Annual Report 2012-13 by Tuwharetoa Maori Trust Board

TŪWHARETOA MĀORI TRUST BOARD

ANNUAL REPORT for the Year ended 30 June 2013

Our Guidance

Our Vision

Ko Tongariro te Maunga Ko Taupō te Moana Ko Tūwharetoa te Iwi Ko te Heuheu te Tangata

Ngāti Tūwharetoa – United, Smart and Prosperous

Our Mission Mahi Rangatira ki te Iwi – Enabling cultural, social, environmental and economic growth for Ngāti Tūwharetoa

Our Board Members John Bishara CHAIRMAN

Georgina te Heuheu DEPUTY CHAIRMAN

Te Kanawa Pitiroi POU TIKANGA

Paranapa Otimi

Heemi Biddle

Danny Loughlin

Frankie Taituma

Maria Nepia

Judy Harris

Message from the Chairman

Tena koutou katoa As you know there have been changes around the Board table. We reported at our AGM in May 2013 on the resignation of Ariki Ta Tumu te Heuheu from the Trust Board in August 2012. The governance changes have continued with the resignation of Paranapa Otimi in July 2013. I would like to thank Paranapa for the tireless effort he makes for Ngāti Tūwharetoa and his many contributions to the Trust Board over the last 14 years. We are reviewing our options as to how we best fill these two vacancies. One of the important responsibilities and challenges for any Board is setting the organisation’s strategic direction and vision. For the Trust Board reviewing the strategic direction and vision was an in-depth process that took into account the evolving circumstances in which the Trust Board finds itself. We completed our revised 3 Year Rolling Strategic Plan in August 2013 this year (published in August 2013 edition of Te Kotuku). The vision of the Trust Board is a united, smart and prosperous Ngāti Tūwharetoa. United – in that we need to work collectively and with single purpose in order to succeed. Smart – we must operate at our full potential. Prosperous – the outcome which we seek is a flourishing and thriving Ngāti Tūwharetoa. Our mission remains mahi rangatira ki te iwi – enabling cultural, social, environmental and economic growth for Ngāti Tūwharetoa. Ariki Ta Tumu te Heuheu provided guidance and support to the Board in his letter of resignation – he said: The core business of the Board since the return of the bed of Lake Taupō and its waterways now demands a clearer focus and effort, particularly around issues of control, management, protection, monitoring, regulation, and commercial ventures affecting Lake Taupō. The recent preoccupation with MOM and the national freshwater initiatives have also required the Board’s and other entities engagement, including myself as Ariki. I encourage the Board to maintain its focus on these matters, including pursuing propriety rights over Ngāti Tūwharetoa taonga, and potential commercial outcomes.

Under the 2007 Deed the Trust Board is able to charge operators who carry out commercial activities on our taonga Lake Taupō. Many commercial operators access Lake Taupō and make no form of payment to the Trust Board. The Trust Board has signalled, through recent actions toward Mighty River Power and Taupō IRONMAN, that free commercial access to Lake Taupō is untenable. This renewed commercial focus is not about driving operators out of business but more about exercising our rights and interests on our Lake, Taupō Moana.

We further implemented our commercial rights and interests last year with talks with the National government over the Mixed Ownership Model (MOM) and proceeded to negotiate directly with Mighty River Power. This negotiation relates to the use of our lake as a storage reservoir that underpins the entire Waikato hydro scheme – at present the negotiations continue. I am pleased to also report that we have reached an amicable arrangement with IRONMAN Taupō regarding their use of Lake Taupō. Taupō IRONMAN join a growing list of commercial operators who have a license from the Trust Board to operate on Lake Taupō. As a tribe we have aired our grievances over the use of our taonga Lake Taupō in the hydro electricity scheme before the Waitangi Tribunal. The Maunga Rongo Waitangi Tribunal Report 2008 made various findings on the impact of the Waikato hydro power scheme on our taonga and Ngāti Tūwharetoa – but stopped short of making recommendations. By comparison the recently released National Park Report provides clear recommendations on the Tongariro Power Scheme and the impact on Ngāti Tūwharetoa. We have sought expert advice on the historic economic loss to Ngāti Tūwharetoa of losing Lake Taupō to hydro-electricity generation; a matter which was not fully canvassed in the Maunga Rongo report. This advice estimates that if we had shared in the value obtained by the Crown on an equal basis Ngāti Tūwharetoa would have benefited to the value of $1.75 billon dollars (NZ$ value circa 2012). Clearly the Crown will not entertain a payment of this scale. However, one can only imagine the benefits for Ngāti Tūwharetoa if we had been treated fairly in the development of the Tongariro Power Scheme and the subsequent Hydro Electricity commercial results now enjoyed by State Owned Enterprises like Mighty River Power. To my fellow Trustees, staff of the Trust Board and all of Ngāti Tūwharetoa I am humbled to continue to serve you all over this past year.

John Bishara CHAIRMAN

ANNUAL REPORT 2013 TŪWHARETOA MĀORI TRUST BOARD

Report from the Chief Executive Officer

Tena koutou katoa Ngāti Tūwharetoa The Trust Board has adopted the new reporting requirements of the Māori Trust Board Act 1955, this year the Trust Board must do the following things at our annual hui: (a) report on its activities since the last hui (from 1 July 2012 to 30 June 2013) (b) report on the activities it plans for the future (from 1 July 2013 onwards) (c) present its annual accounts for the prior accounting period (from 1 July 2012 to 30 June 2013) (d) present a budget for the next accounting period that starts after the hui (from 1 July 2014 to 30 June 2015). The Annual Report has been structured to support reporting on these new requirements. We have included the intended budget for 2015 as part of this years AGM. This year we also include the annual accounts for the Taupō Waters Trust; the Trust Board is the trustee of the Taupō Waters Trust which is the legal entity that holds title to the bed of Lake Taupō. It has been a productive and busy time for the Trust Board and I hope this Annual Report helps to show the activities of the Trust Board over the last financial year, into this present year and beyond. I would like to highlight: • Our continued collaboration with other iwi entities, in this case the Ngāti Tūwharetoa Fisheries Charitable Trust, who provided funding towards education and kaumātua grants. • The review of the marae insurance scheme was a success that resulted in cost savings to the Trust Board and our marae. • The Land and Water Forum, which comprises various water users (NZ beef, Fonterra, power companies, Forrest and Bird, Fish and Game etc) in its final report to the Crown provided a strong statement to the Crown that it needs to resolve iwi rights and interests in freshwater. • The Tū Whare Taiao programme, will support connecting our rangatahi with our environment, our stories, tikanga and whakapapa. • The progressive recognition by others of our rights in Taupō Waters – as evidenced by our agreement with Taupō IRONMAN and the ongoing discussions with Mighty River Power are also positive. • Finally, we also collaborated with other Tūwharetoa entities in a commercial investment.

We have finished 2013 with an improvement in our total net operating profit of $2.170 million which carried through to a closing equity position that is up on 2012’s figure of $47.7 million to $49.4 million in 2013. Revenue was down by $258 thousand last year as compared to 2012 due to the Trust Board not renewing certain government contracts. However, expenses have also been reduced by $1.3 million. You may have also noted the audit letter has a reference to breaches of the Māori Trust Board Act 1955 – these breaches are minor, relate to technical aspects of how the Māori Trust Board Act operates and do not impact on the financial statements as presented. The Board has now set the strategic direction and vision in the 3 Year Rolling Strategic Plan. This outward statement on the intended 3 year path of the Trust Board is not a journey that can be completed alone. There are elements of the Plan that will require your support; especially as the Trust Board begins to review the commercial operators who use Taupō Moana. This must be done in a sympathetic way that does not stifle the local economy while at the same time affords recognition of our rights and interests in Taupō Moana. The Plan also typifies the old maxim - what got us here will not get us there. The Trust Board will need to try new things while holding onto the best of the old, challenge ourselves and our assumptions while continuing to make forward progress. Thank you to the staff for your endeavours, to the Board for your guidance and to our people for your continued support for the Trust Board.

Tamarapa Lloyd CHIEF EXECUTIVE OFFICER

WHAT WE ARE DOING 2014

WHAT WE HAVE DONE 2013

People

WHAT WE WILL DO 2015

1. Meaningful benefits to Ngāti Tūwharetoa TMTB has historically funded and facilitated a variety of programmes aimed at supporting a range of iwi social and economic goals.

We are reviewing our programmes ensuring we achieve clear outcomes to address Ngāti Tūwharetoa needs.

In partnership with Ngāti Tūwharetoa Fisheries Charitable Trust we co-funded this year’s Ngāti Tūwharetoa Education Grant. 1,039 beneficiaries received Grants to support their educational aspirations: $400,000.

We will continue to maintain and implement new programmes and services that address the needs of Ngāti Tūwharetoa.

Education Grants will be available to support individual early childhood, NCEA and tertiary education (applications open March-July, 2014).

In partnership with the Ngāti Tūwharetoa Fisheries Charitable Trust we are co-funding the Kaumātua Medical Grants scheme.

We fund Kaumātua Medical Grants to assist Kaumātua to purchase hearing aids, dentures, glasses and specialist services: $24,000.

We are exploring partnerships with education providers and funders to increase the value and types of Scholarships available to enable development of iwi capabilities.

We awarded ten Scholarship Awards of $1,000 to support high achieving Ngāti Tūwharetoa tertiary students: $10,000.

We are continuing to support Ngāti Tūwharetoa iwi events and groups.

We supported Ngāti Tūwharetoa groups who provide benefits to Ngāti Tūwharetoa including Taiopenga o Ngāti Tūwharetoa and the Matua Tū Taua: $65,000.

2. Strengthening our cultural base The Pou Tikanga programme commenced in response to requests from our marae to support their paepae to develop kaikaranga and kaikōrero. Seven noho marae were held at various marae involving a network of 35-40 participants.

We are working with the Office of the Āriki to facilitate the Pou Tikanga programme. The programme will recommence in 2014.

We reviewed our marae insurance scheme and introduced a new programme that has reduced marae insurance costs: $106,000.

We continue to work with Ngāti Tūwharetoa marae to ensure our marae insurance programme addresses the needs of our marae. New valuations of marae buildings commenced in November 2013 across all marae.

We have consolidated our marae related activities to create one Marae Development Programme that includes the provision of Capital Works Grants, Marae Insurance, and allocation of complimentary fishing licenses and boat ramp fees for the marae.

WHAT WE HAVE DONE 2013

WHAT WE ARE DOING 2014

WHAT WE WILL DO 2015

2. Strengthening our cultural base (continued) Marae capital works grants were awarded to support building projects at Maniaiti, Te Kapa o Te Rangiita ki Oruanui and Kākahi marae: $150,000.

We continue to support our marae via the marae capital works grant policy and are looking at making refinements to the policy.

We are committed to the growth of our reo and instigated a Ngāti Tūwharetoa Rautaki Reo (Māori Language Development Plan) project.

We support the endeavours of the Office of the Āriki to strengthen our iwi cultural base – we are working with the Office on the development of a Ngāti Tūwharetoa Rautaki Reo.

We will continue to maintain programmes that support ongoing development of Ngāti Tūwharetoa whānau, hapū and marae.

3. Supporting excellence in Education We delivered He Ara Tika - a Māori Mentoring Programme located at Taupō nui a Tia College - to support personal development and academic achievement.

We would like to support the extension of this programme across other schools in the Ngāti Tūwharetoa rohe.

We are engaging with schools and kura Māori to strengthen relationships and identify how we can work together to improve educational outcomes for our rangatahi and tamariki.

We will continue to work in partnership with whānau and education centres including kura Māori, kōhanga reo, schools and early childhood education providers to improve educational outcomes for our rangatahi and tamariki.

We piloted NCEA tutoring sessions to support young Ngāti Tūwharetoa students to enable raising their academic achievement. Keep an eye out for further sessions in April/May 2014 The Tūwharetoa Cultural Knowledge Project has continued to be an important resource base for schools throughout the rohe.

At the request of Ariki Ta Tumu te Heuheu the Tūwharetoa Cultural Knowledge Project is moving to the Office of the Ariki.

4. Support traditional leadership of Ngāti Tūwharetoa The Trust Board supported Ariki Ta Tumu te Heuehu as Chairman of the Freshwater Iwi Leaders Group. We have also supported the Lake Rotoaira Trust in their negotiations with the Government, on the Mixed Ownership Model, and their direct negotiations with Genesis Energy.

The Trust Board provides advice and support to the Ariki Ta Tumu te Heuheu as Chairman of the Freshwater Iwi Leaders Group. This year we have also supported the National Freshwater hui at Pukawa.

We continue to support Lake Rotoaira Trust in their negotiations with Genesis Energy.

We will continue to find ways to support the leadership of Ngāti Tūwharetoa.

WHAT WE HAVE DONE 2013

WHAT WE ARE DOING 2014

WHAT WE WILL DO 2015

4. Support traditional leadership of Ngāti Tūwharetoa (continued)

• CKP PROFILE •

The Trust Board made a grant to Ariki Ta Tumu te Heuheu: $150,000.

The Trust Board made a further grant to Ariki Ta Tumu te Heuheu.

We will continue to find ways to support the leadership of Ngāti Tūwharetoa.

Taupō Primary School is one of a number of schools actively using the Kete Rauemi. In the first term of 2013, Taupō Primary School concentrated on developing an inquiry based learning unit around the Kete and held a Celebration of Learning where whānau visited classrooms to view the work covered, and enjoyed a hangi shared among 800 people. The children learnt about whanaungatanga, Tūwharetoa whakapapa, stories and taonga.

5. Enhance the social and economic status of our people – building iwi capability and future prosperity We supported the delivery of the first Ngāti Tūwharetoa Electrical Supply Industry Taster Course in partnership with the Electrical Supply Industry Training Organisation.

• ESITO PROFILE •

In conjunction with kura-ā-iwi, Ngāti Hikairo and the Ngāti Tūwharetoa Genesis Energy Committee we supported a Pūtaiao Wānanga at Pāpākai Marae for Tūwharetoa students, kaiako and whānau.

We supported the delivery of the second Ngāti Tūwharetoa Electrical Supply Industry Taster Course at Tokaanu. We are exploring new opportunities to enable more Ngāti Tūwharetoa tamariki and rangatahi to take advantage of career and learning pathways that will help develop iwi capability.

We will develop a Rangatahi Strategy that supports our next generation of parents, leaders (e.g. whānau, marae, hapū, community, business, iwi) and key stakeholders in terms of Ngāti Tūwharetoa succession planning.

We have piloted a youth initiative from which to develop a Rangatahi Leadership programme called Rangatira mō Āpōpō.

Hosted at Tokaanu Marae, participants were exposed to the different components of the Electrical Supply Industry from generation to distribution. Activities involved site visits, and both practical and theoretical sessions relevant to the industry including Health & Safety, how electricity is generated, the various career opportunities and pathways into the industry. One participant has gone on to take up an apprenticeship in the industry.

WHAT WE HAVE DONE 2013

WHAT WE ARE DOING 2014

Organisation

WHAT WE WILL DO 2015

1. Effective Communication with our People and the wider Community We re-commenced Te Kōtuku, our quarterly news letter, to provide updates on our activities. We also set up a Facebook page and Twitter account. We provided media comment on the sale of Mighty River Power, (including TV interview on 7 Sharp) and other lake related kaupapa.

We have produced one edition of Te Kotuku and will produce a further 3 editions for the remainder of the year. We have taken a lead from the Lake Taupō Forest Trust and now mail out copies to kaumātua and key organizations. We have also published our 3 Year Rolling Strategic Plan (included in the Koanga 2013 edition of Te Kotuku).

Continue Te Kotuku and improve our level of online and other forms of communication.

2. Continue relationships with Iwi and other key stakeholders At a governance level - we attended the Iwi Chairs forum, Federation of Māori Authorities annual hui and accepted various invitations to meet with external stakeholders (Waikato Regional Council, GNS etc). At a management level - we met regularly with the Waikato Regional Council, Taupō District Council, Department of Conservation, GNS Science, Ministry of Primary Industries, Ministry for the Environment, representatives from the iwi of the upper Waikato river and other freshwater iwi. We continue to attend the Iwi Chairs forum, Federation of Māori Authorities annual hui and accept various invitations to meet with external stakeholders (Waikato Regional Council, GNS etc). We will continue to work on developing strong management relationships with various stakeholders (DOC, WRC, TDC, GNS, WRA) where appropriate/ required. We provide sponsorship to a number of community initiatives and established groups such as the Tūrangi Coastguard new boat (Mauri Ora Rescue), Community Foodbanks (Taupō, Mangakino, Taumarunui, Tūrangi) and the Turangi Fire brigade. We assisted in the joint review of the Taupō Sports Fishery with the Department of Conservation. Fundamental principles underpinning our involvement included recognition of co-governance/co-management with Ngāti Tūwharetoa and a clear focus on maximising the full value (economic, environmental, social and cultural) that the fishery can provide. We called a meeting between the Chairs and Deputy Chairs of all the Ngāti Tūwharetoa entities to discuss how we can work together. This was the first such meeting and an important and necessary first step towards future collaborations. We would like to call a further hui with these organisations to see what iwi initiatives or issues we can collectively address.

Strengthen existing relationships and build new relationships.

We have continued to support a number of community initiatives and established groups such as the Tūrangi Coastguard new boat the Mauri Ora Rescue, Community Foodbanks (Taupō, Mangakino, Taumarunui, Tūrangi) and the Turangi Fire brigade. We have committed to sponsoring the Waipahihi Iron kids. Continue to support initiatives and groups. The next phase of the sports Fishery review involves the Trust Board working closely with Department of Conservation management to prepare the implementation plan. These goals fall across a timeline from 6 months to 24 months plus. Co-governance and co-management between the Department of Conservation and the Trust Board is beginning.

WHAT WE HAVE DONE 2013

WHAT WE ARE DOING 2014

WHAT WE WILL DO 2015

3. Support and participate in the completion of Ngāti Tūwharetoa Comprehensive Claims We are interested in assisting in the completion of this important kaupapa. This year we asked Sapere Group to analyse the historic loss to Ngāti Tūwharetoa from use of Lake Taupō for hydro electricity operations. Their robust analysis shows that on a 50/50 share we have lost tribal income of approximately $1.75bn NZ over the period from 1926 to 1992 when the lake was returned. We have made this report available to the negotiating team and the Tūwharetoa Hapū Forum. Have regular dialogue with the Hapū Forum Continue to assist in the completion of the claim where possible.

4. Monitor and review organizational performance There have been a number of internal operational reviews.

We are reviewing the database, examining a possible Operations Management System, and reviewing the HR policies and procedures.

Continue the process of organisational improvement.

We have continued discussions with the Crown. The complexity of this issue is heightened by the number of government agencies involved. TPK have sought Ministerial authority to begin formal discussions with the Board to identify options.

It is expected that an amendment to the 1926 Act will occur.

5. Resolving Historical Issues Resolving issues around the statutory right of way (created in 1926 by the Māori Land Amendment and Māori Land Claims Adjustment Act) is a priority issue. As with any longstanding issue ensuring that key government agencies share our committed focus is critical to future success.

Another longstanding issue is unreturned tributaries. We have received fee simple title to the Lake Taupō and some tributaries – but not all tributaries. The Crown was unable to return all that was originally taken in 1926 as in some cases ownership had passed to others. The length of unreturned tributary amounts to approximately nine kilometres. The longest single stretch of tributary (3.8kms) unable to be returned by the Crown is at the Kuratau river where the Kuratau Hydro station operates.

We are preparing our strategy before negotiations recommence with the Crown. We hope to have completed this issue sometime next year.

WHAT WE ARE DOING 2014

WHAT WE HAVE DONE 2013

WHAT WE WILL DO 2015

Environment

1. Support marae and hapu to address local environmental challenges Assisting hapū in the development of a long term response to Lagarosiphon Major to address infestations in Southern Lake Taupō, while implementing short term works to address Lagarosiphon major infestation at Waihi Negotiation with Fish and Game for limited season and increased catch limit for Black Swans. Multi-year plans that are supported by individual hapū are developed further. Tūwharetoa Hapū have engaged with agencies and organisations on projects and/or works within their rohe and the Trust Board has assisted where possible.

An environmental forum held twice yearly to enable hapū to discuss their local environmental challenges.

Tū Whare Taiao pilot wānanga for 40 Ngāti Tūwharetoa taiohi from throughout the motu is held over five days to celebrate kaitiakitanga and Tūwharetoatanga. This pilot will include taiohi from Taumarunui, Tokorangi, Hahuru, Auckland, Wellington and Christchurch.

We will encourage and support ongoing hapū environmental forums. A further 40 taiohi are introduced to the kaupapa of Tū Whare Taiao Series of Tū Whare Taiao wānanga are established.

2. Advocate and influence positive environmental outcomes for Ngāti Tūwharetoa A protocol was developed that ensures communication with the Trust Board when sewage enters any waterways Worked closely with Te Awa o Waikato and neighbouring iwi, addressing areas of shared interest The Ngāti Tūwharetoa, Te Arawa and Raukawa (Waikato River) Fisheries Regulations developed in conjunction with other Upper River iwi Tūwharetoa Fish Plan written.

Discussion with appropriate Natural Hazards/ Emergency/ Environmental Emergency response, to understand their emergency response procedures Sewage protocol is reviewed annually to ensure that the appropriate people are contacted Implementation of the Fisheries Regulations Publishing the Tūwharetoa Fish Plan.

Natural Hazards and Emergency response/ Environmental Emergencies protocols are continually reviewed in communication with hapū Work with Waikato Regional Council to implement measure for corrective action for unauthorised discharges into Tūwharetoa waterways Continue to build on opportunities Work alongside the river hapū to support growth of the fishery and its cultural harvest.

3. Restore and protect the health and wellbeing of Taupō Waters and Te Awa o Waikato for present and future generations Tūwharetoa Environmental Report Card supported by the Waikato River Clean-up Trust commenced, developing cultural health Indices for Te Awa o Waikato to Waipapa TDC and TMTB have discussed the structures on the bed of Taupō. DIDYMO/ Freshwater Pests continued to be a priority with the Clean, Check, Dry campaign promoted in and around the rohe Tūwharetoa participation in regional and national DIDYMO/ Freshwater Pests hui to prevent any incursion into the North Island.

Tūwharetoa Environmental Report Card completed and information passed on to hapū at Tūwharetoa Environmental Forum An asset database is being developed to ensure that all of the structures are recorded DIDYMO prevention and promotion of the Clean/ Check/ Dry message continues over summer Review DIDYMO/ Freshwater Pest programme with DOC. Develop further to include other hapū and their waterways Report card Continue to monitor response to DIDYMO/ Freshwater pests by agencies.

WHAT WE HAVE DONE 2013

Economic

WHAT WE ARE DOING 2014

WHAT WE WILL DO 2015

1. Support Tūwharetoa Economic Authority commercial interests and aspirations In November 2012, Ngāti Tūwharetoa hosted the Annual Conference of the Federation of Māori Authorities. We celebrated 25 years of commitment towards sustainable economic prosperity for our Tūwharetoa Economic Authorities. We profiled the success of Miraka Limited and our enterprising sheep and beef and dairy farms, our world-class sustainable forestry estate and the various geothermal power developments that we have seen developed and grow within Ngāti Tūwharetoa over recent years.

The Trust Board continues to support our Tūwharetoa Economic Authorities in achieving their aspirations, recent examples include: • continued support of farming entities and their engagement with the Lake Taupō Protection Trust. • engagement with Tūwharetoa Economic Authorities regarding their long-term operations and exploring ways for environmental goals to be achieved alongside commercial goals. • ensuring relevant advocacy via Trust Board representation on Enterprise Great Lake Taupō

The Trust Board will continue to explore and identify opportunities to provide relevant support to trusts and incorporations.

2. Secure Revenue from commercial use of Taupō Waters In May 2012, the Trust Board appeared before the Parliamentary Select Committee regarding the Governments proposed Mixed Ownership Model legislation and the impact the sale of 49% of Mighty River Power and Genesis Energy would have on the rights and interests of Ngāti Tūwharetoa. The Crown saw this as an issue best dealt with directly between the relevant State Owned Enterprises and the Trust Board. The Trust took expert advice to fully understand how these processes worked in practice and the estimated amount of economic value both Mighty River Power and Genesis Energy is able to achieve each year. A negotiation commenced between Mighty River Power and the Trust Board in mid-2012, which focused on identifying a commercial solution which appropriately reflected the value of the use of Lake Taupō to Mighty River Power. Discussions have also taken place with Genesis Energy.

• VALUE PROFILE •

In February 2013, the Trust Board received significant media attention regarding our discussions with IRONMAN NZ concerning the Taupō IRONMAN event – a commercially run sporting event that uses Lake Taupō. IRONMAN NZ is owned by a multinational American-owned company – World Triathlon Corporation. They run a number of international IRONMAN events around the world including the Taupō IRONMAN Event. The Taupō IRONMAN event has been operating for the past 14 years. The Trust Board had been in discussions with IRONMAN NZ for the past two years regarding their use of Lake Taupō. Despite our best efforts to be respectful of the sensitivities of these negotiations, details of discussions “spilled into” the public arena. During that time, the Trust Board received favourable support from Ngāti Tūwharetoa and also from various commentators in the media. We were able to reach a confidential agreement with IRONMAN NZ which provides a three-year licence to IRONMAN NZ to undertake the event on Lake Taupō and provides the Trust Board positive recognition as a key supporting partner. Value is created in two main ways. First, Mighty River Power generates approximately 16% more electricity along the Waikato Hydro System by using the additional unnatural waters flowing into Lake Taupō from the Tokaanu Hydro Scheme (approximately 29 cubic meters per second). This means Mighty River Power uses Lake Taupō effectively as a canal to transport that water flowing unnaturally out of the Tongariro Power Scheme, across to Mighty River Power’s hydro power station network. Secondly, MRP stores water in Lake Taupō and is able to earn higher overall revenues as a result. It does this by storing water in Taupō when power prices are low and then releasing water down the Waikato River when power prices are expected to be higher.

WHAT WE HAVE DONE 2013

WHAT WE ARE DOING 2014

WHAT WE WILL DO 2015

2. Secure Revenue from commercial use of Taupō Waters (continued) State Owned Enterprises Engagement Whilst unresolved issues remain extant with the use of Taupō Waters by Genesis Energy, the Trust Board is currently focusing effort on the major incumbent operator on Lake Taupō, Mighty River Power. These discussions continue to be focused toward reaching an optimal commercial outcome for Ngāti Tūwharetoa. Commercial Usage of Taupō Waters There are approximately 100 various commercial operators whom currently operate upon Taupō Waters. The Trust Board has engaged professional valuers and rental experts to assist in assessing the value of the commercial use of Lake Taupō by the various commercial operators whom currently operate upon it. State Owned Enterprises Engagement – we expect to be in a position to make an announcement to the people of Tūwharetoa on the outcomes of those discussions early in 2014.

3. Maximise wealth and provide long term returns to Ngāti Tūwharetoa During the year, the Trust Board has reviewed and implemented changes to its Statement of Investment Parameters and Objectives (‘SIPO’). The previous SIPO focused primarily on the allocation of risk within its investment portfolio and needed to better reflect the organisations current position, long-term outlook, operating financial functions and risk profiles. Following the review, the Trust Board adopted a global or balance-sheet type approach to the SIPO. The benefit of such an approach is that it will provide guidance and strategy to the entirety of the organisations functions including a Direct Investment Strategy and operational treasury functions.

In July 2013, the Trust Board was approached by the Tūwharetoa Settlement Trust (‘TST’) who was in the early stages of facilitating an opportunity for Tūwharetoa entities to explore and participate in a property investment vehicle. The first of these opportunities are based around Ministry of Education properties situated in and around Taupō. The Trust Board wished to support the long-term vision of our Tauhara Hapū to have these properties returned and therefore made a concerted effort to undertake the necessary financial and legal due diligence required to develop a structure that would realise these desires whilst also returning a satisfactory commercial yield. The Trust Board have invested $1m and entered into a limited partnership agreement with Tūwharetoa Settlement Trust (as an outright partner and on behalf of Waimihia Forest Hapū Cluster Trust) and the Lake Rotoaira Forest Trust. An Option arrangement in favour of the Waimihia Forest Hapū Cluster Trust has also been provided for to allow the Waimihia Forest Hapū Cluster Trust to take up the full investment in the medium term. The Trust Board will be working closely with the Tūwharetoa Settlement Trust as other investment opportunities are developed. Direct Investment Opportunities • Full participation in ‘property investment vehicle’ and realising commercial returns • Other land-based investments explored • Review investment opportunities in relation to Crown facilities • Develop a Lake Taupō centric tourism investment strategy • Explore land and water based freshwater aquaculture opportunities

TŪWHARETOA MĀORI TRUST BOARD

FINANCIAL STATEMENTS for the Year ended 30 June 2013

Tūwharetoa Māori Trust Board Summarised Financial Statements For the year ended 30 June 2013

Trust Directory TRUST BOARD MEMBERS

AUDITOR

Sir Tumu te Heuheu

Silks Audit

(resigned August 2012)

Chartered Accountants

John Martin Whakawhitiao Bishara Georgina te Heuheu Te Kanawa Pitiroi Paranapa Rewi Otimi (resigned July 2013)

24 Bell Street Wanganui PO Box 7144 Wanganui 4541 New Zealand

Heemi James Biddle

BANKERS

Danny Aperahama Loughlin

Bank of New Zealand

Frankie Taituma

61 Tongariro Street

Maria Nepia Judy Harris

Taupō SOLICITORS Kahui Legal

CHIEF EXECUTIVE OFFICER

PO Box 1654

Tamarapa Lloyd

Wellington 6140

SECRETARY Te Hokowhitu–a-Rakeipoho Nathanael Taiaroa

Level 3, Dunbar Sloane Building 32 Waring Taylor Street WELLINGTON 6011

REGISTERED OFFICE Tūwharetoa Māori Trust Board Town Centre Tūrangi POSTAL ADDRESS PO Box 87 Tūrangi Phone 07 386 8832 Fax

07 386 8235

FINANCIAL STATEMENTS 2013 TŪWHARETOA MĀORI TRUST BOARD

Summarised Statement of Financial Performance For the year ended 30 June 2013

GROUP

PARENT

2013

2012

2013

2012

$’000

2,500

2,878

2,356

2,878

(2,551) 1,513 1,462 1,596 (928) 2,130

(3,913) 1,476 441 332 (882) (109)

(1,752) 1,513 2,117 1,596 (928) 2,785

(3,474) 1,476 880 332 (882) 330

Reclassification of opening Equity- Taupō Waters Trust

Total operating profit/ (loss) for the year after extraordinary items

2,170

(109)

2,882

330

Revenue

Expenses Investment Income Net operating profit/(loss) for the year Other gains-net Grants Total operating profit/ (loss) for the year Extraordinary Items Align Ngāti Tūwharetoa Mighty River Power Development Group opening equity

Summarised Statement of Movements in Equity

For the year ended 30 June 2013

GROUP

PARENT

2013

2012

2013

2012

$’000

47,704

47,813

47,704

47,374

(9,872)

47,704

47,813

37,832

47,374

Total operating profit/ (loss) for the year after extraordinary items

2,170

(109)

2,882

330

Total recognised revenues and expenses for the period

2,170

(109)

2,882

330

Distributions to Beneficiaries

(434)

Balance as at 30 June 2013

49,440

47,704

40,280

47,704

Balance as at 1 July 2012 Reclassification of Lake Bed asset

FINANCIAL STATEMENTS 2013 TŪWHARETOA MĀORI TRUST BOARD

Summarised Statement of Financial Position As at 30 June 2013

2013

2012

2013

2012

$’000

Retained Earnings

49,440

47,704

40,280

47,704

Total equity

49,440

47,704

40,280

47,704

Cash and cash equivalents

154

235

224

Receivables and Prepayments

887

535

1,682

534

7,395

6,764

7,395

6,764

8,436

7,534

9,174

7,522

Trade and other payables

378

656

395

644

Total current liabilities

378

656

395

644

8,058

6,878

8,779

6,878

Accounts Receivable

10,339

10,948

10,339

10,948

Investments

20,570

19,621

20,570

19,621

Other Property, Plant & Equipment

10,104

10,137

223

10,137

Loan advance - Lake Rotoaira Trust

249

Loan advance - Tūwharetoa Hapū Forum

120

Total non-current assets

41,382

40,826

31,501

40,826

Total net assets

49,440

47,704

40,280

47,704

EQUITY

ASSETS Current assets

Investments maturing < 12 months Loan advance - Taupō Waters Trust Total current assets Current liabilities

Net working capital Non-current assets

For and on behalf of the Tūwharetoa Māori Trust Board

Trustee: John Bishara CHAIRMAN Date:

14/11/2013

Trustee: Danny Loughlin CHAIR: AUDIT AND RISK COMMITTEE Date:

14/11/2013

FINANCIAL STATEMENTS 2013 TŪWHARETOA MĀORI TRUST BOARD

Statement of Compliance & Basis of Preparation

The full financial statements have been prepared in accordance with generally accepted accounting practice and the requirements of the Māori Trust Boards Act 1955 and the Māori Trust Boards Amendment Act 2011. The summary financial statements are presented in New Zealand dollars and have been rounded to the nearest thousand dollars. The summary financial statements have been prepared in accordance with FRS-43: Summary Financial Statements. The summary financial statements are prepared on the historical cost basis.

Statement of Financial Statements

The full financial statements, which were authorised for Issue on 14 November 2013, have been subject to audit by Silks Audit and an unqualified audit report was issued dated 14 November 2013. The summary financial report has been examined by the auditor for consistency with the full financial report. The summary financial statements cannot be expected to provide as complete an understanding as the provided by the full financial statements. The full financial statements can be obtained from the office of Tūwharetoa Māori Trust Board: PO Box 1912, Taupō, 3351 on request. There has been no changes in accounting policies. Differential Reporting The Trust Board and Group are qualifying entities within the framework for Different Reporting. The Trust Board and Group qualify on the basis they are not publicly accountable and there is no separation between the owners and the governing body of the Trust Board. The Trust Board and Group have taken advantage of all available differential reporting exemptions.

FINANCIAL STATEMENTS 2013 TŪWHARETOA MĀORI TRUST BOARD

Independent Auditors Report

NTS 2013FINANCIAL TŪWHARETOA STATEMENTS MĀORI TRUST 2013 BOARD TŪWHARETOA MĀORI TRUST BOARD

FINANCIAL STATEMENTS 2013FINANCIAL TŪWHARETOA STATEMENTS MĀORI TRUST 2013 BOARD TŪWHARETOA MĀOR

Taupō Waters Trust Financial Statements

For the year ended 30 June 2013

Summarised Statement of Financial Performance For the year ended 30 June 2013

2013

2012

$’000

Revenue

10,017

153

Expenses

(799)

(63)

Net operating profit/(loss) for the year

9,218

Other gains-net

Distributions

9,218

Total operating profit/ (loss) for the year

Summarised Statement of Movements in Equity For the year ended 30 June 2013

2013

2012

$’000

(57)

(147)

Total operating profit/ (loss) for the year

9,218

Total recognised revenues and expenses for the period

9,218

Balance as at 30 June 2013

9,161

(57)

Balance as at 1 July 2012

FINANCIAL STATEMENTS 2013 TAUPŌ WATERS TRUST

Summarised Statement of Financial Position As at 30 June 2013

2013

2012

$’000

Retained Earnings

9,161

(57)

Total Equity

9,161

(57)

Cash and cash equivalents

Receivables and Prepayments

117

818

113

838

116

(721)

(78)

9,872

Other Property, Plant & Equipment

Loan advance - Te Awa O Waikato

Total non-current assets

9,882

Total net assets

9,161

(57)

EQUITY

ASSETS Current Assets

Total current assets Current Liabilities Trade and other payables Loan advance - Tūwharetoa Maori Trust Board Total current liabilities Net working capital Non-current assets Lake Bed

For and on behalf of the Tūwharetoa Māori Trust Board

Trustee: John Bishara CHAIRMAN Date:

14/11/2013

Trustee: Danny Loughlin CHAIR: AUDIT AND RISK COMMITTEE Date:

FINANCIAL STATEMENTS 2013 TAUPŌ WATERS TRUST

14/11/2013

Statement of Compliance & Basis of Preparation

Statement of Financial Statements

FINANCIAL STATEMENTS 2013 TAUPŌ WATERS TRUST

Independent Auditors Report

NTS 2013FINANCIAL TAUPŌ WATERS STATEMENTS TRUST2013 TŪWHARETOA MĀORI TRUST BOARD

FINANCIAL STATEMENTS 2013FINANCIAL TAUPŌ WATERS STATEMENTS TRUST2013 TŪWHARETOA MĀOR