2012/2013. Annual Report

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1 2012/2013 Annual Report TTee PPuummaauuttaannggaa oo TTee AA rr aa w w aa TT rr uu ss tt AA n nn nu ua al R e p o rt

2 2013 Highlights $ 4.5m $ 3.4m $ 7.9m 596% 13.5% group profit after tax group changes in fair value of investments group total comprehensive income increase in group total comprehensive income increase in net operating income after tax

3 Contents 2 Chairperson s Report 2 General Manager s Report 3 Annual Plan Report 6 TAGH Report 7 Te Arawa Tangata Report 10 Group Financial Statements 35 The Trustees 1

4 Chairperson s Report Tēnā koutou e noho mai rā i runga i ō tatou marae maha huri noa i te rohe o Te Arawa, ko koutou te hunga e mau tonu ana ki ngā tikanga i waiho ake hei tāonga tuku iho ki ngā uri whakatupu. Me te tangi hotuhotu ki te hunga kua wheturangitia, arā, rātou kua whakahuahuatia kei raro iho nei. As we reflect on the progress that Te Pumautanga o Te Arawa has made to the year ending 31 March 2013, it is appropriate to acknowledge the commitment and service of Rawiri Te Whare as General Manager during that time and his service as Chief Negotiator during the settlement. His passion for our kaupapa and his contributions to the Affiliates and all of Te Arawa were substantial and have paved the foundation for where we are today. Kāti ake, moe mai rā i roto i te aroha o te Ariki, heoi ko rātou kua mene atu ki te pō, e moe; ko tātou ngā mahuetanga iho o rātou, tenā tātou katoa. We also pause to thank Nero Panapa who stood at the helm of Te Pumautanga o Te Arawa during the latter part of the reporting period. We are grateful for his contributions to the organisation and the progress that it achieved during this period. I now submit the annual report and financial report for the year ending 31 March 2013 for the beneficiaries approval. The reporting period marks a time of progress amidst changes at governance and managerial levels within an organisation. In particular, we highlight the following areas of progress: Cultural redress, Mana whenua, and Successful development of a more responsive election process. We also acknowledge the achievements of our two subsidiaries, Te Arawa Group Holdings Ltd and Te Arawa Tangata. They have both made notable progress in these early stages of their workplans. Te Arawa Group Holdings reported a 39 percent increase in net profit for the year. Eru George Former Chair 1 General Manager s Report The Crown assets under settlement were returned to us and invested in Te Pumautanga o Te Arawa Trust in July Therefore, our reporting period, April 2012 to March 2013, was an appropriate time to pause and take stock of TPTs strategic direction. A shift in election policy during this year gave Affiliates greater ability to appoint their representatives. As a byproduct of this change, a new set of incoming Trustees ushered new leadership for the Trust and commenced early stages of a review of our strategic direction. This Annual Report outlines our organisation s progress over the April 2012 to March 2013 period, which provides the platform the strategic review. We are pleased to report that TPT has had achievements in three key areas, including cultural redress, mana whenua and the development of a more responsive election process. These achievements are due to the tireless efforts of our dedicated staff and we thank them for their commitment and dedication to our kaupapa. We commend the successes that Te Arawa Group Holdings Ltd has achieved. Te Arawa Tangata has also made progress on its areas of responsibility and we commend the staff for their on-going passion for the wellbeing of our people. We thank both organisations for their contributions toward our overarching strategy and for providing their sections of this report. Nero Panapa General Manager Eru George was the Chair during the reporting period - 1 April 2012 to 31 March Nero was the Acting General Manager at March 2013.

5 Annual Plan Report This Report covers the period 1 April 2012 to 31 March 2013 year. It provides a high level summary of activity and outcomes achieved during that year. The year reflected a period of progress amidst changes at governance and operational levels of TPT. Our Organisation In 2006, Te Pumautanga o Te Arawa (TPT) was established as the post-settlement governance entity to represent the interests of eleven affiliate iwi/ Hapū of Te Arawa (Affiliates) from the Central North Island settlement. The Affiliates comprise an estimated 24,000 people and have an area of interest covers over 500,000 hectares. The settlement included cultural redress on behalf of the Affiliates, which was to be devolved to the Affiliates by an agreed process and date; and commercial redress that was vested in TPT s commercial subsidiary. Our Structure TPT has two subsidiaries: Te Arawa Group Holdings Ltd (TAGH) and TPT Charitable Trust (TPTCT). TAGH is a commercial company that has a long-term vision and mission of creating wealth and opportunity for future Te Arawa generations. TAGH operates as a separate entity and is accountable to TPT as the parent body. TPTCT was established in March 2007 to hold certain redress assets within a charitable trust to carry out certain charitable purposes on behalf of TPT. The TPTCT Trust Deed states that TPTCT is to receive, hold, manage and administer the Trust Fund for every Charitable Purpose benefiting Affiliate Te Arawa Iwi/ Hapū whether it relates to the relief of poverty, the advancement of education or religion or any other matter beneficial to the community of Affiliate Te Arawa Iwi/ Hapū and all the members of Affiliate Te Arawa Iwi/ Hapū. In 2010, TPTCT commissioned Te Arawa Tangata to develop and implement a strategy to advance Te Arawa wellbeing: invest in Te Arawa s future; have a comprehensive iwi development plan; take a strategic approach to on-going engagement with the Crown; and work collectively with other Te Arawa entities to achieve greater leverage and economies of scale. Associated Iwi / hapū Affiliates of TPT Ngāti Kearoa - Ngati Tuara Ngāti Pikiao Ngāti Tarawhai Ngāti Uenukukopako Ngāti Rongomai Ngāti Tura - Ngāti Te Ngakau Tuhourangi - Ngāti Wahiao Ngāti Tahu - Ngāti Whaoa Ngāti Te Roro o Te Rangi Ngāti Tuteniu Ngāti Ngararanui 3

6 Annual Plan Report continued The structure of the Trust Te Pumautanga o Te Arawa Trust (TPT) Te Arawa Group Holdings (TAGH) TPT Charitable Trust (TPTCT) Te Arawa Tangata TPT Strategy Strategic Platforms TPTs strategic direction uses four key strategic platforms: Build on unity: maintain cohesion and unity amongst Affiliates, to provide for collective strength Grow strategic relationships within Te Arawa Strengthen Affiliates through economic growth and regional development Grow collective equity: secure and grow the collective equity through strategic and prudent investments. Strategic Goals In our Annual Business Plan , we identified four overarching strategic goals: Political Social Organisational Commercial The following section reports our progress toward these four strategic goals over the financial year. Progress during Political TPT worked hard to ensure it was seen as a credible Te Arawa organisation with integrity and stability. Public perception is important and can be measured by its relationships with stakeholders. For TPT this includes the Affiliate entities, Te Pukenga Koeke o Te Arawa, other Te Arawa organisations, local government, central government and the wider community. That goal also related to how TPT was positioned on outstanding mana whenua issues from the CNI Settlement. Progress in terms of our political objectives has been centred on progressing mana whenua issues and on building sustainable relationships with government agencies, other Te Arawa organisations and supporting Te Arawa entities. During the financial year, TPT was a regular participant in the CNI forum, to ensure its voice was heard in relation to mana whenua issues. While mana whenua progressed to adjudication in this period as was planned in the CNI Settlement, the eight iwi withdrew from the adjudication process and agreed on an alternative process and timeframe to resolve outstanding issues. Settlement iwi agreed that a kanohi-ki-te-kanohi approach was more valuable in creating sustainable outcomes. It was agreed in the CNI Settlement that relationship protocols would be established between TPT and three Government Ministers and their agencies, in particular: the Minister of Conservation, the Minister of Fisheries and the Minister of Culture and Heritage. In FY 12/13, TPT progressed discussions with the Department of Conservation, the Ministry of Primary Industries (for Fisheries) and the Ministry of Culture and Heritage. These discussions helped during establishment of the Te Arawa Freshwater Forum, as well as in building more enduring relationships between TPT and the three government agencies. Locally, TPT continued to work with and share information with other Te Arawa organisations, such as Te Pukenga Koeke o Te Arawa, Te Arawa Lakes Trust, Te Arawa Fisheries and Te Arawa River Iwi Trust, regarding shared interests and shared outcomes for Affiliates and Te Arawa as a whole. TPT worked closely with and supported Affiliate entities to progress their own initiatives, and supported other iwi with their settlements. This included Tapuika, Ngāti Makino, Waitaha, Ngāti Rangiwewehi and Ngāti Rangiteaorere. TPT also provided support to Tapuika in establishing cogovernance over the Kaituna. Social TPT was also focused on ensuring efficient execution and implementation of all its responsibilities in the Deed of Settlement, including management of its administration. TPT provided political, infrastructural and strategic support to Affiliates to grow their own capacity and capability. During the year, TPT continued to operate efficiently as an organisation, despite the passing of Rawiri Te Whare. The Board continued to meet as required and was able to fulfill its governance responsibilities. Organisational TPT aimed to ensure that all cultural assets under the Settlement were devolved to the appropriate Affiliate entities (cultural redress), to maintain TPT aimed to ensure that all cultural assets under the Settlement were 4

7 devolved to the appropriate Affiliate entities (cultural redress) to maintain an effective registration database and to manage Board elections. A majority of this work was done during the year to allow these transfers to happen. TPT had undertaken the majority of the groundwork in to enable the transfer of cultural redress properties to Affiliate entities. This included working with East Brewster regarding the electronic transfer of the properties, and in maintaining current details of TPT and Affiliate trustees to ensure that the transfer took place correctly. During , TPT also undertook due diligence regarding all properties and rent reviews for all titles with existing leases. A change of TPT election policy was implemented in that empowered Affiliates to have more control in their own elections. In 2013, the changes were put in place that enabled Affiliates to run their own elections to appoint trustees to TPT. Commercial TPT had delegated its commercial asset management responsibilities to TAGH. TAGH is responsible for managing and growing the assets. Their achievements are reported in a separate section below. During the year, TAGH fulfilled its expectations in terms of reporting quarterly to TPT. It convened its first AGM in and determined its dividend policy. Strategic Review In , TPT commenced a review of its strategic plan. This was an appropriate time given that TPT had reached its seventh year of operation and had undergone a change of leadership. 5

8 TAGH Report TAGH is a subsidiary of TPT that is responsible for managing the commercial assets within the TPT group. It has a long-term vision to create wealth and opportunity for all generations to come, and has investment interests in the geothermal, forestry, agribusiness, property and tourism sectors. TAGH has five subsidiary companies that are responsible for five sector portfolios. At its inaugural AGM, TAGH reported to the Class A & B Shareholders a group EBITDA (earnings before interest, tax, depreciation and amortization) of $6.294M compared to last year of $4.523M, an increase of 39 percent. The overall group profit after tax is $4.224M compared to last year of $3.569M, an increase of 18 percent. As at March 2013, TAGH s total group assets were $80.096M compared to last year of $44.891M, an increase of $35.204M (78 percent). TAGH reported the strength of its investment in Waiotapu Thermal Wonderland, which accounted for 46 percent of the total TAGH revenue. Dividend and interest income accounted for a further 34 percent. This was due to committing funds to more direct investment and reducing funds committed to passive investment portfolios. 6

9 Te Arawa Tangata Report Te Arawa Tangata, through TPTCT, is a subsidiary of TPT. It was established in March 2007 to carry out certain charitable purposes on behalf of TPT: to develop and implement a strategy to advance Te Arawa wellbeing; invest in Te Arawa s future; have a comprehensive iwi development plan; take a strategic approach to on- going engagement with the crown; and work collectively with other Te Arawa entities to achieve greater leverage and economies of scale. During , Te Arawa Tangata has made significant progress in four key areas: Capacity and Capability Development Co-ordination and collaboration of Te Arawa In , Te Arawa Tangata developed a Hapū development strategy, established a database of the 77 Affiliate trustees and 32 TPT marae, initiated the Taunakitia Te Marae project, developed and commenced a marae insurance project and developed a Te Arawa Tangata pānui. Research, Information and Innovation Te Arawa Tangata successfully organised four quarterly Affiliate Breakfasts and conducted two Marae Forums. As part of its work programme, Te Arawa Tangata engaged with each Affiliate, assisted with a Marae Expo, initiated the Marae Master Chef event, organised four Pukenga Koeke hui, worked with Te Taumata o Ngāti Whakaue on educational opportunities, secured Ministry of Youth Development funding a Rangatahi Hononga and organized two rangatahi and rangatakapu events. Te Arawa Tangata developed a Te Arawa Information Framework as a basis for assessing the state of wellbeing within Te Arawa and Affiliates and completed an education module, helped coordinate a Nga Pae o Te Maramatanga Research Symposium in Rotorua, held a Researchers Wananga, secured an iwi intern from Victoria University to assist on the Taunakitia Te Marae project. Operational Efficiency and Effectiveness Te Arawa Tangata has established a small, functional and high-performing unit with staff recruitment, contract management, branding, funding, board reporting, performance management, policies and procedures, marketing, communications, strategic planning and annual work programme systems being developed during this period. Te Arawa Tangata was primarily funded by external contractors and continues to be funded in the same way. It will review it s funding options in 2015 with the intention of finding a sustainable ownership and funding model. 7

10 Te Pumautanga O Te Arawa Trust Group Financial Statements 9 Auditors Report 10 Directory 11/12 Statement of Comprehensive Income 13 Statement of Equity 14/15 Statement of Financial Position 16/17 Statement of Cashflows 18 Notes to the Financial Statements 8

11 Auditor s Report 9

12 Directory 10

13 Statement of Comprehensive Income 11

14 Statement of Comprehensive Income 12

15 Statement of Changes in Equity 13

16 Statement of Financial Position 14

17 Statement of Financial Position 15

18 Statement of Cashflows 16

19 Statement of Cashflows 17

20 Notes to the Financial Statements 18

21 Notes to the Financial Statements 19

22 Notes to the Financial Statements 20

23 Notes to the Financial Statements 21

24 Notes to the Financial Statements 22

25 Notes to the Financial Statements 23

26 Notes to the Financial Statements 24

27 Notes to the Financial Statements 25

28 Notes to the Financial Statements 26

29 Notes to the Financial Statements 27

30 Notes to the Financial Statements 28

31 Notes to the Financial Statements 29

32 Notes to the Financial Statements 30

33 Notes to the Financial Statements 31

34 Notes to the Financial Statements 32

35 Notes to the Financial Statements 33

36 Notes to the Financial Statements 34

37 Te Pumautanga O Te Arawa Trust The Trustees Alan Skipwith Chair Tuhourangi Ngati Wahiao Piki Thomas Vice Chair Ngati Pikiao Eru George Ngati Kea Ngati Tuara Clarke Pirika Ngati Te Rorooterangi Manu Malcolm Ngati Tarawhai Donna Te Kanawa Ngati Uenukukopako Takarei Te Tamaki Ngati Tura Ngati Te Ngakau Lana Ngawhika Tuhourangi Ngati Pikiao Watu Mihinui Tuhourangi Ngati Pikiao Wallace Haumaha Ngati Ngararanui Raina Mehu Ngati Pikiao Angela Werahiko Ngati Tahu Ngati Whaoa Karen Vercoe Ngati Pikiao 35

38 Te Pumautanga o Te Arawa Trust 8 Marguerita Street Fenton Park Rotorua New Zealand Tel administrator@tpota.co.nz 36 T e P u m a u ta n g a o T e A r awa T r u s t A n n u a l R e p o r t 2 013

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