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Table of Contents

Trust Directory 3 He Maimai Aroha 4 Foreword 5 Trustees 6-7 Chairman’s Report 9 Chief Executive Officer’s Report 10-12 Business Overview 16 The Trust 16 The Staff 16 The Beneficiaries 18 The Companies 18 The Assets 18 The Business 18 Arikitanga 18 Distributions 18 Funds Management and Investment 20 Taupō Moana Funds 20 Historical Financial Performance 20-22 Strategic Plan 2010 - 2013 23 Financial Statements & Auditor’s Reports 25 Consolidated Financial Statements 26-35 Ngāti Tūwharetoa Fisheries Charitable Trust 36-43 Ngāti Tūwharetoa Fisheries Holdings Limited 44-51 Ngāti Tūwharetoa Fisheries Limited 52-57 Appendix 1: Pātaka Kai 58

1 Notice of Meeting

Ngāti Tūwharetoa Fisheries Waitetoko Marae, 20 November 2010

Annual Reports for 2006-07, 2007-08, 2008-09

For: Ngāti Tūwharetoa Fisheries Charitable Trust Ngāti Tūwharetoa Fisheries Limited Ngāti Tūwharetoa Fisheries Holdings Limited

2 Trust Directory

Trustees (2006 – Sept 2009) Email Te Kanawa Pitiroi [email protected] Howard Kahura Emily Rameka Website Arapiu Seymour www.ntf.maori.nz Anthony Olsen Accountant Trustees (Sept 2009 - current) DPA & Associates Te Kanawa Pitiroi Chartered Accountants Anthony Olsen Taupō Judy Harris Tina Porou Auditor Graham Te Rire (resigned September 2010) Silks Topia Rameka Chartered Accountants Taupō Registered Office Opepe Administration Centre Bankers Waikato Street Bank of New Zealand Taupō Taupō

Postal Address Funds Managers P O Box 126 Taupō Moana Group Taupō, 3351 Solicitors Telephone Russell McVeagh +64 7 377 3176 Wellington

Facsimile +64 7 377 4326

3 He Maimai Aroha

Pūpuke ngā ngaru ki tai Tokia atu e te waka wairua Kia tae pai ki te mata o Hawaiki-tawhiti Ki te Hononga-wairua

Tā Te Atawhai Archie Taiaroa Hauauru Howard Kahura

Kei te mau mahararoa te hunga mōrehu mo ngā mahi i whakaoti i a Tā Te Ātawhai Archie Taiaroa rāua ko Hauauru Howard Kahura. Mai i te tīmatatanga o ngā tautohe ki te Kāwanatanga kia makere mai ngā hua no te kete kurutai o Tangaroa me wēra no te wai maori, i tū kaha kōrua ki mua i ngā pūpuke o te huka tai me te rapu i ngā oranga no te wai.

No reira haere kōrua, kua marino te moana ki mua i a korua. Haere, kia tere pai o kōrua waka ki te wāhi okioki.

Moe mai e koro mā, moe mai.

4 Foreword

E te Iwi, tēnā tātou katoa, When the Te Arawa waka first landed, so too began the association of Ngāti Tūwharetoa with the whenua.

celebrates the coming together of Ngāti Tūwharetoa whanui, inclusive of both Tūwharetoa ki Kawerau and Tūwharetoa ki te Aupouri.

I remind us all of the significant sacrifices that were made by our tupuna in the generations that preceded us so that our generation would be provided for. It is now our challenge and our responsibility to ensure that these sacrifices were not made in vain. It is my hope that the Ngāti Tūwharetoa Fisheries Charitable Trust, becomes Ngatoroirangi’s early explorations symbolic of the collective strength of beginning at Te Awa a Te Atua, then Ngāti Tūwharetoa Whanui. onward to Putauaki, Tauhara and eventually to Tongariro, laid the As we gather here at Waitetoko, I foundation for Ngāti Tūwharetoa, thought it appropriate that I reinforce which we still encapsulate today with the importance of our collective the words... strength, as reflected in the whakatauki of Ngāti Te Rangiita: Mai te Awa a te Atua, Ki Putauaki, “Ngā kapua whakapipi e tere ake nei i Ki Tauhara, Kaimanawa.” Ki Tongariro, “The small clouds that breakaway soon Puta atu ki te tonga return to regroup as one.” Nga Pou Here o Ngāti Tūwharetoa No reira tena koutou, tena tatou katoa. It is with these words in mind, that I provide this foreword for the inaugural report of the Ngāti Tūwharetoa Fisheries Charitable Trust.

The Ngāti Tūwharetoa Fisheries Te Ariki te Heuheu Tukino VIII Tumu Charitable Trust is the first in the long-history of Ngāti Tūwharetoa that

5 Trustees

The transitional trustees during 2006-2009 were: (pictured from left to right) Anthony Olsen, Te Kanawa Pitiroi, Emily Rameka, Howard Kahura, Arapiu Seymour,

6 The Trustees as at October 2009 and current through to September 2012 are: (pictured from left to right) Te Kanawa Pitiroi (Tūwharetoa Maori Trust Board), Anthony Olsen (Bay of Plenty Settlement Trust), Topia Rameka (Northern Lake Taupō), Judy Harris (Tūwharetoa Southern), Tina Porou (Southern Lake Taupō)

Note: Graham Te Rire was also elected for the Tūwharetoa – Bay of Plenty Ward but resigned from the Trust in September 2010.

7 8 Chairmans Report

“Tūwharetoa ki tai he ika unahi Tūwharetoa ki uta he ika kiri maheni” “To the coast I see Tūwharetoa and the fish with scales. I turn to the hinterlands and see Tūwharetoa and the fish smooth and sleek”

This collaboration also achieved partnerships through the Iwi Collective recognition that Te Ohu Kaimoana Partnership. There has been significant would develop a methodology that progress which has been realised would acknowledge the loss of through our collective approach with freshwater commercial fisheries. the other iwi involved.

With the support of the iwi, in 1998, For me personally, I am delighted to the Ngāti Tūwharetoa Marine Fisheries see how our Ngāti Tūwharetoa values Committee formed and separated of whanaungatanga, kaitiakitanga from Te Kotahitanga o Te Arawa Waka and kotahitanga have guided the Fisheries Trust Board in preparation development of our partnership to receive Ngāti Tūwharetoa’s rightful irrespective of political positions and share of the Fisheries Settlement. stances prior to the settlement, which promoted division and fragmentation. The establishment of the Ngāti I’d like to thank the Ngāti Tūwharetoa Tūwharetoa Fisheries Charitable Trust Marine Fisheries Committee members Lastly, this journey would have been has been a long journey which for me of that time, Emily Rameka, Arapiu much more difficult had we not had personally began with a series of hui-a- Seymour, Howard Kahura and Arapeta the support and leadership of our Ariki iwi during the mid-1990’s which were Te Rire (later replaced by Anthony in all aspects of our work. His support chaired by the Late John Takakopiri Olsen) who also later on, became has been pivotal in securing a more Asher. the transitional trustees to the Ngāti equitable allocation methodology for Tūwharetoa Fisheries Charitable Trust. Ngāti Tūwharetoa. On behalf of Ngāti Those hui-a-iwi provided early direction Tūwharetoa and the generations to and leadership based on Ngāti At this point I pay particular come, we acknowledge and thank you Tūwharetoa values to resolve the issues acknowledgement to the contribution for your commitment and leadership. regarding the representation of Ngāti of the late Arapeta Te Rire, Mahlon Tūwharetoa with regard to Fisheries. Nepia and Howard Kahura. These men No reira tena koutou, tena tatou katoa, worked tirelessly in their support of Next came our involvement in Te the kaupapa which began with the Kotahitanga o Te Arawa Waka Fisheries Ngāti Tūwharetoa Marine Fisheries Trust Board. One of the major outcomes Committee that eventually led and during this period was the collaboration evolved into the formation of this of the Tūwharetoa Maori Trust Board, Trust - a significant outcome for Ngāti Te Arawa Maori Trust Board and Te Tūwharetoa, for the katoa. Kotahitanga o Te Arawa Waka Fisheries Te Kanawa Pitiroi Trust Board, me ki Te Arawa waka, on The last three years have been focused freshwater commercial fisheries. on the Trust and our commercial

9 Chief Executive Officers Report

It is with pleasure that I present this inaugural Annual Report for the years 2006-07, 2007-08 and 2008-09.

Ngāti Tūwharetoa would be obliged It is important to acknowledge Tā into sharing the freshwater resources of Tumu te Heuheu for his leadership Lake Taupō. and dedication on behalf of Ngāti Tūwharetoa for ensuring that the The Tūwharetoa Maori Trust Board and outcome for Ngāti Tūwharetoa the Ngāti Tūwharetoa Marine Fisheries Whanui was acceptable and durable. committee collectively represented Without his tireless leadership and the interests of Ngāti Tūwharetoa in support in sensitive discussions with relation to the assets and funds handled other iwi leaders, Te Ohu Kaimoana by Te Ohu Kai Moana as the only source and the Government, the outcome of compensation for the loss of tribal for Ngāti Tūwharetoa Whanui would commercial fishing rights. be considerably less. Furthermore, it was equally important for Tā Tumu Our preferred position early on as that the Governance structure for In 2007 The Ngāti Tūwharetoa Fisheries expressed by Tā Hepi te Heuheu, was Ngāti Tūwharetoa Fisheries would Charitable Trust was established, that Ngāti Tūwharetoa be fully excluded be inclusive of all descendants of pursuant to Ngāti Tūwharetoa receiving from the settlement negotiated by Ngāti Tūwharetoa, that being Ngāti its rightful share of assets from both other iwi in 1992. Although the then Tūwharetoa ki Kawerau, Ngāti pre and post settlements processes Government acknowledged that the Tūwharetoa ki te Aupouri, Ngāti administered by Te Ohu Kaimoana. Maori negotiators had no authority Tūwharetoa ki te Tonga. to speak for Ngāti Tūwharetoa nor to Previous to the incorporation of the negotiate any settlement that affected I imagine that for both Ta Tumu te Ngāti Tūwharetoa Fisheries Charitable Ngāti Tūwharetoa, the Crown position Heuheu and the Late Arapeta Te Rire, Trust, Ngāti Tūwharetoa had the interim as indicated to Tā Hepi at the time, comes a great sense of satisfaction representation by the Ngāti Tūwharetoa was that Ngāti Tūwharetoa was bound that this Trust is the first formal Ngāti Marine Fisheries Committee. The by the subsequent legislation and Tūwharetoa authority which represents Ngāti Tūwharetoa Marine Fisheries must look to Te Ohu Kai Moana for an all descendants of Ngāti Tūwharetoa. Committee worked in conjunction with allocation of assets in lieu of retaining the Tūwharetoa Maori Trust Board to any commercial fishing rights or right to Beginning in late 2006, a series of resolve the historic position in 1992 claim for the loss thereof. information hui were held throughout where Tā Hepi te Heuheu moved Ngāti Tūwharetoa and other urban to protect Tūwharetoa’s freshwater In the light of this legislation, and of centres where a significant amount of fisheries interests by signalling that subsequent Court decisions, Ngāti Tūwharetoa population resides. The Ngāti Tūwharetoa would not participate Tūwharetoa asserted the right with all Iwi purpose of these hui was to inform in the 1992 Sealord deal. Tā Hepi’s to share in the assets to be allocated by Te Ngāti Tūwharetoa on a proposed concern for Ngāti Tūwharetoa was Ohu Kai Moana – this has been realised. structure to receive its fisheries that if Ngāti Tūwharetoa were to settlement assets. Soon after, the participate in the Sealord deal, then structure, functions and constitutional

10 documents of the Ngāti Tūwharetoa Tūwharetoa Fisheries for the quota parcel made up of inshore, Fisheries Charitable Trust and its Charitable Trust Register deep sea and our perlargic species subsidiaries were ratified by Ngāti Since 2006 the Trust has had a strong to be managed in one agreement Tūwharetoa Fisheries Charitable Trust membership drive to increase the and process. There were thirteen Beneficiaries by postal ballot in mid- amount of Ngāti Tūwharetoa enrolled in agreements with other Iwi whom had 2007. the register. The Tūwharetoa Fisheries the same provisions, essentially the Charitable Trust entered into an MYAA had two key features: The transitional trustees of the Ngāti agreement with both the Tūwharetoa Tūwharetoa Fisheries Charitable Maori Trust Board and the Bay of Plenty 1. It provided a floor price; Trust were carried over from the Settlement Trust for purposes related Ngāti Tūwharetoa Marine Fisheries to elections and communication which 2. It provided a collaborative approach Committee, those being: is subject to confidentiality provisions toward pricing of quota parcels with the pursuant to the Privacy Act 1993. As the creation of a small pricing committee • Howard Kahura Fisheries Charitable Trust has done mail which was representation from the • Arapiu Seymour distribution to those beneficiaries, we thirteen Iwi who signed the MYAA. • Emily Rameka have also sought from them approval • Te Kanawa Pitiroi so that their information is transferred In the last year and a half, Iwi have been • Anthony Olsen to the Fisheries Charitable Trust register working together in the anticipation of in full. knowing that the MYAA will end soon. The transitional trustees held office To that end the Iwi have formalised until the Ngāti Tūwharetoa Fisheries Other measures include stalls at large their collective, which is now known as Charitable Trust held its inaugural Ngāti Tūwharetoa gatherings such as the Iwi Collective Partnership (ICP). election in late 2009. The result of this Kapahaka and Sports days. election was: The ICP is currently made up of the Commercial following Iwi: • Te Kanawa Pitiroi The Tūwharetoa Marine Fisheries (for Tūwharetoa Maori Trust Board) Committee continued the collective • Ngai Te Rangi • Anthony Olsen approach of quota management with • Ngā Rauru Kītahi (for Bay of Plenty Settlement Trust) our traditional allies Te Arawa and • Ngai Tai • Graham Te Rire Mataatua waka. This culminated in • Ngati Awa (for Tūwharetoa – Bay of Plenty) 2007 with the development of the • Ngati Manawa • Topia Rameka Multi-Year Annual Catch Entitlement • Ngati Porou (for Northern Lake Taupō) (ACE) Agreements (MYAA) through • Ngati Ruanui • Tina Porou to September 2010. The MYAA • Taranaki Iwi (for Southern Lake Taupō) was negotiated with Aotearoa • Te Arawa • Judy Harris Fisheries Limited (AFL) and Sealord • Te Rarawa (for Tūwharetoa Southern) Group Limited. This agreement was • Whakatohea revolutionary for its time as it provides • Ngāti Tuwharetoa

11 Whilst recognizing the mana and that we will be looking to extract further Freshwater Commercial Fisheries authority of each other, the aim of the value in each sector by essentially The Ngāti Tūwharetoa Fisheries ICP is to work together in a spirit of operating in a Limited Partnership Charitable Trust continues to work partnership and of whanaungatanga, arrangement with a Primary Joint alongside the Tūwharetoa Maori kotahitanga and manaakitanga towards Venture with AFL as opposed to the Trust Board on matters pertaining to achieving their common vision of lease arrangement that we have had Freshwater commercial and non- an Iwi partnership that fosters Iwi in the past. This provides an exciting commercial species. collaboration in fisheries and provides opportunity but it is acknowledged that an effective, efficient and strategic this comes with further risk that the These organisations have a shared means to achieve the collective goals of Trust believes is appropriately mitigated interest in ensuring that appropriate its Iwi partners. against through the professional recognition is given to the commercial expertise solicited through the ICP. realisation opportunities for certain The objectives of the ICP are: species that may arise over time. • Creating economies of scale through Coastline and Aquaculture Settlement collectivization of Iwi ACE; The Ngāti Tūwharetoa Coastline Finally can I add that it has been a • Obtain optimal returns on ACE; Agreement is still pending the tremendous honour to serve the Ngāti • Create opportunities that build outcomes of the discussions between Tūwharetoa Fisheries Charitable Trust capacity, capability and participation Te Kotahitanga o Te Arawa Waka and Ngāti Tūwharetoa Whanui. within the fisheries sector; Fisheries Trust Board and Te Runanga o • Improve understanding and capacity Ngāti Awa. I have learnt much from my time as to understand and manage risk; Chief Executive and I have been further • Promote kaitiakitanga and The Ngāti Tūwharetoa Inshore privileged in that the new trustees have sustainable practices with fisheries; Fisheries Quota vesting will occur once seen fit to appoint me to both Ngāti • Improve business performance agreement has been reached with the Tūwharetoa Fisheries Holdings Limited through developing a strategic two parties listed above. and Ngāti Tūwharetoa Fisheries Limited direction that is realistic, logical so that the knowledge that I have built and achievable. The Ngāti Tūwharetoa Fisheries can be retained and shared for the Charitable Trust Settlement in respect betterment of Ngāti Tūwharetoa. It is important to note, that a key to the Maori Commercial Aquaculture objective of the ICP is to move away Claims Settlement Act 2004 is also Noho ora mai, from leasehold arrangements as pending the same agreement. represented by the MYAA to an integrated approach which will see the The map below shows the coastline ICP participating more actively from which is claimed by Ngāti Tūwharetoa. catching and processing through to marketing and sales across the primary, Dean Stebbing secondary and tertiary sector of the fishing industry. The key change here is

12 N 37˚26.81’S 176˚48.74’E

37˚29.80’S 37˚30.80’S 37˚31.67’S 176˚47.00’E 176˚50.70’E 177˚02.22’E

37˚34.40’S 177˚00.70’E Bay of Plenty

37˚49.78’S 176˚35.87’E (Otamarakau Marae)

Matata 37˚53.80’S 176˚49.90’E (Wahieroa) Whakatane

Te Awa-a-Te Atua proposed rohe moana with Ngati Awa rohe moana

13 14 15 Business Overview

The Trust in sections 16 and 17 of the Act. This The Staff The Ngāti Tūwharetoa Fisheries holding company is Ngāti Tūwharetoa During the reporting years the Trust Charitable Trust was set up to Fisheries Limited. employed Dean Stebbing as Chief act, amongst other things, as the Executive Officer and Paula Rihia as Mandated Iwi Organisation of Ngāti The Trust: Office Administrator. Tūwharetoa for the purpose of the • directly receives and holds, on behalf Maori Fisheries Act 2004 and to act as of Ngāti Tūwharetoa, settlement In June 2010, Dean Stebbing resigned the Iwi Aquaculture Organisation for assets allocated and grants made as Chief Executive Officer to take up a the purpose of the Māori Commercial to Ngāti Tūwharetoa by Te Ohu Kai General Manager role within Contact Aquaculture Claims Settlement Act Moana Trustee Limited, (other than Energy. 2004. assets referred to in section 16(1)(c) of the Act, which are other assets are The Trust is fortunate to have retained The Trust Deed sets out the functions to be transferred to an Asset Holding Dean’s knowledge and appointed and purposes, and provides for the Company); him to Director roles on the Trusts control, governance and operation • receive distributions from Te Putea companies. The Trust furthermore of the Ngāti Tūwharetoa Fisheries Whakatupu Trustee Limited and Te wishes Dean all the best in his Charitable Trust. Wai Māori Trustee Limited; endeavours. • act on behalf of Ngāti Tūwharetoa in relation to aquaculture claims and If the Trust wishes to undertake The Trust has recently appointed settlement assets under the Māori commercial aquaculture activities Paula Rihia as Executive Officer whom Commercial Aquaculture Claims (as that term is used in the Māori continues to manage the office. Commercial Aquaculture Claims Settlement Act 2004; Settlement Act 2004), it must establish • directly receive and hold, on an enterprise which is separate behalf of Ngāti Tūwharetoa, from, but responsible to, the Trust to Settlement Assets allocated to Ngāti undertake those activities, and which Tūwharetoa by Te Ohu Kai Moana may be the Asset Holding Company Trustee Limited in accordance with that receives the Settlement Quota and the Maori Commercial Aquaculture Income Shares. This enterprise is Ngāti Claims Settlement Act 2004; and Tūwharetoa Fisheries Holdings Limited. • enter into agreements with other iwi aquaculture organisations in relation to the allocation of Settlement The Trust must hold an Asset Holding Assets. Company. The Trust must ensure that it has at least one Asset Holding Company which will be wholly owned by the Trust to perform the functions and comply with the requirements set out

16 Ngāti Tūwharetoa Fisheries Charitable Trust Structure

Ngāti Tūwharetoa Tūwharetoa Tūwharetoa Maori Northern Southern Tūwharetoa Bay of Plenty Bay of Plenty Trust Board Lake Taupō Lake Taupō Southern Settelment Trust

Ngāti Tūwharetoa Fisheries Charitable Trust

Ngāti Tūwharetoa Ngāti Tūwharetoa Fisheries Holdings Fisheries Limited Limited

17 The Beneficiaries Ngāti Tūwharetoa Fisheries Limited Arikitanga The Trust maintains a register of its • Dr. Charlotte Severne The Trust continues it’s support on beneficiaries. As at 30 September (resigned in April 2009) behalf of Ngāti Tūwharetoa whanui to 2009, there were 5627 registered • Danny Aperahama Loughlin the Ariki by providing an annual grant beneficiaries. • Anthony Olsen to the Ngāti Tūwharetoa Paramountcy Charitable Trust. The purpose of the A beneficiary is any person with The Assets grant is to support the work that the whakapapa links to Ngāti Tūwharetoa The assets received by the Trust Ariki does for and on behalf of Ngāti (not including whangai) and who has consisted of fishing quota, shares in Tūwharetoa and the Motu. completed a registration form that is AFL and cash which were valued at approved and recorded in the register. $16,093,000.00 in total at September Distributions 2007. The quota, shares and most of The Trust has made one-off grants to The Companies the Group’s cash are held within Ngāti the following organisations over the While the Trust is the mandated Tūwharetoa Fisheries Holding Company reporting years: iwi organisation with ultimate Limited. The quota generates an Annual Catch Entitlement (ACE) which is then responsibility for managing the Ngāti 2007 Kaitiaki Grant – to Bay sold. The shares in AFL are expected to Tūwharetoa Fishery assets, the Trust of Plenty for customary produce an annual dividend from the also has established an additional entity kaitiakitanga of the Rohe year ending 30 September 2010. to hold the assets – Ngāti Tūwharetoa Moana - $20k Fisheries Holdings Limited, and another Paramountcy – body to manage the assets, Ngāti The Business Annual Grant - $30k Tūwharetoa Fisheries Limited. The Trust is a charitable trust with two 2008 Ngāti Tūwharetoa Sports wholly‐owned subsidiary companies, Awards - $8k Silver Both these companies are wholly‐ Ngāti Tūwharetoa Fisheries Holdings sponsorship owned subsidiaries of the Ngāti Limited and Ngāti Tūwharetoa Fisheries Paramountcy – Tūwharetoa Fisheries Charitable Limited. The role of the Trust is to Annual Grant - $30k Trust with direct responsibility for exercise a governance role in relation the management of the assets. The to those assets via the companies and 2009 Korohe Marae 100 Year directors of both Companies over the manage and distribute the benefits in Centenary - $2500k report period are listed below: accordance with the Trust’s Charitable Paramountcy – objects. The function of the companies Annual Grant - $30k is to hold, manage and grow the assets Ngāti Tūwharetoa Fisheries Holdings on behalf of the Parent as shareholder. Limited • Rangikamutua Henry Downs • Reverend Robert David Schuster • Te Kanawa Pitiroi

18 19 Funds Management and Investment

Taupō Moana Funds Historical Financial Performance Taupō Moana Funds (TMF) are the The Ngāti Tūwharetoa Fisheries Trust’s Funds Managers and Investment Charitable Trust is guided by the Advisers. Statement of Investment Parameters and Objectives (SIPO) to identify the TMF is a subsidiary of the Taupō Moana investment strategy within the Trusts Group (TMG) - a Maori investment accepted risk tolerance and capacity. company providing investment services to Maori organisations, institutions, The TMF investment committee and hapu, iwi, and whanau throughout management team ensure that the Aotearoa. TMG was incorporated in Trusts’ portfolio contains quality January 1996 with the blessing of securities and investment funds. TMF the late Paramount Chief Sir Hepi Te monitors and manages credit, market, Heuheu; the company is 100% Maori- liquidity and control risk where possible owned by the Lake Taupō Forest Trust to enhance the capital protection and of Ngāti Tūwharetoa. performance of Trust funds.

Investment philosophy is a risk based Ngāti Tūwharetoa Fisheries Charitable assessment process, combined with Trust has invested in an income focused prudent investment principles. TMF portfolio. Assets are invested as follows: takes a total balance sheet risk capacity assessment overlaid with a collective risk tolerance determined by the Ngāti Ngati Tuwharetoa Fisheries Charitable Trust Tūwharetoa Fisheries Charitable Trust Target Portfolio NZ Fixed Trustees and moderated by Maori Interest cultural values and principles. 33%

The TMF investment committee and management team ensure that the portfolio contains quality securities and investment funds. TMF monitors and manages credit, market, liquidity and control risk where possible to enhance Cash and Money Market the capital protection and performance 67% of your funds.

20 Current (67% Money Market, 33% Fixed Investment Valuation Interest). The 30 September 2009 total Sector Percent NZD gross return for the portfolio reflects 1 Cash 20.64% $734,725.12 year of Cash & Money Market and 10 Fixed Interest-NZ 34.64% $1,233,239.64 months of Fixed Interest data. NZ Money Market 44.72% $1,591,944.96 Total 100.00% $3,559,909.73 Performance is measured against the following indices: The Trusts ‘income focused’ portfolio places a high emphasis on lower risk, • Money Market we compare to 90 income generating investments. day Bank Bill index The Trust’s portfolio has 34% Fixed • NZ Fixed Interest we compare to Interest, introduced in December 2008. ANZ Composite A Grade Index In recent years, as cash rates have fallen, it is the performance of Fixed Interest The investment portfolio of Ngāti investments that contribute the most to Tūwharetoa Fisheries Charitable Trust the Trust’s overall performance. had a gross (before fees, and taxes) return of: The following table shows the performance of the Trusts investments • 6.31% for the year ending at the end of the financial year for 2007, 30 September 2009 2008 and 2009. The gross return of 6.31% reflects a lower Money Market performance Year Gross Net Money Fixed compared to previous years. From ending: Return Return Market Int. 30 Sep 07 6.94% 6.91% 6.94% n/a July 08 to April 09, cash rates fell Indices 8.17% dramatically (2.5%), in response 30 Sep 08 8.76% 8.53% 8.76% n/a to the global financial crisis. Prior Indices 9.05% to this the Official Cash Rate (OCR) 30 Sep 09 6.31% 6.12% 5.20% 8.27% had been at record highs (June 08 - Indices 4.65% 8.20% 8.25%).

Note: Data for Fixed Interest (NZ Bonds) for the years ending 30 September 2007 and 30 September 2008 is not provided as fixed Interest was introduced in December 2008, when the portfolio was changed to an income focus portfolio

21 Interest rates fell sharply throughout The graph shows your performance this period which translated into mirrored the 90 day bank bill index positive results for NZ Bonds. Adding until Fixed Interest was introduced NZ Bonds to your portfolio helped in December 2008. Since December compensate for falling returns in Cash 2008, your returns reflect the stronger and Money Market investments. performance of Fixed Interest (35% of your portfolio) and continued • 8.76% for the year ending outperformance against inflation. 30 September 2008 The OCR was at 8.25% for the Ngāti Tūwharetoa Fisheries Charitable Trust majority of this period, reflected in 3 Year Cumulative Performance your total gross return of 8.76%. The strong performance of cash began its decline in the last quarter of this year as the global financial crisis hit.

• 6.94% for the year ending 30 September 2007 Your portfolio’s opening balance was $436k, with additional funds ($2.3m) arriving in the June 07 quarter. The introduction of the $2.3m heavily weighted the portfolio in cash throughout the June quarter, resulting in lower returns against the 90 day bank bill index over the year.

The following represents Ngāti Tūwharetoa Fisheries Charitable Trust’s Gross cumulative returns over three year period to 30 September 2009. We have compared it to the Gross 90 day Bank Bill index, and Inflation.

22 Strategic Plan 2010 - 2013

The Trust is currently developing its Strategic Plan through to 2013. This work is focused primarily on some key objectives that the Trust believes are essential to our ongoing success as a Trust and for the benefit of Ngāti Tūwharetoa as a whole.

These objectives are focused on:

• the areas of our responsibilities to our shareholders; • our requirements under the fisheries legislation; and • being a responsible, capable and communicative trust and building opportunities in optimising revenue from our fisheries assets.

It also creates the impetus for the creation of a meaningful and appropriate distribution strategy that means that what we do creates real, tangible change for Ngāti Tūwharetoa within our limited resources. This draft strategy will be presented to the Iwi for wider discussion and input in the coming year.

The strategic plan will be finalised by the end of 2012 and will be fully reported on in our next AGM.

23 24 Financial Statements for the year ended 30 September 2009 for the year ended 30 September 2008 for the eight months ended 30 September 2007

The following Financial Statements were prepared by DPA Limited, Chartered Accountants, Taupō.

The 2008 and 2009 Financial Statements were audited by Silks, Chartered Accountants, Wanganui.

The 2007 Financial Statements were audited by Steve Jacobs & Associates, Chartered Accountants,Taupō.

25 Ngati Tuwharetoa Fisheries Charitable Trust

Consolidated Financial Statements For the year ended 30 September 2009

Page

26 Trust Directory

27 Statement of Financial Performance

27 Statement of Movements in Equity

28-29 Statement of Financial Position

30-34 Notes to the Financial Statements

35 Auditor’s Report

Trust Directory For the year ended 30 September 2009

Nature of Business: Auditors: Charitable Trust Silks Registered Office: Chartered Accountants Russell McVeagh Wanganui Wellington Bankers: Trustees: Bank of New Zealand Te Kanawa Pitiroi Taupō Dean Stebbing Solicitors: Arapiu Seymour Russell McVeagh Howard Kahura Wellington Emily Rameka Business Location: Anthony Olsen 63 Waikato Street Accountants: Taupō DPA Limited Chartered Accountants Taupō

26 Consolidated Financial Statements

Statement Of Financial Performance For the year ended 30 September 2009

Group Group Group Parent Parent Parent Notes 2009 2008 2007 2009 2008 2007

Operating Revenue 2 935,814 1,003,038 13,593,469 215,190 282,878 8,931

Operating Surplus (Deficit) before Taxation 3 351,538 497,548 13,174,151 (34,092) 168,362 (254,097)

Income Tax Benefit (Expense) ------Operating Surplus (Deficit) after Taxation 351,538 497,548 13,174,151 (34,092) 168,362 (254,097)

Net Surplus (Deficit) Attributable to the Shareholders of the Parent Trust 351,538 497,548 13,174,151 (34,092) 168,362 (254,097)

Statement Of Movements In Equity For the year ended 30 September 2009

Group Group Group Parent Parent Parent Notes 2009 2008 2007 2009 2008 2007

Equity at Beginning of Period 15,084,071 16,178,440 - 2,536,235 2,750,192 -

Net Surplus (Deficit) Attributable to:

- Parent Trust Shareholders 351,538 497,310 13,174,151 (34,092) 168,262 (254,097) - Increase/Decrease in General Revaluation Reserve 4,753 (1,224,889) 13,123 4,753 (15,529) 13,123

Total Recognised Revenues and (Expenses) for the Year 356,291 (727,579) 13,187,274 (29,339) 152,833 (240,974)

- Settlement - Marine Fisheries Committee 25,067 (366,790) 1,582,321 25,067 (366,790) 1,582,321 - Settlement - Maori Fisheries Trust - - 1,408,845 - - 1,408,845

Equity at End of Year 4 15,465,429 15,084,071 16,178,440 2,531,963 2,536,235 2,750,192

The accounting policies and notes to the consolidated financial statements form part of these statements.

27 Consolidated Financial Statements

Statement Of Financial Position As at 30 september 2009

Group Group Group Parent Parent Parent Notes 2009 2008 2007 2009 2008 2007

Equity Attributable to Parent Trust Shareholders 4 15,465,429 15,084,071 16,178,440 2,531,963 2,536,235 2,750,192 Total Equity 15,465,429 15,084,071 16,178,440 2,531,963 2,536,235 2,750,192

Current Liabilities Bank Overdraft & Credit Cards 2,811 1,417 5,317 2,811 1,417 5,317 Accounts Payable & Accruals 78,152 40,235 60,541 75,320 30,290 49,599 Current Portion of Term Liabilities ------Provision for Annual Leave & Other ------Provision for Tax ------GST Payable/(Receivable) (15,718) (10,085) (4,525) 51,233 28,781 (7,614) Customer Deposits - - - - - Total Current Liabilities 65,245 31,567 61,333 129,364 60,488 47,302

Non Current Liabilities Finance Leases ------Loans ------Total Non Current Liabilities ------Total Equity and Liabilities 15,530,674 15,115,638 16,239,773 2,661,327 2,596,723 2,797,494

The accounting policies and notes to the consolidated financial statements form part of these statements.

28 Consolidated Financial Statements

Statement Of Financial Position As at 30 september 2009

Group Group Group Parent Parent Parent Notes 2009 2008 2007 2009 2008 2007

Current Assets Cash and Bank 60,800 30,702 64,281 10,085 19,063 - Accounts Receivable and Prepayments - - 7 - - 7 Ngati Tuwharetoa Marine Fisheries Committee - - 348,083 - - - Inventories ------Finance Lease – Unexpired Interest ------Total Current Assets 60,800 30,702 412,371 10,085 19,063 7

Non Current Assets Property, Plant & Equipment 7 17,922 26,715 20,264 17,922 26,715 20,264 Investments - Taupō Moana Investments 3,559,910 3,166,180 2,705,739 3,559,910 3,166,180 2,705,739 - AFL 11,892,040 11,892,040 13,101,400 - - - Goodwill on Consolidation ------Investment in Subsidiary 8 - - - (926,590) (615,235) 71,484 Total Non Current Assets 15,469,872 15,084,935 15,827,403 2,651,242 2,577,660 2,797,487 Total Assets 15,530,672 15,115,637 16,239,774 2,661,327 2,596,723 2,797,494

For and on behalf of the Board:

Director Director 3 August 2010 3 August 2010

The accounting policies and notes to the consolidated financial statements form part of these statements.

29 Consolidated Financial Statements

Notes To And Forming Part Of The Financial Statements For the year ended 30 September 2009

1. Statement of Accounting Policies

Reporting Entity NGATI TUWHARETOA FISHERIES CHARITABLE TRUST (‘the Trust’) is a Charitable Trust.

The financial statements of Ngati Tuwharetoa Fisheries Charitable Trust have been prepared in accordance with Generally Accepted Accounting Practice. The entity qualifies for differential reporting as it is not publicly accountable and is not large as defined within the financial reporting framework. The entity has taken advantage of all differential reporting exemptions.

Measurement Base The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed by the Trust.

Specific Accounting Policies The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied:

a) Trade Receivable Trade receivables are recognised at estimated realisable value.

b) Property, Plant & Equipment Property, Plant & Equipment are recognised at cost less aggregate depreciation. Depreciation has been calculated using the maximum rates permitted by the Income Tax Act 1994.

Expected useful lives of major asset categories are as follows: • Office Furniture and Equipment 4-5 years • Plant and Equipment 4-10 years

c) Leases The Trust leases certain office equipment, land and buildings, and a motor vehicle. Operating lease payments, where the lessors effectively retain substantially all of the risks and benefits of ownership of the leased items, are recognised in the determination of the operating surplus in equal instalments over the lease term.

d) GST The financial statements have been prepared on a GST exclusive basis.

30 Consolidated Financial Statements

Notes To And Forming Part Of The Financial Statements For the year ended 30 September 2009

e) Income Tax The Trust has charitable status and is exempt from income tax.

f) Basis of Consolidation – Purchase Method The consolidated financial statements include the parent Trust and its subsidiaries are accounted for using the purchase method. All significant inter-Trust transactions are eliminated on consolidation. In the Trust’s financial statements investments in subsidiaries are recognised at cost. g) Differential Reporting The Trust qualifies for differential reporting as it is not publicly accountable and is not large as defined in the Framework for Differential Reporting. The Trust has taken advantage of all available differential reporting exemptions.

Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.

Investments Aotearoa Fisheries Limited (AFL) Income Shares Ngati Tuwharetoa Fisheries Holdings Limited received Fisheries Settlement Assets of 5,039 Aotearoa Fisheries Limited AFL Income Shares for NIL consideration pursuant to Section 139 of the Maori Fisheries Act 2004. These have been entered into the accounts in accordance with the ‘Not for Profit - Financial Reporting Guide’ para 4.122. The share value is per the share valuation completed by Taylor Duignan Barry on 28 January 2009.

Taupō Moana Portfolio 2009 2008 2007 Cash 734,725 535,691 185,237 NZ Money Market 2,825,185 2,630,489 2,520,502 3,559,910 3,166,180 2,705,739

2. Operating Revenue Group Group Group Parent Parent Parent Notes 2009 2008 2007 2009 2008 2007

Sales 720,624 720,160 402,137 - - - Interest Revenue 215,190 282,878 89,932 215,190 282,878 89,931 Exchange Rate Gains/(Losses) ------Other Income - - 13,101,400 - - - 935,814 1,003,038 1,3593,469 215,190 282,878 89,931

31 Consolidated Financial Statements

Notes To And Forming Part Of The Financial Statements For the year ended 30 September 2009

3. Operating Surplus (Deficit) before Taxation Group Group Group Parent Parent Parent Notes 2009 2008 2007 2009 2008 2007

The operating surplus (deficit) from trading was arrived at after charging the following expenses: 351,538 497,548 13,174,151 (34,092) 168,362 (254,097)

Depreciation 11,852 14,322 3,790 11,852 14,322 3,790 Bad and Doubtful Debts; Expense - - - - - Interest and Finance Charges 284 131 55 148 131 55 (Profit)/Loss on Disposal of Assets - - - - - Rental and Operating Lease Expenses 11,941 4,792 - 11,941 4,792 - Auditors Fees: - • Auditing the financial statements 7,580 3,428 - 5,160 2,576 - • Other services ------Diminution in the Value of Assets ------Goodwill written off ------Amortisation of Goodwill ------Directors’ Fees ------

4. Total Equity Group Group Group Parent Parent Parent Notes 2009 2008 2007 2009 2008 2007

Share Capital/Corpus 2,649,443 2,624,377 2,991,166 2,649,443 2,624,376 2,991,166 Retained Earnings 5 12,815,986 12,459,695 13,187,274 (117,480) (88,142) (240,974) 15,465,429 15,084,072 16,178,440 2,531,963 2,536,235 2,750,192

32 Consolidated Financial Statements

Notes To And Forming Part Of The Financial Statements For the year ended 30 September 2009

5. Retained Earnings Group Group Group Parent Parent Parent Notes 2009 2008 2007 2009 2008 2007

Balance at Beginning of Year 12,459,695 13,187,274 - (88,142) (240,974) - Net Surplus (Deficit) Attributable to Parent Trust Shareholders 356,291 (727,579) 13,187,274 (29,338) 152,832 (240,974) Balance at Year End 12,815,986 12,459,695 13,187,274 (117,480) (88,142) (240,974)

6. Related Party Transactions During the year: • The company provided funding to the parent during the year. The amount outstanding at balance date was $1,515,704 (2008: $946,704) which is due and receivable from Ngati Tuwharetoa Fisheries Holdings Limited.

7. Property, Plant & Equipment Group Group Group Parent Parent Parent 2009 2008 2007 2009 2008 2007

Office Equipment 43,903 43,608 24,054 43,903 43,608 24,054 Accumulated Depreciation (27,176) (18,013) (3,790) (27,176) (18,013) (3,790) 16,727 25,595 20,264 16,727 25,595 20,264

Other Property, Plant & Equipment 1,752 1,219 - 1,752 1,219 - Accumulated Depreciation (557) (99) - (557) (99) - 1,195 1,120 - 1,195 1,120 - Total Property, Plant & Equipment 17,922 26,715 20,264 17,922 26,715 20,264

8. Investment in Subsidiaries Results of Subsidiaries Percentage Held Business 2009 2008 2007 2009 2008 2007

Ngati Tuwharetoa Fisheries Holdings Limited 100% 100% 100% 388,440 330,268 13,429,099 Ngati Tuwharetoa Fisheries Limited 100% 100% 100% (2,810) (1,320) (851)

33 Consolidated Financial Statements

Notes To And Forming Part Of The Financial Statements For the year ended 30 September 2009

9. Capital and Operating Lease Commitments Group Group Group Parent Parent Parent 2009 2008 2007 2009 2008 2007 Capital Commitments Estimated capital expenditure contracted for at balance date but not provided for: NIL NIL NIL NIL NIL NIL

Operating Lease Commitments Commitments under Non-Cancellable Operating Leases:

-Motor Vehicle Current 5,128 12,306 12,306 5,128 12,306 12,306 Non Current - 5,128 17,436 - 5,128 17,436

-Photocopier Current 3,835 3,835 - 3,835 3,835 - Non Current 6,392 10,227 - 6,392 10,227 -

-Premises Current 7,667 11,500 - 7,667 11,500 - Non Current - 7,667 - - 7,667 -

Total Operating Lease Commitments 23,022 50,663 29,742 23,022 50,663 29,742

10. Contingent Liabilities The Trust has no significant contingent liabilities that the Board is aware of (2008: Nil) (2007: Nil).

34 35 Ngati Tuwharetoa Fisheries Charitable Trust

Financial Statements For the year ended 30 September 2009

Page 35 Audit Report

36 Trust Directory

37 Statement of Financial Performance

38-39 Schedule of Expenses

39 Statement of Movements in Equity

40 Statement of Financial Position

41 Schedule of Fixed Assets and Depreciation

42. Results in Brief

43 Notes to the Financial Statements

Trust Directory As at 30 September 2009

Nature of Business Trustees Auditors Charitable Trust Te Kanawa Pitiroi Silks Trust IRD Number Dean Stebbing Wanganui 096-060-394 Arapiu Seymour Bankers Date Incorporated Howard Kahura Bank of New Zealand 30th January 2007 Emily Rameka Taupō Charities Registration Anthony Olsen Solicitors 11th December 2007 - CC20197 Settlor Russell McVeagh Accountants Tā Tumu te Heu heu Wellington DPA Limited Chartered Accountants Taupō

36 Statement of Financial Performance For the year ended 30 September 2009

Note 2009 2008 2007

Revenue Reimbursement of Expenditure 229,023 285,214 - 229,023 285,214 -

Less Expenses Operating Costs 304,310 258,280 263,594 Financial Expenses 14,018 15,123 7,983 Administration Expenses 148,475 111,767 68,662 Depreciation 11,852 14,322 3,790 478,655 399,492 344,028 Operating Surplus (Deficit) (249,632) (114,278) (344,028) Add Other Income Interest Received 215,190 282,878 89,931 Net Surplus (Deficit) Before Distribution to Beneficiaries (34,443) 168,600 (254,097)

TRUSTEE TAXABLE SURPLUS (DEFICIT) (34,443) 168,600 (254,097) Other Adjustments and Appropriations IRD Penalties 351 (238) - 351 (238) -

NET SURPLUS (DEFICIT) (34,092) 168,362 (254,097)

NET SURPLUS (DEFICIT) ($34,092) $168,362 ($254,097)

This statement must be read in conjunction with the attached “Notes to Financial Statements” and Audit Report.

37 Schedule of Expenses For the year ended 30 September 2009

Note 2009 2008 2007

Operating Costs Wages 139,343 133,273 69,109 Accident Compensation - 878 - Advertising/Promotional 220 3,327 5,184 Cleaning 6,794 2,266 - Conference Expenses 1,733 1,646 951 Cartesian Technology - 8,430 53,716 Consulting Fees 9,167 6,645 4,577 Elections 49,479 - - Electricity 2,355 1,103 - Iwi Register 3,270 1,320 - Hui Expenses 9,472 3,174 5,208 Koha 450 610 3,050 Kaitiaki Grants - - 20,000 Paramountcy Support - 30,000 30,000 Pataka Kai 2,587 1,104 - Plant Hire 3,835 1,278 - Repairs & Maintenance 378 5,231 828 Replacements 1,711 473 - Staff Welfare 360 - - Sponsorship 7,111 - - Server Maintenance 312 63 - Trustee Meeting & Mileage 34,219 30,155 41,153 Trustee Meals 871 764 954 Trustee Travel & Accomm 15,130 12,755 11,350 Website Expenses 1,335 410 8,365 Vehicle Expenses 1,845 1,069 1,970 Vehicle Lease 12,332 12,306 7,179 304,310 258,280 263,594

Note 2009 2008 2007 Financial Expenses Bank Charges 784 600 339 LTF Fees 5,373 6,908 3,416 Fringe Benefit Tax (5,181) 1,694 3,487 Insurance 954 998 686 Interest - Cheque 142 14 55 Interest - Other 6 117 - Rent 11,941 4,792 - 14,018 15,123 7,983

This statement must be read in conjunction with the attached “Notes to Financial Statements” and Audit Report.

38 Schedule of Expenses For the year ended 30 September 2009

Note 2009 2008 2007 Administration Expenses Audit 5,160 2,576 - Accountancy/Secretarial 8,980 11,274 10,701 Computer Expenses 3,178 2,039 4,404 Education Grants - - 2,000 General Expenses 392 3,528 2,960 Legal Expenses - - 4,635 Office Expenses 3,248 2,255 1,252 Printing & Stationery 4,369 6,395 2,547 Professional Development/Training 1,337 1,616 794 Telephone & Tolls 37,074 25,466 8,351 Admin Travel 54,229 35,322 20,904 Admin Meals 9,106 6,728 5,152 Admin Accommodation 21,403 14,568 4,962 148,475 111,767 68,662 Depreciation Ordinary Depreciation 12,106 14,322 3,790 Depreciation Recovered (254) - - 11,852 14,322 3,790

$478,655 $399,492 $344,028

Statement of Movements in Equity For the year ended 30 September 2009

2009 2008 2007 Equity at 1st October 2008 2,536,235 2,750,192 -

Net Surplus (Deficit) for Period (34,092) 168,362 (254,097) Increase in General Revaluation Reserves 4,753 -15,529 13,123

Total Recognised Revenues and Expenses for Period (29,339) 152,833 (240,974)

Settlement - Marine Fisheries Committee 25,067 (366,790) 1,582,321 Settlement - Maori Fisheries Trust - - 1,408,845 Equity at 30th September 2009 $2,531,962 $2,536,235 $2,750,192

This statement must be read in conjunction with the attached “Notes to Financial Statements” and Audit Report.

39 Statement of Financial Position For the year ended 30 September 2009

Note 2009 2008 2007 Current Assets Bank Account - Cheque 10,085 19,063 - Ngati Tuwharetoa Fisheries Limited 10,596 10,596 10,596 Ngati Tuwharetoa Fisheries Holdings Limited - - 60,888 GST Refund Due - - 7,614 Accounts Receivable 578,517 320,873 7 599,197 350,532 79,105 Current Liabilities Bank Account - Cheque - - 3,002 BNZ Credit Card 2,811 1,417 2,315 Ngati Tuwharetoa Fisheries Holdings Limited 1,515,704 946,704 - GST Payable 51,233 28,781 - Accounts Payable 75,320 30,290 49,599 1,645,067 1,007,192 54,916 Net Current Assets (Liabilities) (1,045,870) (656,660) 24,188 Non Current Assets Fixed Assets (as per schedule) 17,922 26,715 20,264 Investments Taupō Moana Investments 3,559,910 3,166,180 2,705,739 Shares - Ngati Tuwharetoa Fisheries Ltd (100) - - - Shares - Ngati Tuwharetoa Fisheries Holdings Ltd (100) - - - 3,559,910 3,166,180 2,705,739 2,531,962 2,536,235 2,750,192 Net Assets (Liabilities) $2,531,962 $2,536,235 $2,750,192 Trust Capital Corpus Opening Balance 2,624,376 2,991,166 - Add Settlement - Marine Fisheries Committee 25,067 (366,790) 1,582,321 Settlement - Maori Fisheries Trust - - 1,408,845 Closing Balance 2,649,443 2,624,376 2,991,166 Reserves General Revaluation Reserves 6 2,347 (2,406) 13,123 Retained Earnings (Accumulated Losses) (119,827) (85,735) (254,097) Total Trust Capital $2,531,962 $2,536,235 $2,750,192

These Financial Statements have been audited. For and on behalf of the Trust

______Trustee ______Trustee

______Trustee ______Trustee 3 August 2010

This statement must be read in conjunction with the attached “Notes to Financial Statements” and Audit Report.

40 Schedule of Fixed Assets and Depreciation For the year ended 30 September 2009

Gains / Depreciation Accum Book Value Additions Loss on Capital Deprec Book Value Asset Cost Price 01/10/2008 Disposals Disposal Profit Mth Rate $ 30/09/2009 30/09/2009

Office Equipment Office Furniture 2,566 1,774 12 19.2% DV 341 1,133 1,433 Video Recorder 488 193 12 48.0% DV 93 388 100 Blackberry’s x 5 1,506 452 12 60.0% DV 271 1,325 181 Telephone System 738 415 12 36.0% DV 149 472 266 Server 12,070 3,862 12 60.0% DV 2,317 10,525 1,545 Office Furniture 1,262 970 12 19.2% DV 186 478 784 Blackberry 8707 915 311 12 60.0% DV 187 791 124 Laptop 4,009 1,514 -1,768 254 - Printer 500 190 12 60.0% DV 114 424 76 Blackberry 8310 888 488 12 60.0% DV 293 693 195 Laptop ex Noel Leeming 244 173 12 50.0% DV 87 158 86 Toshiba Portege R400 2,115 1,498 12 50.0% DV 749 1,366 749 Website 5,882 4,166 12 50.0% DV 2,083 3,799 2,083 Office Furniture 4,711 4,397 12 16.0% DV 704 1,018 3,693 Laptop & Software 4,915 4,423 12 60.0% DV 2,654 3,146 1,769 Blackberry 8310 799 759 12 60.0% DV 455 495 304 Toshiba Tecra Laptop 2,413 8 60.0% DV 965 965 1,448 2 x Blackberries 1,891 1 00.0% DV - - 1,891

Total Office Equipment 43,608 25,585 2,536 254 11,648 27,176 16,727

Plant & Equipment Camcorder 204 156 12 40.0% DV 62 110 94 Alarm 1,015 964 12 30.0% DV 289 340 675 Data Projector 533 5 48.0% DV 107 107 426

Total Plant & Equipment 1,219 1,120 533 458 557 1,195

Total Assets 44,827 26,705 3,069 254 12,106 27,733 17,922

41 Results in Brief For the year ended 30 September 2009

2009 % 2008 % 2007 % Income Income Income Gross Receipts 229,023 100.0 285,214 100 .0 - - Operating Expenses 304,310 132.9 258,280 90.6 263,594 - Financial Expenses 14,018 6.1 15,123 5.3 7,983 - Administration Expenses 148,475 64.8 111,767 39.2 68,662 - Depreciation 11,852 5.2 14,322 5.0 3,790 - 478,655 209.0 399,492 140.1 344,028 -

Net Operating Surplus (Deficit) (249,632) (109.0) (114,278) (40.1) (344,028) -

Add Other Income 215,190 94.0 282,878 99.2 89,931 -

Net Surplus (Deficit) ($34,443) (15.0) $168,600 59.1 ($254,097) -

Business Indicators Working Capital ($1,045,870) ($656,660) $24,188 Sundry Debtors $578,517 $320,873 $7 Sundry Creditors $75,320 $30,290 $49,599

This Statement must be read in conjunction with the attached “Notes to the Financial Statements” and Audit Report.

42 Notes to the Financial Statements For the year ended 30 September 2009

1. STATEMENT OF ACCOUNTING POLICIES Accounts Receivable REPORTING ENTITY Accounts receivable are stated at their estimated realisable value. Ngati Tuwharetoa Fisheries Charitable Trust is a Charitable Trust. Investments The financial statements of Ngati Tuwharetoa Fisheries Charitable Investments are valued at net cost. Trust have been prepared in accordance with Generally Accepted Income Tax Accounting Practice. The Trust has charitable status and is exempt from income tax. The entity qualifies for differential reporting as it is not publicly CHANGES IN ACCOUNTING POLICIES accountable and is not large as defined within the financial There have been no changes in accounting policies. All policies reporting framework. The entity has taken advantage of all have been applied on a basis consistent with those used in differential reporting exemptions. previous years. MEASUREMENT BASE 2. CONTINGENT LIABILITIES The accounting principles recognised as appropriate for the No contingent liabilities are known to exist at balance date. measurement and reporting of earnings and financial position on 3. RELATED PARTY TRANSACTIONS an historical basis have been followed by the entity, except where The Company provided funding to the parent during the year. revaluations of assets are incorporated. The amount outstanding at balance date was $1,515,704 (2008: SPECIFIC ACCOUNTING POLICIES $946,704) which is due and receivable from Ngati Tuwharetoa The following specific accounting policies, which materially affect Fisheries Holdings Limited. the measurement of financial performance and financial position No related party debts have been written off or forgiven during of the entity, have been applied: the year. Goods and Services Tax 4. LEASE AND CAPITAL COMMITMENTS The Financial Statements have been prepared on a GST exclusive There are no capital commitments at balance date (2008 $NIL). basis, with the exception of accounts receivable and payable. 5. COMPARATIVE FIGURES Operating Leases The previous year’s (comparative) figures in the financial Operating lease payments, where the lessors effectively retain statements relate to a period of 12 months. substantially all the risks and benefits of ownership of the leased 6. GENERAL REVALUATION RESERVES items, are included in the determination of the operating profit in This represents an increase in the Taupō Moana Investments equal instalments over the lease term. Portfolio valuation between October 2008 and September 2009. The Trust leases a motor vehicle through Orix New Zealand. The lease of $1,153.71 (GST inclusive) is for 36 months, commencing April 2007. Fixed Assets Fixed assets are valued at cost less aggregate depreciation. Depreciation Depreciation of the assets has been calculated at the maximum rates permitted by the Income Tax Act 2007. This method is considered appropriate to the business. The rates used are shown on the depreciation schedule forming part of the accounts.

43 Ngati Tuwharetoa Fisheries Holdings Limited

Financial Statements For the year ended 30 September 2009

Page 45 Annual Report

46 Audit Report

47 Statement of Financial Performance

48 Schedule of Expenses

48 Statement of Movements in Equity

49 Statement of Financial Position

50 Results in Brief

51 Notes to the Financial Statements

Company Directory As at 30 September 2009

Nature of Business Registered Office Accountants Investor 77 Titiraupenga Street DPA Limited Company IRD Number Taupō Chartered Accountants 096-036-434 Shares on Issue Taupō Qualifying Company Status 100 Ordinary Shares Auditors Closed Company Shareholders Silks Company Registration Number Ngati Tuwharetoa Fisheries Wanganui 1899480 Charitable Trust . 100 Shares Bankers Date of Incorporation Directors Bank of New Zealand 19th January 2007 Rangikamutua Henry Downs Taupō Charities Registration Te Kanawa Pitiroi Solicitors 11th December 2007 - CC20221 Robert David Schuster Russell McVeagh Wellington

44 Annual Report For the year ended 30 September 2009

The financial statements for the year are attached.

The shareholders of the Company have exercised their right under Section 211(3) of the Companies Act 1993 and unanimously agreed that this annual report need not comply with any of Sections 211(1)(a) and (d)-(j).

For and behalf of the board:

______Director ______Director ______Director

3 August 2010 3 August 2010 3 August 2010

45 Audit Report For the year ended 30 September 2009

46 Statement of Financial Performance For the year ended 30 September 2009

Note 2009 2008 2007 Revenue A.C.E Transfers 720,624 720,160 402,137 720,624 720,160 402,137 Less Expenses Operating Costs 326,693 387,526 73,559 Financial Expenses 349 123 58 Administration Expenses 5,142 2,243 822 332,184 389,892 74,439 Operating Surplus (Deficit) 388,440 330,268 327,698 Add Other Income Interest Received - - 1 Afl Income Shares Received - - 13,101,400 - - 13,101,401 Other Adjustments And Appropriations Increase/Decrease Valuations - 1,209,360 - Surplus (Deficit) 388,440 (879,092) 13,429,099 Net Surplus (Deficit) $388,440 ($879,092) $13,429,099

This Statement must be read in conjunction with the attached “Notes to the Financial Statements” and Audit Report.

47 Schedule of Expenses For the year ended 30 September 2009

Note 2009 2008 2007 Operating Costs Operating Expenses 229,023 285,214 - Seafood Levies 97,670 102,312 70,545 Trustees Meeting & Travel - - 3,014 326,693 387,526 73,559 Financial Expenses Bank Charges 213 123 58 Interest - Cheque 136 - - 349 123 58 Administration Expenses Audit 1,810 526 - Accountancy 3,295 1,717 822 Office Expenses 37 - - 5,142 2,243 822 $332,184 $389,892 $74,439

Statement of Movements in Equity For the year ended 30 September 2009

2009 2008 2007

Equity at 1st October 2008 12,550,007 13,429,099 - Net Surplus (Deficit) for Period 388,440 -879,092 13,429,099 Total Recognised Revenues and Expenses 388,440 -879,092 13,429,099 Equity at 30th September 2009 $12,938,447 $12,550,007 $13,429,099

This Statement must be read in conjunction with the attached “Notes to the Financial Statements” and Audit Report.

48 Statement of Financial Position As at 30 September 2009

Note 2009 2008 2007 Current Assets Bank Account - Cheque 44,481 3,240 54,515 Ngati Tuwharetoa Fisheries Charitable Trust 1,515,704 946,704 - Ngati Tuwharetoa Marine Fisheries Committee - - 348,083 GST Refund Due 66,857 38,779 - 1,627,043 988,724 402,598 Current Liabilities Ngati Tuwharetoa Fisheries Charitable Trust - - 60,888 GST Payable - - 3,100 Accounts Payable 580,636 330,757 10,910 580,636 330,757 74,898 Net Current Assets (Liabilities) 1,046,407 657,967 327,699 Investments Aotearoa Fisheries Limited (AFL) Income Shares (5049) 11,892,040 11,892,040 13,101,400 12,938,447 12,550,007 13,429,099 Net Assets (Liabilities) $12,938,447 $12,550,007 $13,429,099 Shareholders’ Equity Retained Earnings (Accumulated Losses) 12,938,447 12,550,007 13,429,099 Total Funds Employed $12,938,447 $12,550,007 $13,429,099 These Financial Statements have been audited.

For and on behalf of the Board

______Director 3 August 2010

This Statement must be read in conjunction with the attached “Notes to the Financial Statements” and Audit Report.

49 Results In Brief For the year ended 30 September 2009

2009 % 2008 % 2007 % Income Income Income Gross Receipts 720,624 100.0 720,160 100.0 402,137 100.0 Operating Expenses 326,693 45.3 387,526 53.8 73,559 18.3 Financial Expenses 349 0.0 123 0.0 58 0.0 Administration Expenses 5,142 0.7 2,243 0.3 822 0.2 332,184 46.1 389,892 54.1 74,439 18.5 Net Operating Surplus (Deficit) 388,440 53.9 330,268 45.9 327,698 81.5 Add Other Income - - - - 13,101,401 3257.9 Net Surplus (Deficit) $388,440 53.9 $330,268 45.9 $13,429,099 3339.4

Business Indicators Working Capital $1,046,407 $657,967 $327,699 Sundry Creditors $580,636 $330,757 $10,910

This Statement must be read in conjunction with the attached “Notes to the Financial Statements” and Audit Report.

50 Notes to the Financial Statements For the year ended 30 September 2009

REPORTING ENTITY Differential Reporting Ngati Tuwharetoa Fisheries Holdings Limited is a company The company qualifies for differential reporting as it is not publicly registered under the Companies Act 1993 accountable and there is no separation between the owner and Ngati Tuwharetoa Fisheries Holdings Limited is a reporting entity the governing body. The company has taken advantage of all for the purposes of the Financial Reporting Act 1993. differential reporting exemptions. The financial statements of Ngati Tuwharetoa Fisheries Holdings CHANGES IN ACCOUNTING POLICIES Limited have been prepared in accordance with the Financial There have been no changes in accounting policies. All policies Reporting Act 1993. have been applied on a basis consistent with those used in MEASUREMENT BASE previous years. The accounting principles recognised as appropriate for the 1. CONTINGENT LIABILITIES measurement and reporting of earnings and financial position on No contingent liabilities are known to exist at balance date. an historical basis have been followed by the entity, except where 2. RELATED PARTY TRANSACTIONS revaluations of assets are incorporated. The Company provided funding to the parent during the year. SPECIFIC ACCOUNTING POLICIES The amount outstanding at balance date was $1,515,704 (2008: The following specific accounting policies, which materially affect $946,704) which is due and receivable from Ngati Tuwharetoa the measurement of financial performance and financial position Fisheries Holdings Limited. of the company, have been applied: No related party debts have been written off or forgiven during Goods and Services Tax the year. The Financial Statements have been prepared on a GST exclusive 3. CAPITAL COMMITMENTS basis, with the exception of accounts receivable and payable. There are no capital commitments at balance date (2008 $NIL). Investments 4. COMPARATIVE FIGURES Aotearoa Fisheries Limited (AFL) Income Shares The previous year’s (comparative) figures in the financial Ngati Tuwharetoa Fisheries Holdings Limited received Fisheries statements relate to a period of 12 months. Settlement Assets of 5,039 Aotearoa Fisheries Limited AFL Income 5. INCOME TAX STATUS Shares for NIL consideration pursuant to Section 139 of the Maori The Company has charitable status and is exempt from income tax. Fisheries Act for Profit - Financial Reporting Guide’ para 4.122.2004. These have been entered into the accounts in accordance with the ‘Not For Profit - Financial Reporting Guide’ Para 4.122 The share value as at 30 September 2009 is based upon the share valuation commissioned by Te Ohu Kaimoana. The share valuation was completed by Taylor Duignan Barry Limited on the 28 January 2009. Te Ohu Kaimoana have not commissioned any subsequent valuation but intend to commence the 4th valuation in March 2011. The Company has recorded the AFL shares value on the latest available valuation. The Company owns 5,039 out of a total of 125,000 income shares in AFL. This shareholding has a book value of $15.56M based upon the latest AFL audited financial statements (September 2009).

51 Ngati Tuwharetoa Fisheries Limited

Financial Statements For the year ended 30 September 2009

Page 53 Annual Report

54 Audit Report

55 Profit and Loss Statement

55 Schedule of Expenses

56 Balance Sheet

56 Results in Brief

57 Statement of Other Material Information

Company Directory As at 30 September 2009

Nature of Business Registered Office Accountants Non-trading 77 Titiraupenga Street DPA Limited Company IRD Number Taupō Chartered Accountants 096-041-425 Shares on Issue Taupō Qualifying Company Status 100 Ordinary Shares Auditors Closed Company Shareholders Silks Chartered Accountants Company Registration Number Ngati Tuwharetoa Fisheries Wanganui 1899266 Charitable Trust 100 Shares Bankers Date of Incorporation Directors Bank of New Zealand 19th January 2007 Danny Aperahama Loughlin Taupō Charities Registration Anthony William Olsen Solicitors 11th December 2007 - CC20206 Russell McVeagh Wellington

52 Annual Report For the year ended 30 September 2009

The financial statements for the year are attached.

For and behalf of the board:

______Director ______Director

3 August 2010 3 August 2010

53 54 Profit and Loss Statement For the year ended 30 September 2009

Note 2009 2008 2007 Revenue - - -

Less Expenses Operating Costs 1,055 - - Financial Expenses 96 95 42 Administration Expenses 1,659 1,225 809 2,810 1,320 851 Net Operating Surplus(Deficit) (2,810) (1,320) (851) SURPLUS (DEFICIT) (2,810) (1,320) (851) Shareholders Funds Opening Balance (2,171) (851) - Closing Balance ($4,981) ($2,171) ($851)

Schedule of Expenses For the year ended 30 September 2009

Note 2009 2008 2007 Operating Costs Conference Fees 1,055 - - Financial Expenses Bank Charges 96 95 42 Administration Expenses Audit 610 326 - Accountancy 1,049 899 809 1,659 1,225 809 $2,810 $1,320 $851

This Statement must be read in conjunction with the attached “Statement of Other Material Information” and Audit Report.

55 Balance Sheet As at 30 September 2009

Note 2009 2008 2007 Current Assets Bank Account - Cheque 6,234 8,399 9,766 GST Refund Due 94 87 11 6,329 8,486 9,777 Current Liabilities Ngati Tuwharetoa Fisheries Charitable Trust 10,596 10,596 10,596 Accounts Payable 713 61 32 11,309 10,657 10,628 Net Current Assets (Liabilities) (4,981) (2,171) (851)

Net Assets (Liabilities) ($4,981) ($2,171) ($851) Shareholders’ Funds Retained Earnings (Accumulated Losses) (4,981) (2,171) (851) Total Shareholders’ Funds ($4,981) ($2,171) ($851)

These Financial Statements have been audited.

For and on behalf of the Board

______Director ______Director 3 August 2010 3 August 2010

Results In Brief For the year ended 30 September 2009

2009 % 2008 % 2007 % Income Income Income Gross Receipts ------Less Operating Expenses 1,055 - - - - - Financial Expenses 96 - 95 - 42 - Administration Expenses 1,659 - 1,225 - 809 - 2,810 - 1,320 - 851 - Net Operating Surplus (Deficit) (2,810) - (1,320) - (851) -

Net Surplus (Deficit) ($2,810) - ($1,320) - ($851) -

Business Indicators Working Capital ($4,981) ($2,171) ($851) Sundry Creditors $713 $61 $32

This Statement must be read in conjunction with the attached “Statement of Other Material Information” and Audit Report.

56 Statement of Other Material Information For the year ended 30 September 2009

REPORTING ENTITY Ngati Tuwharetoa Fisheries Limited is registered under the Companies Act 1993. It is an exempt company for purposes of the Financial Reporting Act 1993. The financial statements of the entity have been Financial Reporting Order 1994.prepared in accordance with Section 12 of the Financial Reporting Act 1993 and the Financial Reporting Order 1994. ACCOUNTING POLICIES The measurement base adopted is historical cost. There are no Operating Lease Payments included as an expense item in the Profit and Loss Statement. There are no Finance Lease Payments included as an expense item in the Profit and Loss Statement. The Financial Statements have been prepared on a GST exclusive basis, with the exception of accounts receivable and payable. CHANGES IN ACCOUNTING POLICIES There have been no changes in accounting policies. All policies have been applied on bases consistent with those in previous years. CAPITAL COMMITMENTS There are no capital commitments at balance date (2008 $NIL). CONTINGENT LIABILITIES There are no known contingent liabilities at 30th September 2009 (2008: $NIL). Ngati Tuwharetoa Fisheries Limited has not granted any securities in respect of liabilities payable by it or any party. COMPARATIVE FIGURES The previous year’s (comparative) figures in the financial statements relate to a period of 12 months. INCOME TAX STATUS The Company has charitable status and is exempt from income tax. GOING CONCERN Ngati Tuwharetoa Fisheries Charitable Trust, as the Shareholder of Ngati Tuwharetoa Fisheries Limited, have undertaken not to call up their advance account within the next 12 months to ensure that the going concern principle is retained.

57 Appendix 1: Pātaka Kai

The Trust acknowledges the passing of the following people since the Trust established the Pataka Kai programme and is pleased to have been able to provide seafood to the Ngāti Tūwharetoa whanau to assist with these tangihanga.

2008 Ingoa Marae Ingoa Marae Ingoa Marae Hitiri Maniapoto Waitetoko David Arapiu Rangirangi Taurua/Rotoiti Tamihana Chapman Hirangi Tilly Hawira Te Puke Katie Gallowsway Rauhoto Lorraine Moon Kauriki Peter Smith Papakai Margaret Woodburn Waipahihi Piripi Te Rire Haahuru Uira Murray Hirangi Matea Rutene Waipahihi James Galloway Rongomai Harriet Eru Korohe Sarah Bishara Waihi Harriet Te Whare Waitahanui Ata Jacobs Korohe Sonny Ham Korohe Joesephine Wall Waipahihi Fernie Payne Whitikaupeka Rangimarie Turner Korohe Te Pakinga Blake Te Rangiita Mike Batley Opaea Moss Tawhai Waitahanui Nancy Hiri Rongomai Robbie Rakei Nukuhau Fred McGrath Nukuhau Godfrey Koko Waipahihi Lou Morgan Whanganui Bay Mavis Pitiroi Waitahanui Simon Wall Waitetoko Ihaka Smallman Hirangi Mrs Koko Waitahanui Bruce Wikohika Oruanui Alex Phillips Manu Ariki Miss Moke Waihi Christopher Marino Oruanui Mahinarangi Forbes Kauriki Lena Downs Rongomai Mr Rota Umutahi 2009 Irapeta Koopu Hatepe George Tahau Waitahanui Mona Kahia Rauhoto Makere Rangitoheriri Waitetoko Daisy Currin Otukou Lovey August nee Hae Waiorere J Rota Umutahi Kepa Pitiroi Te Rangiita Darky Duff Tokaanu Mrs Ropiha Haahuru Joan Mitchell Te Rangiita Casey Rawhiti Hirangi Andrew Bevan Mokai Malcolm Mitchell Waitahanui Hazel Te Riini Haahuru Netta Chapman Korohe Te Rina Edmonds Korohe Haromi Rameka Waipahihi Tui Corbett Maroanui Rato Robyn Te Wano Te Rangiita Tini Peita Haahuru Charlotte Severne Korohe Mike Marsh Korohe George Peters Tohia-o-Terangi Nepia Williams Nukuhau Rawe Wall Waitahanui Andrew te Heuheu Waihi Kiri Karekare Korohe Ollie Smallman Hirangi Mrs Rakei Nukuhau Gavin Chase Te Rangiita Peggy Hapi Mokai Ian Duff Tokaanu Girlie Baker Rauhoto Mere Habib Rauhoto Edna Hawira Te Puke Ngahau Flight Hirangi Muriel Heta TeKira Te Rangiita Raukura Turanga-Pryor Papaakai Lyall Chase Whitikaupeka Sarah Hunia Umutahi Mihi Apanui Korohe Michael Tonihi Umutahi Mrs Hallett Korohe Karewai Ham Korohe Audrey Karekare Rautahi Te Ao Marama Wineera Nukuhau Murray Hawira Te Puke Mere Lathowell Rautahi Toko Henry Te Rangiita Michael Hay Rauhoto