Building the Hauraki Nation together!

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1 Pare Hauraki Fishing Trust Annual Report

2 Building the Hauraki Nation together! Chairman s Report 4 Annual report on performance Financial Statements 21 Annual Scorecard of Performance Directory 36

CHAIRMAN S REPORT E mihi ana ki te whenua E tangi ana ki te tangata On behalf of the Trustees of the Pare Hauraki Fishing Trust I have pleasure in presenting this Annual Report for 2014-2015.

increased this year as you will see in the contents of this report.

4 CHAIRMAN S REPORT E mihi ana ki te whenua E tangi ana ki te tangata On behalf of the Trustees of the Pare Hauraki Fishing Trust I have pleasure in presenting this Annual Report for The Trust is proud to have been able to again provide our registered members with a range of grants which include Education, Marae, Cultural, Sports Grants and Iwi grants and in total these were increased this year as you will see in the contents of this report. These grants enable the Pare Hauraki Fishing Trust to invest in our people and this year based on your feedback we undertook a high level review of these grants and concluded that they meet a valuable need in their present form. This year the Trust was able to go a long way towards settling a dispute with a neighbouring iwi and as a result of our efforts payments were received from Te Ohu Kaimoana which they were holding on our behalf. I want to thank you for your fortitude and tenacity in bearing with us over the last nine years as we come home. This is not the end of the road and we still have another hurdle to overcome and your Now our commercial directors in the Pare Hauraki Asset Holding Limited have a putea that can be nurtured and grown to create greater wealth for our iwi members in the future. While we made great progress resolving several year it is somewhat frustrating that the wheels of government bureaucracy turn slowly and we have not yet been able to complete all the legal settlement documentation to a point where actual assets transfer to Hauraki this year. However there was one highlight in that an allocation agreement for aquaculture settlement assets was settled by the Crown in in our favour and this resulted in another $2 million cash payment to us for our interests in Aotea. disaggregation as government, in Treaty of Waitangi negotiations, has extended the as one combined package to enable us to grow industry in this region rather than cutting it up and lose our collective strength. We will continue the work on potential investments and to better inform you of future forecasts and trends within the commercial world. This Annual Report for provides you with a good description of our activities during the year It is important that you are informed and seek knowledge for what is a very exciting time for the 12 iwi of Hauraki within our rohe. I would like to thank my fellow Trustees for their hard work and commitment to the Pare Hauraki Fishing Trust and would also like to acknowledge the support that has been provided by the Hauraki requirements. Our company has a great future with a much better balance sheet which will continue to grow through your support and our collective strengths as we all work together and share the results together. David Taipari Chairman. 4 Pare Hauraki Fishing Trust

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ANNUAL REPORT ON PERFORMANCE INTRODUCTION In March 2009, the Pare Hauraki Fishing Trust (the Trust) was recognised by Te Ohu Kaimoana as the Joint Mandated Iwi Organisation (JMIO) representing the

7 ANNUAL REPORT ON PERFORMANCE INTRODUCTION In March 2009, the Pare Hauraki Fishing Trust (the Trust) was recognised by Te Ohu Kaimoana as the Joint Mandated Iwi Organisation (JMIO) representing the Iwi of Hauraki for the purposes of Aquaculture Claims Settlement Act The The Pare Hauraki Fishing Trust exercises strategic governance over the Pare Hauraki Asset Holdings Limited (PHAHL), an Asset Holding Company which was set up to commercially manage and grow the and to provide a dividend back to the shareholder, which is the Trust. The Trust is required to provide an Annual Report to Iwi members which must comply with the reporting requirements of the constitution of the Trust and the The Trust s annual reporting responsibilities are Fisheries Act 2004 and mirrored in its Trust Deed. other entities that conduct business using Hauraki settlement assets; registered members; objectives in the annual plan, including changes in shareholder or member value and dividend settlement quota including quantity and value of the settlement quota sold or exchanged and the identity of the purchaser; resulted in a registered interest by way of caveat or mortgage being placed over the quota; have been registered against the quota shares of the mandated iwi organisation; acquired; and THE ANNUAL PLAN The Trust must report on a comparison of its performance against the objectives in the annual plan, including any changes in shareholder or member value, and to report on dividend The scorecard of performance against these objectives to the end of September 2015 is set out at the end of this report Annual Report 7

8 BOARD OF TRUSTEES David Taipari Chairperson Wiremu Peters of Patukirikiri, Trustee Pine Harrison ki Harataunga ki Mataora, Deputy-Chairperson Pongarauhine (Honey) Sonny Te Karu Trustee Stephen Zister John Linstead Arama Chase Trustee Joe Davis Harry Mikaere ki Waiau, Trustee Mapuna Turner Tumutumu, Trustee 8 Pare Hauraki Fishing Trust

9 TABLE ONE A total of eight (8) Trust meetings were held this year including seven (7) ordinary meetings and one (1) Annual General Meeting in June TRUSTEE ATTENDANCE, SITTING FEES AND TRAVEL PAYMENTS: PHFT Trustees Meetings Fees Travel Total David Taipari 8 $3,040 - $3,040 Pine Harrison 8 $2,400 $ 681 $3,081 Stephen Zister 7 $2,100 $ 41 $2,141 Sonny Te Karu 8 $2,400 $ 650 $3,050 John Linstead 3 $ 900 $ 678 $1,578 Joe Davis 5 $1,500 $1,258 $2,758 Harry Mikaere 7 $2,100 $ 752 $2,852 Wiremu Peters 6 $1,800 $ 269 $2,069 Honey Renata 8 $2,400 $ 674 $3,074 Arama Chase* 3 $ 900 $ 334 $1,234 Mapuna Turner* 4 $1,200 $ 106 $1,306 Airini Tukerangi Glen Tupuhi 1 $ 300 $ 103 $ 403 Jill Taylor *From May 2015 Total Board Meeting Activity $21,940 $5,742 $27,682 Other non-board Meeting Activity $15,947 Subsidiary Directors Fees & Travel $160,662 REGISTER OF MEMBERS OF HAURAKI IWI As at 30 September 2015 the tribal register stands at 7,542 validated members of which 5,559 members are aged 18 years and over. Regular reviews of the tribal register are undertaken to ensure that the register is up to date and accurate. New members are added on a monthly basis and this is an ongoing process. When information is provided to us deceased members are removed from the register. STRATEGY AND PLANNING The following key strategic documents exist between the Trust and the Pare Hauraki Asset Holdings Limited; Aquaculture Assets (August 2015) which was under discussion with the Trust; Policy (August 2015) which was under discussion with the Trust to outline their proposals for the future of subsequently presented the above two draft reports for the Trust to consider their strategic the reporting period. training opportunities in South Auckland and project in the Infrastructure and Construction sectors as a pathway to encourage Hauraki iwi youth into trades and technical training and subsequent employment thus providing a social dividend to members. the freshwater habitat requirements of commercial eel farming so that it can consider future opportunities in our region. brand and logo for the Trust during the year but ASSET HOLDING COMPANY The Trust established Pare Hauraki Asset Holdings Limited (PHAHL) on 30 September 2009 to receive the settlement assets and manage these on a commercial basis. The three directors of the company are Harry Mikaere (Chairman), Paul Majurey and Andrew Harrison as an independent director Annual Report 9

No further Asset Holding Companies have been established by the Trust and no subsidiaries formed by PHAHL. Annual Catch Entitlement (ACE) to Aotearoa Fisheries Limited for a three year term.

10 No further Asset Holding Companies have been established by the Trust and no subsidiaries formed by PHAHL. Annual Catch Entitlement (ACE) to Aotearoa Fisheries Limited for a three year term. This ACE together with those aquaculture settlement assets transferred from the Crown under settlement to the company and the transfer from Te Ohu Kaimoana of cash in lieu of water space due to an initial settlement with neighbouring iwi have been the major sources of income for the company. In this reporting period, the Company returned $730,000 to the Trust to enable it to make grants to iwi, marae, cultural events, education and other charitable activities. Report there are still additional assets under the new space regime including 104ha for water space in the Coromandel Fish Zone which are subject to resolving the coastline dispute with Waikato-Tainui Te Kauhanganui. Discussions with Waikato to avoid litigation have been ongoing but at the end of the year had not reached a successful conclusion to the Trust. CHANGES TO CONSTITUTIONAL DOCUMENTS No amendments and no proposals for amendments are being sought to the Trust Deed of the Pare Hauraki Fishing Trust at this stage. In addition, no changes to the Company constitution have been made during this period. Changes to the constitutional documents of the Trust may only be promoted if Iwi members resolve at a general meeting that the change is for the FISHERIES SETTLEMENT ASSETS were transferred to the Trust of PHAHL. Fisheries Settlement assets still to be allocated to Hauraki which are subject to resolving regional coastline and allocation agreements with neighbouring iwi, are being held with Te Ohu were reported in last year s Annual Report. As part of our commercial arrangements with Aotearoa Fisheries Limited (AFL) we operate a Pataka Kai Scheme which gives access to our amount available for tangi in our tribal rohe is AQUACULTURE SETTLEMENT ASSETS During the year an allocation agreement for aquaculture settlement assets of $2,403,038 cash was settled by the crown in favour of PHAHL. In November 2014 agreement was reached with neighbouring iwi which allowed for the transfer of assets from Te Ohu Kaimoana. PHAHL received this settlement from Te Ohu Kaimoana in December Settlements to Hauraki iwi are based on the regional council areas of Auckland, Waikato and The process for changing constitutional documents is set out in the Trust Deed and Constitution of the Company. At the June 2015 Annual General Meeting there was general discussion about altering the quorum requirements and some other technical aspects however these have not been progressed by the Trust at this stage. A special meeting would be called in accordance with the Trust Deed should these changes be deemed necessary in the future. The PHFT Trust Deed and the PHAHL constitution are TRUST INTERACTIONS With other entities within the Hauraki Iwi group The Trust has interacted with the twelve iwi and many of the Hauraki marae in its programme of managerial, administrative and accounting services to the Trust which included these services to make distributions for iwi, marae development, cultural activities, sporting and educational grants. During the year the managerial, administrative and accounting services previously provided to PHAHL were transferred at the request of the Company to other providers. With other Mandated Iwi Organisations The Trust has continued to maintain relationships with other iwi to further the transfer and implementation of coastline and regional agreements already made. These have included discussions continued with Waikato iwi over the coastline dispute. 10 Pare Hauraki Fishing Trust

With Te Ohu Kaimoana Trustee Limited The Trust has interacted with Te Ohu Kaimoana on the allocation of Fisheries and Aquaculture settlement assets to Hauraki, ACE in dispute and the transfer of cash

11 With Te Ohu Kaimoana Trustee Limited The Trust has interacted with Te Ohu Kaimoana on the allocation of Fisheries and Aquaculture settlement assets to Hauraki, ACE in dispute and the transfer of cash following the initial settlement with Waikato iwi. There was discussion with Te Ohu Kaimoana to receive the AFL dividend of $170,842 in December The Review of Te Ohu Kaimoana following the initial Castle Report, subsequent Special General Meeting the future of Te Ohu Kaimoana focused the Trust on high level strategy issues over several months during the year. With Others The Company (PHAHL) continued to meet with Group to discuss opportunities for investment and consolidation which recognised the inter relationships of marine farming undertaken by Hauraki iwi generally with the result that a loan of $2,400,000 on commercial terms, was made to $1,000,000 was made to Taimoana Marine Farms Limited, a subsidiary of the Hauraki Fishing Group, information are reported in Note 9 of the Financial Statements. Following discussion between the Company and the Hauraki Fishing Group there was agreement at an operational level to consolidate both operations under the new name of Pare Hauraki Kaimoana. Kaunihera and supporting our trustees on the Tainui Waka Alliance. As at balance date only $48,196 The parent Statement of Financial Position (balance sheet) also compares the current year balances with those of That comparison discloses that the current situation is similar to that of the previous year, which is normal for the parent. Importantly at last balance date, were obviously managed position at balance date 30 September There is no reason to doubt the same won t occur in the next 12 months. BENEFIT DISTRIBUTION The Trust distributed a range of grants totalling $730, These included the following grants to the twelve iwi, for marae development and cultural purposes. Tertiary education, and sporting events are supported in New Zealand or overseas. FINANCIAL RESULTS the PHFT parent and the subsidiary Company $495,413) increasing the equity of the group at the settlements reached with the crown on the one hand ($2.4m) and with neighbouring iwi on the other ($25.1m). The group Statement of Financial Position (balance sheet) compares the current year balances with groups cash resources and its lending portfolio, all of which are explained adequately within the notes normal for the parent in that the dividend income it receives from PHAHL is utilised on operations and distributing grants and scholarships, rather than to build up the Trusts equity base. Those well as contributing to the maintenance of the MARAE DEVELOPMENT GRANTS Each year the Trust sets aside a sum of $100,000 Marae were approved Marae Development Grants Te Pai o Hauraki, Paeroa $43,000 Upgrade Whare Kai so it is compliant to Health and Safety regulations. Harataunga, Kennedy Bay $30,000 Upgrade Wharepaku to H & S compliance and environmentally sustainable. Te Ra Matiti, Whitianga $20,000 Upgrade and repair the water supply, including bore water to the Marae. Plastering, painting, repair cracks, resurface doors, replace shower linings and be compliant with Health and Safety regulations. Te Paea o Hauraki, Kennedy Bay $4,600 Provision of commercial oven, refrigeration unit and outside furniture to enable for larger catering capacity. Waihi Community, Waihi $2,400 Replace 30 single foam mattresses for Wharenui Annual Report 11

12 EDUCATION GRANTS Hauraki iwi and who are attending part and fulltime courses at Diploma (Level 5 NZQA) and above at universities, institutes, polytechnics or other comparable facility. NAME IWI QUALIFICATION Management Management 12 Pare Hauraki Fishing Trust

13 NAME IWI QUALIFICATION Development Tourism Management Annual Report 13

14 CULTURAL GRANTS The Trust set aside $23,125 for cultural purposes. event within the rohe that promotes and celebrates Hauraki kapahaka and whanaungatanga. 14 Pare Hauraki Fishing Trust

15 Alana Louise Te Wharau (NZ) SPORTS GRANTS Name Sporting Event Iwi Under 9 s Inter Provincial Series Awhina Taiwhanga William Cash Annual Report 15

16 IWI GRANTS Pare Hauraki Fishing Trust

17 of Hauraki to maintain their rangatiratanga, kaitiakitanga and mana tangata status Annual Report 17

18 Financial Statements Audit Report Statement of Comprehensive Income 21 Statement of Changes in Equity 22 Statement of Financial Position 23 Statement of Accounting Policies Notes to the Financial Statements Pare Hauraki Fishing Trust

19 To the beneficiaries of Pare Hauraki Fishing Trust and Group We have audited the financial statements of the Pare Hauraki Fishing Trust (the Trust ) and Group on pages 21 to 33 which comprise of the statement of financial position as at 30 September 2015, and the statement of financial performance, statements of movements in equity for the twelve months then ended, and a summary of significant accounting policies and other explanatory information. Trustee s Responsibility for the Financial Statements The Trustees are responsible for the preparation of a financial statements in accordance with generally accepted accounting practice in New Zealand and that give a true and fair view of the matters to which they relate, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibilities It is our responsibility to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation of the financial statements that give a true and fair view of the matters to which they relate in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Other than in our capacity as auditor we have no relationship with, or interests in, the Pare Hauraki Fishing Trust and Group. Opinion In our opinion, the financial report on pages 21 to 33: comply with generally accepted accounting practice in New Zealand; gives a true and fair view of the financial position of Pare Hauraki Fishing Trust and Group as at 30 September 2015 and of its financial performance for the twelve months then ended Annual Report 19

20 Emphasis of Matter As noted in the financial statements, the Pare Hauraki Fishing Trust Group s investments through its wholly owned subsidiary Pare Hauraki Asset Holdings Limited includes investments in the form of Fishing Quota Shares ($12,160,957) and AFL shares ($3,510,000).which are assessed annually for impairment and cyclical market valuations are also undertaken. Any fluctuation in the value of these investments is likely to have a material effect on the Company s financial position. Also investments held through Pare Hauraki Assets Holdings Limited through a loan to Tai Moana Marine Farms Limited ($1,000,000) are unsecured and the ability for the loans to be repaid is reliant on the continued support of the Shareholder of Tai Moana Marine Farms Limited. Other Matter- Comparative figures As stated in the accounting policies and other explanatory information, the financial statements of Pare Hauraki Fishing Trust and Group were realigned to 30 th September Consequently, the financial statements of the Pare Hauraki Fishing Trust and Group for 2014 cover a 15 month period and the financial statements for Pare Hauraki Fishing Trust and Group for 2015 cover a period of 12 months. As a result, no real comparison can be made between the 2014 and 2015 years. Report on Other Legal and Regulatory Requirements We have received the information and explanations we have required. In our opinion proper accounting records have been kept by the Trust and Group as far as appears from our examination of those records. Jefferies Nock and Associates Chartered Accountants 187 Peachgrove Road, Hamilton. 19 February Pare Hauraki Fishing Trust

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34 ANNUAL SCORECARD OF PERFORMANCE ACTIVITY KEY RESULT AREA Commentary EOY Results on Variance Exercise Good Governance Annual Report and Annual Plan documents are available 20 working days prior to the Annual General meeting. Consolidation and audits of PHFT and PHAHL completed in timely manner. To review strategic direction of Trust Maintain strategic relationship with PHAHL Maintain reporting and relationship building between the boards, chairs and executives of PHFT and PHAHL. Review key documents such as Statement of Corporate Intent and Financial Investment Policy. Review appointments to the AHC both independent directors and PHFT Trustees. Complete transfer for aquaculture pre-commencement settlement assets from Crown and Te Ohu Kaimoana (Aotea) regions. (Aotea) regions. Settlements agreed and transferred by end of September External Agency determined Substantially Progress transfer of aquaculture settlement assets regarding all new water space and other arrangements under the new regime. Finalise the resolution of dispute brought by Waikato Te Kauhanganui Limited (from Pukorokoro to Waitemata Harbour) agreed by the Trust (Te Ohu Kai Moana) Extend statutory arrangements to settle aquaculture assets in Environment Waikato Region and Auckland area under new (Space) regime to September External Agency determined External Agency determined Substantially Substantially 34 Pare Hauraki Fishing Trust

35 ACTIVITY KEY RESULT AREA Commentary EOY Results on Variance Progress transfer of aquaculture settlement assets regarding all new water space and other arrangements under the new regime. Assess options and reach agreement with the Crown on the type of aquaculture assets sought to settle Crown s obligations in the Environment Waikato Region as per the new (space) regime and the Auckland Area. Complete transfer of Te Ohu Kaimoana Transfer assets for Aotea and from Waitemata harbor to Te Arai Point. Complete transfer of assets for Whitianga Complete transfer of freshwater quota. External Agency determined External Agency determined External Agency determined and Eel Research Information obtained Substantially Substantially Substantially To ensure PHFT is appropriately structured to meet its objectives and legislative requirements and is developed as a standalone entity. Review its own Strategic Directions. Continue plan to develop active communication strategy (website, logo, letterhead etc.) to establish PHFT as standalone entity to ensure its services are well understood by its members. Ensure settlement rights are protected. Increase Tribal Members Register. Enhance registration and approval process. Maintain up to date Tribal Members Register Annual Report 35

36 DIRECTORY NATURE OF GROUP The Pare Hauraki Fishing Trust is the Joint Mandated legislation. CORPORATE TRUSTEE (Chairman) (Deputy Chairman) ki Harataunga ki Mataora Wiremu Peters Patukirikiri *From May 2015 BANKERS Westpac New Zealand Limited AUDITORS Jefferies Nock and Associates ACCOUNTANT SOLICITORS Aitkins Holm Majurey Limited ADDRESS Coronation Chambers Paeroa 36 Pare Hauraki Fishing Trust

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39 Building the Hauraki Nation, together Building the Hauraki Nation together! Annual Report 39

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Pare Hauraki Fishing Trust Annual Report 2011

Pare Hauraki Fishing Trust Annual Report 2011 Table of Contents Foreword from the Chair 3 Annual Reporting on Performance 5 Reporting Requirements 5 Trusteeship 6 Strategy and Planning 7 Register of Members