Notification of the Annual General Meetings of Te Rūnanga o Ngāi Tahu and the Ngāi Tahu Charitable Trust respectively
DATE: 21 November 2019 | TIME: 3.00pm
LOCATION: Ascot Park Hotel, Corner of Tay Street and Racecourse Road, Invercargill 9810
Hard copies of the Summary Group Financial Statements are available by calling 0800 KAI TAHU.Download the financials
It is my pleasure to introduce this year’s Annual Report – a year of continued achievement and progress for our iwi, but also one in which we have experienced immense tragedy and loss as a community.
It is important for me to begin by acknowledging the loss of a dear friend and colleague Tahu Pōtiki on 27 August 2019. Tahu dedicated much of his life to our iwi and held several significant roles, including chief executive as well as serving for many years as the representative for Ōtākou on the board of Te Rūnanga o Ngāi Tahu until his passing. The depth of knowledge and understanding he added to our kete forms part of the significant legacy Tahu has left for our iwi and his whānau. We miss him deeply.
I also want to acknowledge the many others we farewelled over the past year, whose loss has reverberated throughout the iwi.
This year, the city of Ōtautahi and indeed our entire country experienced a challenge unlike any that we had faced before – terrorist attack of 15 March 2019. Te Ngāi Tūāhuriri and many others across Te Rūnanga o Ngāi Tahu stepped up to support those affected by this tragic event and to tautoko and awhi our Muslim whānau. The aroha shown by mana whenua in the following weeks truly embodied our values of manaakitanga and whanaungatanga, and demonstrated the essential role we play across our communities, and throughout Aotearoa.
Throughout the year we continued our focus on building long-term strength and resilience for Ngāi Tahu whānau, and for the whenua and awa that sustain us all. We’ve listened carefully to your views about where we should focus our mahi – with climate change, freshwater and regional rangatiratanga becoming regular themes. I have more to say on how we are achieving whānau outcomes below, but first I want to address some of the highlights and challenges faced by our commercial holdings company this year.
The value of our collective assets has grown to reach $1.85b under the management of Ngāi Tahu Holdings. To put this in perspective, the value of our asset base has increased by more than 10 times in just over 20 years since our Treaty settlement. The $67m distribution from Ngāi Tahu Holdings to Te Rūnanga o Ngāi Tahu is an increase on last year, providing funding to support our priorities of helping our people to achieve their cultural, social and economic potential.
However, there has been some turbulence for a small part of the Holdings portfolio, which has been exacerbated by slowing economic growth both here and overseas and greater uncertainty. Unfavourable conditions for some primary sector activities have had an impact on Oha Honey. This has meant the value of some of these investments has fallen, and the Ngāi Tahu Holdings Board has made the prudent decision to write down their value, resulting in a net profit of $37.5m for Ngāi Tahu Holdings, which is lower than forecast and down on recent years.
We have been clear in our expectations of the Holdings Board and they are addressing these expectations. Apart from fronting the need for the write-downs, they have already undertaken a detailed review of all assets. This review will ensure we strike the right balance between growth on one hand, and operational performance, cash flows and managing the balance sheet tightly on the other.
We have a new chair, Mark Tume, at the helm of Ngāi Tahu Holdings and under his leadership we will realign to ensure we are best placed to navigate a slowing economic environment, and to maximise opportunities that can – and do – come when there is change and uncertainty across the financial and investment sector.
I also want to acknowledge Holdings’ chief executive Mike Sang who has resigned and will finish up in his role in March 2020. Mike has provided astute leadership for the team at Ngāi Tahu Holdings and has executed a very intentional strategy in terms of diversifying our investment portfolio. As well as this he has steered the organisation towards more sustainable practices in line with the iwi value of kaitiakitanga. We are soon to commence recruitment to fill Mike’s role and we are confident there will be significant interest.
A key function of governance is to engage and seek feedback from whānau to help ensure we are focused on the expectations of the people. This year I had the opportunity to do that as part of various tribal hui, including our season of road shows, which I attended alongside many of my fellow representatives and the kaimahi of Te Rūnanga. We had more than 3,000 whānau take part in the road shows held in the North Island and Australia.
Throughout the year we distributed 581 pēpi packs and 927 school starter packs. We increased the Whai Rawa tribal savings fund by $5.6m contributing to the $85.5m of total funds managed as at 31 March 2019. I am always overwhelmed by the positive feedback and thanks from whānau for the support that we are able to provide to them across the range of social and cultural areas we invest in. This is ultimately the purpose of all that we do, and we will continue to identify ways in which we can support tens of thousands of whānau from a relatively limited pool of funding.
When it comes to creating tangible outcomes for our growing iwi membership (which has now reached 65,000), there is much to celebrate in the year that has been. Regional rangatiratanga has been a constant theme, given it is the core principle of Haea Te Awa, the transformational new strategy that we have been developing with engagement from papatipu rūnanga. It has been fantastic to see papatipu rūnanga leading the way with some tangible examples of this, including the installation of a large pou whenua on Ōtamahua (Quail Island) and at Mōkihinui Gorge in the northern Buller region in my own rohe.
In November 2018 we launched He Rautaki mō te Huringa o te Āhuarangi – the Ngāi Tahu Climate Strategy. This was a long-awaited kaupapa that, above all, shows our firm belief that amidst change and loss there is also hope and opportunity. Alongside our work with papatipu rūnanga as we begin to implement the strategy across Te Waipounamu, we have also made it clear that all our businesses need to have climate change action plans to drive emissions reductions.
Freshwater is another environmental issue of utmost importance to our iwi, hapū and whānau, and one that we have progressed in the past year with the establishment of Te Kura Taka Pini (our specialist freshwater workstream). Wai māori is in crisis. We are asserting rangatiratanga over the freshwater in our takiwā and we want to work directly with the Crown to protect this precious resource. We have continued to engage and meet with key Crown officials and local and national political leaders, as well as dignitaries and leaders from across the world, to ensure that the voices of our people are being heard by decision makers on matters that are important to Ngāi Tahu.
As always, I want to thank and acknowledge my fellow governors for another year of wise counsel and considered leadership. I also mihi to our CEO Arihia Bennett and to our team of kaimahi within Te Rūnanga Group. We are incredibly grateful for the passion and commitment you bring to your mahi, which is crucial to advancing our iwi aspirations.
I also want to thank and acknowledge our kaumātua for their guidance and advice throughout the year, to myself and to many others across our iwi. We are grateful for the generational wisdom that you hold and share gladly when needed.
Finally, I send my thoughts to all our whānau living throughout Te Waipounamu and beyond. I hope that the last year has brought increased health and wellbeing to your whānau, and that you will continue to thrive in the months ahead.
We will respect, foster and maintain important relationships within the organisation, within the iwi and within the community.
We will pay respect to each other, to iwi members and to all others in accordance with our tikanga (customs).
We will pursue knowledge and ideas that will strengthen and grow Ngāi Tahu and our community.
We will work actively to protect the people, environment, knowledge, culture, language and resources important to Ngāi Tahu for future generations.
We will strive to ensure that the tikanga of Ngāi Tahu is actioned and acknowledged in all of our outcomes.
We will strive to maintain a high degree of personal integrity and ethical behaviour in all actions and decisions we undertake.
I am now in my seventh year as CEO and still find myself excited by the privilege it is to come to work every day, always looking to maximise every opportunity that comes our way. My approach is firmly anchored in sustainable leadership with a focus on our intergenerational outcomes. This means being vigilant about achieving the best results, alongside developing our people, while always keeping our values front and centre.
Community self-determination is at the heart of what drives me. It is something I am enormously passionate about and invest heavily in, by supporting our dedicated kaimahi to walk alongside whānau, across our tribal takiwā, throughout Aotearoa and around the globe. I’m delighted that we now have fully operational teams based in Ōtākou and Murihiku, as this is a huge leap towards regional economic development based back with our papatipu rūnanga.
As we expand our horizon, the vision for regional rangatiratanga and the empowerment of whānau across our papatipu rūnanga remains a priority. Embedding local infrastructure, capability and services at the local level is a necessity so that papatipu rūnanga can build their regional leadership presence. The Office continues to concentrate on this approach.
We have built a range of internships and scholarships focused on growing the next generation of bright young leaders who are already beginning to take active roles within the tribe. Over the past 12 months we have supported a further 21 Matakahi cadets into placements or roles across the Ngāi Tahu Group and with our stakeholder partners. Leveraging our relationships continues to bring more opportunities. Increasingly we are creating more openings for the rangatahi voice to be heard in wānanga and hui on a wide range of issues of importance to the iwi – political, environmental, innovation, economic and cultural – I am impressed with the depth of understanding among our youth and confident we are in good hands.
Since Settlement we have distributed $573m towards tribal development. This investment has been across a diverse range of initiatives and activities aligned to our six pou: Ngāi Tahutanga, Oranga, Te Ao Tūroa, Mātauranga, Papatipu Rūnanga and Te Whakaariki. While we celebrate the positive outcomes and highlights we share within the pages of this report, we must continually assess the impact of our mahi, and be ever mindful of ensuring efficiencies in everything we do while maximising the benefits to whānau. Looking ahead I am mindful of the importance of gathering data (backed up by science) to substantiate the relevance of the distribution dollar, and to ensure our organisation is well placed to be at the leading edge of the new age of innovation and technology that will drive the future of how we work.
Of equal importance is our relationship with Ngāi Tahu Holdings, as we gear up to build a greater alignment across the Group with a focus on organisational efficiencies, and also the visibility of Ngāi Tahutanga across all of our businesses. There is a genuine desire and commitment to this kaupapa from all parties as we continue to find ways to work more closely together to achieve the desired outcomes.
Next year we will make changes to our annual report as we implement a staged approach to integrated reporting. This means showing how the Ngāi Tahu Group creates value, increasing accountability to its stakeholders, and showing a balanced view of the contribution from both the Office and the Ngāi Tahu Holdings Group.
In November last year we signed an agreement with Oranga Tamariki based on a shared commitment to improving the outcomes for our Ngāi Tahu tamariki in care. The agreement is focused on a number of tangible outcomes including: reconnecting our tamariki, building their Ngāi Tahutanga, joint training and development with staff, and building foster care opportunities. It is a significant step forward for us to have a relationship in place that empowers us to work together to create a safe whānau environment for our almost 300 Ngāi Tahu tamariki in care – one where they are happy, healthy and thriving – we remain vigilant to this kaupapa.
Our post-settlement rights and interests remain a priority in our ongoing statutory relationships with the Crown and its agencies. We have a responsibility to ensure our kaitiaki status is recognised at every level and must maintain a watching brief to make certain that our boundaries and our traditional mahinga kai gathering areas among others are protected.
I also wish to acknowledge our strengthening relationship with the NZ Police and their shared commitment to work together in building great communities. This has been particularly evident post the mosque shootings earlier this year. It also gives us an immediate connection point as we all navigate emergency events that are increasingly occurring across our takiwā.
As always I wish to thank our kaimahi across the Te Rūnanga Group who work hard to bring effect to our vision and values. Most importantly, I must acknowledge our whānau out in our communities who breathe the life and energy into our rūnanga and marae – dealing with a wide range of kaupapa to protect our rights and interests – and most often giving of their own precious time to ensure a better future.
Last year, we warned of ‘headwinds’ on the horizon as business confidence lowers and economic growth slows. This reality is now firmly upon us and is reflected in our FY2019 end of year result – a net profit of $37.5m. This result for Ngāi Tahu Holdings Group was below expectations.
The underlying result of $94.1m is an improvement on last year and several factors have contributed to this.
However, looking behind that outcome the result is below budget and reflects weakness in operating performance that we will continue to focus on. Our farming, property development, and tourism businesses had challenging years and their results were below the previous year. This was offset by a better result from Ngāi Tahu Capital where our investments in Private Equity Funds and Hilton Haulage had improved results. The contribution from Ryman was largely flat for the year after a very strong performance last year.
Oha Honey has been a challenging investment. We underestimated the risks and overestimated our ability to manage those risks. Those errors on our part were compounded by three years of very unusual climatic conditions resulting in under production, lower sales, and financial underperformance. This has led us to write down the value of the investment. It is now up to us to earn this value back. The management team is fully focused on this and we are committed to supporting them in this task. Good progress is being made on improving operations and culture, but we also need a good season to achieve this.
Farm valuations have also fallen as the sector deals with a number of changing circumstances. As a consequence of these accounting write downs and revaluations, along with the distribution of $67m, shareholder equity has decreased by $53m to $1.51b.
All investments come with an element of risk, and we expect by taking risk we will be rewarded with acceptable returns. Sometimes however, we don’t get it right and things do not turn out according to plan. We accept responsibility for those mistakes.
We should not be overly pessimistic as there has been good progress in some areas over the year in review. Most notably:
The past five years has seen Ngāi Tahu Holdings focusing on growth opportunities resulting in a number of new investments. As the economy is slowing, and in some sectors quite markedly, our focus has shifted from growth to being better prepared for a less favourable business environment. This means increasing focus on managing day-to-day operations, ensuring we have a strong balance sheet, and importantly operating cashflow – this is a key priority.
To that end our attention is on ensuring all of our trading subsidiaries are delivering excellent products and services to their customers, in the most efficient way possible.
In re-designing our future we also need to be thinking about how best we realise the potential of our unique point of difference. We are an indigenous, whānau owned business with a significant footprint in this landscape. Our story, our journey, our values are what set us apart and should be core to all our strategies.
We are reviewing all our businesses – operations and governance – to ensure they are focused on the things that are important to us and can prosper even with the slower economic environment. That said we will not lose sight of opportunities for growth but will be very particular about what fits with our investment endowments and beliefs.
Most importantly we must ensure all decisions we make are consistent with the expectations of Ngāi Tahu whānau. Our mission is to sustain and grow the pūtea and therefore we have a responsibility to make sure we are consistently delivering sustainable returns to achieve this – a job we take very seriously. We remain confident that the measures we have put in place will see an improved performance over the next three years to ensure we achieve our goal of a $90m+ operating surplus.
We are delighted to welcome Mike Pohio (Ngāi Tahu, Ngāti Pikiao) to the Ngāi Tahu Holdings board. Mike holds several directorships including NIWA and Argosy Property Ltd. He recently resigned from his role as CEO of Tainui Group Holdings after eight years. Mike replaces Sandy Maier who recently stepped down. To our kaimahi and directors across the Ngāi Tahu Holdings Group – thank you for your ongoing commitment and professionalism in sustaining and growing the pūtea, mō tātou, ā, mō kā uri ā muri ake nei.
Ngāi Tahu Holdings Group Goal:
After an exceptional few years with the highly successful outcome of the Wigram and Preston’s developments, the tide turned with the number of projects in the pipeline at a 10-year low. In addition, the decline in demand for residential housing in Auckland has resulted in our Hobsonville development, Kerepeti, experiencing lower sales and returns than projected. As a consequence the Development Property Net Operating Surplus fell from $9.5m to -$1.0m.
We are focused on rebuilding our development pipeline and this is well underway. Preparations have begun on the new residential development in Gorge Road, central Tāhuna (Queenstown). This is a wonderful opportunity not only to address the region’s housing needs in partnership with the Crown, but also to expand the Ngāi Tahu footprint in this important landscape. Ngāi Tahu Property is also working in partnership with the Queenstown Lakes District Council on Manawa – a new civic and cultural heart for Tāhuna. At present the focus is on identifying the economic feasibility and potential benefits for the local community, the wider Whakatipu district and Ngāi Tahu.
We have also secured two new sites in Christchurch for industrial development. These projects combined are a big step forward in rebuilding our pipeline.
The Investment Property portfolio remains on budget with a Net Operating Surplus of $18.8m, up $5.0m from last year. However, for the first time our investment properties are not fully tenanted, with occupancy at 98.98% at year end. Slow trading has resulted in several untenanted retail spaces at Tower Junction. Macpac in Wānaka and the newly developed PGG Wrightson Seeds in Lincoln joined the portfolio just prior to year end.
The demand for kōura in China continues to deliver outstanding results for Ngāi Tahu Seafood with yet another record result in FY2019 with a Net Operating Surplus of $24.8m. Pāua export both live and quick frozen is also steadily increasing with a growth in demand in the Chinese market. The tio season was disappointing with lower catch rates and smaller product resulting in reduced returns. The ongoing focus for Ngāi Tahu Seafood is on ensuring the consistency of supply to its major markets while looking for alternative markets for smaller grade produce.
Over the past 12 months Ngāi Tahu Seafood has been working hard to build relationships with the papatipu rūnanga and have a commitment to hold three board meetings per year on marae, along with two noho marae for staff.
While demand for Ngāi Tahu Seafood produce remains strong, there is uncertainty on the horizon resulting from global political issues and softening prices, therefore maintaining strong relationships with our customers in China is a key priority. The impact of climate change has yet to be revealed however ocean acidification and rising water temperatures are issues of concern that require greater understanding and a commitment to ensuring future sustainability.
Ngāi Tahu Tourism had a disappointing result with a Net Operating Surplus of $9.0m, down $5.9m on last year. Several factors impacted on the year-end result. Not least of these was the slowing growth in the sector resulting from Brexit and the US/China trade wars. Additionally, the terrorist event in Christchurch, the treefall incident near Shotover Jet and the wash out of the Waiho River bridge on the West Coast impacted our businesses and resulted in a less than favourable result.
The Dark Sky Project at Takapō has been completed and the All Blacks Experience which will kick off for the next world cup is well into development. The Rainbow Springs Nature Park in Rotorua has undergone a major redesign, and this is expected to improve returns. The focus for Ngāi Tahu Tourism is now on improving its cash returns and ensuring our new ventures achieve their business case returns.
In July 2018, Ngāi Tahu Tourism joined the Climate Leaders Coalition. This move is part of a larger sustainability strategy which includes exploring the potential for electrification of its jet boats.
Late last year we held a series of information evenings in Christchurch, Oamaru, Tīmaru, Dunedin and Queenstown to let whānau know about our scholarships, apprenticeships and job opportunities. More than 200 people came along and we have been delighted to be able to extend employment to 15 Ngāi Tahu whānau in various roles across our businesses as a result of these events.
The honey Industry continues to face challenges around regulations, weather and resource pressures. Four years ago, Watson & Son undertook an aggressive hive growth strategy, this coupled with three years of poor weather patterns, has made for very difficult operating conditions, and has resulted in lower than desired harvest yields.
Operational improvements continue to be made including the successful renaming of Watson & Son LP to Oha Honey LP. The name Oha, encapsulates the journey and eventual destination – delivering a quality product to its customers, genuine and authentic partnerships with landowners and a sound investment for the iwi. The current focus is on improving the internal operations and whilst this has been generally progressing well, there is more to do.
Whilst farm conversions have generated strong capital gains in land values over previous years, we have not yet been able to achieve the operating returns we seek. Our farming returns for FY2019 were under 1% and that’s well below our peers, and our requirement for distribution. Looking to the future the focus will be firmly on improving core farming practices.
In addition to the low operating return, farm values declined this year across the sector and our farms’ value fell 8 per cent or $18m.
Historically high log prices and high log production have resulted in another strong year-end result for Ngai Tahu Forestry with a Net Operating Surplus of $7.7m. Increased log production was predominantly due to a major storm, resulting in harvesting of significant windthrow,which has provided a short-term benefit for the business. In addition, the Proseed business delivered its best Operating result since its acquisition in 2001. The Operating result was driven by increased demand for seed on the back of the 1 Billion Trees programme. Log prices have fallen since year-end reflecting global trade concerns and it is unlikely the excellent results of FY2019 will be repeated in FY2020.
The Ngāi Tahu Capital Net Operating Surplus increased by $35.2 to $21.5m reflecting stronger performance across most investments but particularly PE Funds and Hilton Haulage.
Our investments in Private Equity Funds are medium-term investments rather than short- term cash returning investments. These are performing as planned and will begin returning a positive cashflow in the near term to support our overall focus on improving cash earnings.
GoBus continues to provide a high level of service and its performance metrics in the likes of Auckland are the best amongst our major competitors. This is very pleasing given we have only recently won those tenders. It is also trialling several new initiatives including electric buses. However, the sector is challenging with several factors to manage – we are hopeful an upcoming review of the Public Transport Operating Model will assist this.
While the Ryman share price has flattened and declined in recent times, the company continues to perform well.
There has been a noticeable increase in the number of applications to the fund and therefore amounts funded have been less than requested to ensure a greater pool of projects are supported.
The Ngāi TahuFund contributed $80,000 towards the creation of two pou whenua led by the Whakaraupō carving Centre. Recently, the first pou, Te Hamo o Tū Te Rakiwhānoa was unveiled and blessed on Ōtamahua (Quail Island). The second pou is currently being carved and will be erected on Ōhinetahi.
The Ngāi Tahu Funds application form has been reviewed and simplified to make it easier for Ngāi Tahu whānau to apply. An online application form will be available for the March 2020 Funding round where data will go directly into our data system.
While the road shows are a great way to connect with whānau living away, it is important we look beyond this annual event at how we grow and strengthen our taurahere whānau, many of whom are wanting to step up and be more active in this space. In thinking about their future sustainability we have been working alongside Ngāi Tahu ki Tāmaki Makaurau to trial a new approach to funding. This rōpū has recently developed a strategic plan complete with an annual budget, reporting, and accountability requirements for which we will provide funding as one annual payment rather than multiple funding applications for each event they host.
The Ngāi Tahu Archive database, Kareao, will be launched at Hui-ā-Iwi in Murihiku. Initial content will include the evidence presented during the Waitangi Tribunal hearing of the Ngāi Tahu Claim, the Ngaitahu Maori Trust Board annual reports, 2,500 photographs from the Ngaitahu Maori Trust Board and Te Rūnanga o Ngāi Tahu collections, a selection of historical survey maps, audio and video footage, Ngāi Tahu biographies, and much more. The database will provide whānau with unprecedented access to archival information as well as providing links to Ngāi Tahu knowledge held by external institutions.
Online registration has grown from 17 per cent in FY2018 to 55 per cent for FY2019. An online registration booklet and video have been produced to help whānau navigate the many frequently asked questions regarding whakapapa and becoming fully registered. A strategy has been implemented to ensure all 1848 Kaumātua have been linked to a papatipu rūnanga. Consultation has begun and should be completed early next year.
RUIA is a Ngāi Tahu Funds led collaborative funding initiative with the Ministry of Youth Development, Te Pūtahitanga and the Rata Foundation. RUIA reflects our collective aspiration to support wellbeing, intergenerational leadership, succession planning, cultural development and access for all rangatahi to initiatives that support them to grow and develop.
Shotover Jet has unveiled a new look for its fleet of twin-engine jet boats, the first significant redesign since 2001. This brand refresh gave us an opportunity to think about what we offer in a new way and how we authentically weave the Ngāi Tahu culture and heritage through the experience. It’s about adding another layer, so that manuhiri leave with more than just the thrills, but something that touches their heart as well.
The new jet boat design includes a kōwhaiwhai, developed in conjunction with Ngāi Tahu designer Hori Te Ariki Mataki at Ariki Creative. The kōwhaiwhai is based on the mangōpare, representing strength, agility and power, aligning with the longstanding brand presence of Shotover Jet.
During the year Kura Reo ki Te Waipounamu celebrated 20 years of supporting our intermediate to advanced speakers from across Te Waipounamu to increase their proficiency in te reo.
24 new KMK households engaged in ‘Hai Reo Tuku Iho’, an intensive 12-week programme to support whānau intergenerational use of te reo in the home, piloted across three regions.
Engagement levels in our beginner to intermediate level initiatives continues to steadily increase, with 98 new households participating in wānaka reo opportunities this year, and new events for rakatahi.
Kotahi Mano Kāika
Ngāi Tahu Tourism, Ngāi Tahu Holdings, and the Tribal Economies team have been exploring opportunities for Ngāi Tahu artists to sell their art and produce through the retail spaces of the Ngāi Tahu Tourism businesses. The Dark Sky Project in Takapō is a pilot for this and is initially focusing on 10 artists. This pilot will help Ngāi Tahu Tourism to create a platform for this opportunity to be extended to a wider group of Ngāi Tahu artists and also across more of its tourism businesses.
A project to redevelop the Old Wānaka Fire Station into a retail space for Macpac sparked the development of new signage using local Kāi Tahu place names in the store. The building was purchased by Ngāi Tahu Property (NTP) via the Right of First Refusal and renovation was completed late last year with the new store opening on October 27, 2018.
As well as being in the centre of the adventure and outdoor sports mecca, it was also an opportunity for NTP to help grow the mana whenua ‘footprint’ in Central Otago. Macpac was keen to support that aim, working with representatives of southern rūnaka to incorporate the Kāi Tahu dialect and original names of local landmarks and use them within the store.
A bespoke map of the rohe around Wānaka by artist Hannah Webster has become an attraction for the store. Staff report that nearly a year after opening, they are still receiving comments on the map and not just from tourists.
The Wānaka Macpac store is part of NTP’s intention to grow its Queenstown Lakes District portfolio for the benefit of Ngāi Tahu whānau.
Whai Rawa Ngā Kaitiaki Moni is a fun and interactive space for Whai Rawa tamariki aged 5-15, that aims to develop a culture of savings to support life-long financial literacy to engage with financial capability learning. We know that by age seven most tamariki grasp the value of money and understand that money can be earned, saved and spent – the club is about tamariki taking ownership of and engaging in their financial learning. Through fun resources, tamariki learn about and practise with money, saving, and helping whānau around home.
Whai Rawa is expanding its fund options for members with the addition of a choice of investment risk. Currently, the fund is invested solely in a conservative fund, the new offering will include alternative risk levels that whānau can choose from, for example a balanced fund or a growth fund. Whānau will be given support to choose the right risk of fund that is relevant to them – this is an exciting new opportunity.
Six whānau have been supported into their own homes through the Shared Equity Housing pilot which has been running in Ōtautahi since 2016. The pilot programme was designed to help Ngāi Tahu whānau purchase their first home with Te Rūnanga o Ngāi Tahu purchasing up to 30 per cent equity in the home, meaning that whānau only need to come up with a deposit for the remaining 70 per cent. Additionally a number of other whānau who joined the programme have bought on the open market after starting the process and discovering, with budgeting advice and support to work through their finances, that they qualified for a mortgage.
Samantha Sykes and her daughter Brooklyn are the most recent Ngāi Tahu whānau to move into their own home: “I was at the marae for a whānau meeting and they were talking about the programme. Then I received an email asking if I was interested in knowing more, which I was. I never thought I could save enough, but as soon as it started growing a wee bit, then it became fun to see the numbers go up – before that I didn’t save a penny.”
Te Puna Pakihi, our Ngāi Tahu whānau business eco-system continues to grow with increasing numbers of Ngāi Tahu business mentors and a record number of new businesses being supported.
Prior to the Puna Pakihi business grant we were at a standstill. We had renovated our downstairs garage into a bedroom and bathroom with a view to establishing an Air BnB. Our final stage was the kitchenette and living space. We did as much as we could until there was no more money to complete the project. With the grant we were able to get straight back in to getting our AirBnB up and running. We had a goal of being up and running by Easter 2019 and just scraped in. We took photos of our unit, uploaded it to the Airbnb site and our first guest arrived the very next day! This project has been a big learning curve for us but we are now starting to see the fruits of our hard work, and we are already beginning to see the benefits for our family. At the end of the day this is for our whānau – having this extra income means we don’t have to struggle to pay the bills and to worry about how far the next pay check will go and means we can spend more time with our kids.
We are currently training our staff in accordance with the Civil Defence Emergency Management (CDEM) coordinated incident management systems. Training for our kaimahi is happening in house so that they understand their roles and responsibilities when we bring them together for the Emergency Operations Centre – the “beating heart” that will help coordinate any response that supports our papatipu rūnanga and whānau in an emergency.
Te Rūnanga o Ngāi Tahu successfully tendered with Massey University for the development of a training programme for controllers and emergency response managers – Matatū Mataora Aotearoa – Response and Recovery Aotearoa New Zealand (RRANZ). The name was gifted by Te Rūnanga o Ngāi Tahu and our role is to ensure that a Māori perspective is considered and embedded in the training, for people across New Zealand working in Civil Defence Emergency Management. As part of the programme Te Rūnanga presents case studies on our response efforts during the Kaikōura Earthquake and the Christchurch mosque shootings.
Sharing our unique stories and experiences with the world is at the heart of Takiwā, a cultural tourism network supported by our Tribal Economies team. Currently there are six Ngāi Tahu owned and operated tourism businesses in the collective offering a range of experiences from bush walks to waka tours – all with the official New Zealand tourism Qualmark and about to launch strongly into the market.
For Tim Loughnan establishing his River Valley Farm Tour business provided an opportunity to move back to the whānau farm and to have a more sustainable income for him, his mum and his dad rather than relying solely on income from the farm. The tours offer manuhiri an overnight package where they stay in glamping tents, learn about rural life, the history of Tim’s whānau and have the option of a farm tour and/or jet boat journey on the Hurunui river. For Tim who joined Takiwā Tourism earlier this year, it has an opportunity to reconnect with his Ngāi Tahu roots and share his journey and learning with manuhiri.
In November 2018 we signed up to a strategic partnership with Oranga Tamariki to give effect to our commitment to reduce the number of Ngāi Tahu tamariki in care. We were the first iwi to partner with Oranga Tamariki under the new legislation. One of the key steps in progressing our relationship is gathering data to determine the best way forward and this is currently underway.
FY2019 was a significant year for education with the biggest suite of government reviews across the education sector in over 30 years. The mātauranga team embarked on a new whānau engagement process to pull together rūnanga and Ngāi Tahu educational experts in response to the government reviews and we are developing tribal positions on the wide-ranging kaupapa so as to influence wherever possible, areas for improvement for our whānau and rūnanga. This process has now been more widely adopted by our teams across the areas of hauora and tertiary education because of the successful results achieved.
Demand for our Pēpi packs and School Starter Packs continues to grow. These initiatives are part of our education engagement strategy aimed at supporting our whānau connection and identity through significant milestones in the lives of our tamariki.
I am writing this email, to say a huge thank you for the wonderful generosity from Ngāi Tahu. My son recently turned 5 years-old. He was so very fortunate to receive the school starter pack.
When he received it in the mail he was absolutely beside himself. I couldn’t make this gorgeous little excited face wait to open that night when his daddy got home. He was overwhelmed with what was inside and I was in disbelief at the amazing gift you had given him.
I cannot thank you enough for making his 5th birthday so memorable and exciting
From the Gray family xxx
Te Pae Tawhiti is an iwi led, whānau centric approach to equity in education and realising potential for our rangatahi which is being led by the Tokona Te Raki team. The strategy is a response to our rapidly changing world, growing Māori population and the need to equip our tamariki and rangatahi to be inspired by their futures and succeeding as Māori confident in their culture and prosperous in their careers. This is a new and future focused approach based around the concept of social innovation and multi sector collaboration to drive long-term outcomes.
He Toki reached a milestone earlier this year with its first apprentice completing his apprenticeship in March. Hamana Damon was the first apprentice to sign up to the He Toki ki te Mahi initiative and has been working with Dominion Construction throughout his apprenticeship. The He Toki ki te Mahi Apprenticeship Training Trust is about creating opportunities for Māori success and increasing the number of Māori entering and achieving their trades apprenticeships in the construction industry. He Toki was launched by Te Rūnanga o Ngāi Tahu, CPIT (now Ara Institute of Canterbury) and industry partners in 2011 to train Māori for industry roles in the city’s recovery and represents a new era of Māori trade training. Recently it has expanded its reach to include engineering and forestry.
“We continue to look at the future of work and the transformation that is required to ensure that whānau are best placed to succeed as Ngāi Tahu.”
(Available to all registered Ngāi Tahu enrolled in NZQA Tertiary level study or an international equivalent.)
(Available to all registered Ngāi Tahu enrolled in NZQA Tertiary level study or an international equivalent who are learning, connecting and engaging with Ngāi Tahutanga. Applicants can choose from three cultural levels.)
(Available to all registered Ngāi Tahu iwi members who are currently enrolled in NZQA Tertiary level study or International equivalent.)
(Available to all registered Ngāi Tahu Year 10 – 13 secondary school students achieving academic success in at least three subjects and participating in whānau, hapū or iwi activities.)
Te Pou Here – the Ngāi Tahu skills and talent database is an exciting initiative with over 900 individuals and 350 Ngāi Tahu businesses having registered at year end.
Through Te Pou Here we are looking at new ways of connecting individuals and creating networks of industry and thinking so that we can build an ecosystem that connects and engages with whānau in specific industries and sectors. Our next step is to launch a Ngāi Tahu business network aimed at supporting whānau with opportunities in employment, mentoring, iwi engagement and business growth.
Uruki, the bespoke leadership programme pilot of 12 participants has now been completed. This programme is designed to bring together our cultural context with the skills needed for effective leadership and to inform how we go about our business to ensure alignment with our core values.
Uruki represents the navigation of our waka through our collective leadership journey. Just as the rudder (uruki) of a waka has a profound impact on how fast it turns and the stability of its direction, our leaders set the strategic direction within our organisations and the ripples of their behaviour shape the organisational culture.
Initial feedback from the pilot programme indicates that Uruki provided a strong space for exploring ideas around innovation, relationship development and collaboration among other useful insights. We will now complete a review and design the programme going forward. Leadership is important both to our commercial performance and to our other goals such as becoming an employer of choice for Ngāi Tahu whānau.
Te Pōkai Ao is an initiative established in 2016 designed to develop the engagement, capacity and capability of rangatahi as future STEAM (Science, Technology, Engineering, Arts and Mathematics) leaders. Targeting Years 9 – 13, the programme is made up of a series of STEAM and cultural wānanga including noho marae, workshops, community support and the opportunity to interact and draw inspiration from world-leading companies, universities, academics and STEAM leaders.
While this is an exciting learning opportunity for our rangatahi to gain greater understanding in a global context, we need to ensure that this then translates to their engagement within our own takiwā.
Three wānanga were delivered between March and June hosted at Tuahiwi, Ōtākou and Rāpaki. We now have 54 Manawa Tītī alumni well positioned to grow their leadership potential.
Strong relationships are key to successful outcomes across all of our Te Ao Tūroa mahi. In recognition of this we are working with the Department of Conservation (DOC) to breathe life into our Treaty partnership and to restore our taonga species. Equally important is building stronger and more effective partnerships with local government. Our papatipu rūnanga, their entities and Te Rūnanga are working collaboratively with councils across the takiwā to set catchment level objectives and limits for the statutory management of freshwater resources.
In Ōtākou and Te Tai Poutini, papatipu rūnanga have recently entered into new statutory agreements (Mana Whakahono ā-Rohe) with their councils. Mana Whakahono ā-Rohe will help improve how the parties work together and make better Resource Management Act decisions about freshwater in the future.
Statutory Acknowledgements are also important in protecting our freshwater rights and interests. Many councils now routinely refer to Statutory Acknowledgements when making Resource Management Act decisions about freshwater, however, there are times when Te Rūnanga on the request of ngā rūnanga must intervene to protect Statutory Acknowledgement areas and the wider Te Ao Tūroa. Recent successes include halting irrigation expansion in the Waipara catchment and making papatipu rūnanga values core to hydro-electric turbine management at the Mataura Falls for the first time in over 100 years.
Hoiho are facing a significant population threat with reduced numbers of breeding birds, disease and other events resulting in a very small number of surviving nests this season. A new governance structure has been set up to manage the issue with representation from Te Rūnanga o Ngāi Tahu, Department of Conservation, Fisheries New Zealand and the Yellow-Eyed Penguin Trust. This includes a governance group co-chaired by Yvette Couch-Lewis (Ngāi Tahu Species Recovery Representative for Hoiho).
Te Kaweka Takohaka mō te Hoiho, a strategy to guide the way forward has been developed by the governance group using feedback from Ngāi Tahu whānau who participated in interviews and wānanga in 2014.
With only 142 reported live Kākāpō, 2019 has proven to be a highly successful breeding season with 86 chicks hatched. The high number of chicks was welcomed after an outbreak of Aspergillosis (a fungal infection of the lungs) on Codfish Island/ Whenua Hou, put many birds at risk. All infected birds are currently being treated and closely monitored, and the remaining birds returned to the island.
Because DOC can’t collect tax deductible donations, there have been discussions with Te Rūnanga and Murihiku papatipu rūnaka about Ngāi Tahu being involved. This came to life on 18 June with the formation of the Mauri Ora Kākāpō Trust and the signing of an agreement with DOC for the handling of these funds to benefit the future of these taonga. The Ngāi Tahu trustees on the Mauri Ora Kākāpō Trust are Tāne Davis and Estelle Leask.
In October 2018, the Duke and Duchess of Sussex visited the National Kiwi Hatchery Aotearoa based at Rainbow Springs Nature Park. Their Royal Highnesses visited the hatchery to learn about kiwi conservation.
The visit followed a significant redevelopment of the Rainbow Springs’ kiwi experience, called the Kiwi Burrow. The burrow opened in November alongside new tours of the National Kiwi Hatchery.
The National Kiwi Hatchery has been incubating, hatching and rearing kiwi chicks on behalf of community groups since 1996. Over 1900 chicks have been hatched (about 130 per year), with an average success rate of over 95% – making it the largest and most successful facility in Aotearoa. Over the next 3-5 years, as part of the Kiwis for kiwi ‘Save Our Iconic Kiwi’ campaign, the National Kiwi Hatchery intends to increase its annual capacity to 200 chicks. Of the estimated 68,000 remaining kiwi, the majority are in unmanaged populations, which are estimated to be declining at 2-3% per annum. The national goal is to reverse that decline and set kiwi populations towards a 2% increase per annum.
In December 2018, the Supreme Court ruled on the Ngāi Tai ki Tāmaki Tribal Trust (“Ngāi Tai”) claim against the Department of Conservation. Te Rūnanga were an “intervener” in this case. The ruling emphasised that Section 4 of the Conservation Act is a critical provision that must be given due attention. It gives emphasis to the principle of active protection and supports a preference for iwi commercial aspirations. This decision will have implications for the National Park Management Plans for Aoraki and Tai Poutini/Westland.
Te Rūnanga has been working with the New Zealand Geographic Board Ngā Pou Taunaha o Aoteraroa to reinstate over 1,300 tūturu (original Māori) place names from Kā Huru Manu to the official records with recognition of the original Ngāi Tahu informants and related stories. This work is nationally and internationally significant as it is the first time a national authority has recognised an indigenous collection of place names as an authoritative source. This work builds on the long-standing relationships between Ngāi Tahu and the New Zealand Geographic Board, and further embeds our identity and histories in Te Waipounamu.
Customary Fisheries Authorisations
Mahinga Kai Enhancement Fund
FY2019 Nitrate levels:
The average nitrate levels within groundwater on the Ngāi Tahu Farms has slightly increased for FY2019 to 5.7mg/litre however still within the NZ Drinking Water Standards of 11.3 mg/ litre (FY2018: 4.75mg/litre).
There is a growing awareness of the need to consider and plan for climate change in land management decision-making, particularly in the coastal environment. Several tribal properties are vulnerable to the projected effects of climate change, some with ageing infrastructure in need of significant capital investment should current land use practices continue. Ōmihi/Goose Bay (Kaikōura), Kahutara (Kaikōura), and Greenpark Huts (South Canterbury), all returned via the Ngāi Tahu Settlement being examples. There are presently commercial campgrounds operating at Ōmihi/Goose Bay and Kahutara, and 32 lease agreements in place for recreational purpose huts at Greenpark.
The Pita Te Hori Centre has been recognised as one of New Zealand’s most sustainable office precincts, winning two ‘Excellence’ awards at the Property Council New Zealand 2018 annual property industry awards – RCP Commercial Office and Resene Green Building Categories.
Papatipu rūnanga participation in tribal property land management has continued to increase. The development and implementation of tribal property management plans presents a great opportunity for engaging Ngāi Tahu whānau and raising awareness of land management issues and opportunities. This year management plans were approved for Lake Māhinapua and Ōruaka Pā Historic Reserve, the development of management plans for Kātiki Historic Reserve and Moturātā Island began, and the Muriwai management plan was implemented. In addition, six new papatipu rūnanga komiti appointments were approved with responsibilities, including tribal property management plan development and implementation, advisory functions and land management decision-making.
Significant progress has been made on the development of the Ngāi Tahu Hunting and Fishing Club. This project involves working with Ngāi Tahu Holdings, the Ngāi Tahu legal team, customary gatherers and rūnanga to re-establish and maintain customary gathering rights and practices on Ngāi Tahu commercial and tribal properties (the Ngāi Tahu Estate), Crown land and private land through the establishment of a Ngāi Tahu Hunting and Fishing Club.
Marae Development Fund
Te Pūtea Whakamahi
Haea Te Awa has come about in direct response to the aspirations we heard from papatipu rūnanga, expressed through the Papatipu Rūnanga Aspirations Group [PRAG] presentations in 2017. It is about reaching our full potential by building a regional economy that will be regenerating, inclusive, and productive. It is how we will reflect papatipu rūnanga aspirations and enable continued growth of the rohe within the takiwā. At its heart – the desire to uphold mana motuhake, mana whenua and mana moana. Over the year in review we have been consulting with our papatipu rūnanga. This has now been completed and our next stage on the journey is the development of an implementation plan.
On 1 July the Dark Sky Project (formerly Earth & Sky) opened the doors to its new 1140sqm building (Rehua) and experience on the Takapō (Tekapo) lakefront – a project that had been in the making for almost three years.
The Dark Sky Experience is the world’s first indoor, multimedia experience that combines Māori astronomy and science. It is also the departure point for our outdoor, evening stargazing experiences. Inside the centre is the Dark Sky Diner, offering a range of delicious options both day and night. The magnitude of the project was recognised early in the journey, kicking off a collaborative process with mana whenua with the establishment of a working party with representatives from Te Rūnanga o Arowhenua, Te Rūnanga o Waihao and Te Rūnanga o Moeraki to provide cultural guidance, particularly around the creation of the astronomy experience. We were also privileged to have support from Professor Rangi Mātāmua, one of the country’s leading experts in Māori astronomy.
Ngāi Tahu Funds staff are keen to explore further opportunities for supporting resilience and sustainability on Ngāi Tahu marae, and are exploring the impacts of climate change on our marae and urupā.
Pākākano, the new PGG Wrightson Seeds headquarters at Lincoln, is a recent addition to the Ngāi Tahu Property investment portfolio. This was a great opportunity for the property development team to work closely with Te Taumutu Rūnanga on a number of aspects including the three pou whenua named Puāwai, the blossoms of the land, at the entrance of the building and the planting around it.
The name Pākākano, the seed pod was gifted by Te Taumutu Rūnanga on behalf of the Ngāi Tahu sub-tribe Ngāi Te Ruahikihiki ki Taumutu. Fittingly it references development, discovery and sustainability and pays homage to Ngā Pākihi Whakatekateka o Waitaha, the seedbeds of Waitaha, otherwise known as the Canterbury Plains. The name also recognises the symbolic connection to the ancestor Rākaihautū who landed the waka pākākano Uruao at Whakatū-Nelson, bringing the first seeds of people to this island.
In late 2018, Te Rūnanga o Ngāi Tahu made the decision to join proceedings in Ngāi Tai ki Tāmaki Tribal Trust v Minister of Conservation which was being heard on appeal in the Supreme Court.
The case against the Minister related to two concessions to run commercial tourism activities on two islands that the Department of Conservation (DOC) had granted, a decision which Ngāi Tai ki Tamaki opposed. This case was the first time where the correct interpretation of section 4 would be contemplated as high as the Supreme Court. Furthermore, the appeal would focus on the Whales Case, which has always been the leading case on section 4, and of obvious significance to Ngāi Tahu.
The Supreme Court agreed that DOC had made a significant error in law by giving the concessions. The Court’s decision made some powerful statements about section 4 of the Conservation Act (the Treaty clause) and the responsibilities section 4 imposes on the DOC. The decision necessitates a realignment of the partnership between DOC and iwi, and as such Te Rūnanga has convened a project team to consider the implications moving forward.
This decision truly is a landmark, and will positively influence the balance of the Treaty partnership we share with DOC in the years to come.
Post the launch of He Rautaki mō Huringa o te Āhuarangi – Climate Change Strategy at Hui-ā-Tau, our focus has been on sharing the strategy with whānau, and generating momentum on climate action among ngā papatipu rūnanga. The highlight of which has been the Climate Change wānanga held in Christchurch, which brought together representatives from our papatipu rūnanga to discuss the kaupapa. We were delighted to have a large number of rangatahi attend, all with a passion for making a difference. Climate change events are likely to become a regular feature in the Te Rūnanga calendar, as we continue to address ongoing climate change issues.
The Māori Commercial Aquaculture Claims Settlement Act 2004 provides for a full and final settlement of Māori commercial aquaculture claims since 21 September 1992. The Settlement Act delivers this by providing settlement assets to Te Ohu Kaimoana Trustee Limited for distribution to Iwi Aquaculture Organisations. New space is marine farming space that was created from 1 October 2011 and anticipated to be created out into the future, making this the first prospective Treaty settlement.
The Crown is required to provide settlement assets that are representative of 20% of new aquaculture space in a region. This obligation is based on a national growth forecast and valuation methodology that was jointly developed by iwi from across the country. Bringing these two models together determined an estimated value for new space now and in the future and set the platform for negotiations between relevant iwi within a region and the Crown.
Te Rūnanga is currently settling its new space obligations in respect of the Southland region. The Crown’s current settlement obligation is 12ha of mussel space and 4.6ha of salmon space. Once the agreement has been finalised, this will result in the transfer of 16.6ha of marine farming space suitable for mussel and salmon farming. It is anticipated that this work will be finalised by the end of 2019.
Regionally there have been strong gains between Ngāi Tahu and local government, including the initiation of Mana Whakahono a Rohe agreements, mana whenua representation on the Otago Regional Council policy committee, West Coast Regional Council, and the intent of the ECan Bill. In November 2018, Environment Canterbury promoted a Local Bill to Parliament which was sponsored by Rino Tirikatene, Member of Parliament for Te Tai Tonga. The intent of the Bill was to ensure continuing Ngāi Tahu representation on the council, as mana whenua, beyond the local government elections in October 2019. Unfortunately, the Bill was voted down in its first reading. This opposition at national level is a stark reminder of the challenges that effective and meaningful Treaty partnerships still face.
We have been working closely with Land Information New Zealand as the Crown considers legislative change to the administration of Crown Pastoral Lease Lands, most of which are found in the high country of the Ngāi Tahu takiwā. The engagement process between staff and officials has been exemplary, and will hopefully lead to legislation that reflects Ngāi Tahu aspirations and values. We also hope for a strong Treaty of Waitangi clause, although we have learned a great deal about the political challenges this brings.
We continue to work alongside the Crown to understand the correct function and application of the Relativity Mechanism. In doing this we ensure that the Ngāi Tahu Settlement remains fair and consistent for the benefit of Ngāi Tahu whānui.
It is now over 12 months since we helped establish the Climate Leaders Coalition. This is a hugely important kaupapa as we work together to make the changes across the Group and ensure the sustainability for future generations. We are measuring emissions and our businesses are developing and implementing plans to reduce emissions 30 per cent by 2030. Go Bus’s electric bus trial in Tāmaki Makaurau and the new watering system implemented on the Ngāi Tahu Farms which optimises grass growth using 40 percent less water are just two tangible examples of this mahi. There is no simple solution and therefore this will remain a key focus for the next decade – this will take time, but we
Management of the pūtea is sustainable across generations
Each year Te Rūnanga distributes a percentage of our net worth to support our wellbeing and development.
Net operating surplus
Operating return on equity (inc NTFSL)**
Distribution to Te Rūnanga o Ngāi Tahu
Total net profit
Total return on equity (inc NTFSL)** – 5 year average
As at 30 June 2019
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TE NGĀI TŪĀHURIRI
David Perenara- O’Connell
Karl Te Raki
KĀTI HUIRAPA KI PUKETERAKI