Ngāti Whakaue Tribal Lands Incorporation Annual

Ngāti Whakaue Tribal Lands Incorporation
Annual Report 2009-2010
Our Mission
The purpose of Ngāti Whakaue Tribal Lands Incorporation is:
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To maximise shareholder wealth
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To safeguard and improve customary lands
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To benefit the people of Ngāti Whakaue (shareholders & beneficiaries) and increase their opportunities in life.
PHOTOGRAPHY SUPPLIED BY
Rawiri Bhana (Te Roro o Te Rangi ki Kuirau, Ngāti Whakaue)
Adventure and Events Limited
PO Box 1264
ROTORUA
P 021 685 591
www.adventureandevents.co.nz
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Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
Table of Contents
Introduction from the Chair..................................................................................................................................................................................4
From the General Manager...................................................................................................................................................................................5
NWTL Group Report
Governance........................................................................................................................................................................................................6
Organisation Administration...................................................................................................................................................................6
Financial Performance.................................................................................................................................................................................6
Strategic Opportunities and Alliances...............................................................................................................................................9
Ngāti Whakaue Pukeroa Oruawhata Tribal Trust Report.................................................................................................................. 10
NWTL Incorporation Auditors Report & Consolidated Financial Statements..................................................................... 12
NWTL Analysis of Profit Centres and Overhead Costs....................................................................................................................... 37
Ngāti Whakaue Tribal Lands Educational Trust Auditors Report & Financial Statements............................................ 38
Minutes of Annual General Meeting 2009............................................................................................................................................... 44
Organisational Structure...................................................................................................................................................................................... 49
Directory ....................................................................................................................................................................................................................... 50
Agenda for Annual General Meeting 2010.............................................................................................................................................. 51
Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
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Introduction from the Chair
E ngā karangamaha o Ngāti Whakaue
Tena tatau katoa
Welcome to the 49th AGM of Ngāti Whakaue Tribal Lands Incorporation
The 2010 year has been another tough one for the Incorporation and like most other businesses we
have been working very hard to weather the very difficult economic circumstances. While the financial
outcome is less than satisfactory I believe it overshadows some of the successes we have had.
The farming operation would have achieved a superb result but for the falling $US and its impact on beef
prices in the last part of the year. Advantage was taken of the high log prices and cutting brought forward in
certain parts of the estate to deliver very good returns. Management and the committee have worked very
hard to contain costs without jeopardising future development.
While the fall in land value is the primary driver of the decline in the Incorporation’s value we did have some
success with our property development activities. The RDC approved the Plan Change for Wharenui and the
Environment Court granted consent for the development of the Crater Lake Property. However the impact
of the recession has caused the Committee to reconsider its asset portfolio and this, in conjunction with a
view about the development of Rotorua, brought about the decision to place the Crater Lake property on
the market. This has attracted national news coverage with the tender process closing next week.
I would like to thank and acknowledge all those who have contributed to the work of the Incorporation
this year; Trevor Smyth and Bernard Card in Farming, Dan Ogle in Property, and Tamarapa Lloyd in General
Management. Ian Hulton and the Hulton Patchell team, Barry Lane of Iles Casey and Shane McDermott of
the BNZ, have ably supported us. I would like to acknowledge Donna Grant who joined the Committee of
Management last year and my fellow Committee of Management members; all of who continue to give
their best to the Incorporation. Sadly, Sir Howard and Rick Vallance passed away last year, haere atu korua,
haere atu ra.
Three vacancies were recently advertised for the positions held by myself, Jackie Aratema and John Kahukiwa. No one stood against us and we were reappointed unopposed for a further 3 years. Finally I would like to thank you, our Shareholders, for your support. You have shown a great deal of patience
and tolerance over the past few years as we have sought to develop a way forward that insures our success
over the next 50 years. While we would have all wished for better recent financial success, we should
remember with much pride the important role the Incorporation has served in assisting the achievement
of significant outcomes in tribal affairs. Perhaps the time is approaching when we can look to integrate our
activities even further and leverage those interests for the benefit of Ngāti Whakaue at large.
Kia ora mai ano
David Thomas
Chairman
Ngāti Whakaue Tribal Lands
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Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
From the General Manager
He maungārongo ki te whenua, he whakaaro pai ki ngā tāngata katoa. Tuatahi te mihi ki o
tatau kaihanga, nona te timatanga me te whakaotinga. Tuarua ki ratou kua ngaro atu i te
tirohanga o te tangata haere, haere atu ra. Tuatoru ki a tatou te hunga ora, ngā maramara
toinga o ratou kua mene atu, nei ra te mihi ki tatou – mauri ora.
I would like to re-iterate the welcome provided by the Chairman. In the last year we have lost many loved ones and it is fitting
to again acknowledge the efforts and commitment of both the late Sir Howard Morrison and Rick Vallance. We will not easily
forget their personalities and the contributions that they made to the Incorporation over their years of service.
Given the present assets of the NWTL Group, the economic prosperity of Tribal Lands depends on the development of Rotorua
as a destination for business, tourism and affordable high quality living. The last point, Rotorua being a destination for affordable
high quality living is a statement I personally believe in so much I moved my whānau here from Wellington! It is also a vision that is
shared by the Incorporation and is the driver behind the Wharenui development and the Incorporations view of investment in the
Rotorua region.
The year just gone has been difficult. The lengthening recession has affected our property values and impacted on our timing of the
Wharenui development. Farming faced difficult operating conditions and performed remarkably in light of all the circumstances. We received an excellent return on our forestry estate. We have sought to stabilize and/or improve the Incorporations income and
reduce costs. However, relative to our present ability to generate income we carry too much debt. This has seen our strategy focus on:
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reducing or containing costs
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selling non-essential or unaligned assets
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securing other long term cash generating assets.
There are a lot of good outcomes from the performance of the NWTL Group this year:
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we have achieved measureable success with our property developments particularly the plan change for the Wharenui
development
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we received excellent returns on our forestry estate
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we have reduced administration and governance costs by $209k and benefitted from low interest rates.
There are, in my view, more positives to be taken from last year than negatives. Our farming operations continue to be run to a
high level of efficiency. The emergence of NZ carbon units as an ongoing asset and the cash flow, which they will generate, has
been a welcome addition to our asset base. The Board has been required to make some difficult decisions last year regarding the
management and governance shape of our business however those changes have made an immediate impact on our level of
expenditure. Finally, we have also had to look carefully at our asset base and present debt levels to consider the long-term future of
Ngāti Whakaue Tribal Lands Incorporation. Our present year is progressing well and we are continually looking for ways to cut costs, reduce long-term debt and build cash flow. Mauri ora ki a tatau katoa
Tamarapa Lloyd
General Manager
Ngāti Whakaue Tribal Lands
Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
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NWTL Group Report
GOVERNANCE
With the agreement of the Committee of Management and the Board of Whakaue Holdings Limited we
have moved to trim governance costs by collapsing the Board meetings of Whakaue Holdings Limited into
the meeting of Ngāti Whakaue Tribal Lands. This also removes the other associated administration costs of holding two separate meetings. Whakaue
Farming, because of its specialist nature, continues to meet separately and the Incorporation is well served by
the level of farming experience and governance rigour it receives from this Board comprising independent
director Bernard Card and director Glenn Hawkins. The financials show that across the NWTL Group we
made a saving of $41k on our governance costs as compared to 2008.
ORGANISATION ADMINISTRATION
In response to the economic position of the Incorporation management changes were required. Tupara
Morrison was engaged on an interim part-time basis to manage the various administration aspects of the
Incorporation. Tamarapa Lloyd was brought in as the General Manager in November of last year, also on a
part time basis, to manage the Incorporation. Changes were also implemented to the lines of reporting so that the part time Land Development Manager
(Dan Ogle) and Farming Manager (Trevor Smyth) report to the General Manager position. We also sought
to further reduce administration costs by taking our own minutes thereby allowing the services that are
provided by Ian Hulton of Hulton Patchell to focus on the financial aspects of our business. Across the NWTL
Group we made a saving of $168k on our administration costs as compared to 2008.
FINANCIAL PERFORMANCE
The NWTL Group made a net operating surplus of $442k as compared to 2008 loss of $1.2m however due
to capital asset write downs overall the Group made a loss last year. The ‘write down’ of asset values was
unavoidable given the economic climate that has seen land values across the country drop. However
revenue was up on the previous year. The NWTL Group contains the following asset classes that are divided across the Group:
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forestry (including New Zealand carbon units)
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commercial leases
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residential rental
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farming
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property development
Forestry - NWTL
Last year we received excellent prices for our logs and we are anticipating further good returns for this year. The high prices are a result of strong demand from China coupled with a reduction in Russian export logs
has led to the best NZ log prices since the early 1990’s. Also this year we will begin to trade NZ carbon units
not required to off-set our farming liabilities under the emission trading scheme. The emission trading
scheme commenced in July and the Incorporation has yet to register its interests. We expect to make
approximately $175k per annum from our NZ units going forward.
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Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
Finally, in regard to the forestry both last year and this year the Board has expressly requested our forestry consultants, Fortus, directly
employ or use Ngāti Whakaue contractors wherever possible.
Commercial leases - NWTL
The Incorporation continues to look for ways to develop our commercial ground leases as these provide a much higher return than
farming the same area. In total our commercial leases account for only 4% of our annual income however this is a figure we would
like to increase. Last year we also entered into a new lease for the old Mountain Action site at 525 Ngōngōtahā Rd to a company
called OGO who are the original founders and inventors of the ‘zorb’. There are a number of options for this venture and this prime
tourism site which the Incorporation will look into this year.
Residential rental - NWTL
The Incorporation has three rental properties however the level of market rental these assets are returning (approximately $43k) is
less than the cost of debt to purchase them. The level of return these assets provide no longer warrants their retention and we are
considering ways to realise capital from these assets.
Farming – Whakaue Farming Limited
The farming side of the Incorporation experienced a challenging 2009/10. After an excellent result in the 2008/09 year, a combination of
the ongoing world financial crisis and 12 months of unfavourable weather created testing conditions for rural New Zealand. The economic
slow down of the US and UK economies led to a rapid 20% appreciation of the NZ dollar against the currencies of these two major trading
partners. Despite the poor returns at the farm gate, overseas prices for sheep meat and beef have, remained at a reasonable level.
A very cold winter followed by a dry cool spring led into a prolonged dry period to the middle of May 2010. Every month throughout the
year experienced below average temperatures and below average rainfall. Particularly significant was the lack of rain in March and April
2010; normally very reliable period for rainfall in Rotorua.
Despite a relatively poor spring we were able to finish 65% of our trade cattle by Christmas 2009 at record weights. Unfortunately, the
price per kg was 20% below the same time the previous year. This represented, on average, approximately $180 less per head than the
year before due to the high NZ dollar against a low US dollar.
The lack of rain throughout the year meant finishing lambs took longer than normally required and achieving our normal slaughter
weights impossible. We bred 13,150 lambs and 2,720 were purchased for finishing. We sold 12,052 lambs (average weight 16.54kgs)
with the remainder being kept for either breeding or winter finishing. Lamb prices only fell approximately 10% when compared to the
previous year and mutton showed a slight increase. Wool prices were again very disappointing averaging only $2.16 per kilogram. We
continue to improve the genetics within our sheep flock and this has been reflected in the good scanning percentages achieved this
autumn (present financial year) despite the lack of feed during this period.
The venison market stayed reasonably strong throughout the year. The performance of the deer herd with 93% calving and 90% sale of
rising one year animals by the end of June was a very good effort given the season. We are pleased to report that capital stock values have remained relatively stable probably reflecting the declining numbers of sheep,
beef and deer throughout the country. Our stock numbers and mix remain relatively unchanged from last year that spreads our farming
risk across the markets.
The dry conditions throughout the summer and autumn while not ideal for livestock were perfect for log extraction. With three to four
logging crews in action for most of the summer and autumn period excellent communication from our forest consultants (Fortus), and
their contractors, kept disruption to our farming operations to manageable levels. Logging is always disruptive with vehicle movements
and areas becoming ungrazable due to fences being removed or damaged. All the logged areas were re-fenced and tracks were repaired
by the end of June 2010. Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
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NWTL Group Report (continued)
Infrastructure improvement and maintenance continues. A particular emphasis was placed on Ngōngōtahā
this year. The control of pasture weeds, especially gorse, is always ongoing but vital for the future viability of the
properties. Very good progress was made this year. Unfortunately fertiliser prices soared to record levels making
the maintenance of soil fertility while operating within budget a challenge for the team. With the assistance of a
very experienced soil scientist maximum value is being extracted from our modest fertiliser spend.
The truffle development progresses as planned. The trees have established very well and we continue
to work with, and seek advice from, successful growers from Australia. They are very positive about our
eventual success with this project. There has been one change to the team at Ngōngōtahā with the appointment of a new manager. This year
has seen the introduction of the Landcorp work safe program to all our properties. This is a workplace health
and safety program designed to make our farms safe, healthy and enjoyable places to work. People are the
number one ingredient in any business and we are very fortunate to have such loyal and capable people. Trevor Smyth provides strong and effective leadership to the farming activities and Bernard Card continues
to add tremendous value at a governance level with his regular inspections of the farm and effective input
at the Board table.
Our focus remains on maintaining the farm in the best possible condition and supporting the cash flow
needs of the Group. Despite the external challenges that we have very little control over we remain positive
about an improved result in the current financial year.
Property development
Last year we reported on our two feature property developments being Crater Lake Park and the Wharenui
development. •
Wharenui Road – Whakaue Nominees Limited
In 2007 the Incorporation undertook a comprehensive master plan study of the 1500 ha of land
consisting of Gee block, part of Wharenui block and Brents Farm. Beca Consultants were engaged
to lead this project.
This resulted in Brents Farm and 49ha of Wharenui block being identified as suitable for residential
and minor commercial development over the next 25 years. This area lies immediately adjacent to
the residential areas of Lynmore to the west and Owhata to the north.
The Rotorua District Council accepted and notified a Private Plan Change submitted by the Whakaue
Property Trust, a trust that is part of the NWTL Group, in February 2009. The hearings for the Plan
Change were held in November 2090, Council deliberations were finished in March this year and we
were successful in achieving the plan change that was approved in April of this year. The Council has shown support for the Incorporations vision for this development that creates
a quality residential living environment and minor commercial area that is linked by a series of
interconnected open spaces. Overall the focus of this development looks to instill the characteristics
of community and residential sustainability that reflects the environment and people from which
it has arisen.
The plan change, from rural to residential zoning, has lead to an immediate increase in the value
of the Brents Farm/Wharenui Road development by $2.55m. As development occurs, this increase
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in land value will continue to rise. We will continue to push ahead with the development on
Brents Farm/Wharenui Road. However I would caution that with the lengthening of the economic
recession, the level of demand for property in Rotorua remains low and therefore the timing as to
when this development is taken to the market is important.
•
Crater Lake Park – Crater Lake Nominees Limited
The Crater Lake Park was a Joint Venture between our Crater Lake Park Trust and our 30% partner
Crater Lake Capital Limited. The property, previously known as ‘Crater Lake Farm’, was purchased in
September 2000 as an investment property, initially to diversify into deer framing, but also with an
eye to residential development.
This 265 hectare (654 acres) farm takes its name from the massive Te Whekau crater, located in the
centre of the farm. The property has Lake Ōkāreka to the West, Lake Ōkataina to the North East and
has superb views over Lake Tarawera and Mt Tarawera to the South East.
Rotorua District Council issued Land Use and Subdivision Consent for the development in
September 2008. The consent was appealed and a two week hearing was held in the Environment
Court in September 2009. The key issue appealed was whether the proposed activity is contrary to
the relevant objectives and policies of the District Plan, in particular to the provisions of the Lakes
A zone and relief was being sought for the resource consent to be cancelled. We also appealed a
condition of the consent that restricted the use of the ‘Spencer road right of way’. Rotorua District
Council and Environment Bay of Plenty justifying the issuing of the resource consents provided
evidence. In late November last year the Incorporation was provided with the opportunity to purchase the 30%
share in Crater Lake Investment Limited giving the Incorporation 100% ownership of this property. The purchase was completed just prior to Christmas last year for a nominal amount.
The decision from the Environment Court was provided in February and the consent was issued in
June of this year broadly in line with our original application.
Following a review of our current assets, and after much deliberation, the Board agreed to sell
Crater Lake as we had over-weighted our property investment portfolio given the current economic
climate. We hope to report to you further on this in due course.
STRATEGIC OPPORTUNITIES/ALLIANCES
In order for the Incorporation’s investments within Rotorua to succeed, in particular the development of
the Wharenui area, this city needs to grow faster than its average growth rate of 1.5%. The Incorporation
supports and has participated in some of the planning initiatives the Rotorua District Council is undertaking
to attempt to grow Rotorua. The Incorporation is meeting on regular basis with Peter Guerin and these
discussions, while still in their infancy, are assisting to re-affirm our relationship with RDC. The Incorporation
is also meeting regularly with the other Ngāti Whakaue entities to look at opportunities for growth and
mutual development for the betterment of Ngāti Whakaue.
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Tribal Trust Report
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Ngāti Whakaue Tribal Lands Auditors Report
& Consolidated Financial Statements & Notes
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Auditors Report & Financial Statements
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Minutes of Annual General Meeting 2009
Minutes of the 48th Annual General Meeting held at the Kingsgate Hotel,
Fenton Street, Rotorua, Saturday 14th November 2009
KARAKIA AND MEETING OPENED AT 10.00AM
146 Shareholders present.
1. APOLOGIES
Received from 44 shareholders.
2. MATTERS ARISING FOR GENERAL BUSINESS
Kauae Cemetery
3. ELECTIONS
The Chairman invited the six candidates for two positions to address the meeting. Mark Armstrong had
forwarded his apology and was not in attendance. The remaining candidates, Colin Bennett, Donna Grant,
Matthew Heke, Jason Rogers and Tom Walters introduced themselves and briefly addressed the meeting. The Secretary then explained the voting procedures. Five shareholders present requested that the voting
be by way of poll vote. The meeting elected Josie Scott as scrutineer to assist the Secretary. The Secretary
reminded the meeting that only those shareholders who have not voted by postal vote should vote at this
time and voting papers were then distributed.
4. PREVIOUS MINUTES
Of the annual general meeting held on 15 November 2008 and special general meeting held on 23 May
2009 were taken as read and confirmed.
(W. Kereopa/P. Heke)....................................................................................................................................................................................Carried
5. MATTERS ARISING
Wharenui private plan change. Maureen Waaka informed the meeting that as an RDC councillor she has
been appointed to the Commission panel to hear the plan change application and therefore would be
unable to participate or comment, and if the meeting discussed the plan change in any detail she would
have to withdraw from the meeting. Hamu acknowledged Maureen’s declaration of interest. He said there
has been one very recent issue involving the sitting of the water reservoir. He informed the meeting that if
the Incorporation corpus land is affected then a special general meeting of shareholders may be required.
6. CHAIRMAN’S REPORT
In his annual report to the shareholders, the Chairman commented on the longevity of the Incorporation
as it now enters its 50th year. Earlier in the year the Committee of Management reviewed the strategic plan
and redefined the strategic purpose of the Incorporation as:
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Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
“To enhance the capability of Ngāti Whakaue by optimising it’s economic, environmental, spiritual and kinship
well being.”
Hamu said this is a significant re-positioning by the Board because it has shifted the emphasis from the
predominant goal of commercial success to one of encompassing the wellbeing of people and the
environment as well as making a profit. He added that the challenge now is to realise our purpose to achieve
peak performance as a sustainable enterprise while ensuring that the ability of future Ngāti Whakaue to
meet their needs is not compromised.
Hamu acknowledged the late Sir Howard Morrison for his contribution to the Incorporation and his long and
successful career. He also expressed his appreciation to fellow Committee members, associate directors and
advisers. Finally he thanked the shareholders for their patience and forbearance while the Committee has
endeavoured to reset the direction of the Incorporation on course of further success over the next 50 years.
(H. Mitchell/J. Scott)......................................................................................................................................................................................Carried
7. WHAKAUE HOLDINGS LIMITED
An apology for lateness had been received for David Thomas, the Chairman of Whakaue Holdings Limited. Jason Rogers, one of the other directors spoke to the WHL report.
Jason said that the General Manager Rick Vallance had retired at 31 March 2009 and the Board has now
engaged Dan Ogle, a property consultant to manage the two property projects. During the last 12 months
the collapse in the property market and banking crisis has greatly impacted on the property business. Farming is doing well but cannot meet all of the needs of the Incorporation shareholders and hence the
need to engage in the land development projects, which are:
i.
Crater Lake Park. This is a leading eco farm development. The resource consent application was
successful but subsequently was appealed and has recently been re-heard by the Environment Court. A result is expected in January or February 2010.
ii.
Wharenui. This is an urban land development project. A private plan change hearing is due to start
next week. Dan Ogle as the property manager has worked closely with senior management at the
Rotorua District Council.
In total the Incorporation has contributed $3.3 million to the two property projects. The Committee is
very conscious of the debt levels and cash position. Success with the consent processes will enable the
Incorporation to unlock the true value in those properties. Jason also said that a very good relationship with
the BNZ has been maintained and they are supporting the direction taken. The Board is very conscious of
the need to keep the projects moving forward and getting results.
Jason invited Glenn Hawkins the Chairman of Whakaue Farming Board, to report on farming operations
for the year. Glenn said there are two members on the Board, himself and Bernard Card who is an ex GM
of Landcorp. The Board and General Manager Trevor Smyth have worked on optimising revenues by
presenting stock in good condition at the right time, while also tightly controlling costs. The infrastructure
of the farms and pastures has been well maintained to protect the future viability of the properties. The
truffle development has also continued as planned.
Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
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The key strategic objectives for the farming enterprise continue to perform at the highest sustainable level
while meeting environmental constraints, and to support the land use change strategies of the two property
trusts. Glenn also reported that the 2009 year produced a much improved financial result.
Dan Ogle, Property Consultant, then addressed the meeting on the two property projects.
i.
Crater Lake. Dan said that Crater Lake is unique and has special characteristics. The success of the
Environment Court hearing would result in an increase of value of the land by between $5 million to
$8 million. This would be without any further developments taking place. The costs on this project to
date are $1.92 million.
ii.
Wharenui. The RDC accepted and notified the Incorporation’s application for plan change and if the
hearing is successful then the land will have a different zoning and the value uplift in the land will be
in the order of $10 million. To date costs incurred on this project are $1.44 million. This development
will promote residential sustainability and good communities. Dan added that there is ongoing work
with Council on water supply issues.
Jason concluded the presentation by saying the WHL Board is confident it has the right people advising
them and with the quality of work on the projects. He then invited questions from the meeting.
1.
Sir Peter Tapsell asked why did the Committee take a minority partner into the Crater Lake project? Jason replied that the minority partner which has a 30% interest in the joint venture is Miles Nathan
who has a background in property developments.
2.
Theo Tait asked where do the shareholders fit in, and has demographic growth been considered? Jason replied that any benefits from the projects would only become apparent if the consenting of the
projects is successful. Even if they are successful there is likely to be some time before they can flow
through. He also advised that the Board had obtained a feasibility assessment on population growth
which gave the view that the Wharenui project would be at least a 10-15 year project. Theo also asked
if there would be jobs for shareholders arising from the projects. Jason responded that he felt there
would be every opportunity for jobs but the consents have to be obtained first. Colin Bennett added
that he sees a need for affordable housing on ancestral lands. Jason said that WHL could look at ways
to help people in employment and assisting into housing. Matthew Heke said there needs to be a
holistic approach including cultural needs as well as financial outcomes.
3.
Tina Ngatai said the $8 million debt is a big concern. She said she backs the Committee on their
direction but asked about costs going forward on these projects. Veronica Butterworth said she is
concerned with the eastern arterial route and Te Roro o Te Rangi wants more interaction with the
Incorporation on that issue.
4.
Pihopa Kingi referred to the Chairman’s report and the Chairman’s comments on developing a
sustainable organisation encompassing the wellbeing of people, the environment and making a profit. He commented on the decision to close the dairy unit at Wharenui, and also commented on the
impact of the carbon emissions trading scheme on farming.
Hamu said that good stewardship of the land requires a balanced approach. He said there was a time
when farmers cared nothing for the impact of their practices on the environment and he is proud that the
Incorporation made the decision to close the dairy unit, based on both environmental and commercial
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reasons. This was only done after much research and advice had been received. Hamu went on to say
that the Incorporation’s efforts to realise the value in the land has met with obstacles from regulatory and
consenting authorities and the very recent change of direction by RDC on the water reservoir question is
another example of that. He also said the Committee is very mindful of the level of debt. However the
Incorporation is not insolvent and continues to maintain good relationships with the Bank of New Zealand.
Further in response to comments concerning the level of debt he advised that the Committee of
Management is recommending that this year there will be no dividend paid as that would be incompatible
with the current level of debt.
(T. Pene/W. Hall)...............................................................................................................................................................................................Carried
8. FINANCIAL REPORT
The Incorporation’s Secretary Ian Hulton presented the consolidated annual accounts for the year ended 30
June 2009. The net operating result was a deficit of $774,286. The equity at 30 June 2009 was $40,024,941. The Secretary also presented additional information on the cash flows, debt levels and the forecast to 30
June 2010. The forecast is showing a cash flow break-even result contingent however on the Crater Lake
consent being successful and the joint venture partner contributing $900,000 for their interest in the transfer
of Crater Lake farm property to the JV.
Matthew Heke asked what would the Board do if the consent is not successful and the $900,000 is not
forthcoming? David Thomas said the worst case scenario the incorporation may have to face is selling some
assets. That may require an urgent special general meeting with the shareholders. Tina Ngatai said she
would be against the sale of any corpus land and Moewaka Shepherd agreed.
(T. Pene/B. Armstrong)................................................................................................................................................................................Carried
9. AUDITOR
That Iles Casey Chartered Accountants of Rotorua be appointed auditors and share valuers for the ensuing year.
(P. Wilson/T. Tait).............................................................................................................................................................................................. Carried
10. DIVIDENDS AND GRANTS
That no dividend be paid for the year ended 30 June 2009.
(B. Morrison/H. Barrett)................................................................................................................................................................................Carried
11. NGĀTI WHAKAUE PUKEROA ORUAWHATA TRIBAL TRUST
Hamu addressed the meeting on the Incorporation’s allocation to the Ngāti Whakaue Pukeroa Oruawhata
Tribal Trust. He said that previous research had shown that the payment of a kaumatua grant would be
unaffordable for the Incorporation. However the Charitable Trust’s practice of paying health grants has in
fact become a form of kaumatua grant, and as more shareholders age and require more of those grants then
there will be more pressure on that Trust to meet those needs. He said the Incorporation’s preference is for
the funds to go to the upkeep of Marae rather than to individuals.
Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
47
That the Incorporation contributes $50,000 to the Ngāti Whakaue Pukeroa Oruawhata Tribal Trust.
(W. Hall/M. Pene).............................................................................................................................................................................................Carried
12. NGĀTI WHAKAUE TRIBAL LANDS EDUCATIONAL TRUST
The Secretary read the Annual Report and presented the Trust’s financial statements for the year ended 30
June 2009. There was a net surplus for the year of $5,070.
That the Annual Report and financial statements for the year ended 30 June 2009 be approved.
(D. Hingston/H. M. P. Kingi).......................................................................................................................................................................Carried
13. GENERAL BUSINESS
Kauae cemetery. The Chairman said the issue of extension to the Kauae cemetery has been discussed at
previous shareholder meetings and currently there is a resolution that any extension would only be for Ngāti
Whakaue. He invited Pihopa Kingi, a trustee of the Kauae Cemetery Trust Board to address the meeting. Pihopa said the Board comprises representatives from both Ngāti Whakaue and the Rotorua District Council. The Council has been looking for more land as space in the current cemetery is limited. The land up to the
bush line is part of the cemetery and he said that could be swapped with some of the Incorporation land
on the western side of the cemetery. Mitai Rolleston who is also a trustee of the Kauae Cemetery Board said
that Ngāti Whakaue is running out of plots. He said the additional area required to accommodate future
growth is 10 acres. Kiri Mitchell said that the Sala Street cemetery was also gifted by Ngāti Whakaue and that
should be included in any negotiations with Council.
Hamu said there are two key points. The first is the request from Council to expand the cemetery and to
make part of that expanded area available for the general public. That has been opposed in the past and it
is clear that there continues to be opposition to that proposition. He said secondly however, Ngāti Whakaue
is also running out of room in the cemetery. He said when the cemetery was established it was set up for
Ngāti Whakaue o Ohinemutu i Te Koutu. He said if we extend into the bull paddock adjacent to the current
cemetery, then every shareholder or descendent would be entitled to the plots there. He added that an
application could be made to the Māori Land Court to set aside land for a Māori Reservation and that land
also would have to be for all shareholders.
KARAKIA
48
Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
1.40pm
Organisation Structure
Committee of
Management
Audit
Committee
Remuneration
Committee
Whakaue
Holdings Limited
Property
• Whakaue Nominees Ltd
• Crater Lake
Nominees Ltd
Farming
• Whakaue Farming Ltd
Tourism
• Mountain Action Ltd
(ceased trading)
Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
49
Directory
Committee of Management
David , THOMAS
– Chairman
Nov 2010 to 2013
Hamuera, MITCHELL
– Deputy Chair
Nov 2008 to 2011
Jackie, ARATEMA
Nov 2010 to 2013
Glenn, HAWKINS
Nov 2008 to 2011
John, KAHUKIWA
Nov 2010 to 2013
Jason,ROGERS
Nov 2008 to 2011
Donna, GRANT
Nov 2009 to 2011
Secretary / General Manager
Tamarapa, LLOYD
Accountants
Ian, HULTON
HULTON PATCHELL LIMITED
2nd Floor, Pukeroa Oruawhata House
1176 Amohau Street
PO Box 12003
ROTORUA
Phone: 07 343 1050
Fax: 07 343 1051
Auditors
Iles Casey, Chartered Accountants, Rotorua
Bankers
Bank of New Zealand
Incorporation Office
First Floor, Pukeroa Oruawhata House
1176 Amohau Street
PO Box 12015
ROTORUA
Phone: 07 348 8887
Fax: 07 346 0757
50
Appointed
Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
Agenda for Annual General Meeting 2010
49th Annual General Meeting of Shareholders
Tamatekapua, Ohinemutu, Rotorua
Saturday 13 November 2010
10.00am.
AGENDA
1.
Receive Apologies
2.
Call for items for General Business
3.
Receive NWTL Annual Report and presentations
• David Thomas, Chairman – Ngāti Whakaue Tribal Lands
• Tamarapa Lloyd, General Manager – Ngāti Whakaue Tribal Lands
• Glenn Hawkins, Chairman – Whakaue Farming Limited
• Jason Rogers, Trustee – Whakaue Property Trust
4.
Approve Minutes from 48th Annual General Meeting
5.
Approve Annual Accounts for the year ended 30 June 2010
6.
Appointment of Auditor & Share Valuer
7.
Approve Grants (Ngāti Whakaue Pukeroa Oruawhata Tribal Trust)
8.
Receive other Reports:
• Ngāti Whakaue Tribal Lands Education Trust
• Ngāti Whakaue Pukeroa Oruawhata Tribal Trust
9.
General Business
Ngāti Whakaue Tribal Lands Incorporation Annual Report 2009-2010
51
Ngāti Whakaue Tribal Lands Incorporated
Pukeroa Oruawhata House
1176 Amohau Street, Rotorua
AOTEAROA NEW ZEALAND
P: 07 348 8887 F: 07 346 0757
[email protected] www.ngatiwhakaue.iwi.nz
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