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Settlement top-ups for rich tribes unfair

The two richest tribes may become $138.5-million richer now treaty settlement top-up clauses have been triggered, which raises questions of whether top-ups are fair and whether tribal corporations should trade as charities, Mike Butler, a research associate with the New Zealand Centre for Political Research think tank said today.

The government has confirmed both that treaty settlements have exceeded the $1-billion mark in 1994 dollars, and that a cash top-up of $68.5-million was offered to Ngai Tahu and $70-million to Waikato-Tainui.

“The Bolger National government entered into deals that included relativity clauses that mean, for the 50-year period between 1994 and 2044, for every dollar paid out in treaty settlements over $1-billion (valued in 1994 dollars) Ngai Tahu can claim 16..1 percent and Waikato-Tainui 17 percent,” Mr Butler said.

“By settling early, these two tribes gained two advantages over the other tribes -- use of money to make more money, plus the relativity top-up clauses. How could that be fair”, Mr Butler said.

“On top of that, tribal corporations may trade as charities, which mean they pay greatly reduced tax, giving them a competitive advantage over other non-tribal businesses. How is that fair,” Mr Butler said.

Most people are unaware that both tribes received substantial on-going payments before the 1990s settlements.

Waikato, a tribe that fought against the government, lost, and had land confiscated, received annual payments of £3000 since the 1926 Sim inquiry ruled that confiscations in were excessive. The Waikato-Maniapoto Maori Claims Settlement Act 1946 was a final settlement of confiscation grievances and provided for payments of 5000 a year in perpetuity plus a further 5000 and £1000 a year for 45 years. Tainui received £4155 in 1948 as part of a surplus lands settlement.

Ngai Tahu, the tribe that sold most of the South Island to the government and disputed the arrangements ever since, has received five settlements for one initial complaint -- for disputed boundaries and allegedly inadequate reserves related to the 1848 Kemp purchase of 20-million acres. After settlements in 1868 and 1906, the Ngai Tahu Claim Settlement Act 1944 awarded 300,000, payable at a rate of 10,000 a year for 30 years, which was increased after 1969 to an in-perpetuity payment of $20,000 a year.

“New Zealanders expect and respect fair and equal treatment. Because politicians took a soft option while facing robust negotiation from claimants, fairness and equality is lacking in these top-up arrangements with New Zealand’s richest tribes,” Mr Butler said.

Read the full article with sources here http://breakingviewsnz.blogspot.co.nz/2012/11/mike-butler-top-ups-to-make-richest.html
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