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Legislative Reform

Māori Trust Boards Act 1955

Māori Trust Board voting age amendment

Purpose

To specify a minimum voting age for Māori Trust Board elections under the Māori Trust Boards Act 1955 and Māori Trust Boards Regulations 1985.

Background

There are currently 15 Māori Trust Boards, which are governed by the Māori Trusts Boards Act 1955 (MTBA).Five Māori Trust Boards have also been recognised as mandated iwi organisations (MIOs) under the Māori Fisheries Act 2004 (MFA) in order to receive fisheries settlement assets.These Māori Trust Boards are subject to both the Māori Trust Boards Act 1955 and the Māori Fisheries Act 2004.

Issue

Elections for Māori Trust Board members are held every three years.Adult Trust Board beneficiaries are entitled to vote in these elections.The term ‘adult’ is not defined under the MTBA.As a result, section 4 of the Age of Majority Act 1970 applies, making an ‘adult beneficiary’ under the MTBA a beneficiary aged 20 years or over.

Elections for MIO trustees are held every three years in which adult beneficiaries are also eligible to vote.The term ‘adult’ is defined in the MFA as a person aged 18 years or over.

In practice when Trust Boards, that are also MIOs, hold their triennial elections beneficiaries vote for both the members of their Trust Board and the trustees of their MIO.As such, the difference in minimum voting ages under the MTBA (20 years) and the MFA (18 years) has caused statutory compliance issues for Māori Trust Boards that are also MIOs.

During elections Trust Boards need to either allow beneficiaries aged 18 years or over to vote (in breach of the MTBA) or only allow beneficiaries aged 20 years or over to vote (in breach of the MFA).Alternatively, these Māori Trust Boards could hold separate triennial elections; however, this would involve the maintenance of two separate voting groups and rolls and increased costs and administration.

Some Trust Boards have advised that owing to the confusion that has arisen from the different minimum voting ages, 18 and 19 year old beneficiaries from some Trust Boards have voted in previous Trust Board elections.

Amendments

It is proposed that the MTBA be amended to specify that an adult beneficiary is ‘a person aged 18 years or over’.This amendment will align the minimum voting ages under the MTBA and MFA and provide certainty for Māori Trust Boards.This amendment will also align the voting age of Māori Trust Boards with society’s common understanding of ‘adult’, the standard voting age for general and other elections, and the minimum voting age adopted by other iwi organisations. Additionally, this amendment will enable Trust Board beneficiaries aged 18 and 19 years to participate in the election of their MIO trustees, as originally intended.

The Bill also includes an amendment providing that the election of members to Māori Trust Boards, prior to the commencement of this amendment, will still be valid even where a person aged 18 or 19 may have voted in that election.

Questions on the proposed amendments

How has this amendment come about?

Legal representatives of several Māori Trust Boards contacted Te Puni Kōkiri officials to alert them to this statutory compliance issue.The Minister of Māori Affairs subsequently sought Cabinet approval to specify a minimum voting age in the MTBA.Cabinet agreed to the change.

How many Māori Trust Boards have been affected by this statutory compliance issue?

At least five Trust Boards have been directly affected by this statutory compliance issue.Four Trust Boards, which are also MIOs, have established a minimum voting age of 18 for Trust Board elections.Additionally, one Trust Board, which is not a MIO, has established a minimum voting age of 18 years for the election of Trust Board members.

Why was this issue not corrected when the MFA was enacted?

The interaction between the provisions of the MTBA and the MFA was overlooked at the time the latter Act was drafted because it was not anticipated that Māori Trust Boards could be recognised as MIOs under the MFA. However, it has evolved that Trust Boards can be recognised as MIOs under the MFA, if they establish sub-trusts to be their MIOs.

Have Māori Trust Boards been consulted on these amendments?

All 15 Māori Trust Boards were consulted on the proposal.Nine responded in support of the amendment, with six providing no response.The Ministry of Fisheries and Te Ohu Kai Moana have also been consulted, and support the proposed amendment.

Why is retrospective validation needed?

Retrospective validation is needed to remedy the adverse consequences that may have occurred as a result of this statutory inconsistency.In particular, it will remove doubts about the validity of Trust Board elections and provide certainty for Trust Boards and beneficiaries. Retrospective validation will also ensure that the election of members to Māori Trust Boards, prior to the commencement of this amendment, will still be valid even where a person aged 18 or 19 may have voted in that election.

Can the MTBA’s existing provisions for correcting voting irregularities be used instead of retrospective validation?

While the MTBA does provide for the Governor-General to correct voting irregularities, it is considered that retrospective validation provides a comprehensive means of resolving this issue.

What are the compliance costs associated with these amendments?

The costs of providing for beneficiaries aged 18 and 19 years to vote in Trust Board elections is expected to be relatively minimal, with a small increase in postage and other administration costs.These costs are likely to be mitigated by the reduction in administration costs associated with having to maintain two iwi registers and dual voting processes.These costs seem to be justified as this amendment will enable Trust Boards to comply with the MTBA and the MFA and guarantee the participation of beneficiaries aged 18 and 19 years in the election of their MIO’s trustees.

When will this amendment take effect?

The new minimum voting age will apply to a Trust Board’s first election after the commencement of this amendment (expected to be June 2008).

What will Te Puni Kōkiri do to assist Trust Boards to comply with this amendment?

Māori Trust Boards will continue to be updated on the progress of this amendment.Further advice will also be provided to Trust Boards on how they can update their election processes to comply with the new requirements.

 

Tūwharetoa Māori Trust Board amendment Purpose

To update the Māori Trust Boards Act 1955 (MTBA) to reflect changes to the annual payment made by the Crown to the Tūwharetoa Māori Trust Board under a new agreement relating to Lake Taupo.

Background

In 1926, the bed of Lake Taupo was vested in the Crown by statute.In return the Tūwharetoa Māori Trust Board received an annual payment and a half share of revenue generated from Lake Taupo by the Crown through fishery, boating and harbour services.In 1992 the Crown vested the bed of Lake Taupo back to the Tūwharetoa Māori Trust Board, with all the rights, responsibilities and restrictions of a landowner (subject to the restrictions of the deed).

Issue

In September 2007, the Crown and the Trust Board signed a new deed which revoked and replaced the arrangement under the 1992 deed.Under the new deed, the revenue sharing agreement is replaced with a one-off lump sum payment of $9.865 million and a new annual payment of $1.5 million.The new deed also fixes rights and rents for existing Crown structures and enables the Board to licence and derive fees from commercial users.The Trust Board will not be able to receive the new annual payment until the MTBA is amended to reflect the change.

Amendments

These amendments will involve repealing section 10(3) of the MTBA, as it has been superseded by the new deed.Additionally, section 10(2) of the MTBA will need to be amended to reflect the change to the annual payment being made to the Trust Board.

Questions on the proposed amendments

How has this amendment come about?

This amendment is part of the compensation package negotiated by the Crown and the Tūwharetoa Māori Trust Board in settlement of issues regarding the extent of the Trust Board’s property rights in Lake Taupō.

What is the nature of the payments to be made by the Crown?

The lump sum and annual payment are being made in settlement of past and current annuity payments and other financial issues, including payment for public access to Lake Taupō.The proposed settlement involves a lump sum payment of $9.865 million (to cover a buy out of projected future revenues and rental increase and annuity) and a fixed sum of $1.5 million per annum to cover existing boating and fishing fees, imputed rent and depreciation on boating facilities, and imputed rent on privately owned structures.

How does this agreement affect the Crown’s rights in Lake Taupō?

The deed provides that Lake Taupō shall be managed as a reserve for recreational purposes in partnership between the Crown and the Board.Under the new agreement the Crown retains the rights to control and manage the Lake Taupō fishery and boating and harbour services on Lake Taupō.The Crown also retains the right to set user fees without prior agreement with the Board.

Additionally, the deed fixes rights for current and future Crown structures and facilities on Lake Taupō.The Crown must, however, gain agreement from the Trust Board if it wishes to increase the area occupied by its existing structures.

How is the annual payment made to the Board arrived at?

Prior to the new deed, the Trust Board considered that the revenue it derived from ownership of the bed of Lake Taupō was inadequate and sought to increase the share it received from the Crown, this issue was the subject of negotiations.

In total the Crown raises approximately $1.9 million per annum from fees, licences and fines to recover the costs of administering the fishery and providing boat facilities on Lake Taupō.This annual revenue was used to index the new annual payment of $1.5 million to the Board.

The deed provides that the annual payment of $1.5 million can be reduced where the Crown revenue from these activities falls short of the $1.5 million.Where revenue falls short of $1.5 million the amount payable to the Board is reduced by half the total shortfall.

How was the lump sum payment $9.865 million arrived at?

The lump sum payment was principally calculated based on the costs to buy out projected future revenue from Lake Taupō, projected future rental increases on existing structures and the cost to buy out the annuity.

How will the new agreement affect public use of Lake Taupō?

The deed provides for continued free public access to Lake Taupō for non-exclusive, non-commercial recreational use and enjoyment.

How will commercial operators be affected?

While the Crown retains the right to set user fees for fishery, boating and harbour services, the deed provides the Board, as the owner of the bed of Lake Taupō, with the right to licence and charge other commercial users (where this is not governed by another enactment or provision of the deed).This includes charging those wanting to erect new jetties or structures.

Last modified: 6/12/2007