Flavell Te Ururoa: Trustee Amendment Bill — First Reading 
Flavell Te Ururoa: Trustee Amendment Bill — First Reading 
[Volume:642;Page:12358] 
TE URUROA FLAVELL (Maori Party—Waiariki) 
: 
 Tena koe Madam Speaker. Kia ora tatou katoa e hoa ma i tenei ra. We are here today to see what the problem is with an Act that has been around a little bit longer than I have. The Trustee Act 1956 creates legal entities for specific purposes that were relevant for the days gone by. The problem is that although Maori groups have managed to make these models work none of the legal entities included in the 1956 Act cater adequately for the multi-purpose objectives of tribal entities. Nor surprise surprise are any of these legal entities specifically based on Maori values and aspirations. 
Although I am sure that the Government will be quick to point out that the overarching governance needs of a tribe will be brilliantly catered by means of the “Waka Umanga (Maori Corporations) Bill” the issue is that the waka umanga bill no matter how brilliant is at best a voluntary approach. In effect then although these entities that are already managing tribal assets may eventually opt to become waka umanga in the meantime we need to be sure that the deficiencies of trust company and incorporated society structures for Maori can be sorted out before then. 
Thinking about this notion of trust—meaning we should have confidence and hope that things can work out for us—we acknowledge that there are some aspects of the Trustee Act that can be quite complementary to tikanga Maori. Trustees do not own the property they are trustees of—instead they are owned by the trust. Their role is to care for the assets and trusts for the beneficiaries. In some ways it is similar to the role of kaitiaki for the purposes of future generations. But of course for a trust to be successful the trustees must be sufficiently on to it to ensure that they understand the full extent of their legal obligations. It is not just about putting say uncle in the position of trustee because he is the key speaker on our paepae or is worthy of our collective respect because of the dedicated service he has given to our iwi. It is also not about putting one of the cuzzies who is an accountant around the table simply because we think our cuzzy should know what the “haps” is. 
The critical issue is that anyone assuming the role of a trustee must be prepared to learn about the powers and responsibilities that come with the position. They need to know about the powers they can exercise and the limitations on these powers if they are to avoid being in breach of their fiduciary duties—in other words their duty to act in accordance with the trust deed. That is all good stuff but unfortunately a few issues also need to be attended to. 
Although trust deeds can be designed to try to promote participation essentially the structure of trust deeds is not democratic. The trust structure more often than not creates a system whereby tribal members get treated like passive beneficiaries. I cannot speak for anyone else but I am pretty sure that if I were to go home and say to my people of Ngati Rangiwewehi or my people of Ngapuhi that they could not have a say—“just wait and ye shall receive”—I think I would be told to get out of town pretty smartly. Being part of a whanau hapu and iwi means that one gets involved in the business of iwi politics—for life. It is about leaders being directly accountable to the people. Although a private trust as set up under the Trustee Act 1956 can be easy and relatively cheap to establish its basic structure does not reflect the accountability and transparency requirements of a collective entity. To cut it short it does not fit with being Maori. 
Another one of the issues is that the trusts are not corporate bodies in their own right unless incorporated under the Charitable Trusts Act 1957. This means that where there are several responsible trustees as is usually the case with tribal trusts all significant legal documents have to be signed by all trustees whose own names are shown on share registers and titles to land even though they hold the property as fiduciaries. I need to say right from the start that that would take for ever and a day believe me! It is a process that is extremely cumbersome and does not suit who we are. 
The other related issue of course is that additional legal expense is caused every time a trustee has to be replaced or is unavailable. To enforce the terms of the trust beneficiaries must apply to the High Court to review the decisions of the trustees. Well just to state the obvious: the cash-flow problem cannot be ignored. We have to remember that the median income of the New Zealand population is $24400 but that Maori sit some $3500 below that—on $20900. So there is not a lot of extra cash left over to go to court in respect of the technicality of trusteeship. 
An earlier Law Commission report entitled  
Treaty of Waitangi Claims: Addressing the Post-Settlement Phase 
 an advisory report to Te Puni Kokiri 
in 2002 found that entities such as companies trusts and incorporated societies often have limited accountability and transparency requirements and there was usually no internal disputes resolution mechanism. Most disputes need to be determined by the High Court which can involve groups in long and expensive litigation and often fails to deal adequately with the underlying issues. That is not going to work for us either unfortunately. The beauty of hui is that we are put in a position where we have to sit across the table from relatives and sort out our stuff. We do not need lawyers. They are usually expensive and I am not sure about their ability to bring about a resolution anyway. 
What we need is the time to hear the stories of the journey that has ended in our having to meet to sort out our issues. It is not about winning or losing; it is about ensuring that at the end of the day whether or not we have resolved our issues the unseen bonds that tie us—that is our whakapapa relationships—are sufficiently intact to ensure that in times of crisis we can still awhi each other we can still hug each other. It all comes back again to this crucial belief in someone or something. “Trust” is defined as “hope or expectation” and we trust that Labour will pick up on the need to work with Maori in amending the Trustee Act 1956.