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Te Arawa Lakes Settlement Bill Government Bill Explanatory note General policy statement This Bill . records the acknowledgements and apology given by the Crown to Te Arawa in the deed of settlement (the deed) dated 18 December 2004 between the Crown and Te Arawa; and gives effect to the deed in which the Crown and Te Arawa agree to a final settlement of all Te Arawa's historical claims relating to the 14 lakes and the remaining annuity issues. Scope of settlement Te Arawa is a large confederation of iwi and hapo. The traditional area of Te Arawa' s interest ranges from Maketu in the north to Mount Tongariro in the south. At the time of the 2001 census, Te Arawa's population was approximately 40 000. In the deed and in this Bill, Te Arawa are defined as the collective group comprising- • the descendants of a Te Arawa ancestor: • every individual who is a member of the listed iwi and hapo of Te Arawa: • groups consisting of individuals descended from a Te Arawa ancestor or who are members of an iwi or hapO of Te Arawa. The settlement settles all of Te Arawa' s historical claims relating to 14 lakes and the remaining annuity issues. The 14 lakes are- 25--1 2 Te Arawa Lakes Settlement Explanatory note Ngahewa Rerewhakaaitu Rotorua Ngapouri Rotoehu Tarawera Okareka Rotoiti Tikitapu Okaro Rotoma Tutaeinanga. Okataina Rotomahana The Te Arawa lakes historical claims and the Te Arawa lakes remaining annuity issues are claims founded on a right arising- • from te Tiriti o Waitangi (the Treaty of Waitangi) or its principles: • under legislation or at common law (including aboriginal title and customary law): • from fiduciary duty: • otherwise. The claims arise from, or relate to, acts or omissions- • before 21 September 1992,- • by or on behalf of the Crown: • by or under legislation: • that arise from or relate to a Te Arawa lake, the 1922 arrangements, or the annuity: • on or after 21 September 1992,- • by or on behalf of the Crown: • by or under legislation: • that arise from or relate to the annuity. The Crown is released and discharged from all obligations and liabilities in respect of those claims. Claims that do not arise from or relate to a Te Arawa lake, the 1922 arrangements, or the annuity are excluded from the settlement. History of claim The Arawa Maori Trust Board (the Board) lodged the Te Arawa lakes claim (Wai 240) with the Waitangi Tribunal in April 1987. The Board later amended the statement of claim. The Board claimed that- Te Arawa had not ceded ownership of, or rights to, the lakes prior to the 1922 arrangements: . the Crown's presumption of legal title negated Te Arawa' s customary title and systematically eroded its right to full and undisturbed possession of their lands, lakes, and fisheries: Explanatory note Te Arawa Lakes Settlement 3 • Te Arawa was prejudiced as a result of the introduction of exotic fish species to the lakes, the issuing of fines for fishing without a licence, and the release of sewage into the lakes: • Te Arawa was denied the opportunity for a title investigation into the lakes and was prejudiced by the conduct of the Crown during the negotiation of the 1922 agreement: • the Crown made statutory and regulatory amendments to the 1922 agreement without reference to Te Arawa and failed to adjust the annuity to take account of infiation. In 1989, rather than proceed with a hearing, Te Arawa entered into preliminary discussions with the Crown. In September 1997, the Crown agreed to negotiate Te Arawa' s lakes claims separately from their other historical claims. Negotiations and deed In December 1998, the Crown recognised the Board's mandate to negotiate the settlement of the Te Arawa lakes claim. Terms of negotiation were signed in March 1999. In May 2001, in response to a request from the Board, the Crown made an offer for the settlement of the Te Arawa lakes claims. The Board rejected the offer. The Minister of M5ori Affairs advised Te Arawa on 29 May 2001 that the Minister wished to negotiate a possible capitalisation of the annuity paid in relation to the lakes and the resolution of any remaining annuity issues. New terms of negoti- ation were entered into by the Crown and the Board in July 2001. The parties agreed that the settlement would address both Te Arawa's historical lakes claims and any remaining annuity issues. In December 2003, the Board agreed in principle to a revised Crown offer for the settlement of Te Arawa' s historical grievances relating to the lakes and any remaining annuity issues. The Crown and the Board initialled a draft deed on 15 October 2004. The deed was subsequently ratified by a majority (93% of participating adult mem- bers of the claimant community who were eligible to vote) through a postal ballot. On 18 December 2004, Te Arawa and the Crown entered into the deed. The settlement is conditional on the establishment of a govern- ance entity (in accordance with the deed) and the passage of this Bill. The Board participated in the preparation of this Bill prior to its introduction. 4 Te Arawa I.akes Settlement Explanatory note Governance arrangements: Te Arawa Lakes Trust On 11 July 2005, Te Arawa voted to set up a new governance arrangement in place of the Board. Under this arrangement, the Board would be dissolved and a private trust called the Te Arawa Lakes Trust would be established. It would be administered in the first instance by 18 initial trustees, being the members of the Board holding office at the date of the trust deed, and subsequently by 9 trustees appointed in accordance with the trust deed. This arrange- ment was ratified by a majority vote of 94% of participating adult members of the claimant community who were eligible to vote. The Te Arawa Lakes Trust was subsequently established by trust deed dated 22 August 2005. Under this governance arrangement, the redress provided to Te Arawa in settlement of the Te Arawa lakes historical claims and the remaining annuity issues is held in trust by the Trustees of the Te Arawa Lakes Trust (the Trustees) for the benefit of the present and future members of Te Arawa. In addition, the Bill makes provision for the assets and liabilities of the Board to be transferred to the Trustees. In accordance with the requirements of the deed of settlement as to the necessary governance arrangements, the terms of the trust deed setting up the Te Arawa Lakes Trust provide for representation of Te Arawa, transparent decision-making and dispute resolution processes, and accountability to Te Arawa. The Crown is satisfied that the governance arrangements provided for by the terms of the trust deed meet the requirements of clause 3.4 of the deed. Key elements of the settlement package The deed sets out in full the redress provided to Te Arawa in settlement of all Te Arawa's historical lakes claims and the remain- ing annuity issues. The following summary sets out the key elements of the whole settlement package contained in the deed, distinguish- ing between those matters included in the Bill, because they require legislation for their implementation, and those set out only in the deed, because they do not require legislative authority. Acknowledgements by Te Arawa and the Crown concerning the settlement The deed contains the following acknowledgements by Te Arawa and the Crown concerning the settlement: Explanatory note Te Arawa Lakes Settlement 5 the settlement represents the result of extended negotiations conducted in good faith and in a spirit of co-operation and compromise: . it is difficult to assess the loss and prejudice suffered by Te Arawa as a result of the matters acknowledged by the Crown in Part 8 of the deed: it is not possible to compensate Te Arawa fully for that loss and prejudice: . in foregoing full compensation, Te Arawa intends to contri- bute to the development of New Zealand: . taking all matters into consideration, the settlement is fair in the circumstances. Acknowledgements and apology by the Crown The deed and the Bill include acknowledgements by the Crown of the grievances of Te Arawa in relation to the Te Arawa lakes and the annuity. The deed and the Bill also set out the formal apology in which the Crown expresses its profound regret to Te Arawa, their ancestors, and their descendants for the breaches of te Tiriti o Waitangi (the Treaty of Waitangi) by the Crown. Cultural redress for which legislative authority is given by or under Bill The fee simple title to each of 13 lakebeds is vested in trust in the Trustees by the Bill. The bed of Lake Okaro, the 14th lake, is presently vested in the Rotorua District Council. Title to that lakebed is not vested in the Trustees under this Bill. The vesting provides for Te Arawa' s beneficial ownership of the lakebeds and subsoil (including plants attached to the lakebeds). In each case, title specifically excludes the water column (the space occupied by the water) and the airspace (together called the Crown stratum). Existing structures on the lakebeds are excluded from the vesting. The rights relating to public navigation, recreational activi- ties, existing commercial activities, and public utilities are provided for in the Bill. The Bill makes provision to establish the Rotorua Lakes Strategy Group, replacing the body currently known as the Rotorua Lakes Strategy Joint Committee. The Rotorua Lakes Strategy Group (the Group) will become a joint committee under the Local Government Act 2002. The legislation will provide for- 6 Te Arawa Lakes Settlement Explanatory note • the Group' s permanence: • membership of the Group for Trustees, through 2 representatives: • the purpose of the Group, which is to contribute to promoting the sustainable management of 12 named Rotorua Lakes and their catchments for the use and enjoyment of present and future generations, while recognising and providing for the traditional relationship of Te Arawa with their ancestral lakes.

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