Sunday, July 6, 2014
Mike Butler: A billion in assets but little charity
Waikato-Tainui’s 2014 report boasts assets of $1.1-billion and distributions of $55-million over 10 years but it is over to anyone interested to work out that charitable distributions of $6.1-million over the past year only make up about nine percent of the tribal corporation’s consolidated net profit of $70.9-million. (1)
The fact is very little goes towards charity from this entity that has charitable status that means it pays very little tax. Charitable distributions for the 2014 year were $2.5-million for education, $1.2-million for marae grants and facilities, $1.7-million for Kingitanga, and $0.7 million towards a range of cultural activities.
The Raupatu Land Trust that had a total income $78.1-million in the 2014 year lists deferred tax liabilities of $3.18-million in its statement of position, a tax credit of $1.58-million in the income statement, declared profit subject to income tax as $1.22-million, and paid income tax of $342,000 at a rate of 28 percent.
No details of salaries or directors fees appear in the accounts but detailed record of meeting attendance is included.
Assets by sector comprise 55 percent property, 17 percent cash, 16 percent ground leases, 5 percent primary industries, 4 percent direct investments, and 3 percent settlement receivable assets. The heavy weighting in property derives from the properties and leases to government departments received in the 1995 “full and final” settlement.
It is interesting to note that in April this year Tainui Group Holdings bought 5.4 million shares in Genesis Energy when the Government sold down 49 percent of its stake in the company.
While the asset sale row was in full steam, Maori King (of Waikato) Tuheitia said Maori had "always owned the water" and the hui he made that assertion at resolved to fund a Maori Council court challenge to the sale of Mighty River Power unless the Government settled issues of proprietary rights over water before the share float of state-owned power companies.(2)
Treaty settlement income remains a substantial part of Waikato-Tainui’s cashflow. The 2014 report lists receipts from customers as $75.2-million and settlement income of $11-million, while the 2013 report lists receipts from customers as $61.8-million and settlement income of $71.039-million.
Last year’s entry was made up of the payment made under the relativity agreement negotiated in the 1995 settlement which allows Waikato-Tainui a 17 percent slice of all settlements over $1-billion in 1992 dollars.
While the tribe claims assets of $1.1-billion, actual net worth is $783.7-million.
Waikato-Tainui chairman Rahui Papa sees the $1.1-billion in assets as "getting back to Waikato Tainui's success, pre colonisation," the tax advantage afforded by charitable status, the gold-plated leases of property to government departments, and the on-going 17 percent cut of all treaty settlements means the tribe is yet to reach self-reliance.
1. Waikato-Tainui 2014 annual report http://www.wrrt.co.nz/wp-content/uploads/waikato-tainui-annual-report-2014.pdf
2. We own the water - Maori King, NZ Herald, September 14, 2012. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10833926
at 1:46 PM