Waikato-Tainui: Annual Report 2016

1 GENERAL INFORMATION

1.1 Reporting entity

The Waikato Raupatu Lands Trust is the leading tribal organisation responsible for developing and implementing initiatives which

improve iwi outcomes in the areas of education and training, employment, tribal preservation, marae development, health and

well being, environmental and resource management.

The Trust manages tribal affairs, implements the tribe’s development strategy, and makes distributions for education, health and

wellbeing, marae, social and cultural development.

Tainui Group Holdings Limited, a controlled entity and commercial arm of the Trust, manages a diversified portfolio of

investments in fixed income, direct investments, equities, primary industries and properties.

The Trust is incorporated and domiciled in New Zealand.

These consolidated financial statements have been approved for issue by Te Arataura on 24 June 2016.

Te Arataura do not have the power to amend the financial statements once they have been issued.

Waikato Raupatu Land Settlement

On 22 May 1995, Waikato-Tainui signed the Deed of Settlement with the Crown’s representatives for a full and final settlement

of its Raupatu claim to be made to the Waikato Raupatu Lands Trust. This agreement formed the basis for the Waikato Raupatu

Claims Settlement Act 1995.

The initial settlement, being the redress value, totalled $170 million.

As part of the Deed of Settlement, a relativity clause is provided, which allows for further settlement redress. The payment of

further settlement from the Crown was triggered in the financial year ended 31 March 2013, when all Treaty settlements since

1994 exceeded $1 billion. The amount of $70 million was received in December 2013 upon first claim under the relativity clause.

Further to this in December 2014 an amount of $12.5 million was received as a result of the arbitration process which followed

the first claim. The next claim can be made in 2017 and five yearly thereafter, no settlement is payable after 2044. For further

details on accounting policy for relativity settlement, and details on amounts recognised refer to (notes 2.1(e)).

Waikato Raupatu River Settlement

On 17 December 2009, a Deed of Settlement (the ‘Settlement’) was made between the Crown and Waikato-Tainui to settle the

claim by Waikato-Tainui for the Waikato River.

The Settlement, being the redress value, is specified as $70m plus $30m over a period of 28 years. The Settlement is to be

realised as follows:

(a) The Sir Robert Mahuta Endowment ($20m) is to be applied to support the vision of Sir Robert Mahuta for the Waikato.

Endowed College at Hopuhopu as an educational centre providing leadership, innovation, research and scholarship in

indigenous development and practices and support research management practices on improving the health and well being

of the Waikato River and Waikato-Tainui’s tribal histories associated with the Waikato River;

(b) The River Initiatives fund ($50m) is to be applied for the purposes of cultural and environment development projects related

to the Waikato River, enhancing the restoration and protection of the relationship of Waikato-Tainui with the Waikato River

and protecting and enhancing sites of significance, fisheries, flora and fauna; and

arrangements under the Settlement. The Co Management funding of $3m shall be received on settlement date with an

annuity of $1m per year for 27 years. In 2014, $10m was advanced, reducing the annuity receipt from 27 years to 17 years.

Included in the Waikato Raupatu River Settlement, but excluded from these financial statements is the settlement funding for

the Waikato River clean up. The Waikato River Clean Up Trust was established with the Waikato River Authority being the Trustee.

The Waikato River Clean Up Trust’s objective is the restoration and protection of the health and wellbeing of the Waikato River.

$21m was paid with an annuity payable to the Waikato River Authority of $7m per year for 27 years.

WAIKATO RAUPATU LANDS TRUST

Notes to the financial statements

FOR THE YEAR ENDED 31 MARCH 2016