Rainey Collins Lawyers

Te Ohu Kaimoana/Fisheries Commission Allocation Model

By Alan Knowsley, Wednesday, 25 June, 2003, Treaty

Te Ohu Kaimoana has issued its report on how it intends to allocate the assets that have derived from the fisheries settlement and has subsequently reported to the Minister of Fisheries. The key issues contained in the report concerning allocation are as follows:

1. All inshore quota will be allocated to Iwi using a coastline formula only. All deep water quota will be allocated to Iwi using a 75% Iwi population: 25% Iwi coastline formula (except for the Chathams).
2. Cash of approximately $66million will be allocated as follows:

   (a) Te Putea Whakatupu Trust will contain approximately $39million to distribute amongst Iwi as grants subject to the approval of trustees.

   (b) The remaining cash of approximately $27million will be allocated directly to Iwi on the basis of Iwi population.

3. The Chatham Islands enjoys a unique status and on that basis they will enjoy a separate Chatham Island zone in which inshore quota will be allocated to the Chathams Iwi and deep water quota will be allocated 50% of the Chathams Iwi and 50% on the population basis to all remaining Iwi.
4. A Trust called Te Wai Maori Trust will be established for the development of fresh water fisheries.
5. The Shares held in all of the fisheries companies ie, Sealord, Moana Pacific, Prepared Foods, etc will be held by a new company called Aotearoa Fisheries Limited (AFL). The following are key factors concerning the establishment and management of AFL:
   • Te Ohu Kaimoana commissioners will appoint the directors of AFL.
   • AFL will issue income shares, 80% of which will go to Iwi using a population formula. The remaining 20% of which will be held by Te Ohu Kaimoana.
   • Te Ohu Kaimoana will hold all voting shares in AFL.
   • AFL will only be able to pay distributions to income shareholders and will be required to ensure 40% of its net profit after tax is paid as a dividend with the remainder being invested back into growing the business.
   • Iwi will be able to sell quota and the income shares to other Iwi and Te Ohu Kaimoana but not outside those parties.
6. A review of the structures, performance and governance of the post allocation bodies including Te Ohu Kaimoana, AFL, Te Kai Wai Taumata, Te Puti a Whakatupu Trust and Te Wai Maori Trust will be held 12 years after allocation commences.
7. A new Maori Fisheries Act will need to be passed to implement these changes.

NOTE:

Te Ohu Kaimoana has reported to the Minister of Fisheries. The Minister has announced that he accepts the report and will introduce legislation this year. Submissions on the Bill can be made at the select committee stage.

Call us Toll Free on 0800 733 424