims through the Waitangi Tribunal, as opposed to the direct funding of claimant groups in a Waitangi Tribunal process.

As highlighted in our 2010/11 Business Plan, the Trust’s funds available for settlement of outstanding claims will reduce at an increasing rate over the next few years. It is worth noting that the cost of a settlement generally remains the same regardless of the size of the claimant group, the nature of the Treaty breach against them, or the assets and likely settlement package outcome.

We may be approaching a time where serious consideration is needed of finding ways of making the process more cost effective. One alternative is that at some point in the future it may become necessary for the Trust to place limits on the levels of funding available for particular activities.

The Trust regularly undertakes funding forecasts to anticipate future resources required to support claimant groups most recently with the Forecast Financial Statements for the five years ending 31 March 2014 contained in our 2010-2011 Business Plan.  This work has been extremely useful and gives confidence that with prudent management by the Trust, and efficient management within claimant groups, CFRT will have the income to provide reasonable support to groups seeking to resolve their claims over Crown forest licensed land in the years ahead.

Whilst this gives claimant groups some assurance for the future, the Trust would like to see claims involving Crown forest licensed land settled much more quickly so that the rental assets are released more promptly to the confirmed owners. This will in turn enable claimants to realise assets’ true economic potential sooner.

Gregory Fortuin

Trustees farewelled long-serving Trustee Gregory Fortuin at the June 2010 meeting. Gregory was appointed to the Trust by the Crown in 2002-03, and has been replaced by Guy Royal (see profile below). During his term Gregory has greatly assisted the Trust to refine its service capability consistent with the provisions of the Trust Deed. 

Amongst his many Trustee positions and Directorships, Gregory took special interest in the Trust because of the important role it plays in assisting the indigenous population to reconcile their historic grievances with the Crown.

In 1997-98 he was appointed by Nelson Mandela as South Africa’s Honorary Consul to New Zealand. As a child of South Africa it was this sense of common purpose that appealed most of all to Gregory about his appointment to the Trust.

Gregory was forthright in his views about the Trust’s independent status, apart from both the Crown and from Maori.  The Trust Deed stood as the mantra against which all proposals and funding applications would be judged. However, he was equally forthright about the Trust’s needing to evolve over time along with sector trends. 

Gregory also provided sharp analysis around financial management in his capacity as the Chair of the Trust’s Finance and Risk Committee. During his tenure the Trust’s financial reporting systems have been subject to a rigorous auditing regime. As a result, the Trust has received consecutive unqualified Audit opinions.

New Trustee

Guy Royal replaces Gregory Fortuin as a Crown Trustee appointed by the Minister of Finance.

Guy has been advising on commercial and corporate law for almost 18 years, working for large international law firms in New Zealand, Hong Kong, Vietnam and the United Kingdom. Whilst in the UK Guy worked for CDC Capital plc, a large private equity fund with over NZ$3 billion in direct investments and lending support to developing nations.

Guy now lives in Porirua with his wife Jen and three children and is currently Managing Director of Tuia Group, a professional advisory firm. He sits on the boards of a number of private sector businesses and community voluntary organisations and was previously a Director of New Zealand Fast Forward Fund Limited which was established to hold and invest NZ$750m for funding research initiatives under the Fast Forward initiative.

Mr Royal has been a Trustee since 1 July 2010.

Around the Motu

Te Taitokerau

Muriwhenua

Te Hiku Forum and its constituent members (Ngati Kuri, Ngai Takoto, Te Aupouri, Te Rarawa and Ngati Kahu) signed an Agreement in Principle on 16 January 2010.  It is expected that Deeds of Settlement will be achieved by mid-2011.

Te Paparahi o Te Raki

The Waitangi Tribunal agreed to hear four weeks of evidence (initial hearings) to consider the issues of He Whakaputanga o Te Rangatiratanga o Niu Tireni and Te Tiriti o Waitangi. The first two weeks were held at Te Tii Marae, Waitangi, in May and June 2010.  Approximately 600 - 800 were in attendance each day, making these the most well attended hearing weeks so far in the Tribunal’s history. The organisation of these hearings has been complex and demanding, as well as complicated by wet weather. The third week is scheduled to be held on 9 - 16 August at Waipuna Marae, Panguru.

Tamaki Makaurau

In December 2009 the Crown and Ngati Manuhiri and Ngati Whatua o Kaipara ki te Tonga signed their respective Letters of Offer (which became Agreements in Principle on signing). The Crown and Te Kawerau a Maki signed a Letter of Offer in February 2010. 

These Agreements in Principle contain provisions for each iwi to purchase the Crown’s interest in CFLLs and receive any associated accumulated rentals. Ngati Whatua will be able to purchase Woodhill CFLL (except the Kopironui block) and any part of Riverhead CFLL that is not selected for purchase by Te Kawerau a Maki.  Ngati Manuhiri will have the opportunity to purchase South Mangawhai CFLL. Te Kawerau a Maki are able to purchase Riverhead Forest and receive any of the associated accumulated rentals.

In February 2010 the Crown and Nga Mana Whenua o Tamaki Makaurau signed a collective agreement to transfer the ownership of 11 maunga from the Crown to iwi. These maunga will be held by Nga Mana Whenua o Tamaki Makaurau in trust.  They will be governed by a statutory body comprising equal membership of Nga Mana Whenua o Tamaki Makaurau and the Auckland City Council.

Ngai Tai ki Tamaki and the Crown signed Terms of Negotiation in Wellington in June 2010.

The Hauraki Collective has been established to negotiate the settlement of the historical Treaty claims of Hauraki iwi with the Crown. The Collective represents the 12 Hauraki iwi.

We congratulate Tamaki iwi and the Crown on the achievements to date and look forward to continuing progress.

Waikato

Te Rohe Potae Inquiry

The Ngā Korero Tuku Iho o Te Rohe Pōtae Hui were held over six weeks from March to June 2010.  Each hui was of two - three days duration.  These hui were intended to provide claimant hapū and iwi of the Rohe Pōtae with an opportunity to share oral traditions about their tribal identity and history and other specified take such as Te Kingitanga, the New Zealand Wars and the Aukati. These hui were anticipated to have a less formal structure than ‘ordinary’ hearings, with no prepared briefs of evidence and minimal involvement from counsel. Early indications from the Waitangi Tribunal and claimants are that these hui have been widely regarded as successful.

Research preparation continues in earnest with most technical research reports aiming at a completion date of December 2010 or sooner. Oral and Traditional History research is also progressing.

Raukawa

The Crown and Raukawa have agreed on a work plan to achieve Deed of Settlement (DOS) by the end of July 2011. The Raukawa settlement process will deviate from the normal process. We understand Raukawa and the Crown will complete a number of high level agreements as specific redress items are agreed to. This attempt by the two parties to expedite the comprehensive settlement of the Raukawa claims may see the drafting of a DOS as early as December 2010.

Te Moana a Toi

The Crown recognised Ngati Pukenga’s Deed of Mandate and signed Terms of Negotiation with Ngati Pukenga on 25 January 2010.

In February 2010, the Tauranga Moana iwi Ngai Te Rangi, Ngati Ranginui and Ngati Pukenga established the Tauranga Moana Iwi Collective to negotiate the return of collective redress items with the Crown. All three iwi are progressing towards signing Agreements in Principle in 2010.

CNI -Te Arawa

Ngati Makino and Waitaha are tracking towards signing Deeds of Settlement in November 2010. The Trust continues to monitor whether Tuhoe and the Crown will recommence negotiations.

Te Tairawhiti

In December 2009 the Waitangi Tribunal held an urgent hearing into the mandate of Te Runanga o Ngati Porou to settle the historical Treaty claim of Ngati Porou.  On 26 March 2010 the Tribunal reported that, although it found flaws in the mandate process, it did not think these flaws amounted to Treaty breaches; furthermore, the Tribunal did not recommend halting negotiations.  Negotiations continued throughout this period of consideration. The Crown and Te Runanga o Ngati Porou look likely to initial a DOS in August 2010.

In May 2010 the Tribunal sought submissions from parties regarding the proposed adjournment of the East Coast District Inquiry. The Tribunal has scheduled a conference to hear submissions at Ruatoria on 24 August 2010.

Turanga Manu Whiriwhiri (Te Whakarau, Rongowhakaata and Ngai Tamanuhiri) and the Crown are scheduled to sign DOS in the last quarter of 2010.

Takitimu

The Minister for Treaty of Waitangi Negotiations met with all the Takitimu groups in January 2010.  He advised them that the Crown intended to concentrate on completing negotiations in Te Tairawhiti before commencing negotiations with them. It is for this reason that negotiations in Takitimu have not progressed with the pace envisaged in December 2009.

The Crown strategy in Takitimu is to reach settlement with all the groups in the region by negotiating with three groupings of large natural groupings (LNGs) in parallel (except Ngati Pahauwera, who constitute one of the three groupings and whose DOS initialing is scheduled to take place in the next six months).

The Crown recognised Mana Ahuriri’s mandate in January 2010, having previously recognised Ngati Hineuru and Maungaharuru Tangitu’s mandates in October 2009.

Two groups (Te Tira Whakaemi and He Toa Takitini) are working towards mandate recognition and hope to have Deeds of Mandate recognised and Terms of Negotiation signed by December 2010.

The Deed of Mandate strategies for two Wairarapa groups, Kahungunu ki Wairarapa and Rangitane ki Wairarapa, are likely to be confirmed by August 2010.

Several groups have undertaken significant work in developing ‘aspiration’ documents, outlining for the Crown the aspirations the groups will seek to have met by their settlement package. It is hoped that these documents can be used as the basis for swift negotiations towards Agreement in Principle.

Te Tai Hauauru

Taihape ki Kapiti Inquiry District (Taihape: Rangitikei ki Rangipo and Porirua ki Manawatu)

Chief Judge Wilson Isaac will preside over the Taihape: Rangitikei ki Rangipo inquiry and Deputy-Chief Judge Caren Fox has been appointed Presiding Officer for the Porirua ki Manawatu Inquiry.  The Taihape: Rangitikei ki Rangipo looks likely to run ahead of the Porirua Inquiry with a conference scheduled to consider and confirm the casebook research programme scheduled for 6 September 2010.

Chief Judge Isaac has reassured claimants that when matters come before the Tribunal relating to the southern Taihape and northern Manawatu area a special sitting of the two Inquiry panels will be convened to consider these.

The Trust commenced relationship-building hui with claimants in these inquiry districts in December 2009.  These hui have been successful, with three groups emerging as potential CFRT clients - Mokai Patea, Ngati Hinemanu me Ngati Paki and Te Hono ki Raukawa.

The research scoping report for the Porirua ki Manawatu inquiry is complete, and the research scoping report for the Taihape: Rangitikei ki Rangipo inquiry district scheduled to be finalised in August 2010.

Te Tau Ihu

In June 2010 the Minister for Treaty of Waitangi Negotiations invited each of the eight Te Tau Ihu iwi to commit to a new timeframe for concluding their respective settlements. This timetable proposed the signing of DOS by November 2010. We understand that the majority of iwi have confirmed they are committed to meeting this timeframe.

New Publications

We now have two new technical publications on the CFRT website which claimants may find useful when they are considering the addition of Crown forest licensed land to their commercial redress portfolio. Brief descriptions of these documents are presented below:

Maximising value of Returned Crown Forest Licensed Land
This document outlines options for maintaining and increasing commercial value from the ongoing management of returned Crown forest licensed land.

Download  Maximising Value of Returned Crown Forest Licensed Land ( pdf,200Kb)

Models for collective forest management
This paper discusses models for collective management where there are multiple owners of resumed Crown forest licensed land.  It discusses the advantages of collective management of resumed Crown forest licensed land in terms of lower transaction costs of doing business with both commercial counterparts and government agencies. The paper then explores potential organisational models which a joint venture could adopt.

Download  Models for Collective Forest Management ( pdf,516Kb)

Legal Services

Cabinet has agreed to transfer the legal aid funding for historical Treaty settlement negotiations from the Legal Services Agency to the Office of Treaty Settlements. Legal aid for claimant preparation and representation in the Waitangi Tribunal inquiry process will remain and be administered through LSA as before.

It is estimated that around $2 million per annum has been spent on legal aid for historical Treaty settlement negotiations. It is anticipated that legislation will be enacted later this year to enable these funds to be transferred and administered by the Office of Treaty Settlements from the end of February 2011.

Officials from the Office of Treaty Settlements have been meeting with Trust staff to discuss how this new fund can be managed and contracted for legal and other specialists so that the funds are applied effectively and efficiently in support of claimant groups in historical Treaty settlement negotiations.

Darrin Sykes

Chief Executive

Crown Forestry Rental Trust