Te Runanganui o Ngati Porou RIPOATA A TAU 2019
Nga Rarangi Korero Contents
4 Nga Kaitiaki o Te Runanganui o Ngati Porou Te Runanganui o Ngati Porou Elected Representatives 6 Mana Whakahaere Organisational Structure 8 Te Kaupapa Rautaki Strategic Plan 10 Te Whakatoputanga o Nga Piuta Group Financial Performance at a Glance 12 Nga Korero a te Tiamana Chairman’s Report 16 Te Ripoata a te Kaihautu Chief Executive’s Report 18 Whanau Oranga 19 Toitu Ngati Porou 22 Ngati Porou Hauora 24 Ngati Porou Holding Company 32 Te Ngako o Nga Korero mo Nga Piuta Financial highlights and commentary 42 Kaimahi TRONPnui staff
Cover: Ko Meri Tapu te Whare Karakia He mihi ki te Komiti whakahaere mo te whakaahua
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 3 Nga Kaitiaki o Te Runanganui o Ngati Porou Te Runanganui o Ngati Porou Elected Representatives
Rohenga Representatives Marae Wharenui Potikirua ki Rei Kohere Ani Pahuru-Huriwai 1. Potaka Te Pae o nga Pakanga Whangaokena Te Whanau a Tarahauiti, Te Whanau-a- 2. Hinemaurea Tuwhakairiora 1 Te Whanau a Hunaara, Tuwhakairiora, Te Aotaki, 3. Punaruku Te Pikitanga o Kauwhakatuakina Te Whanau a Hinerupe, Te Aopare, Hinerupe. 4. Paerauta (Tutua) Tamakoro Te Whanau a Rerewa. 5. Hinerupe Hinerupe 6. Matahi o te Tau Matahi o te Tau 7. Awatere Te Aotaihi 8. Te Kahika (Hurae) Hurae Whangaokena ki Patrick Tangaere Matanuku Mahuika 9. Putaanga Putaanga Waiapu Ngai Tane. Rakaimataura, Hinerupe 10. Kaiwaka Te Kapenga 2 (Ki Waiapu). 11. Rahui Rongomaianiwaniwa 12. Taumata o Tapuhi Te Aokairau 13. Hinepare Tairawhiti 14. Ohinewaiapu Ohinewaiapu 15. Karuai Te Rehu o Karuai
Pohautea ki Lilian Tangaere-Baldwin Derek (Tini) Fox 16. Tikapa Pokai Te Onepoto Ngati Horowai, Te Aitanga Ngati Horowai. 17. Te Horo Rakaitemania 3 a Mate, Ngai Tane, 18. Waiomatatini Porourangi Te Whanau a Umuariki. 19. Kakariki Rakaihoea 20. Tinatoka Tinatoka
Te Onepoto ki Mei Reedy-Taare Tui Warmenhoven 21. Reporua Tu Auau Rahuimanuka Te Aitanga a Mate, Ngati Rangi, Whanau a 22. Umuariki Umuariki 4 Te Whanau a Rakairoa. Umuariki, Ngati Uepohatu, 23. Ruataupare Ruataupare Ngati Horowai, Whanau 24. Mangahanea Hinetapora a Karuai, Te Whanau a 25. Uepohatu Uepohatu Ruataupare, Te Whanau a 26. Rauru (Taumata o Mihi) Rauru Nui a Toi Te Aotawarirangi, 27. Te Heapera (Mangarua) Te Heapera Te Whanau a Apanui.
Rahuimanuka ki Selwyn Parata Te Rau Kupenga 28. Kariaka Ngati Porou Mataahu Te Aitanga a Mate, Te Aowera, Te Aitanga 29. Hiruharama Kapohanga a Rangi 5 Te Aowera, Te Whanau a a Mate. 30. Te Aowera Te Poho o Te Aowera Rakairoa, Ngati Horowai, 31. Whareponga Te Poho o Materoa Whanau a Ruataupare, 32. Rongohaere (Pahou) Rongohaere Ngati Uepohatu. 33. Rongoitekai (Penu) Rongo i te kai
Mataahu ki Koroumatai Kody Na Raihania 34. Te Ariuru Te Poho o Te Aotawarirangi Pewhairangi Kokoronui Te Whanau a Ruataupare, 35. Waiparapara Te Poho o Te Tikanga 6 Te Whanau a Ruataupare, Te Whanau a 36. Pakirikiri Te Hono ki Rarotonga Te Whanau a Iritekura, Te Aotawarirangi 37. Tuatini Huiwhenua Ngati Ira, Te Whanau a 38. Iritekura Iritekura Apanui. 39. Taharora Mihi-Koinga 40. Te Kiekie Hau Kokoronui ki Maui Tangohau Kelly Blackman 41. Anaura Hinetamatea Te Toka a Taiau Nga hapu o Hauiti. Te Whanau a 42. Hinemaurea ki Mangatuna Hinemaurea 7 Te Rangipureora, 43. Okuri Okuri Ngati Kuranui, Ngati Ira. 44. Puketawai Te Amowhiu 45. Hauiti Ruakapanga 46. Te Poho o Rawheoro Te Whare Wananga o Te Rawheoro 47. Whangara Waho te Rangi me Whitireia 48. Te Poho o Rawiri Te Poho o Rawiri
4 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Potikirua Wharekahika 1 2
Te Araroa 3 4 5 6
Rohenga Representatives Marae Wharenui 7 Whangaokeno
Potikirua ki Rei Kohere Ani Pahuru-Huriwai 1. Potaka Te Pae o nga Pakanga 8 Te Whanau a Tarahauiti, Te Whanau-a- 2. Hinemaurea Tuwhakairiora Whangaokena 15 1 Te Whanau a Hunaara, Tuwhakairiora, Te Aotaki, 3. Punaruku Te Pikitanga o Kauwhakatuakina 14 13 4. Paerauta (Tutua) Tamakoro Ngutu Awa Te Whanau a Hinerupe, Te Aopare, Hinerupe. 9 5. Hinerupe Hinerupe 10 12 Te Whanau a Rerewa. 11 6. Matahi o te Tau Matahi o te Tau Tikitiki 16 7. Awatere Te Aotaihi 17 8. Te Kahika (Hurae) Hurae 18 20 19 Whangaokena ki Patrick Tangaere Matanuku Mahuika 9. Putaanga Putaanga Ngai Tane. Rakaimataura, Hinerupe 10. Kaiwaka Te Kapenga 27 21 Waiapu 26 25 24 2 (Ki Waiapu). 11. Rahui Rongomaianiwaniwa Ruatoria 12. Taumata o Tapuhi Te Aokairau 28 22 13. Hinepare Tairawhiti 30 14. Ohinewaiapu Ohinewaiapu 23 Hikurangi 29 15. Karuai Te Rehu o Karuai 33 31 32 40 39 Pohautea ki Lilian Tangaere-Baldwin Derek (Tini) Fox 16. Tikapa Pokai 38 Te Onepoto Ngati Horowai, Te Aitanga Ngati Horowai. 17. Te Horo Rakaitemania 3 a Mate, Ngai Tane, 18. Waiomatatini Porourangi Te Puia Te Whanau a Umuariki. 19. Kakariki Rakaihoea 20. Tinatoka Tinatoka
34 35 Tokomaru Bay Te Onepoto ki Mei Reedy-Taare Tui Warmenhoven 21. Reporua Tu Auau Rahuimanuka Te Aitanga a Mate, Ngati Rangi, Whanau a 22. Umuariki Umuariki 36 4 Te Whanau a Rakairoa. Umuariki, Ngati Uepohatu, 23. Ruataupare Ruataupare 37 Ngati Horowai, Whanau 24. Mangahanea Hinetapora a Karuai, Te Whanau a 25. Uepohatu Uepohatu Ruataupare, Te Whanau a 26. Rauru (Taumata o Mihi) Rauru Nui a Toi 41 Te Aotawarirangi, 27. Te Heapera (Mangarua) Te Heapera Te Whanau a Apanui.
Rahuimanuka ki Selwyn Parata Te Rau Kupenga 28. Kariaka Ngati Porou Mataahu Te Aitanga a Mate, Te Aowera, Te Aitanga 29. Hiruharama Kapohanga a Rangi 5 Te Aowera, Te Whanau a a Mate. 30. Te Aowera Te Poho o Te Aowera 31. Whareponga Te Poho o Materoa 43 Rakairoa, Ngati Horowai, 42 44 Whanau a Ruataupare, 32. Rongohaere (Pahou) Rongohaere 46 Ngati Uepohatu. 33. Rongoitekai (Penu) Rongo i te kai Tolaga Bay
45 Mataahu ki Koroumatai Kody Na Raihania 34. Te Ariuru Te Poho o Te Aotawarirangi Pewhairangi Kokoronui Te Whanau a Ruataupare, 35. Waiparapara Te Poho o Te Tikanga 6 Te Whanau a Ruataupare, Te Whanau a 36. Pakirikiri Te Hono ki Rarotonga Te Whanau a Iritekura, Te Aotawarirangi 37. Tuatini Huiwhenua Ngati Ira, Te Whanau a 38. Iritekura Iritekura Apanui. 39. Taharora Mihi-Koinga 40. Te Kiekie Hau 47 Kokoronui ki Maui Tangohau Kelly Blackman 41. Anaura Hinetamatea Whangara Te Toka a Taiau Nga hapu o Hauiti. Te Whanau a 42. Hinemaurea ki Mangatuna Hinemaurea 7 Te Rangipureora, 43. Okuri Okuri Ngati Kuranui, Ngati Ira. 44. Puketawai Te Amowhiu 45. Hauiti Ruakapanga 46. Te Poho o Rawheoro Te Whare Wananga o Te Rawheoro 47. Whangara Waho te Rangi me Whitireia 48. Te Poho o Rawiri Te Poho o Rawiri Te Toka a Taiau
48 Gisborne Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 5 Mana Whakahaere Organisational Structure
Ngati Porou
Te Runanganui o Ngati Porou Trustee Limited
Left to right: Kelly Blackman, Heni Tawhiwhirangi, Maui Tangohau, Mei Reedy-Taare, Matanuku Mahuika, Kody Pewhairangi, Rei Kohere (Deputy Chair), Selwyn Parata (Chairman), Tui Warmenhoven, Patrick Tangaere, Ani Pahuru-Huriwai, Te Rau Kupenga, Lilian Tangaere-Baldwin and Na Raihania. Inset: Derek (Tini) Fox.
Toitu Ngati Porou Charitable Trust Te Runanganui o Ngati Porou Ngati Porou Holding Group Corporate Services Company Ltd Ngati Porou Hauora Charitable Trust Ngati Porou Pakihiroa Seafoods Group Farms Ltd
Whanau Oranga Matauranga
6 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Te Runanganui o Ngati Porou Trustee Limited Te Runanganui o Ngati Porou Trustee Limited represents the collective interests of Ngati Porou iwi members, and is made up of 14 directors. The board exercises strategic governance over its subsidiaries – Toitu Ngati Porou, Ngati Porou Holding Company Ltd and Ngati Porou Hauora. Toitu Ngati Porou board The Chief Executive Officer is responsible for Left to right: Lilian Tangaere-Baldwin (Chairperson – appointed operational activities on behalf of Te Runanganui April 2017), Amos Forrester, Rei Kohere, Wiki Gilvray and Amohaere o Ngati Porou. Houkamau.
Ngati Porou Holding Company Limited Ngati Porou Holding Company Ltd is the economic and wealth generation arm of Te Runanganui o Ngati Porou. Its five board members were appointed by Te Runanganui o Ngati Porou. Ngati Porou Holding Company Ltd looks after Ngati Porou Seafoods Group and Pakihiroa Farms Limited. It also manages the investment and forestry assets on behalf of Te Runanganui o Ngati Porou.
Toitu Ngati Porou Charitable Trust Toitu Ngati Porou is the cultural development and charitable distribution arm of Te Runanganui o Ngati Porou. It has five board members who were appointed by the Te Runanganui o Ngati Porou board. Ngati Porou Hauora board Left to right: Kylee Potae, Lois McCarthy Robinson, Teepa Wawatai (Chairperson) Ngati Porou Hauora Charitable Trust and Rose Kahaki (NPH CEO). Insert: Huti Ngati Porou Hauora provides health services Puketapu-Watson, Dr Julia Carr. to Ngati Porou/East Coast communities. It has five board members who were appointed by the Te Runanganui o Ngati Porou board.
Ngati Porou Seafoods Group and Pakihiroa Farms Limited Ngati Porou Seafoods Group and Pakihiroa Farms Limited are commercial subsidiaries of Ngati Porou Holding Company Ltd. They are each governed by their own boards who are appointed by Ngati Porou Holding Company Ltd.
Te Runanganui o Ngati Porou Group Corporate Services Te Runanganui o Ngati Porou Group Corporate Services provides operational support to Te Runanganui o Ngati Porou and its subsidiaries.
Whanau Oranga and Matauranga Ngati Porou Holding Company board Whanau Oranga and Matauranga deliver Left to right: Tiwana Tibble, Kristen Kohere, Diana Puketapu, Matanuku social service and education services to Ngati Mahuika (Chairperson) and Whaimutu Dewes. Porou/East Coast communities on behalf of Te Runanganui o Ngati Porou.
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 7 A TATAU POU / OUR GOALS Whanau Rangatira Matauranga Whairawa Kaitiaki
TE REO O NGATI POROU ME ONA TIKANGA
A TATAU KAUPAPA
Our Vision Te Whakapumau i te Mana Motuhake o Ngati Porou mo nga Uri Whakatipu.
Our Mission Mahi ngatahi kia tu pakari ai a Ngati Porou.
Te Kaupapa Rautaki provides the strategic direction of Te Runanganui o Ngati Porou. The Strategic Plan is structured around the concept of a Wharenui, with the foundation provided by Te Reo o Ngati Porou me ona tikanga. The Wharenui is held up by five Pou representing the key strategic goals of the organisation – Rangatira, Whanau, Matauranga, Kaitiaki and Whairawa.
8 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Te Kaupapa Rautaki Strategic Plan RANGATIRA R1: Ngati Porou hapu have greater authority, capability and capacity to protect and manage their customary land, marine and freshwater resources.
KAITIAKI K1: The Ngati Porou rohe is enriched by its indigenous flora and fauna, and bio-diversity; effective bio-security; and responsiveness to future impacts such as climate change.
MATAURANGA M1: Ngati Poroutanga is retained and passed on to future generations through Ngati Porou histories, language activities, exhibitions and wananga.
WHANAU ORANGA WO1: Ngati Porou whanau are more connected to each other and to their shared identity as Ngati Porou.
WO2: Ngati Porou whanau are living healthier lives and ensuring the physical and emotional well-being of their members, young and old.
WHAI RAWA WR1: Ngati Porou has access to improved infrastructure, information, options and partnerships to achieve higher value use of their lands and resources.
Norbu Tenzing and Selwyn Parata at te Takapau a Maui.
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 9 Te Whakatoputanga o Nga Piuta Group Financial Performance at a Glance
GROUP FINANCIAL PERFORMANCE GROUP FINANCIAL POSITION Group revenues of Group total assets of Arrow-alt-circle-down Arrow-Alt-Circle-Up down$37.8m from $48 million in 2018 up$253.5m from $242.9 million in 2018 Surplus from commercial activities of Group equity of Arrow-alt-circle-down Arrow-Alt-Circle-Up down$9.75m from $16.12 million in 2018 up$228.8m from $223.4 million in 2018 Group earnings before interest expense Group equity to total assets (ownership %) and tax (EBIT) of 90.2% Arrow-alt-circle-down Arrow-alt-circle-down down from 92% in 2018 down$6.89m from $12.58 million in 2018 Group net profit of Arrow-alt-circle-down down$5.33m from $12.11 million in 2018 SUMMARISED STATEMENT OF FINANCIAL PERFORMANCE 2019 2018 2017 2016 2015 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 Revenue 37,812 48,008 45,479 30,970 42,391 Expenses (excl. interest) 30,917 35,425 34,053 29,561 29,132 EBIT 6,895 12,583 11,426 1,409 13,259 Interest expense 437 430 557 1,061 983 Net profit before tax 6,458 12,153 10,869 348 12,276 Tax 1,128 34 850 -93 -36 Net profit 5,330 12,119 10,019 441 12,312 Net profits derived from: Commercial activities 9,750 16,121 15,301 6,443 18,346 Tribal, cultural, health -3,292 -3,968 -4,432 -6,095 -6,070 Tax 1,128 34 850 -93 -36 Net profit 5,330 12,119 10,019 441 12,312
GROUP REVENUE, EXPENDITURE AND PROFITS 2015–2019 $million
REVENUE EXPENDITURE PROFIT 50 36 14 45 35 12 40 34 35 33 10 30 32 8 25 31 6 20 30
15 29 4 10 28 2 5 27 0 26 0 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015
10 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 SUMMARISED STATEMENT OF FINANCIAL POSITION 2019 2018 2017 2016 2015 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 Current assets 14,527 18,435 14,693 14,256 27,631 Non-current assets 239,001 224,475 217,370 209,201 196,362 Total assets 253,528 242,910 232,063 223,457 223,993 Current liabilities 13,426 9,601 14,758 5,565 12,062 Non-current liabilities 11,340 9,878 5,993 16,599 11,079 Total liabilities 24,766 19,479 20,751 22,164 23,141 Net assets 228,761 223,431 211,312 201,293 200,852 Total equity 228,761 223,431 211,312 201,293 200,852
TERM DEBT, TOTAL ASSETS AND EQUITY BREAKDOWN OF NON-CURRENT ASSETS 2015–2019 $million TERM DEBT 30
25 Financial Biological 20 Fisheries Property 15
10
5
0 2019 2018 2017 2016 2015 GROUP DISTRIBUTIONS TOTAL ASSETS 260 Grants distributed to marae Arrow-Alt-Circle-Up 250 up$450k from $400,000 in 2018 (other support to marae includes Marae Wifi and marae insurance) 240 Support to Ngati Porou events 230 Arrow-alt-circle-down down$17k from $39,000 in 2018 (includes dawn ceremony, Pa wars, Ngata Lectures, 220 the AGM etc)
210 Support to East Coast Rugby $69k Arrow-Alt-Circle-Up 200 up from $36,000 in 2018 2019 2018 2017 2016 2015 Support to Other Grants and Investments EQUITY Arrow-Alt-Circle-Up 240 up$458k from $241,000 in 2018
230
220
Marae grants 210 Ngati Porou events Ngati Porou rugby 200 Marae Wifi Other grants and investments 190
180 2019 2018 2017 2016 2015
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 11 Nga Korero a te Tiamana Chairman’s Report
significant. We couldn’t do it all, or at Meng has now retired from the mayoralty least not all at once, and so I set out some and gone on to serve Aotearoa as our new key aims for Whai Mana Motuhake me te Race Relations Commissioner. We wish taiao, Whai Matauranga, Whai Rawa and him well in his new role, as we do the Whai Oranga. new mayor, Rehette Stoltz, and the Ngati As the term of the current board nears Porou members on council. its end, it is timely to reflect on the year in review alongside the key themes and RESTORING THE RAUKUMARA Tena tatau,te iwi e pupuri i nga RANGE highlights of the last four years. whakarerenga iho o nga karangatanga maha Over the last five years the Runanganui o Porourangi raua ko Hamoterangi. WHAI MANA MOTUHAKE has been working with the Department Whakarehurehu taku kite i nga hiwi o of Conservation on the strategy and Back in 2015 I highlighted the need to pamamao e rere ana mai e nga kapua, ano plans for Nga Paanga Whenua, the 22 safeguard Ngati Porou’s customary and he kawe kupu mai, e hika ma e ia he roimata conservation areas returned to Ngati future interests in our environmental taku kai e, ahakoa koutou kei tawhiti kei Porou collective ownership. A key part of resources. In November that year roto koutou I nga mahara e. Tangihia o tatau the planning centres on the Raukumara we entered into the Waiapu Joint mate, te pukahu o nga uri o te maunga tapu Range, which also takes in the customary Management Agreement, with the o Hikurangi kua ngaro i te tirohanga kanohi interests of Te Whanau a Apanui. Gisborne District Council, to share engari ka mau tonu i nga whakaaro, kaore In October 2018 we agreed with Te decision-making with GDC on the ha ko taku poupou ko Eru Paenga tera, ko Whanau a Apanui to develop a joint development of the Waiapu Catchment Ned Ihaka hoki i nohia ai i te turanga o te restoration plan and governance model Plan; and on resource consent kaihautu o Te Runanga o Ngati Porou, moe for the Raukumara Range; and to applications within the catchment. mai ra koutou ki te Hawaiiki kei te po. advocate for Whanau a Apanui to receive The GDC’s priorities since then were Kia ora koutou aku matua, aku tipuna, nga conservation redress, from the Crown, largely on catchments in Turanga. In tuakana, nga taina nga tuahine o tatau on par with what we achieved in our 2018 GDC signalled its intention to start hungarei o tatau hunaonga nga taokete me Treaty claims settlement. This was simply work on a Catchment Plan for the Waiapu a tatau tamariki mokopuna, te hunga whai reciprocating the support Whanau a and, so, the JMA governance group – with whakaaro, whakaaronui hoki ki nga kaupapa Apanui gave to Ngati Porou when we were two representatives from each partner maha a Ngati Porou. in our own negotiations with the Crown. – convened in early 2019 for the first Kei whea mai nga ahuatanga i hua mai i Over the last year, with DoC and Nga time. The first parts of the JMA work te tau kua hipa hei whakaora i te ngakau o Whenua Rahui, we have supported local programme is now active and includes a Porou, heoi ano ahakoa pehea kia kaha tatau level hui and workshops to discuss the series of consultation hui with hapu, as te tuitui i a tatau ki te whakapumau i nga significant devastation to native flora, well as landowner and local community kawai tangata. and eco-systems, caused by red tail deer, engagement. possums and goats in the Raukumara. At the time of writing this report we As we prepare for the Runanganui’s 2019 Unfortunately, the potential use of 1080 are also supporting ‘environment AGM this month, I reflect on my first poison became a very heated issue. I commissioner’ training for Ngati Porou report, as Chairman, back in 2015. I therefore want to acknowledge those, people active in this work at home. This was installed as chair after the passing including our own whanaunga, who will help develop a pool of Ngati Porou of Uncle Api. He had been Runanga were subjected to threats and abuse for commissioners to be appointed to local chair for close on 30 years, and fulfilled their leadership on this matter. There resource consent hearing panels as the a number of aims for Ngati Porou that is no place for that kind of behaviour in need arises. are the foundation of our work today, as our work with one another, even if its I want to acknowledge our local GDC an advocate and vehicle for Ngati Porou perpetrated by a small minority. councillor, Bill Burdett, and our former development. The hui were very well attended and, in long-serving koromatua, Meng Foon. We were three years post the settlement the main, very productive. There is a They have been unstinting in their of the Ngati Porou claims, and our great deal of concern and local support support of the JMA and, more broadly, people’s expectations for economic, to see investment made into the long- cultural and social advancement were roading and services to the East Coast.
12 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 term restoration of the Raukumaras. The leadership, and the legacy you want to MARAE DEVELOPMENT on-the-ground work will be taken up in leave for your future generations. In 2019 we continued our support the Runanganui’s discussions with Te packages for Ngati Porou marae. This Whanau a Apanui and the Minister of WHAI MATAURANGA included the marae insurance programme, Conservation so that a comprehensive In terms of Whai Matauranga, the board which has been taken up by 27 local funding bid can be put into the wanted to establish a basis for the long- marae to date; wi-fi connectivity for 43 Government’s budget process for 2020. term revitalisation and retention of our marae; and marae development grants language as whanau and hapu of Ngati this year totalling $0.45m. Since 2013, MANA MOTUHAKE, MANA MOANA Porou. Under the guidance of Toitu Ngati Toitu Ngati Porou has distributed marae At the 2018 Taumata between the Porou and some of our foremost experts grants totalling $4.55m. Runanganui and the Government, on language revitalisation, we developed The feedback from our marae is that the we asked the Prime Minister and her an overarching language strategy, which financial support we have provided is Attorney General to shepherd our hapu was launched in 2016. vital, and that the Runanganui needs to takutai legislation through Parliament. In Toitu Ngati Porou, our charitable trust ensure it continues. We will try and do 2019, they delivered. The passage of the arm, and Ngati Porou Holding Company, so, balanced against the other kaupapa Bill, in May this year, was the culmination our commercial arm, agreed an initial Ngati Porou deems important. But, my of sixteen years of negotiation with investment of $0.5m to support the hope is that, as members of whanau and the Crown, which stemmed from the implementation of the strategy. This hapu, we are all asking ourselves how we controversial Foreshore and Seabed Act enabled us to support a network of can contribute to our marae and, equally, back in the early 2000s. Ngati Porou ‘reo champions’ across the maintain those important connections. The large majority of Ngati Porou hapu, Ngati Porou rohe, as well as with Ngati MARU WHAKATIPUA 47 to date, have ratified the revised Deed Porou taurahere in Tamaki Makaurau, of Agreement. This provides for them to Harataunga, Tokoroa, Poneke and Over the last two years we have co- exercise a range of planning, decision- Waitaha. In all, our investment enabled developed a forum to look at how, as an making and participatory roles related nine collectives to develop and implement iwi organisation, we can play our part to the foreshore and seabed. The new their own, local initiatives for reo to strengthen Maori medium education legislation also extends the deadline to revitalisation, including home-based for Ngati Porou and Tairawhiti Maori 30 May 2022 for the hapu to submit their language programmes. students. The forum, Maru Whakatipua, customary title claims to the Crown. In 2017 Toitu also secured a further is a collaboration between Tairawhiti iwi The new law completes the last major $0.13m from Te Taura Whiri I te and the Ministry of Education. Through undertaking Uncle Api initiated and led Reo Maori to help put some of Radio the forum we want to help our kura to for Ngati Porou, in concert with many Ngati Porou’s archival resources on- tackle common challenges like attracting other pakeke who have passed on. line. The result is an on-line portal, and retaining good teachers, lifting the The hapu who have ratified the Deed have Rongomaiawhio, named after one of our quality of reo used by our Kaiako; and established their management trusts, eponymous ancestors, and meaning “to tailoring teacher training to be more hosted the Prime Minister at Iritekura create the conditions that stimulate our responsive to tikanga a iwi. Marae in September, and are developing senses”. Rongomaiawhio is a rich and VOCATIONAL PATHWAYS their initial work programme with uniquely Ngati Porou language resource fisheries, environment and conservation which, crucially, is accessible to every The Runanganui and its subsidiaries agencies. Some of the cost of their Ngati Porou person ahakoa ko wai, ahakoa also have an important part to play in work will be met from the income to be kei hea. If you haven’t already registered the development of vocational training generated from the $15.5m lump sum to make use of this fantastic resource, go pathways, and options, for our rangatahi. administrative payment, which is another to Radio Ngati Porou’s website to do so. We continue to work with Eastern feature of the agreement reached with the Our language revitalisation programmes Institute of Technology (EIT) to deliver Crown. are only in their early stages. But, as Te Toka, the Maori and Pacific trades This is a very good base to pursue the a demonstrable show of Ngati Porou programme. Over each of the last three long-term agenda to restore hapu commitment, our annual budget will years the intake of students for Te Toka authority over their takutai moana allocate no less than $0.2m to continue has increased, from 100 student places in and other resources; and rebuild hapu the implementation of our language 2016 to 220 placements this year. capacity to carry out their aims and revitalisation strategy. To make the most In 2018 we worked with EIT and the responsibilities. For those hapu groups impact, with what resource we have, we Department of Conservation to set up who are currently outside of this will identify and support those initiatives a fencing, planting and outdoor work arrangement, I urge you to convene, as where real gains are being made, and can skills programme, Ka Hao Te Rangatahi. soon as possible, and take the decision be built upon. The programme is intended to build a to join in. This is a crucial test of your local workforce to capitalise on funding
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 13 Chairman’s Report
Ngati Porou Pakeke at FSSB Deed of Agreement signing Nov 2008. available to land blocks for afforestation of close to $120m, as well as fishing odd bumpy year, and not to expect every (the Government’s ‘One Billion Trees’ quota, farm and forestry assets. Our year to deliver good profits. Our safe and programme) and other erosion measures. commercial subsidiary had also gotten a steady growth since 2015 reflects that. We may need to ramp this up, as the partnership underway with local land- demand for forestry workers, alone, is blocks to establish Ngati Porou Miere. LIVING WITHIN OUR MEANS forecast to triple over the next 5 years. Since then, our holding company has While we have grown the asset base, We also want to facilitate higher value looked to broaden the range of business we have also put a lot of emphasis on land use at home in order lift the activities it is engaged in, and to lift its controlling our costs of operating. Where profitability of Ngati Porou lands to focus on enterprise and investments we could eliminate, or reduce, costs we their owners. In 2015 our commercial within Ngati Porou. This led to have gone about it. Where our costs arm, Ngati Porou Holding Company, led investments in the blueberry sector; needed to rise, we have looked to offset the formation of the Ngati Porou Miere including a blueberry farm joint venture that by growing our income, or reducing (Manuka Honey) partnership; and is now with Hauiti Inc at Tolaga Bay. Holdco also our spending in other areas. in a joint venture with local landowners, got in behind local tourism by developing One of the main casualties of our cost Hauiti Inc., to produce blueberries, a high a Maunga Hikurangi tourism package. containment was the amount of funding value ‘super food’ crop. The blueberry Both of these investments are in their we could provide to our charitable trusts, JV will create additional seasonal work early stages, but the approach taken aligns Toitu Ngati Porou, in particular, and opportunities for local whanau, and, with what we are also doing in farming, Ngati Porou Hauora. Now, however, our as we scale this up alongside the miere forestry and manuka honey: working operations are much more financially opportunities, we will need supervisors, with our local landowners, businesses and stable than they were even two years ago. tradespeople and technicians to support Ngati Porou whanau to make new use of Our hauora and social services are no these new industries on the East Coast. our resources, and stimulate job growth longer running annual financial losses, as where we can. ‘business as usual’; and Toitu Ngati Porou WHAI RAWA Over the last four years the Group’s net is able to plan its programme of charitable One of the Runanganui’s key assets have increased to $228.8m, while distributions with much more certainty responsibilities to Ngati Porou is to total assets stand at $253.5m. This takes than it could in previous years. ensure the safe stewardship of the iwi’s in 2016, when ‘Brexit’ wiped $3.5m in We still have a lot of work to do but, with Treaty settlement assets, for the benefit value from our books just before year end, a new board set to take the reins after of current and future generations. and our group earnings dropped as low the 2019 AGM, I know that the outgoing In 2015 we held net assets of $200.9m, as $0.4m. In the main, though, we have board has left a strong base in place for its mainly comprised of equity investments always cautioned ourselves to plan for the successors to work from.
14 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Ngati Porou whanau at Parliament for 3rd reading of Nga rohe moana o nga Hapu o Ngati Porou Act 2019.
WHANAU ORANGA seeing how our support for local whanau WHAI ORANGA In 2019 our range of social support will continue to improve, in partnership In the year in review our health and programmes and services were delivered with hapu, agencies and others. social services arms have continued to to over 1,400 people. We engaged a mix support the delivery of primary care, of audiences including rangatahi at-risk HEI WHAKARAPOPOTO health promotion, whanau and rangatahi of dropping out of schooling, alternative When I look back on 2019, and the four programmes, and hapu social services justice programmes for over 300 adults years since my first report as Chair, I can to our communities. This has not been and young people, and emergency and say the board has endeavoured to advance without its struggles. temporary housing assistance for 82 local the broad development agenda sought whanau. by Ngati Porou. We may not have done HAUORA At the same time, we have started a so in the manner, or order of priority, It has been an ongoing financial battle process to review our social services that others might. We have had some for Ngati Porou Hauora to maintain portfolio to see how our approach can good successes, as well as the occasional its current hospital-based services and be reflective of our whanau, hapu and set-back. But, everything we have applied community clinics to local whanau, let iwi values and aspirations, instead of ourselves to has been intended to improve alone improve the access of those services priorities and programmes decided Ngati Porou well-being. to address the high need and demand on by agencies far removed from our This effort has been the effort of many, across our rohe. local realities. In this, we have also so, in closing, I want to acknowledge and Resourcing for our local health services been instrumental, via the forum thank my colleagues and whanaunga who has been on agenda in each of our annual Manaaki Tairawhiti, in forging stronger comprise the boards and management discussions with the Prime Minister, relationships and whanau-based teams of the Runanganui, Toitu Ngati and ministers, since 2016. In 2018 the approaches through local agencies Porou, Ngati Porou Holding Company, Ministry of Health committed to work including police, MSD, Hauora Tairawhiti Ngati Porou Hauora, Pakihiroa Farms, with us to develop a full budget proposal and education. Ngati Porou Seafoods Group; and our to ministers. This has continued into This year, social media exposed us to the affiliates, Ngati Porou Forests, Ngati 2019, where we are currently poised to impact of ‘uplifts’ of tamariki mokopuna Porou Miere and Te Reo Irirangi o Ngati submit a proposal to boost funding for carried out by Oranga Tamariki, the Porou. our clinical and community staff, and Ministry for Children. This has cast to expand services. We are hopeful that light on our own relationship with the Ma te Atua tatau, e manaaki e tiaki we can convert this into tangible new Ministry, and whether that agency is Kia tau te ia o te Mauri ki runga i a tatau investment into local health services truly committed to working with iwi, katoa in 2020. I acknowledge our NPH chair, and respecting iwi practices, to achieve Teepa Wawatai, for his leadership and safe and durable outcomes for whanau Selwyn Parata commitment to this process, along with and their tamariki mokopuna. I thank Chairman his board and the NPH management our frontline teams and management for team. another solid year, and look forward to
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 15 Te Ripoata a te Kaihautu Chief Executive’s Report
including staffing cuts, and reduced trust arrangements do just that. the size and range of distributions we Decision-making on matters such as would have otherwise made. Our hauora customary fisheries regulations, fisheries and social services portfolios had been management plans and, where title is running annual deficits, and that had established, resource consents will all to change if we were to slow, or reduce rest with the hapu management trusts. our levels, of unproductive debt. Both The resourcing of those arrangements Tena tatau e nga mema, e nga whanaunga managed to do so, though I am under no will include income from a $15.5m katoa o Ngati Porou. illusion as to the impact that has had on endowment to be administered as the NPH, in particular. hapu trusts see fit. In November 2015 I was one month in the In all, we have reduced the Parent’s OTHER TAIAO WORK job as CEO of the Runanganui, and I was bank debt down to $6.5m and turned A range of other environmental kaupapa moved to write a confidential memo to my around its Year End EBIT (earnings made ground this year. The work on our board outlining my concerns about our before interest payments and tax) from local conservation strategy and plans financial circumstances. minus $1.75m in 2015 to plus $2.75m focused in on joint work with Te Whanau In my highly confidential memo, I in 2019. The inter-company debt is still a Apanui and Ngati Porou communities explained to the board that we had a work in progress at the time of writing on the plight of the Raukumara Range. forecast bank debt of $10.6m and, my report, though we have drastically We also kicked off the initial work on because of that and other factors, our slowed its growth by putting a stop to the developing a catchment plan for the annual operating costs would exceed tax refunds until we can do so without Waiapu, and continued to work with income by about $3m. I said that we introducing more debt. Gisborne District Council and MPI on needed to take drastic action but, ahead of I need to recognise and thank the Parent the East Coast Forestry (Erosion Control) the 2015 AGM, this information needed and subsidiary boards for their support Programme. to be treated with utmost care while we and patience while we were focused so The local MPI liaison officer for the formulated a plan of action. About a much on consolidating our finances and programme was Ned Ihaka, who retired day later my Aunty Heni put it all up on operations. This came at a real cost to the from the role in June and passed away Facebook! She loved Facebook. development agendas the boards had set from illness a few weeks later. Uncle This began a period of cost review, tight for Ngati Porou well-being; and the pace Ned was CEO of the Runanga in the early budgets and trade-offs with my main at which they have been able to do so. 1990s and, later, an elected member of board to get its financial performance the TRONPnui board. In between that he under control. This would have been MAJOR HIGHLIGHTS held a number of board and managements tricky if not for the full support the board Our chairman’s report summarises the roles in organisations that advanced the gave me to get our house in order, and, key themes and achievements during interests of Ngati Porou. He gave his all down the track, special measures the 2019, and the three years before that. for his people. Holding company took to alleviate a large A real highlight for the 2019 year was cash-flow crunch the Parent faced. the third reading in Parliament, and SUBSIDIARIES’ YEAR IN REVIEW The overall situation was exacerbated by passage into law, of the Nga Rohe Moana The chairs of Toitu Ngati Porou, Ngati what is called ‘inter-company debt’, or o Nga Hapu o Ngati Porou Act 2019. Porou Holding Company and Ngati Porou loans and debts raised in-house between There were over 200 Ngati Porou, of all Hauora have each outlined their year-in- different parts of the Group. Without ages, in attendance to support the final review in their respective reports. getting too down in the detail, this debt reading, and mark the contributions of Toitu distributed over $0.9m towards was created by getting Maori Authority many koroua and kuia to the takutai marae development, te reo o Ngati Porou Tax Credit refunds, at about $4 debt for negotiations with the Crown. and other Ngati Poroutanga initiatives in every $1 refunded. In 2015 the debt had Ngati Porou leaders have challenged the a year where the board’s role was under reached $22.5m, and was costing the Runanganui to support the authority review, and its inter-company loan to the Parent around $1.37m in annual interest of hapu, as true kaitiaki and owners Parent was a live matter for resolution. charges. of customary resources. The takutai Holdco achieved solid returns even We reduced costs all across the operation, agreement, legislation and management
16 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Te Aio o Nukutaimemeha relocation | Pakihiroa Station, Hikurangi. though financial markets were highly accessed our range of counselling, whanau stuck in my mind. The first was a question volatile, especially in the Oct-Dec quarter. development, youth development, about whether TRONPnui paid its staff a Beyond that, its businesses, Pakihiroa and justice, housing and vocational training ‘living wage’. The second was about the Ngati Porou Seafoods Group, generated programmes. future of Te Aio o Nukutaimemeha, our surpluses while implementing their The programmes we deliver are often waka that had been sitting at Te Hatepe longer-term strategies to grow their prescribed by our funders. The work since 2000. Little did I know that ‘the value for Ngati Porou. Other direct itself can be stressful and, compared waka’ would go on to feature as part of investment and ventures have expanded to government workers, significantly general business for virtually every AGM Holdco’s commercial portfolio to take in underpaid. We have started some work after that. horticulture (blueberries), tourism and to look at how we are delivering social It took a while, but I can say that, in 2018, technology. services and, more to the point, how they I was able to move the minimum wage Some of the key challenges the Holdco match up with the support needs and paid to TRONPnui staff to the ‘living has been working through include priorities across each of our communities. wage’ rate. This was made possible by the supporting Ngati Porou Whanui In 2020 we will have designed and tested better grip we had on our spending and Forests to secure a new forestry JV our Whanau Oranga ‘model of care’ budgets. And, in May this year, our waka partner; and working with Ngati Porou with Ngati Porou audiences, and we was permanently relocated to Pakihiroa Miere partners on strengthening key will advocate to government funders to Farm, on the lower slopes of Maunga operational arrangements, such as storage support our model. Hikurangi. The trustees of Hahau B5, at and sale of honey stock. Applications Te Hatepe, were as relieved as I was and I to the Provincial Growth Fund have HEI WHAKAKAPI thank them for almost 20 years of hosting been developed to support further At the time of preparing this Annual and support. afforestation, as an option for Ngati Porou Report, we have just completed the 2019 As we prepare for the 2019 AGM, and the landowners; and develop a manuka honey TRONPnui board elections. The voter arrival of the new board, I have taken the (and oil) extraction and storage facility to turnout was much lower than we had step of getting an independent review of be based locally. hoped, despite a strong promotional TRONPnui board fees done. The report, Ngati Porou Hauora has maintained its campaign and near on a thousand carried out by the Institute of Directors, is base services, and financial discipline, registered members taking the time to available as part of the AGM papers to be while pushing the case for new update their registration details. I want released before the meeting. It should be investment from the Crown to address to thank the staff involved for all of the no surprise that, with the board fees left glaring health inequalities for whanau effort and creativity they put into the unreviewed and unadjusted since 2013, resident on the East Coast. Negotiating election. I now know what a MEME is. the fees need to be lifted to better reflect the ‘health business case’ will be a major I also acknowledge and thank our Audit market rates, and the responsibilities priority for TRONPnui and NPH in 2020. and Risk Committee, and our corporate carried by our elected representatives. I services team, led so ably by my chief look forward to making the case to the WHANAU ORANGA financial officer, Wayne Panapa. Wayne’s AGM, alongside the other reports to be Most of the Runanganui’s staffing is arrival in 2017 coincided with the start presented. made up of our Whanau Oranga social of our financial recovery and, alongside services teams. These teams do a lot of our audit committee, he has been Kaati ra, kia ora the work that connects us, day-to-day, to instrumental in this work. Ngati Porou parents, kaumatua, rangatahi At my first AGM as chief executive, there Herewini Te Koha and tamariki across our rohe. This year, were two take from the audience that Chief Executive over 1,400 (mainly Ngati Porou) people
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 17 Whanau Oranga
DURING THE YEAR IN REVIEW: Around 1,440 individuals were able to access our services, with a further 870 participating in our group-facilitated activities. Our main support was around education, training, justice and housing. We also provided intensive support for 95 tamaiti mokopuna who, without it, may have ended up in state care.
IN SUMMARY: • Education: We helped 753 young Whanau day Ruatoria Oct 2019. people return to school, and supported another 40 who were struggling to keep engaged. a series of one-to-one discussions with context of child abuse and neglect in • Training: We increased community Ngati Porou persons who are active in the Aotearoa; and the changing approach capability by providing Safeguarding whanau and hapu development arenas. to preventing and addressing harm to our Tamaiti Mokopuna training Our design process will be expanded tamariki and rangatahi. for volunteers in four of our East by way of engagement workshops Coast communities. Our network of across Ngati Porou, as well as strong GAYNOR NISBET – HE MAIMAI AROHA volunteers will be a key resource for collaboration with Oranga Tamariki and engaging and connecting with some of other relevant agencies. In August 2019 we lost a dearly loved our hard to reach whanau. and respected colleague - Gaynor Nisbet. • Justice: We supported 340 individuals SAFEGUARDING OUR TAMAITI Gaynor was employed by Te Runanganui o (both youth and adults), involved in MOKOPUNA Ngati Porou as a Social Worker in Schools the criminal justice system, through Identifying and Responding to Child Abuse Kaiawhina. This is a role that requires our Prisoner Reintegration, Restorative Training proficiency understanding resilience and Justice, Youth Justice Family Group The development of this training came most of all aroha ki te tangata. All of these conferencing and Te Pae Oranga (iwi from discussions between the Chief qualities Gaynor possessed. She brought justice panel) services. Executive of Child Matters and TRONPnui passion commitment and determination • Housing: We helped 82 individuals Whanau Oranga management. A training to improve the lives of all our mokopuna and/or whanau access transitional need was identified to support those tamaiti that she felt privileged to work and social housing either through our working with whanau in rural areas; and amongst. Gaynor was a valued member of own housing portfolio, Housing New people dealing with issues of family harm, our Social Worker in Schools team and is Zealand or the private market. abuse and neglect without accessible missed. She left this message to our team support from agencies. during one of our team meetings: ‘Let the A NGATI POROU MODEL OF CARE Training was delivered jointly to both uniqueness of the mokopuna guide you’. We are in the early stages of scoping professionals and volunteers in Hicks E Gaynor, moe mai e runga i te an iwi-led model of care for tamaiti Bay, Rangitukia and Ruatoria. Further Rangimarie a te Atua. mokopuna and their whanau. Our workshops will be held in Tokomaru Bay, approach is to develop a model of care Uawa and Kaiti in coming months. The Nga Manaakitanga, that has the voice of tamaiti mokopuna attendees to the training to date include and whanau at heart and, so, ensure kaiako and kaimahi, including kohanga Anne Huriwai that the change is impactful for tamaiti reo staff, social workers and health Whanau Oranga Senior Manager mokopuna, whanau and hapu. workers. The workshops were designed We have started this process by holding to provide information about the current
18 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Toitu Ngati Porou
that have undertaken a range of wananga, Ngati Porou Education Grants & Scholarships haerenga and reo classes with whanau at A draft policy and a set of procedures Ka timata taku ripoata i runga i te home and attracting those living away have been presented to the Board for whakawhetai ki te Atua i runga rawa, mo from home. Further reo programmes will consideration. The CEO and Marae ana manaakitanga katoa, otira nga whanau, be made available in 2019/2020. Kaitakawaenga are progressing work hapu o Ngati Porou whanui, huri noa i te ao. Continuing to complete the distribution of on the design aspect of a grants and E te iwi he tika kia maharatia e tatau te grants still owed to Ngati Porou marae. scholarships programme. In support, The marae grants programme is on target hunga kua huri ki tua o te arai. Kua tangihia Toitu is promoting a ‘dollar for dollar’ and within budget –Annual distribution ratau, kua tukua atu ratau ki nga ringa kaha scheme with Ngati Porou Land-blocks (up $450,000 and a total distribution to date o te kaihanga. Ahakoa kua mate, e kore ratau to a $1,000) with a similar venture with of $ 4.55 million. e warewaretia. Victoria University in Wellington who are Ki a tatau e waha atu nei i nga tini Supporting Ngati Porou Taurahere to reach matching iwi scholarships up to $20,000. Ngati Porou whanau and celebrate Ngati ahuatanga o te wa, tenei ra te mihi ki a tatau Poroutanga. Developing the scope for a Ngati Porou History Project katoa. Ahakoa nga piki me nga heke o te ao A Taurahere Grants Policy has been This Project has been delayed but the hurihuri nei, ka kaha tonu tatau ki te kokiri implemented and funds are being accessed majority of the funding has been rolled whakamua, na reira tena ano tatau katoa. by Taurahere. An annual provision of over to the 2019/2020 financial year. $160,000 has been provided for and there $25,000 was retained to cover costs of TOITU NGATI POROU is also scope to support emerging groups developing a preliminary project scope This year, Toitu Ngati Porou operated and Ngati Porou engagement occurring and the delivery of local hui/outreach to under significant uncertainties, including: outside of the traditional Taurahere. inform its development. • The TRONPTL trust deed review, and questions as to the future existence of PROJECTS IN TRAIN Other Initiatives Despite the uncertainty, Toitu broadened Toitu. Developing a Ngati Porou Matauranga and its budget to include micro-enterprise • The subsequent review of Toitu Ngati Education strategy training, Ngati Porou Hapu RMA Porou, as recommended in the Parent’s This Project is behind schedule but the Training, Cultural Development, and trust deed review report. funding has been rolled over to the made provision for new initiatives in the • Efforts to settle its inter-company loan 2019/2020 financial year to provide for 2019/2020 budget. to TRONPnui. the later start. TRUST DEED REVIEW KPMG carried out the review of Toitu Ngati Porou, and, in March, reported its preliminary findings to the TRONPnui Board. The key finding was that there was no compelling case to wind-up Toitu but, rather, a need to clarify and confirm roles, remit and key accountabilities. The TRONPnui Board received the final report and accepted all recommendations without any amendments. PRIORITIES AND ACHIEVEMENTS A summary of Toitu Ngati Porou’s key activities and highlights for the Year in Review: Further implementation of Te Reo o Ngati Porou strategy and Toitu Te Reo programmes. $201,000 was distributed to participating Ngakorau Nohotima, Ngata Lectures 2018 | Nga korero mo Rapata Wahawaha ki Kiekie Marae. marae, hapu and taurahere collectives
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 19 Toitu Ngati Porou
Nga Maunga korero Hanuere 2019 | Te Whanau a Tenzing Norgay Sherpa me NZ Maori Tourism ki runga o Hikurangi.
This year, the festival was hosted by specific to Ruatoria like Horse Sports and KEY NGATI POROU EVENTS the Ruatoria Community. Hinerupe Tennis. HIKURANGI DAWN CEREMONY Marae took out the top honours, closely For the past four years, the event put an Since the millennium when the Maui followed by runner up, Whareponga, with emphasis on waste reduction and adopted whakairo were erected, the Dawn Hinemaurea ki Mangatuna rounding out the waste-free message from Para Kore, a Ceremony has become an annual event of the top three. nationwide initiative that works around the Ngati Porou Calendar. Organised by The festival, more commonly known as ‘Pa the country to achieve zero waste. Te Runanganui o Ngati Porou, the Dawn Wars’, attracted representation from 21 Although the main kaupapa of the festival Ceremony has huge significance to Ngati Ngati Porou marae who fielded entrants in is a celebration of tribal kinship within Porou. the 34 various Pa Wars events. Alongside an atmosphere of friendly competition The 2019 New Year was welcomed in by the traditional events they could enter and healthy lifestyle, for many of the approximately 200 Ngati Porou and non such as trivial pursuits, touch rugby, marae participants there’s also an added Ngati Porou, who made the early morning basketball, and line dancing, were those incentive for attending. Up for grabs trek to assemble at Pakihiroa Station at 4.00am. The ceremony consisted of karanga, karakia, haka and korero on each of the whakairo. At the conclusion of this all were invited to participate in a barbecue breakfast.
NGATI POROU INTER MARAE SPORTS The Ngati Porou Inter Marae Sports Festival has been a regular fixture on the Ngati Porou Calendar of events since 1995, and this year was no exception with thousands of whanau members travelling to Ruatoria to take part in the whanau- oriented competition.
Kei Te Aha Reo Symposium | Pakirikiri Marae, Hepetema 2019.
20 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 are monetary rewards for their marae, sponsored by the Ngati Porou and local NGA MAHI WHAKAHAERE PUTEA business community, for making the top As at 30 June 2019, the Toitu NP balance support the Toitu Board through this three placings in each category where a sheet had total assets amounting to process. Accordingly, in preparation of total of $14,750 was distributed out to all $21.3 million of which $19.9 million the 2019/2020 budget, EY has calculated the winning marae. related to non-current assets in the form the value of annual payments on the PN of an intercompany loan advanced to to be approximately $1.0million. TE AIO O NUKUTAIMEMEHA TRONPnui. The PN will provide Toitu with greater For nigh on 20 years, the waka, and its An agreement has been reached between income certainty for the duration of fate, has been a constant kaupapa at hui- the two parties to settle the advance via the PN arrangement and will enhance a-tau. the issuance of a promissory note (PN). the ability of Toitu NP to carry out its TRONPnui, as owners of Pakihiroa EY has been commissioned to advise and charitable purposes to Ngati Porou. station lands, agreed that Te Aio o Nukutaimemeha be permanently TOTAL REVENUE relocated to Pakihiroa enabling plans to house and restore the waka to be undertaken in full confidence. The relocation included site excavation, and the dismantling of the waka and its carriage at Rangitukia. The CEO asked the Toitu Board whether there was an $13,140 Grants appetite to take on the major funding/ $1,451,052 Interest - parent sponsorship duty for the relocation. The Board agreed to the proposal, and the waka has been re-sited at Pakihiroa. HE WHAKAKAPI The Toitu Board is poised to hand over a portfolio that has key programmes in TOTAL EXPENDITURE place, two more in the pipeline, and a sustainable funding basis for future Toitu boards to work from. I wish to thank my fellow Trustees, Amos Forrester (Deputy $84,952 Operating expenses Chair), Amohaere Houkamau, Wiki $119,000 Governance costs Gilvray and Rei Kohere for their collegial $23,381 Travel & vehicles support, forbearance and considered $44,427 External services contributions. $450,000 Marae grants It is with sincere appreciation that I $464,424 Other grants acknowledge the significant amount of support provided to the Board by our CEO Herewini Te Koha, CFO Wayne Panapa, Whanau Oranga Senior Manager Anne Huriwai, Marae Kaitakawaenga/ Matauranga Manager Leeanne Morice, OTHER GRANTS BREAKDOWN Ngati Poroutanga Kaiawhina Rapaea Parata, Board Secretary Albie MacFarlane and Executive Assistant Katherine $72,804 NP Marae Kaitakawaenga Tuhaka. $201,088 Reo Strategy Funding $45,000 Taurahere Grants Nga Manaakitanga, $40,000 St Mary’s Church $11,107 Pa Wars/Dawn Ceremony Lillian Tangaere Baldwin $53,675 Waka Project Chair, Toitu Ngati Porou $20,000 Hauiti - Tuia 250 $20,000 Ngati Oneone - Tuia 250 $750 Sundry Projects
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 21 Ngati Porou Hauora
supporters; they are whanau serving model of care to meet high needs in our whanau. They personify the attitude and communities. Obviously, people are at E nga uri o nga whanau hapu o Ngati Porou, spirit of our people (staff, management the centre of service provision, and we mai i Potikirua ki te Toka a Taiau, tena and governance) who have served, year face an additional challenge in trying to koutou, tena tatau. after year, in very challenging conditions reduce the pay parity gap between nurses with severe constraints on resources. working for DHBs and those employed by WHANAU Maori providers such as ourselves. This is FINANCIAL MANAGEMENT another equity issue in the health sector I start this report by noting the sad and we are at the sharp end of it. This passing of some very special people. Nga I turn now to the central issue of finances leads me to our Health Business Case and pakeke - John Coleman and Bob Kaa, and the contentious matter of resourcing. our appeal to the Crown for health equity loyal and avid supporters of the Hauora We continue to apply the discipline we for Ngati Porou communities. over several decades. Nga kaimahi: have demonstrated throughout our tenure to manage our finances well, live within Te Awhimate Tawhai, the much-loved HEALTH BUSINESS CASE leader of our Te Hiringa Matua service; our means and achieve budget. So, for the Lizzie Tamepo, a dedicated independent third year in a row, we have made a net The Crown agreed to fund the midwife; and former staff member Francis surplus. It is a remarkable achievement development of a business case to Collins Maxwell. We will miss them. And especially in light of the disturbing trend improve health outcomes for Ngati Porou we grieved alongside one of our Health of escalating annual debts posted by living on the East Coast. The business Care Assistants, Kararaina Fox, following District Health Boards across the country, case aims to do this via the optimisation the neonatal loss of her precious baby. including Hauora Tairawhiti with a record of health services and models of care in E nga mate katoa o te wa, hoatu kotou, $13M deficit this year. the rohe. There are four parties to the haere. What is most alarming about that trend project: Te Runanganui o Ngati Porou, I mention here some extraordinary is the historic underspend on primary Ngati Porou Hauora, Ministry of Health staff, exemplars of dedication who truly healthcare and corresponding overspend and Hauora Tairawhiti. The business epitomise faithful service. At the top of on secondary healthcare. International case will describe the rationale for Crown the list is Cynthia Colbert, who has served research shows that communities need investment in the preferred health model a whopping 55 years, and Wikitoria Tibble appropriate investment in strong primary of care for Ngati Porou and East Coast who has served 53 years. That’s truly healthcare and prevention. That is what residents. Amongst other things, it will astonishing. There are 5 more who have reduces acute demand, reduces avoidable investigate the future role of Te Puia served over 40 years; 6 who have served admissions and stops rising ED. The Springs Hospital within an integrated over 30 years, and another 5 who have Hauora is the largest primary healthcare Ngati Porou model of care, the enablers served over 20 years. Among them are a provider in the district, but every of that model, and the interface between group of nurses: Terry McLeely, enrolled year Hauora Tairawhiti diverts funds Ngati Porou Hauora delivered services nursing - 32 years; Shirley Green, hospital from primary healthcare to secondary and wider health services in Gisborne and aid/nursing - 44 years; Gina Chaffey- healthcare to bail out Gisborne hospital. on the East Coast. It will be completed Aupouri, nursing - 40 years, and Fushia That must change. around the end of March 2020 for Harrison, hospital aid/dental - 36 years. In the meantime, we have maintained inclusion in the 2020-21 Budget. Last summer it was my privilege to share our ability to meet current liabilities an evening with them. We honoured 18 and repaid a short term of $0.2M to the INNOVATION, TECHNOLOGY, people who have served a total of 656 ANZ Bank. Our parent, TRONPnui, has RESEARCH, TEACHING also agreed for us to delay, by one year, years. In the past year I’ve attended some We are developing innovative tools like the commencement of repayments for a really important occasions in half a dozen ‘Pepi Ora’, an app co-designed with new $1.5M term loan granted in 2016. This countries around the world, but this one parents to encourage good parenting will help relieve budget pressure for the was definitely the best and the source of practices and healthy pepi. The ‘Manage Hauora over the next financial year. greatest pride. We salute you all! my Health’ App is a big step in supporting This is important because we have faced We are the largest employer on the Coast whanau access their own medical major financial challenges every year, and all of these people, living and passed, notes/lab results and make their own and even more so in the year ahead, represent the essence of the Hauora. They appointments from home. And we’re for provision of existing services and are more than dedicated staff and fervent also using a new ‘Cardihab’ app, a cardiac implementation of new services and a
22 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Te Whakanui i nga kaimahi kua roa nei e mahi ana mo Ngati Porou Hauora. monitoring tool to support whanau who “Science Wananga” at Hauiti Marae. on the line and took up an extremely have been discharged home following a These are all initiatives undertaken demanding role. It really seemed that cardiac event. to enable us to better prepare for the no one else wanted the job. The board Research projects with the Maurice challenges of the future and become part suppressed governance fees for the last Wilkins Centre and with University of our model of care. 6 years, consistent with the austere of Otago continue to uncover ground- budget measures it has applied across the breaking discoveries that assist healthy LEADERSHIP organisation. In addition, some trustees living and advance the prospect of I started this report focusing on whanau have foregone fees altogether, and the rest precision medicine. The Hauora hosted and I will end it by returning to people. have accepted a token payment for their Ngati Porou Med-school graduate, Anezka This year we bid farewell to three of our services throughout this period. Hoskin, as a researcher in residence at trustees: Kylee Potae, Dr Julia Carr and As we prepare for the next phase, I Te Rangawairua o Paratene Ngata. We Lois McCarthy-Robinson. I thank them welcome our newest trustees, Matt had new graduate nurses placed with for their exemplary service over a period Pavarno and Kim Ngarimu, to the board. us and a University of Otago trainee of six years. Each of them played a vital They join Huti Puketapu-Watson and I to intern on elective at Te Puia. We role in the team that helped rescue and ensure strong governance and continuity hosted a “Grassroots Youth Conference” turnaround the performance of the for Ngati Porou Hauora. at Waiparapara Marae consisting of Hauora and position it for the challenges medical students from Auckland School of the future. Nga mihi of Medicine and undergraduate health When the board was appointed in 2013, students from Victoria University, the Hauora was in deep crisis. The Teepa Wawatai Wellington. We also celebrated the 10th incoming board members put their Chair, Ngati Porou Hauora anniversary of the University of Otago reputations, and personal finances,
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 23 Ngati Porou Holding Company Ltd
A BREAKDOWN OF ASSETS BY Group earnings ASSET CLASS IS AS FOLLOWS (AND Arrow-alt-circle-down COMPARISONS TO THE 2018 YEAR): Tena koutou katoa. $9.8m Tena koutou i o tatau tini mate. Ka tangi down from $16.1 million in 2018 tonu te ngakau mo ratau i mahue atu i a tatau i te tau kua taha ake nei. Na reira, Return on assets of okioki te hunga mate, okioki. Okioki i te 4.1% Arrow-alt-circle-down okiokitanga a o tatau matua tipuna. down from 7.2% in 2018 Ki nga kanohi ora, tena hoki tatau katoa. Group revenue 2019 $21.9m Arrow-alt-circle-down Financial Overview down from $30.6 million in 2018 The financial highlights for the last year are: Total assets • Group EBIT of $10.0m. Arrow-Alt-Circle-Up • Net equity grew to $228.1m after $240.4m 2% Cash 8% Forestry up from $230.4 million in 2018 & equivalent payment of dividends to Te Runanganui 0% Carbon 2% Property 66% Equities o Ngati Porou, an increase of 2.2%. 18% Fisheries 4% Farming • Return on assets of 4.1% compared to Dividends to Te Runanganui 7.2% in 2018. o Ngati Porou of • A total of $4.8m in dividends paid to Te $4.8m Arrow-Alt-Circle-Up Runanganui o Ngati Porou. up from $3.8 million in 2018 The greatest contributor to Group performance was again the Holdco Ngati Porou Seafoods profit investment portfolio, which returned Arrow-alt-circle-down $6.7m on the back of what was an $1.02m 2018 extremely volatile year for global equities. down from $1.3 million in 2018 This compared to an initial plan of $7.3m. The result from the investment portfolio Pakihiroa Farm profit represents a 5.6% return for the year, and $0.62m Arrow-Alt-Circle-Up a 7.7% return over the last 5 years against up from $0.4 million in 2018 a SIPO target rate of return of 3.6% (or 4% Cash 8% Forestry 2.5% over the rate of inflation). Sale of carbon credits & equivalent 0% Carbon This 5-year return reflects the generally Arrow-alt-circle-down 2% Property 66% Equities strong market for global equities over the $Nil 16% Fisheries down from $3.3 million in 2018 4% Farming last 5 years and has been important in enabling Holdco to fund dividends while GROUP REVENUE & EBIT ($ million) also continue to grow total assets. Holdco Revenue EBIT is currently in the process of reviewing 35 the SIPO and will report on the outcome 30 of this review during the course of the 25 next year. 30
15
10
5
0 2015 2016 2017 2018 2019
24 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Nga Hua Summary of Assets NPHCL has seen sound growth in its balance sheet since inception.
TOTAL ASSETS ($ million)
245
240
235
230
225
220
215
210
205
200
195
190 2015 2016 2017 2018 2019
2019 2018 HoldCo NPSG PFL GROUP HoldCo NPSG PFL GROUP Current Assets 20.4 13.7 1.0 14.6 20.7 9.2 0.4 20.0 Equity Investment 191.9 0.3 0.1 151.1 185.2 0.3 0.1 144.3 Non-current Assets 19.6 42.8 11.8 74.4 17.1 37.5 11.5 66.1 Total Assets 231.9 56.8 12.9 240.1 223.1 46.9 12.0 230.4 Current Liabilities 12.6 8.9 0.8 1.9 7.5 4.8 0.2 2.1 Term Liabilities – 5.3 4.8 10.1 – – 5.1 5.1 Equity 219.3 42.6 7.3 228.1 215.6 42.2 6.7 223.2 Total Liabilities & Equity 231.9 56.8 12.9 240.1 223.1 46.9 12.0 230.4
Because intercompany eliminations are not shown, the rows do not add to the group total.
Nga Whairawa Financials, Earnings | Me Nga Apiti Subsidiaries A summary of earnings for the NPHCL along with its subsidiaries is set out in the table below.
2019 2018 HoldCo NPSG PFL GROUP HoldCo NPSG PFL GROUP Revenue (excl extraords.) 12.0 5.5 4.0 21.9 21.8 5.4 3.0 30.6 Expenses (excl finance cost) 3.4 4.5 3.2 11.9 7.0 4.1 2.4 14.3 EBIT (before extraords) 8.7 1.0 0.8 10.0 14.8 1.3 0.5 16.3 Extraords 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 EBIT 8.7 1.0 0.8 10.0 14.8 1.3 0.5 16.3 Interest expense 0.0 0.0 0.2 0.2 0.0 0.0 0.1 0.1 Earnings 8.7 1.0 0.6 9.8 14.8 1.3 0.4 16.1 ROE 3.9% 2.3% 8.2% 4.1% 7.1% 3.0% 6.2% 7.4% ROA 3.8% 1.9% 4.8% 4.1% 6.8% 2.7% 3.5% 7.2%
Because intercompany eliminations are not shown, the rows do not add to the group total.
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 25 Ngati Porou Holding Company Ltd
Key to achieving this strategic growth is; 80 Supermarket outlets across Te Ika • Better utilisation of existing a Maui, with a new product channel Ngati Porou assets which is a key area where category range being launched before good gains can be made, and despite Christmas of smoked fish dips & Seafoods Group quota cuts this year returns are ahead spreads, which are simply outstanding. For the year ended June 2019 the of expectations. This also includes • Productive partnerships. Last Seafoods Group reported an operating working hard to tackle head-on the year, as part of the Holdco Partnership surplus of $1.02 million, which is down increasing marine and environmental with Air New Zealand, supply of 24% on the previous year due to reduced challenges that could impact these smoked moki commenced to front- income from quota cuts, and up-front assets, which are important, and again of-plane Trans-Tasman and Pacifica costs associated with implementing our good progress is being made. regional flights. This has expanded to branded products strategy. • Delivering branded products that 45,000 breakfast and entrée meals, This represents a 2.5% rate of return, customers want. Establishing ‘AHIA’ which have now been served on 18 which is not acceptable, and work premium branded smoked fish products international flight destinations, with continues to improve this position as part to compete and succeed in national further planned growth being actively of executing the Seafoods Group 5-year retail and foodservice channels, has discussed. strategic shift up the value chain. This been a key focus this year and good • The strategic shift up the value strategic shift has a target rate of return progress is being made. Six AHIA chain. This requires clarity, and this of 8%, and a $3.0 million surplus. branded products are now available in year, reducing reliance on non-core activities will continue. Planning is also well advanced to exit current aging and inefficient infrastructure. In the year ahead, the Seafoods Group is well positioned to navigate the ongoing challenges and achieve forecast outcomes, which will require continued investment in people, new technologies and infrastructure that will support maintaining our competitive edge. Ko to matau toa, he toa takitini. Thanks to the commitment and efforts of our staff in setting tough targets and working hard to hit them, which enables us to look forward with confidence to the next steps in realising the Seafoods Group Vision.
26 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Pakihiroa Farms Increased productivity and improved together we create certainty of year-round management practices should not impact margins for sheep, contributed to employment. on either our fresh water or marine Pakihiroa recording a 50% increase in net PFL is working in farming partnerships environments. For the same reason, PFL profit for the year to $625,175. This is a with 10 blocks, intensifying their lands is pleased to have been able to provide satisfactory result in a year that saw beef with fencing, water and new forages. support for the “Whakaoratia te Mana prices fall due to easing demand and the This allows PFL to finish more stock o te Waiapu” project and congratulates uncertainty associated with Mycoplasma through these partnerships in a mutually those hapu who champion this kaupapa. Bovis. beneficial arrangement. PFL is hoping PFL is concerned about the future skills PFL continues to execute its 5-year to bring in up to 2,000 ha of Ngati Porou and capability needed to operate this strategy to leverage PFL’s farming land from these farming partnerships. business. We hope to support at least two capabilities to help lift the Ngati Porou PFL’s farming partnerships have allowed rangatahi to develop a career in farming economy. some landowners to change their land use each year and encourage any rangatahi The PFL strategy means staffing levels with areas along the Waiapu being retired wanting a career in farming, to contact have grown to 11 FTEs, and PFL and planted. This is consistent with PFL’s the General Manager. acknowledges and appreciates the efforts longer term view that we need to have the of our outstanding farm team led by Rob right activities in the right place for the and Mary Andrews. PFL has established a right reasons. For PFL, our operations contracting business to support cropping should have minimal adverse effects on programmes. PFL also works alongside others. other local contracting businesses so Improved environmental outcomes align they have a better view of PFL’s work with the “Maunga to Moana” mindset requirements. These businesses can of the wider Ngati Porou Group and also align their business planning, so recognises our concern that PFL’s land
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 27 Forestry No harvesting occurred during the financial year. Planting of new forest has continued as Ernslaw One progressively returns lands from the Tokomaru and Ruatoria forests. In 2018/19, 205 hectares was returned and planted. This takes the total new forest area owned by Holdco to 3,745 hectares. In total Ernslaw One has handed back 5,771 hectares. The difference between this area and the planted area (circa 2,000 hectares) is riparian areas and permanent forests including native species reserves. These areas are protecting our waterways. This area will increase. We continue to grow this valuable forest asset for our future generations. Value in terms of environmental protection of our waterways and employment opportunities for our people.
28 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Ngati Porou Holding Company Ltd
NPHCL - TOTAL ASSETS PERFORMANCE VS. BENCHMARKS OVER TIME As of 30 June 2019
11.8 12 INVESTMENT 11.0 OBJECTIVE
10 9.1 8.1
7.7 7.7 8 7.4 6.6
5.6 6
Total Return (%) Total 4.1 3.6 4 3.5
2
0 Qtr tr Date CYTD FYTD Trailing 3 Yr Annualised Annualised Since Inception Trailing (19/12/2013) 5 Years
INVESTMENT FAIR VALUE BY ASSET CLASS AND FUND MANAGER with Annualised Return to 30 June-19 against Benchmark
35 15%
30 10%
25
5% 20
15 0%
10
-5% 5
- -10% Devon Milford ANZ Artisan Harding Blackrock GQG Blackrock Standard Aviva Schroder Van Eck Lazard AMP Capital Major Banks Loevner Life
Trans-Tasman Equity Developed Market Equity Emerging Market Equity Diversifiers Equity
Growth Assets Inflation Sensitive Assets Deflation Cash and Assets Term Jun-19 Jun-18 Annualised Return to 30-Jun-19 Benchmark Deposits
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 29 2019. A lot of the infrastructure was also in July. This crystalised a loss of $58,000 built at this time. At full production this on the investment. Miere joint venture is forecast to generate an In agreeing the exit, Holdco converted Holdco purchased a further 500 hives EBIT of $550,000 per annum and create $292,000 of its investment to debt owed during this financial year, bringing total approximately 40-part time jobs. There by Amanti. Ownership of design company hives owned to 1,000 for the upcoming will be a small crop of approximately Pohewa Ltd, which was 100% owned by 2019/20 honey season. It is expected that 500kg of berries picked this season. Amanti, was also transferred to Holdco. Holdco will have a total of 1,500 hives However, this volume is expected to grow on the blocks that it owns during the to 100 tonnes over the next 3 years. 2019/20 season. Strategic Planning The last season produced 12 tonnes Holdco is in the process of undertaking of high-quality Manuka honey, with a Tourism a comprehensive review of its strategic current market value of $423,000. This Work is continuing on the development plan. This process is well advanced and honey is being stored with Ngati Porou of a Mount Hikurangi tourism experience Holdco expects to report on the revised Miere to allow for the UMF level to grow. called "Mt Hikurangi - Journey To The plan by early 2020. Holdco is also continuing to work with First Light", which commenced operations An important step identified by Holdco Ngati Porou Miere on opportunities over the summer. The experience offers has been to appoint a dedicated CEO. to increase returns through the honey manuhiri the opportunity to take guided This process is also underway and it is supply chain. visits to the whakairo. expected that this role will be advertised After a slow start, it is expected that in early 2020. visitor numbers will grow in 2019/20 and Blueberries boost wider tourism opportunities within Naku noa During the year, Holdco entered into a Ngati Porou. joint venture agreement with the Hauiti Matanuku Mahuika Incorporation to grow up to 4 hectares AMANTI TOURISM LTD Chair, Ngati Porou Holdings Company of blueberries on Hauiti lands just to the Amanti continued to make slow progress Ltd south of Tolaga Bay. The first hectare of throughout 2018/19 and the difficult berries was planted during the start of decision was made to exit this investment
30 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 31 TE RUNANGANUI O NGATI POROU RIPOATA A TAU 2019 Whairawa
32 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Te ngako o nga korero mo nga piuta Financial highlights and commentary
These summary financial statements are an extract of the full financial statements for the year ended 30 June 2019. These summary financial statements are prepared in accordance with FRS 43: Summary Financial Statements
Wayne Panapa Chief Financial Officer
Te Takapau a Maui
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 33 Financial Highlights and Commentary
Statement of Comprehensive Income & Expense
The Statement of Comprehensive Income and Expense or Profit and Loss details the Group’s revenue (what the Group earned), expenditure (what the Group spent) and profits for the year.
Statement of Comprehensive Income and Expense 2019 2018 Change Note NZ$’000 NZ$’000 NZ$’000
Revenue
Service delivery 14,234 14,952 -718 (Revenue from government and district health contracts)
Commercial trading revenue 6,900 5,904 996 1 (Revenue from fisheries, farming and miere)
Forestry income 1,789 5,229 -3,440 2 (Revenue from forestry, includes carbon credit revaluation)
Rental income 899 875 24 (Revenue from rentals, includes ex Crown Forest land)
Interest income 106 89 16 (Interest revenue from funds on term deposit or on call)
Dividend income 2,792 2,041 751 (Dividends from equities on share market and Aotearoa Fisheries)
Unrealised gains/(losses) on asset valuation 6,732 14,330 -7,598 3 (Differences between closing & opening values of assets incl. equities)
Share of income from Associate Entities 2,846 2,431 415 (Revenue from fisheries iwi collective partnership entities)
Other income 1,515 2,157 -642 (Revenue from other revenue, eg admin fees and recharges)
TOTAL REVENUE 37,813 48,008 -10,196
Expenses
Employee benefit expense 14,788 13,819 968 4 (Staff costs ie. wages, salaries, kiwisaver etc)
Cost of sales from commercial operations 3,702 7,017 -3,315 5 (Direct costs and purchases for fisheries, farming, miere and forestry)
Depreciation expense 921 799 122 (Non-cash charge related to the wear and tear of asset over time)
Finance cost 437 430 7 (Costs of borrowing including interest costs)
Rental expense 482 457 25 (Rental costs incl property and equipment lease costs)
Other expenses 11,025 13,333 -2,308 6 (All other costs not required to be separately disclosed on the face financials are aggregated, and this is disclosed in detail in the notes sectionof the financial statements)
TOTAL EXPENSES 31,355 35,855 -4,501
Net surplus/(deficit) for the period before taxation 6,458 12,153 -5,696
Taxation 1,128 34 1,094 7 (Current expense or benefit on profits or losses owed to the IRD)
Net surplus/(deficit) for the period after taxation 5,330 12,119 -6,790
34 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 NOTES ON THE STATEMENT OF COMPREHENSIVE INCOME & EXPENSE
The Profit and Loss shows that the Group’s profit (what the Group earned) for the 2019 year was $5.3 million. This compares to a Group profit in the 2018 year of $12 million. In summary, the change in profit from 2018 to 2019 is largely attributable to a drop in forestry income due to the completion of harvesting of the larger blocks in the previous year. In addition to this, a drop in earnings from equities (financial assets) was also experienced which was mainly attributable to various equity market shocks and the global downturn in the capital market.
The key changes in revenue and expenditures itemised, notated above from 2018 to 2019 is explained as follows:
1. Commercial trading revenue has increased Commercial trading revenue increased by $996,000 due to increased producitivity and improved margins for Pakihiroa Farms Limited.
2. Forestry income has decreased Commercial forestry income decreased by $3.4 million due to the completion of harvesting at Hoia forest estate in 2018. There was no harvesting income and carbon sales in the current financial year. All income relates to revaluation of the forest in current financial year.
3. Unrealised gains on asset valuations has increased The financial year to 30 June 2019 was a challenging period for all investors and we were no exception. Revenues from unrealised gains decreased by $7.6 million due to the downturn in return from financial investments in equity markets. The Global Equity Market and the Australian Market is slowly starting to climb again.
4. Employee benefit expenses have increased Staff costs for the Group has increased by $968,000 compared to 2018 due to additional staffing in line with strategic direction for HoldCo Group and an increase in staffing costs following the finalisation of the collective agreements for NP Hauora.
5. Cost of sales from commercial operations has decreased Cost of sales has decreased by $3.3 million in 2019 largely due no harvesting costs compared to 2018.
6. Other costs have decreased Other costs have decreased by $2.3 million mainly due to no impairment of properties in the current year (2018: $1.8 million) and a reduction in investment management fees by $200,000.
7. Taxation costs have increased The taxation cost increase is a reflection of the significant uplift in valuation of the forestry blocks.
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 35 Financial Highlights and Commentary
Analysis of commercial and tribal/cultural/health activities
The Profit and Loss for the Group has been additionally re-summarised below for the user to understand the separation between the organisations’ commercial and tribal / cultural / health activities, for the 2019 and 2018 financial years. This profit and loss below details that the profit from commercial activities for the year was $9.7 million (in 2018 this was $16.1 million) and the deficit from tribal / cultural / health activities was -$3.2 million (in 2018 this was -$3.9 million). You will note the Group profit $5.3 million in 2019, ties back to the prior profit and loss. Further detail in relation to items with large changes year on year is itemised on the following page.
Statement of Comprehensive Income and Expense 2019 2018 Change Note Analysed by commercial and tribal / cultural / health NZ$’000 NZ$’000 NZ$’000
Commercial revenue 9,443 11,683 -2,240
Dividend and interest income 2,892 2,146 746
Share income from Associate Entities 2,846 2,431 415
Operating expenses -11,971 -14,321 2,350
Borrowing costs -192 -148 -44
Commercial Net surplus from commercial operations (before revaluations) 3,018 1,791 1,227
Unrealised gains from financial instruments 6,732 14,330 -7,598
Unrealised gains from other assets - - - Net surplus from commercial operations 9,750 16,121 -6,371 1
Income relating to the Runanganui (Parent), Hauora, Toitu and distributions 15,899 17,418 -1,519
Operating expenses relating to the Parent, Hauora, Toitu and distributions -17,931 -20,379 2,448
Borrowing costs relating to the Parent and Hauora -246 -282 36 health Tribal distributions -1,015 -725 -290 2 Tribal, cultural, Trading (deficit) from Runanganui, Hauora, Toitu and distributions -3,293 -3,968 675 3
Surplus for year before taxation 6,457 12,153 -5,696
Less: Taxation 1,128 34 1,094 Surplus after taxation 5,329 12,119 -6,790 4
Intercompany transactions such as dividends are not shown in the above table.
36 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 NOTES ON THE ANALYSIS OF COMMERCIAL AND TRIBAL/CULTURAL/HEALTH ACTIVITIES
The key changes in revenue and expenditures itemised, noted from 2019 to 2018, is explained as follows:
1. Net surplus from commercial operations decreased by $6.3 million. As outlined in the previous table, the net surplus from operating activities decreased to $9.7 million in 2019. All commercial entities within the Ngati Porou Holding Company Ltd contributed to this result.
2. Tribal distributions increased $290,000. As outlined in group distributions pie graph (refer to page 11) equates to $1.0 million in 2019 compared to $725,000 in 2018. The tribal distributions relate to Ngati Porou kaupapa and include support to marae, pa wars, dawn ceremony, East Coast Ngati Porou Rugby, Koha, Education, Matatini, Reo Strategy and other grants funded by Toitu.
3. Trading (deficit) from Runanganui, Hauora, Toitu and distributions decreased by $675,000. As outlined in the above table, the trading (deficit) from Runanganui, Hauora, Toitu and distributions in 2019 was -$3.2 million compared to -$3.9 million in 2018. The decrease is due to net operating performance in the Parent and Hauora -$965,000 offset by an increase in tribal distributions -$290,000.
4. Surplus after taxation Surplus after taxation was $5.3 million in 2019 compared to $12.1 million in 2018 as a result of net surplus from commercial operations of $9.7 million minus trading deficit from Runanganui, Hauora, and Toitu of -$3.2 million.
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 37 Financial Highlights and Commentary
Statement of Financial Position
The Statement of Financial Position or Balance Sheet details the Group’s assets (what the Group owns), liabilities (what the Group owes) and equity (the owners share of the Group) at the end of the financial year. The re-created Balance Sheet details the position at the end of 2019, a comparison to the position at the end of 2018, and the change (where there has been a material change year on year, this is noted and expanded on further. The re-created Balance Sheet includes a description (in everyday language) of what each item relates to.
Statement of Financial Position 2019 2018 Change Note NZ$’000 NZ$’000 NZ$’000 ASSETS Current assets
Cash and cash equivalents 7,495 12,190 -4,695 1 (Cash in everyday and term deposit accounts) Trade and other receivables 5,360 4,158 1,202 (Monies owed to the Group from customers) Inventories 1,322 884 438 (Stock of fish and miere [honey]) Work in Progress 190 560 -370 (Capital projects in progress [2016 incl. part of the Te Tini build and website]) Taxation receivable 160 643 -483 (Monies owed from the IRD) TOTAL CURRENT ASSETS 14,527 18,435 -3,908 Non-current assets Investments 151,342 144,343 6,999 2 (Funds with fund managers, share market and equity investments) Carbon credits 0 37 -37 (Carbon units owned by the Group predominately from pre 1990 forests) Biological assets 10,636 8,335 2,301 3 (Forest (trees) and livestock) Quota shares 24,311 19,011 5,300 4 (Fishing quota, predominately allocated from TOKM issues) AFL revenue shares 16,886 16,886 0 (Investment in Aotearoa Fisheries Limited) Property, plant and equipment 35,825 35,863 -38 (Land, buildings, plant and equipment, including intangible assets, owned by the Group) Deferred taxation 0 0 0 (Taxation timing differences, to be utilised as a tax credit in the future) TOTAL NON-CURRENT ASSETS 239,000 224,475 14,525 TOTAL ASSETS 253,527 242,910 10,617
LIABILITIES Current liabilities
Bank accounts 1,640 2,648 -1,008 1 (Bank overdrafts) Trade and other payables 4,352 3,376 976 (Monies owed from the Group to suppliers and contractors) Borrowings 6,029 1,771 4,258 1 (Monies owed to borrowers and due within 12 months) Employee entitlements 1,405 1,352 53 (Monies owed to employees, predominately leave) TOTAL CURRENT LIABILITIES 13,426 9,148 4,278
38 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Statement of Financial Position 2019 2018 Change Note NZ$’000 NZ$’000 NZ$’000 Non-current liabilities
Borrowings 9,631 9,478 153 1 (Monies owed to borrowers and due after 12 months) Deferred Maintenance 400 400 0 (Monies owed from the Group for maintenance due after 12 months) Deferred taxation 1310 454 856 5 (Taxation timing differences, to be expensed as tax in the future) TOTAL NON-CURRENT LIABILITIES 11,340 10,331 1,009 TOTAL LIABILITIES 24,767 19,479 5,288 Net assets 228,760 223,431 5,329 (Owner’s share of the Group) Equity
Reserves 2,703 2,703 0 Retained earnings 226,057 220,728 5,329 TOTAL EQUITY 228,760 223,431 5,329 (Owner's share of the Group)
The balance sheet illustrates that: • total assets has increased to $253 million in 2019 from $243 million in 2018, • total liabilities has increased to $24.7 million in 2019 from $19.4 million in 2018, and • total equity has increased to $228 million in 2019 from $223 million in 2018 In summary, the Group’s equity has increased due to the performance of the Profit and Loss, supported by total assets increasing by $10.6 million and total liabilities increasing by $5.3 million. The Group’s equity / total asset is strong at 90% (this compares to 92% in 2018). The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. There is no ideal equity/asset ratio value but it is valuable in comparing to similar organisations (and in our case, other Iwi organisations). The key changes in balance sheet items, noted above from 2018 to 2019, is explained as follows:
NOTES ON THE STATEMENT OF FINANCIAL POSITION 1. Cash and borrowings 2. Investments As detailed in the financial statements, cash has decreased Refer to pages 24-29 being the Ngati Porou Holding to $5.8 million in 2019 from $9.5 million in 2018 and Company Ltd commentary regarding the performance of borrowings have increased to $15.6 million in 2019 from $11.2 million in 2018. This is detailed below: investment portfolio which has resulted in an increase in the investment asset by $6.9 million. Cash / bank accounts 2019 2018 NZ$’000 NZ$’000 3. Biological assets Current assets – bank accounts 7,495 12,190 The increase in biological assets of $2.3 million is a result of Current liabilities – bank accounts -1,640 -2,648 purchases of livestock and forestry revaluation. Total cash 5,855 9,542 4. Quota shares Borrowings 2019 2018 NZ$’000 NZ$’000 The increase in quota shares of $5.3 million is a result of purchasing crayfish quota. Borrowings – non current 6,029 1,771 Borrowings – current 9,631 9,478 5. Deferred taxation Total borrowings 15,660 11,249 The movement in deferred taxation of $800,000 is taking in to A good proportion of the change in cash and borrowings account the future tax liabilities from the revaluation of our is associated with servicing of borrowings, a new loan to forests. purchase quota of $5.3 million, and the reclassification borrowings between current and non-current.
Borrowings and overdrafts 2019 2018 NZ$’000 NZ$’000 Total borrowings (non current and current) 15,660 11,249 Plus: bank overdrafts 1,640 2,648 Total borrowings and overdrafts 17,299 13,897
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 39 Financial Highlights and Commentary
Statement of Cash Flows
The Statement of Cash Flows details the Group’s cash, cash receipts (what cash came in) and cash payments (what cash went out). The Statement of Cash Flows is separated into operating activities (cash ins and outs from trading and doing its day to day business), investing activities (cash ins and outs relating to capital expenditure i.e. buying / developing / selling assets and investments) and financing activities (cash ins and outs relating to borrowings).
Statement of Cash Flows 2019 2018 Change Note NZ$’000 NZ$’000 NZ$’000
CASH FLOWS FROM OPERATING ACTIVITIES (Includes cash from trading revenue (customers and agencies) and cash paid to suppliers and employees) Receipts from customers, agencies & associates 27,043 34,496 -7,453 Dividends & interest received 2,899 2,135 764 Payments to suppliers (including interest and taxes) -14,607 -19,485 4,878 Payments to employees, directors & trustees -15,476 -14,482 -994 Cash flows from operating activities -141 2,664 -2,805 1
CASH FLOWS FROM INVESTING ACTIVITIES (Includes cash from the sale of and purchase of property, plant & equipment and cash from cashing up and investing in new shares) Sale of property, plant & equipment 359 95 264 Carbon Credits 37 3,310 -3273 Purchase of CRA3 crayfish quota -5,300 0 -5300 Purchase of property, plant & equipment & intangibles -1,243 -2,032 789 Sale of listed investments 23,148 17,504 5644 Purchase of listed investments -22,492 -14,169 -8323 Purchase of share in associates -1841 -326 -1515 Project expenditure -190 -166 -24 Purchase of biological assets -435 -761 326 Cash flows from investing activities -7,957 3,455 -11,412 2
CASH FLOWS FROM FINANCING ACTIVITIES (Include loan draw downs and repayments) Loans & advances 5,804 800 5,004 Loan repayments -1,393 -5,148 3,755 Cash flows from financing activities 4,411 -4,348 8,759 3
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS -3,687 1,771 Cash and cash equivalents at beginning of the year 9,542 8,509 Cash and cash equivalents at end of the year 5,855 9,542
NOTES ON THE STATEMENT OF CASH FLOWS The key changes in cash flows items, noted above from 2017 to 2018, are explained as follows:
1. Cash flows from operating activities. The Group had negative operating cashflows of ($141 thousand) as a result of its commercial activities.
2. Cash flows from investing activities The Group had negative investing cashflows of ($7.9 million) largely due to the performance of the financial investment portfolio and the purchase of crayfish quota.
3. Cash flows from financing activities The Group had positive financing cashflows of $4.4 million due to the proceeds from borrowings related to the purchase of crayfish quota and repayment/reclassification of loans.
40 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 Glossary
2019 as at 30 June 2019 or for the 12 months ending 30 June 2019.
2018 as at 30 June 2018 or for the 12 months ending 30 June 2018.
Annualised Return An average return showing what an investor would have received per annum
Associate A company in which another company owns a significant interest (usually between 20% to 50%)
EBIT Earnings before Interest and Tax.
Financial Instrument In general, this is cash or a contract to deliver or receive cash
Impairment A reduction in the value of the asset
SIPO Statement of Investment Policies and Objectives
TOKM Te Ohu Kaimoana
Unrealised Gain is a profit that exists on paper, resulting from an investment, it is a profitable position that is yet to be sold in return for cash
YTD Year to Date
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 41 Kaimahi TRONPnui staff for the year ending 30 June 2019
NAME POSITION Adam Tapsell Data Analyst Adrienne Ngata Puna Kainga - Kaiwhakahaere Alanah Rachell Reed Tuhono Whanau Family Start Albertha McFarlane PA to the Chair Amoe Tarsau Youth Service Coordinator Amy Kururangi Data Entry Administration Ana Te Hau-Otene Kaiawhina Anaru Poihipi Youth Service Kaiwhina Anna Needham Financial Accountant Anne Huriwai Kaiwhakahaere Oranga Whanau Bonnie Parata Practice Manager Brandon Smith General hand Brett Johnston NP Holding Company Project Manager Colin Taare Attendance Kaiawhina Deane Atuatika Financial Analyst Deborah Tai Tuhono Whanau Supervisor Diana Ming Kaiawhina Dominique Snowdon NEETS Coordinator Wilson Elizabeth Cairns House Supervisor/Whanau Support Esther Velloza Kaiawhin_Te Pae Oranga Fiona Morice Kaiwahina Fleur Paenga Contracts Manager Gaynor Nisbett Kaiawhina George Brown Pou Hakinakina Haupai Ngata Kaiawhina Hayley Waitoa Kaiawhina Heather Ratahi Kaiawhina Helaina Makiri Data Entry Administration Herewini Te Koha Chief Executive Officer Hine Manuel Housing Coordinator Hugh Stuart Group IT Manager Hurae Eparaima Kaiawhina Isabelle Hariata Elections Administrator Solomon Jacqui Ata Board Secretary James Green Kaiawhina James McIntosh Gardener Jan Arihia Turei Social Worker In Schools Joan Ella Ngata Data Analyst John Hockey Business Development Manager Joseph Akuhata-Brown Counsellor Josephine Wimutu Administrator
42 || Te Runanganui o Ngati Porou Ripoata a Tau 2019 NAME POSITION NAME POSITION Julliet Lardelli Kaiawhina Key Contact Terina Lyttle Receptionist Karen Hollis Attendance Kaiawhina Thomas Irwin Restorative Justice Co-ordinator Katherina Valerie Kaiarahi (Collective Impact) Trisha Hina SWIS Kaiti Tuhaka Valencia Little Te Whae Atawhai Katherine Tuhaka Personal Assistant to CFO, Vania Ria Accounts Payable/Payroll Officer Kelly Pohio Kaiawhina Wayne Panapa CFO & GM Corporate Services Kelly-Anne Waitoa Family Start Kaiawhina Krystal Jade Garrett Kaiawhina Lady Ngawahine Te Service Manager Whanau Oranga Awhiraina Smith Laurie Sadlier Youth Justice Family group Conference Kaiawhina Leanna Pardoe BBO Resource - Kaihoe Leeanne Morice Facilitator for Whangaia Nga Pa Harakeke Leone Roberts Kaiawhina Community Injury Prevention Mabel Dewes Home Insulation Project Coordinator Maraea Henare Supervisor Marama Apelu Data Entry Administration Matekino Tuhura Kaitakawaenga Moera Brown Restorative Justice – Whanau Oranga Monty Antony Manuel CIPP Kaitakawaenga Naleya Ahu Facilitator (Youth) Nina Tarei BBO Resource Assistant - Kaihoe Pakanga Kururangi Personal Assistant Peggy Maurirere- Senior Kairahi Walker Petrina Baker Kaimanaaki Phillipa Tako Cleaner Rakai Papuni-Hohepa Receptionist Rapaea Parata Reo Nati Kaiawhina Rea Proffit Administration Assistant Reihana Tipoki Whanau Advocate Renee Swann Assistant Accountant Rimini Colleen Moana Sf Coordinator Rina Elers Service Manager Riria Fox Supervisor - Whanau Oranga Roberta Reedy BBO Resource Assistant - Kaihoe Ruby Anaheta White Kaiarahi Collective Impact Rubyna Smith HR Advisor Sammy Jo Piula Unasa- Social Worker in Schools - Kaiti Wilson Sharlene Conning Kaiawhina - Whanau Oranga Sharyne Tuari Restorative Justice Kaiawhina Simon Wharehinga Youth Justice Coordinator Stanley Hovell Conservation Advisor to TRONPnui Taryne Papuni Project Manager Terendak Keelan Kaiawhina
Te Runanganui o Ngati Porou Ripoata a Tau 2019 || 43 Te Runanganui o Ngati Porou PO Box 394, Gisborne Tel: 06 867 9960 Call Free: 0800 676 768 (0800 NPOROU) Email: [email protected]
www.ngatiporou.com
44 || Te Runanganui o Ngati Porou Ripoata a Tau 2019