Paehinahina Mourea Trustees Would Like to Acknowledge the Following People Who Provided Information on the Beginnings of the Trust

Acknowledgements

The Paehinahina Mourea trustees would like to acknowledge the following people who provided information on the beginnings of the trust:

David Te Hurihanganui Whata: As an original trustee David has vivid memories of the time when the owners took over the block.

Pirihira Fenwick: The daughter of an original trustee Pirihira lived close to the blocks that the Ngati Porou people farmed.

William Newton: With his father as the person who took responsibility for clearing the debt and establishing a forestry contract, William was able to observe how he went about doing this.

Written Information The trustees acknowledge the following sources of written Information: • Loveridge, Dr D. The Most Valuable of the Rotorua Lands: Alienation and Development in the Ngati Pikiao Blocks, 1881 – 1960. Crown Forestry Rental Trust Report. Aug1998. • Loveridge, D & McBurney, P. Ngati Pikiao Lands 1881 – 1960: Block Histories. Crown Forestry Rental Trust Report. 1998. • Walker, Ranginui. Tikitere Triumph. • Paehinahina Mourea Trust: Annual Reports. • Paehinahina Mourea Trust: Minutes of Meetings held since 1974. • Maori Land Court: Minutes and Reports

( 2 ) The First Forty Years 1971 2011 Paehinahina Mourea Trust The first forty years 1971 -2011

Ki nga Ariki O Paehinahina Mourea Tena koutou katoa

Ka hoki nga mihi me nga tangi Ki nga Papa-Koroua na ratou i takoto Te kaupapa I timata ai nga mahi whakato rakau Ngaherehere Ta ratou korero ma nga uri o ngati Te Takinga me nga uri o Ngati Hinekura hei Pupuri te mana whenua me o ratou moemoea kia Tutuki Ai. Mo nga mokopuna tupu ake. Oti ra koutou nga kaitiaki Tawhito kua huri atu Ki tua o te arai takoto mai I raro ite maru O to tatau Kaihanga. Contents

1 The Land...... 4 Map of the Ngati Pikiao Blocks...... 5 Map showing Paehinahina Mourea Lands...... 6

2 History of the Trust...... 7 3 Ownership and Management...... 13 4 Forestry...... 15 5 Amalgamation / Aggregation...... 17 6 Tikitere A Block...... 18 7 Firewood Collection...... 20 8 Purchase of Atlantis House...... 21 9 Geothermal Investigation...... 22 10 Microsilica & Sulphur...... 26 11 Okawa Bay Resort...... 28 12 Aerodrome Beacon Site...... 33 13 Iwi Futures...... 34 14 Charitable Trust...... 35 15 Where is Paehinahina Mourea now?...... 36

( ) ( ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 1The Land 14 Charitable Trust

In recent years the trustees discussed ways of enhancing the trust ownership and systems (as per their strategic plan). They considered how they might The block of land known as Paehinahina Mourea is located 12 km to the effectively make distributions to their beneficiaries and others. Many of the north east of Rotorua city. It lies on the southern shores of Lake Rotoiti grants paid to beneficiaries are for charitable purposes, such as education with its southern boundary reaching the Rotorua-Whakatane Highway and grants, grants to marae where they are registered with the Charities Com- a small part to the west is on the Rotorua-Tauranga Highway. The block is mission and grants for health related needs and churches. With significant 824 hectares with most of it covered in Pinus Radiata. revenues to come from the geothermal development not far away the trust would be able to increase the allocation to those areas. Some areas of the block are not planted in forest. These are the buffers, firebreaks, areas beneath power lines, geothermal (sulphur) areas, reserves Hence the trustees decided to set up a charitable trust. This would provide such as Papakiore and wahi tapu. The area is geothermally active and con- a robust structure and the trust would develop charitable distributions poli- tains many ngawha, waiariki and puna. cies that would include the criteria they would need to meet when consider- ing requests. As the land is on the shores of Lake Rotoiti there are a number of bays that are used by boaties as ideal picnic spots in the summer time. The trust has set up these areas around the lake as a Maori reservation.

All wahi tapu have been recorded on maps used by foresters and other users of the land as areas to be avoided when planning the use of the land. A small user of the land is Vodafone who has a mast on the land, the lease of which gives the trust a small annual income.

( 4 ) ( 37 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 1 The Land Iwi Futures 13 Map of the Ngati Pikiao Blocks

In 2008 the trust entered into a research project under Dr Tanira Kingi of Massey University. Paehinahina Maori was one of four Maori land organisations studied in this research. The others were Ngati Hine, Waimarama Incorporation and Aohanga Trust.

The purpose of the 3 year research project was to develop a Maori land and resource decision making framework that would assist the trust and other Maori land users in the future to define their values and aspirations, develop a land and resource evaluation model which would help them to assess alternative land use options and develop a decision making model to explore, evaluate and plan potential development pathways. The end result would be a comprehensive generic toolbox that eventually any land block could use to better govern and administer their own block or land resources. The project was fully funded by FoRST.

The programme concluded with a highly successful conference in Rotorua entitled “Whenua, Sustainable Futures with Maori Land”. Those present heard from a number of highly successful Maori organisations, most of which had land as their main asset.

( 36 ) ( 5 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 1 The Land Aerodrome Beacon Site Map showing Paehinahina Mourea Lands 12

In 1963 when Paehinahina Mourea was still under the Maori Development Scheme, the Crown acquired approximately one hectare of its land under the Public Works Act 1928. It was taken to use for a radio beacon for planes using the airport. The trust was paid $270 for this land and nothing for the right of way that was needed to allow access across the trust’s land. In 2009 the trust was informed that the Crown no longer required the site and offered the land back to the trust based on current market values which they assessed to be $140,000.

The trustees were stunned at the amount that the Crown was asking for this hectare of land. For more than 40 years the trust had not been able to benefit from this piece of land which was in the middle of their forest. The areas surrounding it were all producing an income for the trust. With this in mind the trustees sought legal advice on their options. Te Ururoa Flavell, the MP for Waiariki was asked for help and he took the matter up in Parliament but without any success. The trustees were asking that the land be given back to them at no more than the price the Crown had paid for it plus an allowance for inflation. Through the trust’s solicitors they requested that the Crown apply their discretion and agree to their request. That request was declined by the Crown agent (LINZ) who decided they were going to follow the letter of the law.

Hence the trustees were taken by surprise when, without any warning the beacon site was advertised for sale to the public by tender. The trustees had no option then but to make a bid for the site. Deciding on the amount to offer was difficult as the trustees felt they could not allow this piece of land to fall into private ownership.

They started with the valuer’s figure, added a small premium and then filed their tender hoping that they had done enough and fortunately it was. The return of the beacon site has cost the trust $161,333.

( 6 ) ( 35 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 13 Iwi Futures 2 History of the trust

In 2008 the trust entered into a research project under Dr Tanira Kingi of In the 1880s the Native Land Court, while investigating the titles to the Massey University. Paehinahina Maori was one of four Maori land organi- Ngati Pikiao lands, divided them into various blocks. Among the first to be sations studied in this research. The others were Ngati Hine, Waimarama dealt with by the Court were those in the west of Lake Rotoiti. The largest Incorporation and Aohanga Trust. and most important was Te Taheke block, thought at the time to comprise about 19,000 acres. Te Taheke covered the whole of the western shores of The purpose of the 3 year research project was to develop a Maori land Lake Rotoiti and stretched north past Okere Falls along the Kaituna River. and resource decision making framework that would assist the trust and other Maori land users in the future to define their values and aspirations, The 920 acre Paehinahina block, also known as the Paehinahina Man- develop a land and resource evaluation model which would help them to upirua block, lay completely within Te Taheke on the south western shore assess alternative land use options and develop a decision making model to of Lake Rotoiti. It was bounded by the Taheke 2 block on the west and the explore, evaluate and plan potential development pathways. The end result Tapuaekura block on the west. Paehinahina encompassed the sites of sev- would be a comprehensive generic toolbox that eventually any land block eral large fortified pa on the peninsula jutting out into the lake. It was also could use to better govern and administer their own block or land resourc- the site of a flour mill built by Ngati Pikiao in the 1860s. In 1890 the Court es. The project was fully funded by FoRST. gave it a separate title.

The programme concluded with a highly successful conference in Rotorua Mourea Papakainga was also in Te Taheke block and stretched from the entitled “Whenua, Sustainable Futures with Maori Land”. Those present southern side of the Ohau Channel to the Whakapoungakau-Pukepoto heard from a number of highly successful Maori organisations, most of block. The block was split into two sections by the Pungarehu block. In which had land as their main asset. 1910 it was partitioned from the Taheke block.

In 1908 Sir Apirana Ngata and Chief Justice Robert Stout were appointed as the Royal Commission on Native Lands. Their task was to identify lands that were surplus to the needs of the landowners so they could be handed over to the Maori Land Board for leasing or, in some cases for sale. What they observed was that the Taheke and Rotoiti blocks had generated a huge amount of work for the Native Land Court, yet the state of titles and sur- veys in these large blocks left much to be desired. Land owners had spent much time and money on the Native Land Court process with little to show for it.

Hence when Ngata and Stout came to Rotorua they found the Ngati Pikiao people ready and willing to take advantage of their advice and suggestions regarding their lands. At this time very little of the Ngati Pikiao lands had been alienated. The owners were therefore very receptive to the idea of leasing unused lands as a means of funding agricultural and pastoral development. Much of their lands had large debts from surveying costs and unpaid rates. They needed large amounts of funding to get farms equipped and running. Their only source of funding was from the Crown, hence their willingness to put their lands under the Maori Land Board. Both

( 34 ) ( 7 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 2 History of the trust 12 Aerodrome Beacon Site

Paehinahina and Mourea Papakainga (two separate entities at the time) In 1963 when Paehinahina Mourea was still under the Maori Development took advantage of this scheme. Scheme, the Crown acquired approximately one hectare of its land under the Public Works Act 1928. It was taken to use for a radio beacon for Over the period large parts of the Ngati Pikiao lands were leased to Pakeha planes using the airport. The trust was paid $270 for this land and nothing through the Maori Land Board and then later sold. This was especially for the right of way that was needed to allow access across the trust’s land. the case in the portion of the Taheke block lying on the southern side of In 2009 the trust was informed that the Crown no longer required the site the Ohau Channel. The leases were providing avenues for later purchases. and offered the land back to the trust based on current market values which Hence, except for the Paehinahina block, most of the land between they assessed to be $140,000. Tapuaekura and the Ohau Channel, (including parts of Mourea Papakainga) had by 1920 been leased and/or sold to Watt, Vaughan and a The trustees were stunned at the few other individuals amount that the Crown was asking for this hectare of land. For more In an effort to consolidate the lands that were left the Paehinahina Mourea than 40 years the trust had not been block was created in 1963. It incorporated all or part of the Paehinahina, able to benefit from this piece of Taheke 2, Mourea Papakainga, Pungarehu and Whakapoungakau 1B3A land which was in the middle of blocks. Much of this land at the time was being farmed as beef and sheep their forest. The areas surround- farms. ing it were all producing an income for the trust. With this in mind the David Te Hurihanganui Whata, the only surviving of the original trustees, trustees sought legal advice on their remembers those times well. He has this to say about those times: options. Te Ururoa Flavell, the MP for Waiariki was asked for help and Tikitere block was part of the Apirana Ngata development scheme. There were 5 blocks he took the matter up in Parlia- that were returned to the original block titles. The most southern block was previously ment but without any success. The owned by Mr Waldron and then somehow was placed under the control of the Maori Af- trustees were asking that the land fairs Department. The extent of the lands affected under the Apirana Ngata development be given back to them at no more than the price the Crown had paid for it scheme covered Mr Waldron’s property to the south through to the most northern point of plus an allowance for inflation. Through the trust’s solicitors they requested Paehinahina. that the Crown apply their discretion and agree to their request. That request was declined by the Crown agent (LINZ) who decided they were I recall being told by representatives of the Maori Affairs Department that as the previous going to follow the letter of the law. owner Mr Waldron was going to sell the land and the blocks were going to be returned to the owners I qualified under the Apirana Ngata scheme as a rightful descendant and Hence the trustees were taken by surprise when, without any warning the owner. I was promised that if I undertook an apprenticeship as a farmer and learn to beacon site was advertised for sale to the public by tender. The trustees had farm, the land would be returned to me. no option then but to make a bid for the site. Deciding on the amount to offer was difficult as the trustees felt they could not allow this piece of land to Subsequently and in good faith I moved my wife and first born child from Te Weta Bay fall into private ownership. where we lived with my kuia to the assigned block. The block was approximately 400 acres and represented the geographical area that had traditionally always belonged to my They started with the valuer’s figure, added a small premium and then filed hapu as my kuia had always known. The area concerned covers the land between the their tender hoping that they had done enough and fortunately it was. The historical burial ground to the north until it reaches the identified pa site situated at return of the beacon site has cost the trust $161,333.

( 8 ) ( 33 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 11 Okawa Bay Resort 2 History of the trust

During the year the general manager resigned and the Apton board ap- Wairau Bay which belongs to Te Takinga and this remains the same today. pointed John Mariu to the position. He resigned as a director of Apton After moving on to the block which was being managed by the Maori Affairs Department and as a trustee of Taheke Paengaroa. Further problems occurred between I was employed as Head Shepherd and was placed alongside an appointed kaumatua, Taheke Paengaroa and the other shareholders and as a consequence Rua- Tuki Te Rangi to serve my apprenticeship. I recall being told by representatives of the hine & Kuharua appointed Pirihira Fenwick to the board of Apton. Maori Affairs Department that I would serve a 3 year apprenticeship and that would satisfy them in terms of being qualified to farm the land and then the land would be returned On 9 August 2001 Taheke Paengaroa trustees served a demand on PTIL to me the rightful owner. Unfortunately the Maori Affairs Department broke their promise to repay the full amount of the debt they claimed was owing to them, plus and I was forced to seek alternative employment elsewhere to support my family. interest, approximately $1,236,734 in total. PTIL was given until the 20th August to pay up and if they didn’t then Taheke Paengaroa would appoint Upon the Maori Affairs Department breaking their promise, I and other kaumatua of a receiver to that company and take control over Apton Investments Ltd. In Ngati Pikiao protested and took our grievance to the government but this was to no avail. the meantime the trustees of Paehinahina Mourea sought legal advice from In response to the lack of support and negative attitude towards us from the government lawyer David Ambler and after several meetings with him, he prepared and of the day, we decided to take matters into our own hands which required us to pay off a filed in the Maori Land Court on behalf of five Taheke Paengaroa owners, debt over the land which the Maori Affairs Department had incurred and then imposed on an application for injunction against the trustees of Taheke Paengaroa. Ngati Pikiao without consultation.

While this was happening negotiations were being carried out between More seriously the debt was not incurred by Ngati Pikiao but nonetheless the government the shareholders of PTIL and Duxton International Hotels Ltd (Duxton) insisted that if the land was to be returned the debt had to be paid by the five original regarding the lease of the Okawa Bay Resort and the restructuring of the land titles. As a result of the deplorable treatment, myself and a kaumatua elder Stanley licence agreement with the timeshare licence holders. After very intense Newton of Ngati Pikiao uplifted the dry stock from the land and sold it. Unfortunately it and protracted negotiations Duxton agreed to lease Okawa Bay resort was not enough to clear the debt. Eventually the debt was cleared. The kaumatua con- for the next 30 years the rental of which would service the loan from the sulted with Winstones which became Fletchers. Sadly I was denied my rightful place on shareholders of PTIL. However the internal dispute within PTIL had not the land and a position that would have guaranteed an income and life style to support my been resolved. Although there was now a promise of financial returns from family. As I had no financial resources of my own the land has ended up in the control of Apton Investments there had not been agreement reached on how those a trust which has resulted in the block I have traditional right to occupy being absorbed returns would be allocated to the shareholders in PTIL. into a larger area of land.

It was not until the AGM of 2005 that the chairman, Barnett Vercoe was In the 1930s some of this land was broken up into small dairy units and able to report that a way forward and an amicable outcome had been Apirana Ngata brought his people from Ngati Porou to manage them. Be- reached between PTIL shareholder trusts and Incorporations and Taheke cause of the relationship between Ngati Pikiao and Tainui, through Paengaroa Trust. A settlement deed had been signed off by all parties. Princess Te Puea, the lands south of the silica plant and along Te Puia Since then the shareholders of PTIL have been receiving repayments on Road were given to Te Puea for her people to farm. These small farms were their loan to PTIL and Duxton now has the worry of keeping the hotel full to be developed and set aside as part of a settlement for the Ngati Pikiao and the timeshare people happy. soldiers when they returned from the war. Pirihira Fenwick, the daughter of Te Aho o te Rangi Rogers, one of the original trustees, recalls the days when the dairy farms were in operation.

My youth was spent during the period when it was settled as a consequence of Api’s programme with various families from Ngati Porou. I grew up with the families. They were

( 32 ) ( 9 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 2 History of the trust 11 Okawa Bay Resort

Sam and Tai Green, Agnes and Bob Clarke, Ron and Heeni Tuhoro and Katene Pikiao Trusts and Incorporations Ltd (PTIL). This company would hold all Huriwai. Those families had small dairy holdings which meant that it was all hand the shares in Apton Investments Ltd. milked but they also broke in, fenced and developed these blocks. At the time it was known as Mourea Papakainga. It was the time before the union with Paehinahina. They all Paehinahina Mourea’s loan of $150,000 and advances from forestry rentals came here as part of that scheme. and stumpages to Okawa Bay were converted into shares and advances in this new company. Shareholders were those Ngati Pikiao trusts and incor- Because it was lease holding and the leases were to the Maori Affairs Department they porations that had previously supported the resort through loans and as- were still able to sell their lease holdings and from what I can gather they actually sold signment of forestry revenues. The restructuring saw PTIL owning all the back to the Maori Affairs Department except for one block and that was the Huriwai shares in the hotel operating company Apton Investments Ltd. PTIL had block situated on Lake Rotokawau Rd. That was actually sold and lost. acquired Apton by borrowing $2 million from the ANZ bank to buy out the Maori Trustee and the Maori Development Corporation. We all knew about the debt…. Very little maintenance was done on the block and the debt was loaded on the block. It was that aspect that stirred Mr Newton, my mother Te Aho All forestry rentals that Paehinahina Mourea received (approx $127,000 per Rogers and other elders to actually do something about it. They knew who the interested annum) were committed to the hotel until the year 2000 or earlier if PTIL parties of the land were. They were of the same hapu. It was with no difficulties that the repaid the ANZ loan before then. By 1999 Paehinahina Mourea’s loan and meetings that were held were well attended because everyone had a stake and they were advances to Okawa Bay Resort totalled $842,085. bitterly disappointed and this urged them on to rectify and get back the land that they had become dispossessed of. The mamae (hurt) was that when they gave over the land it was By the year 2000 the remaining debt to the ANZ bank was $1 million and with manuka and bracken but at least it was held for when our men came back. It was PTIL had expected to refinance this remaining debt by introducing an understood that under Api’s scheme that they would develop those blocks for the benefit of outside investor. That did not eventuate. The directors had only considered our returned servicemen. That did not occur. The land became loaded with debt. There that offer because Taheke Paengaroa Trust had refused to accept their re- were never ever any distributions. No distribution was ever made by the Maori Affairs sponsibilities to the other PTIL shareholders by advancing funds to PTIL to Department to the people who owned the land. Mum was very bitter. pay off the loan. The ANZ loan eventually went into default because PTIL did not have the funds to pay it off. About 3 weeks after it went into default I remember attending a court case with her and one of them stood up and said I have not Taheke Paengaroa trustees negotiated a private arrangement with ANZ received one half penny in all the years you have had the benefit of it. That’s when Mum Bank to repay the loan, supposedly under the guarantee held by the bank stood up and said, “Ruihi Ratema who actually broke in and developed her own property and to take over the securities the bank held over PTIL, the resort and the has enjoyed the benefits and conceded those benefits for the benefit of the whole because she forestry income of the Ngati Pikiao trusts, including Paehinahina Mourea. was led to believe by Api…… The trustees of Taheke Paengaroa informed the other PTIL shareholders It was in that light that Albie Bennett when he learnt that Duncan McIntyre was visit- that they had taken over their rentals and stumpage and would also take ing, saw a small window of opportunity. He (Duncan) was going to Otaramarae, to control of Apton Investments Ltd by appointing the majority of directors Houmaitawhiti and if we had any take (issue) to put to him we would be given the op- to the board of Apton. They claimed that this was to ensure that the hotel portunity … Stan and his group were there and they put it to him and they also had with would be operated in a viable way to protect their investment and if the them their legal advisor Doug Dillon and quite simply it was the way it was put that other shareholders did not agree they would enforce the securities and take Duncan McIntyre said, “Yes, you come to Wellington. You fly down. Your tickets will be control that way. Although Paehinahina Mourea was very dissatisfied with waiting at the airport”. That was sufficient to bolster everybody’s hopes and the feeling their threats they agreed with their appointment of Joe Malcolm and John that they were going to actually start getting somewhere. Mariu. Paehinahina Mourea was permitted to appoint one director and nominated Pare Aratema.

( 10 ) ( 31 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 11 Okawa Bay Resort 2 History of the trust

The Maori Development Corporation Ltd advanced $3.2 million for a pe- When they all turned up at the little airport there were no tickets and Mr Newton actually riod of 6 months to the Maori Trustee, the security for which was the Ngati took out his cheque book and he paid the fares of all those who were flying down to Pikiao forestry income (both rentals and stumpages) for the next 20 years. Wellington. That’s how they got to Wellington to keep this appointment with Duncan This loan together with $650,000 advanced by the various trusts ($150,000 McIntyre and Jock McEwan, Duncan’s secretary. As a result of that the minister indicat- from Paehinahina Mourea) and incorporations was used to settle the mort- ed that he was prepared to negotiate with this group who had not yet collectively, formally gages held by NatWest Lombank and the Housing Corporation. formed a body of administrators. They were just a group of elders who were determined they were not going to lose another inch of Pikiao land. That’s when it started. At the time it was envisaged that an equity investor would be introduced into the structure to replace the MDC loan. This did not happen and on 22 Their determination, dogmindedness …. They were going to get that land back. It was a August 1989 the bridging loan was in default. Default of the loan meant single-minded thought of that group of kaumatua. They had no money. that the MDC had the right to uplift Ngati Pikiao forestry revenues for the next 20 years. Thus an alternative structure was sought and the deadline for A lot of the success was due to Doug Dillon. He used the law against the Parliamentary its agreement was to be 31 Mar 1990. legal advisors and he had sufficient information which he used in a very professional way so that when they went to see Duncan McIntyre he had no answers and as a consequence The new structure involved the formation of a new hotel company (Apton) had to concede the return of the land. that would lease the hotel from Okawa Bay Lake Resort Trust. This lease to Apton was for a 5 year term with rights of renewal for 7 terms of 5 years Thus in 1971 the land with a substantial debt of $190,000 on it, was re- each. MDC was to invest $3.5 million in the new hotel company. The struc- turned to the owners. The owners were unhappy about the debt and ture of Apton was that of its 222 share capital, Ngati Pikiao would have sought ways of reducing it and ultimately clearing it. The first step in their 150 shares and the Maori Trustee would have 72. Ngati Pikiao was not plan was to sell off all the stock, equipment, machinery, and anything else expected to pay for their shares unless a call option was made on them. that could be sold. One of the elders, Stanley Newton went to live on the block in one of the shepherds’ houses so that he could manage the sales With the new company in place considerable improvements were made to while at the same time keeping an eye on the stock to ensure they were in the hotel and a move was afoot to see more of our people involved at all the best condition for sale. His son William has this to say about that time: levels in the hotel, not just in the kitchen and laundry or as porters. 1992 was the first year that the hotel produced a profit and it did so again the Well dad had to go and stay there and get everything prepared for the sale. He went to stay next year. there so that he could organise the sales. They had to muster all the cows and Sam Emery decided to give him another shepherd, who was Jack Lawless, with dogs to help muster The financial situation of the trust was under review at the time and it the sheep and cattle, whatever, for the sale. There were a lot of animals in that place. We was thought that with a reorganisation of loans, lease and other financial used to go in the weekends but we stayed there for one week when they had the sale. It was arrangements there would be a more positive outlook for the investment on a Friday. We had to get all the stock into the yards. All the animals were sold – all the made. Hence in May 1994 a negotiating team was appointed by the trusts animals and the farm gear, farm equipment. There was all this gear around the woolshed and incorporations to resolve with the Maori Trustee and MDC some of like ploughs and disks. The houses were the only things that stayed. Everything else went. the ongoing problems with the financial structure of the resort. Dave McLaren from Wright Stevenson came in and organised the sale. That was to clear In 1995 a working party was appointed to put together proposals to again the debt and they did. Dad stayed there until all the animals were sold and all the gear restructure the Ngati Pikiao investment in Okawa Bay Resort and to de- was cleared to make sure that people wouldn’t just go along and take things because they velop a strategy for negotiating those proposals with the Maori Trustee and had brought all the equipment for sale together. Once the sale was over we all went home the Maori Development Corporation. This resulted in the formation of because there was no gear to steal.

( 30 ) ( 11 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 2 History of the trust 11 Okawa Bay Resort

Then they had a big meeting at Te Takinga to see what the next option was. Dad sug- came with the money. The beauty of that was that we kept the money off shore. We were gested putting it into forestry. Well they had a big argument. Some of the elders kicked dad doing beautifully until Muldoon discovered what was occurring with offshore finance and out of the meeting. They said, “We’re farmers. Don’t you come here and tell us farmers brought in legislation to change this. As a consequence, within a 3 year period, we got into what to do.” They said, “We’ve been farmers all our lives.” They couldn’t see that once debt. we cleared the land we could grow trees on it. They were farmers you see. So Dad went to Tasman to get some numbers and had to explain to these owners at another meeting that As Pirihira said it was after only three years of operation that the resort this is what they could do. It was all about percentages – so much for rental and so much got into serious financial difficulties and was not able to pay its debts. The for stumpage. With everything sold you couldn’t go back farming and forestry was the only owners were threatened with a mortgagee sale of the whole project includ- way to have an income. Farming was no good because of the sulphur. Every three years ing the land if they could not satisfy their creditors. they had to replace the fences because of the corrosion from the sulphur. In an attempt to rescue this precarious situation the trustees of Okawa Bay Thus in November 1973 they established the Paehinahina Mourea Trust brought in the Maori Trustee as the responsible trustee for the complex. under section 438 of the Maori Affairs Act 1953. Later it came under Te The mana and resources of the Maori Trustee had a very high rating in the Ture Whenua Maori Act 1993 as an Ahu Whenua Trust. Judge Kenneth financial world and was able to stave off and delay attempts by creditors for Gillanders Scott, esquire, vested Paehinahina Mourea as a 438 trust under a mortgagee sale of the property. the trusteeship of: The Maori Trustee on its own however, could not sustain the situation for too long so in 1987, called on the Ngati Pikiao people for some help. Pae- Albert Te Auheke Bennett hinahina Mourea Trust together with other trusts and incorporations of Stanley Newton Ngati Pikiao; Taheke Paengaroa Trust, Paengaroa South 4 Trust, Paen- Te Autiti Wikiriwhi garoa South 5 trust, Rotoiti 3v3 Trust, Waitangi No 2 Trust, Ngati Pahiko Te Aho Welsh Trust, Ruahine & Kuharua 1A Block and Ruahine & Kuharua Okahu William Emery Block, rose to the call to assist the Maori Trustee. The mana and dignity of David Whata the tribe was at stake. John Ransfield Maruao Takuira Poihipi Paora

The first major decision made by these trustees was to opt out of farming and go into forestry. This was a bold decision but the trustees could see that the area would never be profitable as a farm.

It was the decision of these trustees that changed the fortunes of Paehina- hina Mourea when they took the land back from the Maori Affairs. The partnership with a forestry company ensured an annual rental to service Stanley Newton being welcomed at the opening of the Okawa Bay the debt and income from stumpage after a number of years, would help to Resort provide for the next generation.

( 12 ) ( 29 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 11 Okawa Bay Resort 3 Ownership and Management

This beautiful lakeside hotel and condominium complex is located on the The land was originally owned by two hapu of Ngati Pikiao - Ngati shores of Lake Rotoiti at Mourea. The location had been leased as a timber Te Takinga and Ngati Hinekura. As its name denotes, the two blocks of mill and then a camping ground. Most of the lease holders were Pakeha, land that make up the most of Paehinahina Mourea are Mourea who according to Pirihira Fenwick, paid very little rent. Papakainga and Paehinahina. When the Te Ata block was added another hapu, Ngati Rangiteaorere shared in the ownership.

Paehinahina Mourea Trust is currently under the trusteeship of:

Barnett Vercoe David Wickliffe William Emery

Ngati Pikiao at the opening of the Okawa Bay Resort

It was based on Maori land value which was the lowest rate you can expect as the land was valued as low as the lowest value. When the block of land came up for renewal the people wanted to take the land back and at the time the land block had a debt on it. There were things like improvements that were applied to the land block. Parehuia Aratema Pirihira Fenwick

A trust was set up with myself, Logan Hall, Te Aho Rogers, David Whata, Stan New- ton, Kelly Hawira. We decided to do something about it because all the buildings were di- The trustees all have links back to the previous trustees. David Te lapidated, old fishing men’s huts and milling day huts which were just patched up. When Hurihanganui Whata is one of the original trustees. Parehuia Aratema, we took over and got an assessor in to have a look all he said was, “Bulldoze it”. Logan’s Pirihira Fenwick and Willie Emery are children of the original trustees, son, David brand new back from Stanford, with a brand new business degree in Busi- Stanley Newton, Te Aho o te Rangi Welsh and Willie Emery Snr. Barnett ness Management, came up with the idea of a resort. That is how it started. The Maori Vercoe’s father became a trustee in 1976 and when he died Barnett re- Trustee’s office handed it back to us with a debt of $30,000. placed him.

No one would lend to a Maori Trust because we had no credibility. Maori were not con- Trustees are elected by owners and appointed by the Maori Land Court. sidered to have any intellectual ability to run any business. David Hall said, “I’ll go out They used to be replaced by rotation every three years, but now trustees and find it for you,” and he sold a concept and it was Westminster Bank (Natwest) who could be there for life. The administration of the Trust is a service provided

( 28 ) ( 13 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 3 Ownership and management 10 Microsilica & Sulphur

by Hulton Patchell Ltd (formerly Hinton & Hulton). Keith Hinton was the Strong sales in Australia brought in good royalties for the trust but a fire in trust’s secretary until 22 June 1983 when Ian Hulton was appointed to the the plant in October 2007 caused production to cease while they rebuilt position. He is the current secretary and accountant. their plant.

At the time of writing the plant has been rebuilt and production has not yet reached budget predictions but is continuing to improve.

Beneficiaries at the 2005 AGM at Houmaitawhiti Marae

Barnett Vercoe, chairman of the trust, explaining the Silica and Sulphur operations

Trustees 2011

( 14 ) ( 27 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 10 Microsilica & Sulphur 4 Forestry

In December 1990 the trust entered into a joint venture agreement with Robert Hall to mine sulphur and silica on the block. It was to be a 50/50 The forestry lease was negotiated with PTY Industries for a term of 99 sharing of profits and the trust was guaranteed $25,000 each year for the years, and for an annual rental of $22,000, subject to review every 5 years first 5 years for the sulphur mining. A planning consent application was (4.5% of the land value as determined by Government valuation). The made by Robert Hall to the Rotorua District Council in July 1991 and this lease was for the full 824 hectares of the block, and the lessee was required was granted. to plant no less than 600 hectares.

At the same time Robert Hall was very active in establishing markets for the In addition to the rental PTY were to pay 4% stumpage of all merchant- sulphur and developing a plant to process the silica. Remarkable progress able forest produce subject to a minimum guarantee of 21.2 cubic metres was made in this project with additional buildings and plant erected in just mean annual increment of pinus radiata to each hectare. Thus the trust 12 months. Royalties from the sulphur exceeded all expectation in the first was guaranteed a minimum volume of wood to be grown by the company, few years but by 1993 the sulphur was all exhausted and extraction came to commonly known as a ‘guaranteed minimum stumpage’. an end. If the theoretical minimum volume was not extracted the trust would be Robert Hall’s group then started trucking pure sulphur on to the block, paid, in addition to the stumpage payment, the difference between the crushing it and mixing it with their own low grade sulphur material and stumpage paid and the theoretical minimum volume. At the Nov 1976 then trucking it off again. The trust was paid a royalty of $2 per tonne. AGM Mr Dillon, the trust’s lawyer, said it had been acknowledged that the This continued until 2010 when all sulphur activities on the block came to lease negotiated by Mr Russell was one of the best of its kind. an end. Forest planting began in 1977 and by March 1978 the Paehinahina Mourea In 1993 the trust drew up a separate agreement with Robert Hall for the block was fully developed as a forest farming unit. The western end of the mining of silica. It was a 25 year agreement with set royalty payments per block was sub-leased to the Forest Research Institute for scientific research tonne of silica extracted and a separate royalty payment for by-products into agroforestry, being trials of grazing livestock under trees. based on 15% of sale price. There were 7.1 hectares of Douglas Fir trees within the area leased to In 1995 this agreement was transferred from Robert Hall to China Clays. Tasman, these being the property of the Trust. The trees were planted in They made a substantial commitment to the project by adding more build- 1940 and by 1993 had reached maturity. At that time the trust instructed ings and plant and carrying out ongoing testing and refinement of the proc- PF Olsen & Co Ltd to invite tenders from forestry operators to purchase the ess. trees. None of the offers met expectations and the trust did not accept any.

However after several years and millions of dollars NZ China Clays had to It wasn’t until 1996 that the stand of Douglas Fir trees was sold. The trus- concede that they were unable to source a viable market to make their in- tees entered into a contract with Wood Marketing to have the trees harvest- vestment profitable. They were able to produce the product to the required ed and sold and the income from that stand was $540,458. After that the specifications but found problems in marketing it internationally. The out- land reverted back to Fletchers under the lease that the trust had with them. come was that in the year 2000 the business was bought by Golden Bay Cement. The year 1996 saw Fletchers harvest a small block of trees which generated $27,766 income for the trust. This was the beginning of harvesting of the first rotation and this continued through to 2009. A small block from the first rotation is not due to be harvested until 2016. Planting of the second

( 26 ) ( 15 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 4 Forestry 9 Geothermal Investigations

rotation started in 1997 and will continue until after 2016. However developments came to a standstill when in August 2009 some of Since the inception of the first forest lease on 1 Oct 1973, the trust has had the owners in Tikitere Trust applied to the Maori Land Court for a review four lessees, starting with PTY Industries, then Winstones, followed by Tas- of their trust and an injunction to stop the trustees from entering into any man Forestry (later to become Fletcher Challenge Forests) and now Ontario further negotiations on the geothermal development or doing anything else Teachers’ Pension Plan (OTPP). As OTPP is a Canadian based organisa- in relation to the geothermal agreement. The Court approved the injunction, Hancock Forest Management was appointed to manage their forest tion and subsequently there were meetings with their owners and hearings investments in New Zealand while PF Olsen and Co Ltd was contracted to in the Maori Land Court to determine whether the trustees of Tikitere carry out the forest management and harvesting operations on Paehinahina Trust acted within their powers to enter into the development agreements. Mourea. This court case dragged on for a year after which an appeal was lodged against the decision of the judge. Hence at the time of writing, the case still sits with the Maori Land Court and progress on the development of the geothermal field has halted.

( 16 ) ( 25 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 5 Amalgamation / Aggregation

In 1976 the Trust negotiated with the Maori Trustee a forestry lease of the Tikitere A Block, also known as Te Ata Block. This added an extra 42 hectares to the Trust’s land holdings. It also added another group of people to the block. This was Ngati Rangiteaorere.

At first the trustees applied for amalgamation of the two blocks and this was achieved through the Maori Land Court in March 1983 with the following trustees appointed by the Maori Land Court: Stanley Newton, Te Aho Welsh, David Whata, Ruhi Vercoe, Logan Arthur Henry Hall, Hauotu Kenneth Eru, Samuel Kahui Emery, Matthew Edwards, Alec Tinirau Malcolm.

However the people realised that amalgamation was not what they wanted so the trustees called a meeting of owners to discuss aggregation of ownership instead of the amalgamation of titles. The meeting endorsed the wish- es of the trustees to apply to the Maori Land Court to have the amalgamation order replaced with an order for aggregation. The aggregation meant that the lists of owners of Paehinahina Mourea and Tikitere A would be combined under one list, but the titles to the blocks would remain intact.

The following year an application was lodged but it was not until 1989 that the new order was issued. The hearing was before Judge Hingston who issued orders confirming the aggregation and at the same time separating Atlantis House into a trust of its own. Both trusts would be administered by a single trust but separate accounts were to be used to give true accountabil- ity of the separate trusts.

Photo taken on the retirement of Stanley Newton as trustee and chairman at the 1990 AGM.

Left to Right: Ken Eru, Matthew Edwards, David Whata, Barnett Vercoe, Stanley Newton, Ian Hulton (Secretary), Te Aho Welsh, Logan Hall, William Emery, Alec Malcolm.

( 16 ) ( 17 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 9 Geothermal Investigations 6 Tikitere A Block

With the aggregation of the Tikitere A Block and the main trust lands, the hinahina Mourea legal ownership of the bores which the Crown had drilled lease of the Tikitere A block was terminated so that it was no longer part of on their land 15 years ago. However it would also allow the Government the lease to Fletcher Challenge Forest (now OTPP). The trustees became to sell the bores and give the new owners rights of access across the trust totally responsible for its management and operations. lands. The trust strongly objected to this proposed legislation.

Hence in 2003 the trustees started to investigate the harvesting of this for- Thus in 1991, through the Te Arawa Federation of Maori Authorities, a est. At this time the trees were 26 years old and were expected to be har- claim to the ownership of the geothermal resource and the rights to devel- vested at age 28 in 2005. op the resource was made to the Waitangi Tribunal.

The pre-harvest programme included mapping the forest and an inven- In May 1995 a geothermal development agreement was signed with tory. The forest statistics in terms of various grades, volume and clear-wood Rotorua Electricity Ltd and Power NZ and the trust received its first licence quality were all evaluated. Also included was a best harvest option or in- fee of $50,000. TrustPower later took over Rotorua Electricity Ltd and deed if they should harvest at all. In conjunction with their advisors they replaced REL as one of our joint venture partners. wanted to be sure they made the right call. Subsequently the trust invited tenders for the forest. Tenon Industries was the successful tenderer and Changes in the energy sector in 1998 resulted in Power NZ selling its inter- this was based on a number of factors including that they would use Hiku- ests in geothermal developments to TrustPower. The trustees reviewed the wai Logging Ltd to undertake the logging, that guaranteed prices were set status of their geothermal Licence Agreement with Power NZ and after for some grades of logs and logging and log cartage costs were to be fixed taking legal advice concluded that in fact the agreement had terminated for the duration of the operation. The operation was structured whereby through inaction by Power NZ to progress an application for a resource Tenon would harvest the trees on behalf of the trust and sell the logs. The consent. Consequently they advised Power NZ that the trust did not con- income for the trust would therefore depend on the total volume in the sent to a transfer of the agreement to TrustPower and that the agreement forest and log prices achieved. The firm of Chandler Fraser Keating was was terminated. employed to monitor the operations on behalf of the trust.

Beneficiaries inspecting the Microsilica site

( 18 ) ( 23 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 6 Tikitere A Block 9 Geothermal Investigations

In the 1970s the Ministry of Works and Development (MOW) sought per- In February 2005 harvesting of the Tikitere A block started. The trustees mission from the trustees of Paehinahina Mourea for the drilling of wells arranged for Rev Bob Schuster to bless the forest before the commence- to determine the geothermal potential of the area. The trustees took the ment of operations and this was done a few days before work started. One request to a meeting of owners, who strongly objected to geothermal explo- of our local Ngati Pikiao forestry logging contractors (Hikuwai Logging) ration on their property. Their objection to geothermal investigations was was employed to do this work and within a few months it was completed. taken up by Te Arawa Trust Board and the NZ Maori Council and a letter Income from this block was about $1,000,000. was sent to the MOW to “cease all drilling on Paehinahina Mourea forth- with”. With the completion of harvesting trustees took time to do some critical thinking around the decision to replant in Pinus Radiata as against other However in November 1978 the Minister of Energy served notice on the land uses. Advice was sought but in the end it was decided to replant in trust under the Geothermal Energy Act 1953. This gave the MOW author- Pinus Radiata. The replanting was managed by PF Olsen Ltd and the trees ity to enter the land and in 1979 drilling started. 1979 saw shallow drilling are now 4 years old and look to be a very healthy crop. to ascertain the water levels then in 1980 a series of 10 metre deep bores were drilled with three further cored holes from 50 – 100 metres deep to assist in determining the direction of near surface ground water flows which could be of importance for disposal plans. By February 1981 the two lots of drilling proved unsuccessful. Of the 10 shallow bores drilled by the Crown on the Trust’s land one was sealed soon after and the trustees recommended that the Crown be responsible for sealing off the other 9 wells as they did not have any commercial potential and had a limited life.

The trustees were always looking out for potential income streams and in 1986 research for the establishment of a Thermal Spa was carried out. The theme and purpose was to provide a health resort, a centre for pleasure and recreation and an example of self determination and a source of employment for the people. The first stage of the investigation cost $100,000. The second stage was likely to cost as much or more so the trust decided to halt investigations at that stage.

In 1991 the trust entered into an agreement with Robert Hall whereby he would carry out investigations into the geothermal energy on Paehinahina

Mourea for use in power generation. He was successful in obtaining an Trustees and manager inspecting the replanting authority from the Ministry of Commerce to carry out those investigations. Works Civil Construction would carry out the exploration and drilling programme. However these Investigations into electricity generation development of the geothermal resource proceeded very slowly. Trustees chose to be cautious rather than follow the lead of Rotoma No 1 Corporation who had commissioned Valley Power to drill on their land. In recent years the Government proposed legislation which would give pae-

( 22 ) ( 19 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 7 Firewood Collection 8 Purchase of Atlantis House

With the harvesting operations happening in the main block and on In May 1978 the trustees considered a report prepared by the secretary Tikitere A, the trustees were able to offer two days when firewood could be on a property for sale in the Rotorua township, known as Atlantis House. collected by beneficiaries. Both days were very successful. The report showed that the purchase price was $230,000. The lessee of the building, Atlantis Enterprises Ltd, had a 20 year lease with rent reviews every 5 years and a right of renewal for a further 20 years. Rental at the time was $21,000. The trustees examined the proposal, inspected the building and resolved to purchase the property at a price of $220,000 subject to finance being available.

Cash at the time was limited hence the trustees sought a loan from the Bank of New Zealand (BNZ) to cover the difference that they needed. The trust therefore provided $90,000 and took out a loan of $130,000 from the BNZ.

Atlantis House has been a good investment for the trust. A steady income is derived from this property each year and in its 33 years of operation it has always been tenanted. On 24 April 2004. the second firewood day, the trust recorded 105 vehicles arriving to collect wood and 80 tonnes were cut up by the team of workers. Those who turned up and were unable to collect wood were given a further opportunity to collect their firewood at a later date.

Atlantis House situated at 1208 Amohia Street, Rotorua

( 20 ) ( 21 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 7 Firewood Collection 8 Purchase of Atlantis House

Atlantis House situated at 1208 Amohia Street, Rotorua

( 20 ) ( 21 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 6 Tikitere A Block 9 Geothermal Investigations

In 1991 the trust entered into an agreement with Robert Hall whereby he would carry out investigations into the geothermal energy on Paehinahina

( 22 ) ( 19 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 9 Geothermal Investigations 6 Tikitere A Block

Beneficiaries inspecting the Microsilica site

( 18 ) ( 23 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 9 Geothermal Investigations 5 Amalgamataion / Aggregation

At that stage the trustees decided not to actively seek to establish another In 1976 the Trust negotiated with the Maori Trustee a forestry lease of the development agreement with any other developers but if an approach was Tikitere A Block, also known as Te Ata Block. This added an extra 42 hec- made to them proper consideration and consultation would be carried out. tares to the Trust’s land holdings. It also added another group of people to the block. This was Ngati Rangiteaorere. Other uses of the geothermal resource were under review, including a spa and Prawn farming. These are generally high capital cost developments At first the trustees applied for amalgamation of the two blocks and this was and at the time the trust had a commitment to the Okawa Bay Resort. The achieved through the Maori Land Court in March 1983 with the following trustees therefore did not feel it would be appropriate to take on any extra trustees appointed by the Maori Land Court: commitments.

By 2005 interest in geothermal development was growing in the district and However the people realised that amalgamation was not what they wanted the trustees of Paehinahina Mourea decided to meet with the other trusts so the trustees called a meeting of owners to discuss aggregation of owner- and incorporations located over the Taheke and Tikitere geothermal fields ship instead of the amalgamation of titles. The meeting endorsed the wish- to see what arrangements they could make. es of the trustees to apply to the Maori Land Court to have the amalgamation order replaced with an order for aggregation. The aggregation meant It was not long before the trustees took the view that the two fields were that the lists of owners of Paehinahina Mourea and Tikitere A would be separate and thus formed an alliance by way of an MOU with their neigh- combined under one list, but the titles to the blocks would remain intact. bouring trusts over the Tikitere field ie. Manupirua Baths Trust and Tikitere Trust, who were already users of geothermal fluid, to look at the The following year an application was lodged but it was not until 1989 that potential development of this field. Key principles for trustees of Paehinahi- the new order was issued. The hearing was before Judge Hingston who na Mourea were to maximise the value of the resource but also to minimise issued orders confirming the aggregation and at the same time separating the risk to the trust. Atlantis House into a trust of its own. Both trusts would be administered by a single trust but separate accounts were to be used to give true accountabil- Towards the end of 2006 the trustees invited development proposals from ity of the separate trusts. the marketplace. By 2008 the trustees had completed negotiations with Tikitere Geothermal Ltd who had won the contract and a development agreement and royalty agreement were ready for signing. All through the process the owners were kept informed, either at the annual general meetings or through special meetings called for that purpose. Photo taken on the retirement of Stanley Newton as trustee The trust was extremely well served by the advice of Jeff Williams through and chairman at the 1990 the complex issues in negotiating the terms of the development and royalty AGM. agreements. Most importantly his position was entirely independent and unbiased therefore his sole focus was on achieving the best outcome for the trust. He made presentations to owners’ meetings. Left to Right: Ken Eru, Matthew Edwards, David Whata, Barnett Vercoe, In Nov 2008 the trustees of Paehinahina Mourea met with the trustees of Stanley Newton, Ian Hulton (Secretary), Te Aho Welsh, Logan Hall, William Emery, Tikitere Trust and Manupirua Baths Trust to sign the development and Alec Malcolm royalty agreements. This was done at a formal ceremony at Waiora Spa.

( 24 ) ( 17 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 4 Forestry 9 Geothermal Investigations

( 16 ) ( 25 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 10 Microsilica & Sulphur 4 Forestry

( 26 ) ( 15 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 3 Ownership and management 10 Microsilica & Sulphur

At the time of writing the plant has been rebuilt and production has not yet reached budget predictions but is continuing to improve.

Beneficiaries at the 2005 AGM at Houmaitawhiti Marae

Barnett Vercoe, chairman of the trust, explaining the Silica and Sulphur operations

Trustees 2011

( 14 ) ( 27 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 11 Okawa Bay Resort 3 Ownership and Management

Paehinahina Mourea Trust is currently under the trusteeship of:

Barnett Vercoe David Wickliffe William Emery

Ngati Pikiao at the opening of the Okawa Bay Resort

( 28 ) ( 13 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 2 History of the trust 11 Okawa Bay Resort

The first major decision made by these trustees was to opt out of farming and go into forestry. This was a bold decision but the trustees could see that the area would never be profitable as a farm.

( 12 ) ( 29 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 11 Okawa Bay Resort 2 History of the trust

( 30 ) ( 11 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 2 History of the trust 11 Okawa Bay Resort

( 10 ) ( 31 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 11 Okawa Bay Resort 2 History of the Trust

The Maori Development Corporation Ltd advanced $3.2 million for a pe- David Te Hurihanganui Whata, the only surviving of the original trustees, riod of 6 months to the Maori Trustee, the security for which was the Ngati remembers those times well. He has this to say about those times: Pikiao forestry income (both rentals and stumpages) for the next 20 years. This loan together with $650,000 advanced by the various trusts ($150,000 Tikitere block was part of the Apirana Ngata development scheme. There were 5 blocks from Paehinahina Mourea) and incorporations was used to settle the mort- that were returned to the original block titles. The most southern block was previously gages held by NatWest Lombank and the Housing Corporation. owned by Mr Waldron and then somehow was placed under the control of the Maori Af- fairs Department. The extent of the lands affected under the Apirana Ngata development At the time it was envisaged that an equity investor would be introduced scheme covered Mr Waldron’s property to the south through to the most northern point of into the structure to replace the MDC loan. This did not happen and on 22 Paehinahina. August 1989 the bridging loan was in default. Default of the loan meant that the MDC had the right to uplift Ngati Pikiao forestry revenues for the I recall being told by representatives of the Maori Affairs Department that as the previous next 20 years. Thus an alternative structure was sought and the deadline for owner Mr Waldron was going to sell the land and the blocks were going to be returned its agreement was to be 31 Mar 1990. to the owners I qualified under the Apirana Ngata scheme as a rightful descendant and owner. I was promised that if I undertook an apprenticeship as a farmer and learn to The new structure involved the formation of a new hotel company (Apton) farm, the land would be returned to me. that would lease the hotel from Okawa Bay Lake Resort Trust. This lease to Apton was for a 5 year term with rights of renewal for 7 terms of 5 years Subsequently and in good faith I moved my wife and first born child from Te Weta Bay each. MDC was to invest $3.5 million in the new hotel company. The struc- where we lived with my kuia to the assigned block. The block was approximately 400 ture of Apton was that of its 222 share capital, Ngati Pikiao would have acres and represented the geographical area that had traditionally always belonged to my 150 shares and the Maori Trustee would have 72. Ngati Pikiao was not hapu as my kuia had always known. The area concerned covers the land between the expected to pay for their shares unless a call option was made on them. historical burial ground to the north until it reaches the identified pa site situated at

With the new company in place considerable improvements were made to Wairau Bay which belongs to Te Takinga and this remains the same today. the hotel and a move was afoot to see more of our people involved at all After moving on to the block which was being managed by the Maori Affairs Department levels in the hotel, not just in the kitchen and laundry or as porters. 1992 I was employed as Head Shepherd and was placed alongside an appointed kaumatua, was the first year that the hotel produced a profit and it did so again the Tuki Te Rangi to serve my apprenticeship. I recall being told by representatives of the next year. Maori Affairs Department that I would serve a 3 year apprenticeship and that would satisfy them in terms of being qualified to farm the land and then the land would be returned The financial situation of the trust was under review at the time and it to me the rightful owner. Unfortunately the Maori Affairs Department broke their promise was thought that with a reorganisation of loans, lease and other financial and I was forced to seek alternative employment elsewhere to support my family. arrangements there would be a more positive outlook for the investment made. Hence in May 1994 a negotiating team was appointed by the trusts Upon the Maori Affairs Department breaking their promise, I and other kaumatua of and incorporations to resolve with the Maori Trustee and MDC some of Ngati Pikiao protested and took our grievance to the government but this was to no avail. the ongoing problems with the financial structure of the resort. In response to the lack of support and negative attitude towards us from the government of the day, we decided to take matters into our own hands which required us to pay off a In 1995 a working party was appointed to put together proposals to again debt over the land which the Maori Affairs Department had incurred and then imposed on restructure the Ngati Pikiao investment in Okawa Bay Resort and to de- Ngati Pikiao without consultation. velop a strategy for negotiating those proposals with the Maori Trustee and the Maori Development Corporation. This resulted in the formation of More seriously the debt was not incurred by Ngati Pikiao but nonetheless the government

( 32 ) ( 9 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 2 History of the trust 12 Aerodrome Beacon Site

( 8 ) ( 33 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 13 Iwi Futures 2 History of the trust

( 34 ) ( 7 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 1 The Land Charitable Trust Map showing Paehinahina Mourea Lands 14

In recent years the trustees discussed ways of enhancing the trust ownership and systems (as per their strategic plan). They considered how they might effectively make distributions to their beneficiaries and others. Many of the grants paid to beneficiaries are for charitable purposes, such as education grants, grants to marae where they are registered with the Charities Com- mission and grants for health related needs and churches. With significant revenues to come from the geothermal development not far away the trust would be able to increase the allocation to those areas.

Hence the trustees decided to set up a charitable trust. This would provide a robust structure and the trust would develop charitable distributions poli- cies that would include the criteria they would need to meet when consider- ing requests. Under current legislation there would also be tax advantages to be gained from making distributions from a charitable trust.

( 6 ) ( 35 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 1 The Land Where is Paehinahina Mourea now? 15 Map of the Ngati Pikiao Blocks

The singular most significant event in the trust’s past was the granting of a forestry lease in 1973. This was a culmination of efforts by the owners and their representatives to wrest the control and administration of the trust’s land from the Maori Affairs Department. It is a fact that Maori Affairs did not make it easy for the owners who were forced to sell off livestock and other assets to pay off the debt that the Maori Affairs Department had incurred. Those original trustees were left with few options for the development of the land, and were courageous in taking a relatively new course of action - an agroforestry lease. A few years later they backed their judgement and faith in forestry by planting trees for the trust on the Tikitere A block.

The trees on both blocks have given the trust an income that has secured its financial future for generations to come. As well the trust has investments in the following: 1. A commercial property, Atlantis House in Amohia St which has been owned by the trust for 33 years and generates good rentals. 2. A diversified investment portfolio through Craigs’ Investments, sharebro kers. The trust invested $250,000 on 16 Aug 2006 3. An investment of $100,000 in OTK Orchards Ltd, a gold kiwifruit invest ment in Omaio, in Aug 2007. Along with this is an investment of $40,000 in debentures issued by OTK Orchards. 4. Bank term deposits continue to be the biggest passive investment. 5. Okawa Bay Lake Resort. The trust can feel more confident about describ ing their advances to Okawa Bay Lake Resort as an investment as the funds have now started to come back to the trust, albeit slowly but it was a land mark to receive the first payment back from PTIL in March 2010.

( 36 ) ( 5 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011 1The Land

The block of land known as Paehinahina Mourea is located 12 km to the As Ranginui Walker said in his article, Tikitere Triumph, north east of Rotorua city. It lies on the southern shores of Lake Rotoiti “Paehinahina Mourea is a story of Maori self help in the face of departmental with its southern boundary reaching the Rotorua-Whakatane Highway and ineptitude”. a small part to the west is on the Rotorua-Tauranga Highway. The block is 824 hectares with most of it covered in Pinus Radiata. After 40 years of managing the block the Department of Maori Affairs left it with a debt of $190,000. The Maori owners (trustees) of Pae- Some areas of the block are not planted in forest. These are the buffers, hinahina Mourea, after managing the block themselves for 40 years have firebreaks, areas beneath power lines, geothermal (sulphur) areas, reserves turned that debt into an asset valued at $7.5M today. such as Papakiore and wahi tapu. The area is geothermally active and con- tains many ngawha, waiariki and puna.

As the land is on the shores of Lake Rotoiti there are a number of bays that are used by boaties as ideal picnic spots in the summer time. The trust has set up these areas around the lake as a Maori reservation.

( 4 ) ( 37 ) The First Forty Years 1971 2011 The First Forty Years 1971 2011