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.

Sources
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

4 comments:

Honeybadger said...

Love to know what the Directors are paying themselves on this nice gravy train. Time these so called 'charities' were investigated on many levels particularly to ensure their tax free status is not abused!

Anonymous said...

An advance of $10-million this year to replace Waikato River co-management fees of $1-million annually for the years 2027 to 2036 meant the government quietly gave Waikato-Tainui $5.1-million, a closer inspection of that tribe’s 2014 annual report reveals.

Some may recall that in December 2009 Waikato-Tainui signed an agreement over the tribe’s Waikato River raupatu claim. The Crown agreed to pay immediate redress of $70-million plus an additional $30-million for “co-management funding” (separate from an additional $21-million plus $7-million annually for 27 years paid to the Waikato River Clean-up Trust (for the actual clean-up).

The $30-million co-management fee was agreed as $3-million on settlement with a further $1 million annually for 27 years.

So it is surprising to see that the government paid $11-million (rather than $1-million) in the 2014 financial year, recognized in the financial statements by a reduction in the term of the annual payments from 27 years down to 17.

Using the average goverment bond rate as per today of 4.073 percent, this represents a gift to Waikato-Tainui of approx $5.1-million.

Another interesting detail for those who still believe that Waikato’s 1995 “full and final” settlement totalled $170-million, and who have seen that Waikato-Tainui negotiated three further historical treaty settlements over the past financial year, with Ngati Haua ($13-million), Koroki Kahukura ($3-million), and Te Kawerau a Maki ($6.5-million).

The discounted value of future advances per the relativity clause to 2044 is valued at $19- million, as mentioned on page 80 of the financial statements. This brings the total Waikato-Tainui settlement to $259-million at March 31, 2014. That amount includes $170-million transferred in 1995, $70-million plus interest resulting from the relativity clause triggered last year, and $19-million from future relativity payments.

Dave said...

If Tainui really had any sense of charity they would stop dipping their snouts into the taxpayer funded trough and disperse some of the hundreds of millions given to them by the gullible and ignorant 'white colonisers' and instead fund housing, employment and education for their own part Maori descendants. What no more flash cars, trips overseas, meals, hotels and big fat pay checks... na sorry I was dreaming.

Anonymous said...

How on earth do these people define "charity" and, more especially "a charitable organisation".

It is purely (?) and simply - big business with a mob of parasitic chiefs and maori "nobility" skimming-off a very thick layer of cream.

You have to wonder when the average tribesman will wake up to it.

Auntie Podes