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Te pūrongo o te rau toi ariki
Chairperson Report - Dion Tuuta
E ngā mana, e ngā reo, e ngā karangarangatanga maha, te whānau o Parininihi ki Waitōtara tēnā koutou katoa. Nei rā te mihi maioha ki a koutou i runga i ngā āhuatanga o te wā. Ko te tūmanako kia noho ora mai koutou katoa i roto i te āhuru mōwai o tō tātou whānau me ngā hapori e noho nei tātou.
Nōku te māringanui ki te whakatakoto i te Pūrongo ā-Tau mō te Kōporeihana o Parininihi ki Waitōtara mō te tau i mutu i te 30 o Pipiri, 2024.
As we reflect on the past year, we recognise the significant strategic shifts we have embarked upon, building on the strong foundations laid by our predecessors while navigating a complex landscape. This year has been pivotal in ensuring that Parininihi ki Waitōtara is not just resilient but prepared for change and future growth.
FINANCIAL PERFORMANCE
Parininihi ki Waitōtara Group has recorded a net loss after tax for the year ended 30 June 2024 of $9.9m (2023: $1.0m loss). Total comprehensive loss recorded for the year was $18.8m (2023: $2.2m loss).
This final position was expected and reflects a significant downward valuation of our unimproved whenua tupuna (corpus land) of $23.7m impairment (2023: $10.6m impairment). This has been caused by current high interest rates affecting the discounted cashflow model upon which our whenua tupuna valuation model is based.
It is important for shareholder whānau to note that this does not represent a cash loss and note that the business fundamentals remain strong as demonstrated by the $2m improvement on operating profit before tax of $9.2m (FY22-23: $7.3m).
STRATEGIC DIRECTION AND TRANSFORMATION
The 2024 financial year marked the beginning of a multiyear transformation for Parininihi ki Waitōtara, designed to ensure our organisation’s long-term sustainability. Our focus remains on broadening our investment base, moving beyond our historical reliance on dairy farming to include diversified sectors such as horticulture, food and fibre production, and examining new areas such as renewable energy. These strategic initiatives are essential to diversifying our risks and capitalising on emerging opportunities in a quickly evolving market environment.
This strategic shift is not about moving away from our roots but about enhancing our ability to adapt and thrive. We remain committed to upholding the mana of our kaupapa and ensuring that our decisions are aligned with the aspirations of our Rau Titikura / Shareholders and the values of our tūpuna.
GOVERNANCE AND LEADERSHIP
This year, we have seen significant changes in our governance membership, which are critical to supporting our strategic direction. The Board welcomed new members who bring fresh perspectives, essential for navigating this transformative phase. We welcomed Serena Fiso to the board and welcomed back Tokatumoana Walden and we look forward to their leadership contributions.
In December 2023 we bid farewell to Tama Potaka and Claire Nicholson, whose contributions to the growth of our Incorporation have been invaluable. Their departure marks the end of an era, but their legacy continues to guide our governance practices.
Claire has continued on with her successful business and governance journey and Tama has gone on to play a significant role in our newest Government as Minister for Māori Development alongside a number of other significant portfolios including the Māori Reserved Land Amendment Act, under which the majority of our corpus lands are governed.
2024 RENT REVIEW PROCESS
Ironically, since the start of the year the Committee of Management have been in an arbitration with the West Coast Lessees Association as part of the seven-yearly rent review process. The rental review remains our core business and protecting this important income stream is central to our prosperity.
The issue of contention advanced by the Lessees is whether the cost of a modern Resource Consent can be claimed as a Lessee’s Improvement. The Committee of Management is clear that this is an inappropriate position taken by the Lessees Association.
At the time of writing, we have received the outcome of the arbitration and are very pleased to announce that the Arbitration Award is in the Incorporation's favour. The result is a significant accomplishment and aids in a resolution to the current rent review challenge. This has reinforced the Committee's stance that we must consider all necessary steps to protect our collective interests.
While on this occasion our interests have been positively recognised, it remains our view that the current legislative system – and the perpetual leasing system it created – imposed upon our tūpuna and their whenua remains manifestly unjust and is a matter that we will continue to take up with our new Minister for Māori Development.
STRATEGIC FOCUS AND FUTURE OUTLOOK
Looking forward, our strategic priorities include a particular focus on our climate change impacts and achieving our aspirations to be carbon neutral, as well as advancing our initiatives in renewable energy and property development. These sectors represent key opportunities for PKW to build sustainable and profitable ventures that will contribute to our long-term resilience. As we approach PKW’s 50th anniversary in 2026, we are laying the groundwork for celebrating our achievements and setting the stage for the next 50 years.
Our engagement with hapū remains a cornerstone of our strategy. Strengthening these relationships is not only about respecting our cultural heritage but also about ensuring that our growth benefits all stakeholders.
ACKNOWLEDGEMENTS
I extend my deepest gratitude to our Board, Te Rau Manawanui / Executive team, kaimahi, and partners for their dedication and hard work.
Additionally, I would like to acknowledge the significant contributions of our new Te Rau Matomato / CEO, Aisha Ross.
Since stepping into the role, he has brought a fresh strategic outlook and skills to PKW’s executive leadership, focusing on evolving and adapting our organisation’s existing strengths to meet future demands. His approach has been key in refreshing our strategy, ensuring that we are not just maintaining but building upon the strong foundations of PKW to adapt to new challenges and opportunities. Aisha’s leadership is steering us through this important transformation phase, marking a significant but respectful shift in how PKW is positioning itself for the future.
I also thank our Rau Titikura / Shareholder whānau for their ongoing support and trust. Together, we are building a legacy that honours our past and embraces our future.
Ngā mihi nui,
Dion Tuuta - Te Rau Toi Ariki / Chairperson
Te Rau Rengarenga o Parininihi ki Waitōtara / Parininihi ki Waitōtara Incorporation
