Tūwharetoa Settlement Trust announces strong result

Saturday, 12th December 2015

Tūwharetoa Settlement Trust (TST) has today reported a net profit of $11.2 million, after tax, for the 2014/15 financial year. This was an increase of $10.0 million compared to the previous year. The Trust has also grown its asset value to $91.8 million, up from $64.1 million in FY2012/13. This represents an increase in value of $27.7 million in just three years.

TST Chairman, Rakeipoho Taiaroa, announced the result to iwi members at today’s Annual General Meeting in Taupō. He said TST is now at its strongest asset and cash flow position since it held its first meeting in January 2013, as the newly elected Trust.

“The Trust is proud to have delivered this result. The last year has seen significant financial growth for TST, which is satisfying but it has also enabled major cultural and social achievements for our iwi.

“Our financial position means we will be able to reinstate the Ngāti Tūwharetoa Marae Grants Scheme, where each marae will receive an annuity. This was an important target for TST and we are really happy to be able to provide this again,” said Mr Taiaroa.

The financial position of the Trust continues to strengthen with total equity (excluding minority interests) now at $26.8 million, compared to $15.7 million last year.

Mr Taiaroa said the strong performance was driven primarily by two major one-off transactions and a positive revaluation of TST’s investment in the Kakano Investment Limited Partnership, which delivered a $3.8 million increase.

Collaboration with other Ngāti Tūwharetoa entities was a key driver in the growth. During the year, TST, and five other Tūwharetoa entities, worked together to establish Hautū Rangipō Whenua Limited (HRWL). This allowed for the sale and purchase of 8,500 hectares of land in the central North Island from the Crown. The land included around 4,000 hectares of timber plantations and overall was valued at approximately $50 million.

“We were pleased to have played a part in bringing together these Ngāti Tūwharetoa entities to make this purchase.

“The deal had significant strategic and commercial benefits but, most importantly, it returned land to our iwi. This was a major milestone after negotiating with the Crown since 2008,” said Mr Taiaroa.

The sale and purchase was also the final phase of the Deferred Selection Process, which was agreed in the Central North Island (CNI) Treaty Settlement.

Mr Taiaroa acknowledged the work of former General Manager, Temuera Hall. He also announced that former Chairman, Dylan Tahau, will now contract to TST as General Manager.

Highlights of 2014/15:

• $3.5m – receipt of TST’s share of the remaining balance of the CNI Crown Cap, which was held back from the 2009 distribution by the Crown for settlement of non CNI iwi claims on Kaingaroa.

• $3.6m – profit made on the purchase of the Rangipō Forest from the Department of Corrections and subsequent on-sale to New Forests, an Australian based forestry investment fund.

• $3.8m – increase in the value of TST’s investment in the Kakano Investment Limited Partnership, which is comprised of six CNI iwi owning a 2.5% share in Kaingaroa Timberlands.

A copy of TST’s Annual Report and further information can be found at www.tst.maori.nz

ENDS

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