Ratification Information Hui 26 29 August 2013 Information Hui - - - PowerPoint PPT Presentation

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Ratification Information Hui 26 29 August 2013 Information Hui - - - PowerPoint PPT Presentation

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Pouarua On-Account Deed of Settlement & PSGE Ratification Information Hui 26 29 August 2013 Information Hui - Purpose Discuss: Crowns Pouarua On-Account Settlement Offer Proposed Pouarua PSGE Facilitate questions and

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Pouarua On-Account Deed of Settlement & PSGE Ratification Information Hui

26 – 29 August 2013

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  • Discuss:
  • Crown’s Pouarua On-Account Settlement Offer
  • Proposed Pouarua PSGE
  • Facilitate questions and answers
  • Enable in-person voting

Information Hui - Purpose

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  • Key documents – available on iwi websites since voting

commenced (15 August) & copies available at hui (on the table)

  • Crown observers – TPK representation at hui to observe only

for independent reporting to the Crown (no questions to them)

  • Independent election scrutineers - Electionz representation

here to provide iwi registration forms and collect any completed votes

Information Hui – ‘Housekeeping’

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  • Media presence – private hui
  • Safety matters – exits etc
  • Attendance register circulating
  • Post hui arrangements – kai location & separate iwi PSGE hui

for Ngāti Tara Tokanui (27 August) and Ngāti Pāoa (29 August)

Information Hui – ‘Housekeeping’

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  • Introduction and background
  • Pouarua on-account settlement offer
  • Pouarua PSGE
  • Pouarua ratification process
  • Next steps
  • Question & answer session

Information Hui – Presentation Scope

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POUARUA ON-ACCOUNT DEED OF SETTLEMENT & PSGE PROPOSAL

  • I. INTRODUCTION & BACKGROUND
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  • The Pouarua on-account settlement involves the following 5

iwi (alphabetical):

  • Ngāti Maru
  • Ngāti Pāoa
  • Ngāti Tamaterā
  • Ngāti Tara Tokanui
  • Te Patukirikiri

Pouarua On-Account Settlement – 5 iwi

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  • The 5 iwi are among the 12 iwi of Hauraki in Treaty of

Waitangi negotiations with the Crown

  • Parallel and separate Treaty negotiations have been

underway since 2009:

  • Iwi specific
  • Hauraki Collective (for shared interests, eg maunga

& rivers)

Hauraki Historical Treaty Claims

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Ngāi Tai ki Tāmaki Ngāti Hako Ngāti Hei Ngāti Maru Ngāti Pāoa Ngāti Porou ki Hauraki Ngāti Pūkenga Ngāti Rahiri Tumutumu Ngāti Tamaterā Ngāti Tara Tokanui Ngāti Whanaunga Te Patukirikiri

Hauraki Collective – 12 Iwi

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Hauraki Negotiation Milestones

OCTOBER 2010 HAURAKI COLLECTIVE FRAMEWORK AGREEMENT JUNE 2013 POUARUA ON-ACCOUNT DEED OF SETTLEMENT INITIALLED

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  • The indicative negotiations timeline is as follows:
  • November 2013 – initialled iwi and collective deeds of

settlement

  • First quarter 2014 – ratification process / signed iwi and

collective deeds of settlement

  • Mid-2014 – legislation introduced (rule of thumb = 12 months

for legislation to be enacted)

  • Ongoing challenge of timing slippage due to Crown’s allocation of its

human resources around various iwi negotiations

Hauraki Negotiation Timeline

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POUARUA ON-ACCOUNT DEED OF SETTLEMENT & PSGE PROPOSAL

  • II. POUARUA ON-ACCOUNT SETTLEMENT OFFER
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  • As part of the wide ranging Treaty settlement redress

negotiations, both Landcorp farms in Hauraki were identified (Whenuakite and Pouarua)

  • For the first few years, only Whenuakite was on offer from the

Crown

  • Through ongoing negotiations, Pouarua finally became

available

Pouarua Farm Opportunity

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  • Each of 12 Iwi of Hauraki had the opportunity to receive on-

account financial redress (cash) to purchase the Pouarua Farm

  • Only the 5 iwi accepted that opportunity

Pouarua Farm Opportunity

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  • Pouarua Farm currently owned by Landcorp (SOE)
  • 2,206 ha dairy farm
  • Farm held in a single legal title - farmed as 8 separate dairy

units (dairy units range in size from 74 to 487 ha)

Pouarua Farm

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  • Single largest dairy farm on Hauraki Plains
  • Some of the area previously mined for peat and rehabilitated

to pasture (previously a Lands & Survey Block)

  • Most of farm is in ryegrass and clover based pasture with 150

ha in tall fescue grass

Pouarua Farm

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  • Dairy herd around 4,900
  • Last season, production at 1.6 M kg / milk solids
  • Milk supply is to Open Country Cheese (Waharoa)
  • Water supply – reticulated Hauraki District Council community

scheme

  • All waterways fenced

Pouarua Farm

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  • Buildings and plant comprise:
  • 8 dairy sheds and water & milk plant / races etc
  • 25 houses & 4 single accommodation units
  • Central office
  • Crown valuer - market value of $58.5 M

Pouarua Farm

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  • Pouarua Farm ‘purchase price’ = $53.5 M made up of:
  • $51 M – ‘farm price’
  • $2.5 M – capex fund
  • The capex fund will be applied to both normal landowner

expenditure under sharemilking agreements (eg, capital fertiliser) & production and technology enhancements (eg, Milk Hub)

  • Price does not include dairy herd (we have option to purchase

Landcorp herd)

Pouarua Farm

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  • Landcorp will continue managing the farm in a sharemilking

arrangement for a 5 year period (or longer if agreed)

  • Vision to ultimately manage farm via our own skilled people

and operate as a leading farmer while fulfilling our kaitiakitanga

  • Sharemilking payment ratios will help protect against ‘low’

payout years and reward ‘high’ payout years

Pouarua Farm

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  • Crown will make $53.5M available now (before end of 2013) in

advance of Treaty settlement being completed expected to be after legislation passed in 2015 (hence “on-account”)

  • Total sum made up of:
  • Ngāti Maru - $19,615,000
  • Ngāti Pāoa - $15,625,000
  • Ngāti Tamaterā - $15,300,000
  • Ngāti Tara Tokanui - $2,710,000
  • Te Patukirikiri - $250,000

Crown On-Account Offer

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  • These contributions are a portion of the total financial redress sums

(cash) to be paid to the 5 iwi (alongside the other commercial and cultural redress in the respective settlements)

  • Four of the 5 iwi will also receive financial and commercial redress

from the Tamaki negotiations

  • Ability for each iwi to sell down their interest, eg if money required

for other purposes

  • Pre-emptive right among the 5 iwi if any desire to sell their share

(part or whole)

Crown On-Account Offer

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  • Benefits of on-account payment include:
  • No debt required to purchase Pouarua Farm
  • ‘Free use of money’ until settlement effective (first half

2015)

  • ‘Milk cheques ’ / dividend in the meantime
  • When settlement effective in 2015, iwi can raise a

proportion of debt on the Pouarua Farm to free up cash for

  • ther Treaty settlement opportunities, eg purchase of

commercial properties

Crown On-Account Offer

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  • What the experts say:
  • Geoff Tizard (Curnow Tizard - Valuers) – “the purchase price

represents fair value”

  • Bill Rys & Ross Beal (Intelact – Farm Consultants) – “the

proposed sharemilking agreement represents a fair return on the asset through the normal range of milk prices and lays a good platform for increased milk production”

Pouarua Farm

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POUARUA ON-ACCOUNT DEED OF SETTLEMENT & PSGE PROPOSAL

  • III. POUARUA PSGE
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  • General position - before Treaty settlement assets can be

transferred, a Crown approved legal structure must be in place to receive them

  • Key design factors for the Pouarua PSGE:
  • Enable fit for purpose iwi governance arrangements
  • Tax efficiency back to iwi PSGEs
  • Independent expert advice obtained to select best type of

PSGE (Koau Capital & Russell McVeagh)

PSGE - Background

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  • Adequately represents and is fully accountable to all iwi

members

  • Transparent decision-making procedures
  • Ensures the ‘beneficiaries’ of the settlement and the

‘beneficiaries’ of the governance entity are identical

PSGE - Crown Requirements

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  • Based on expert advice (as above), the proposed PSGE is a

limited partnership (Pouarua Farm Limited Partnership)

  • A limited partnership is akin to a company, eg separate legal

liability from owners (and recognised in the Limited Partnerships Act 2008)

Proposed Pouarua PSGE

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  • A limited liability company will assist the work of the limited

partnership (Pouarua Farm General Partner Limited) and will be

  • wned by the 5 iwi asset holding companies (AHC) (being the

limited partners) in their respective proportions

  • Crown has approved the proposed Pouarua Farm Limited

Partnership as meeting its PSGE requirements

Proposed Pouarua PSGE

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Proposed Pouarua PSGE

PURPOSE

*Manages Pouarua Farm on behalf of the 5 iwi

STRUCTURE

*Limited partnership + general partner company *Appointment of three directors plus 1 independent director

ACCOUNTABILITY

*Controlled by and accountable to 5 iwi AHCs which are in turn respectively controlled by 5 iwi PSGEs *Annual Statement

  • f Intent

* 5 year plans

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Proposed Pouarua PSGE

  • A limited partnership allows for ultimate commercial

structuring at the iwi level as it involves ‘pass through’ tax arrangements to the iwi PSGE level (ie, no tax paid by limited partnership)

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PSGE – Wiring Diagrams

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POUARUA ON-ACCOUNT DEED OF SETTLEMENT & PSGE PROPOSAL

  • IV. POUARUA RATIFICATION PROCESS
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  • Voting period: 15 August to noon, Friday 13 September 2013
  • Ratification Information Hui: Monday, 26 to Thursday, 29

August 2013

Pouarua Ratification Process

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  • Three voting methods – e-vote online, postal, or ballot box at

ratification hui

  • Voting well underway with good returns
  • Iwi members being encouraged to vote (and to register if not

already registered)

Pouarua Ratification Process

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POUARUA ON-ACCOUNT DEED OF SETTLEMENT & PSGE PROPOSAL

  • V. NEXT STEPS
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  • If sufficient support for Pouarua on-account settlement and

PSGE (to be confirmed by the Crown), can proceed with settlement process

  • Will involve:
  • Establishment of Pouarua Farm PSGE and general partner
  • Receipt of on-account payment from Crown to purchase of

Pouarua Farm from Landcorp

  • Operation of sharemilking agreement

Next Steps

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POUARUA ON-ACCOUNT DEED OF SETTLEMENT & PSGE PROPOSAL

  • VI. QUESTION & ANSWER SESSION
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  • Now is the time for your questions
  • Reminder – give any completed voting forms to the Electionz

representative to place in the ballot box

Question & Answer Session