Selling Māori Land - Are post-settlement governance entities part of the preferred class of alienees?

When selling Māori Land, the preferred class of alienees will have right of first refusal ahead of anyone outside of that class. This restriction is designed to protect the interests of those who whakapapa to the land, by ensuring that whānau of the owner and members of the hapū associated with the land have the first opportunity to purchase the land.

What is the preferred class of alienees?

“Preferred class of alienees” is defined under section 4 of the Te Ture Whenua Māori Act.

Preferred classes of alienees, in relation to any alienation (other than an alienation of shares in a Māori incorporation), comprise the following:

1. Children and remoter issue of the alienating owner;
2. Whanaunga of the alienating owner who are associated in accordance with tikanga Māori with the land;
3. Other beneficial owners of the land who are members of the hapu associated with the land:
4. Trustees of persons referred to in any of paragraphs (1) to (3); 
5. Descendants of any former owner who is or was a member of the hapu associated with the land.

What is a post-settlement governance entity?

Post-settlement governance entities or PSGEs are bodies that are established to receive, manage and be responsible for the collective assets resulting from settlements with the Crown under te Tiriti o Waitangi.

Generally, PSGEs represent a large iwi group, which will include multiple different hapū who whakapapa to the same iwi.

Does a PSGE fall within the preferred class?

In a majority decision, the Māori Appellate Court has previously found that a PSGE was not part of the preferred class.

Usually, PSGEs act for the benefit of multiple hapū, which means that even if one hapū associated to a block of land, there would be many other hapū represented by the PSGE who did not whakapapa to the land.

In this case, the PSGE could not be considered part of the preferred class as they were not a trustee of “whanaunga of the alienating owner who are associated in accordance with tikanga Māori with the land” per section 4 of the Act, but were a trustee of a much broader iwi group.

Ultimately, the Court found that the PSGE could not purchase as of first right and that the PSGE had the same right as non-Māori purchasers who do not whakapapa to the land.