Sharples Pita: Maori Trustee Amendment Bill — Second Reading 
Sharples Pita: Maori Trustee Amendment Bill — Second Reading 
[Volume:653;Page:2317] 
Hon Dr PITA SHARPLES (Minister of Maori Affairs) 
: 
 I move  
That the Maori Trustee Amendment Bill be now read a second time 
. In doing so I would like to acknowledge the previous Minister of Maori Affairs for the work on which this bill is based. Tena koe Parekura. Nau i para te huarahi i tenei pire. This bill is extremely significant not in the least because of the scale of what is involved. As of March 2007 the Maori Trustee acted as a trustee or agent for over 188000 owners and more than 2094 properties covering 11658 acres. 
The concept of a Maori Trustee is one that has an interesting history. The need for a Maori Trustee arose because of the intergenerational effects of successive colonial and post-colonial land policies. There is no dispute over the fact that Maori customary rights over land are complex. Different kinship groupings and sub-groupings can have rights to use land or resources in different ways or at different times in the same area. By contrast the English-based legal system that came to apply in New Zealand put in place exclusive and individualised title to land. I guess it is the difference between the right to occupation and the right of ownership. In this process tangata whenua—literally the people of the land—were permanently separated from their land. The whenua was extracted from the tangata. In other cases children succeeded to their parents’ individual interests in Maori land. Inevitably much Maori land became scattered small blocks each with many owners. In many instances today the Maori Trustee looks after land because the owners cannot be found or cannot manage the land themselves. It is important therefore that the Maori Trustee is an effective organisation able to carry out its many functions. The bill introduces significant changes relating to the Maori Trustee. In particular it establishes the Maori Trustee as a stand-alone organisation and changes the way in which income is paid to the beneficiaries. 
When the original Maori Trustee and Maori Development Amendment Bill had its first reading last year the Maori Party did not support it. We did not support it because we were concerned about the proposal that was then included in the bill to transfer $35 million of the Maori Trustee’s general purpose fund to a new body promoting Maori economic development. It was also questionable whether the Maori Trustee would in fact be able to be independent. 
During the last term of Parliament I had the privilege of being the deputy chair of the Maori Affairs Committee which considered the bill. The Maori Affairs Committee looked at the very issues that concerned us. So last year after careful and at times agonising scrutiny the Maori Affairs Committee divided the original bill into two. The bill now before us the Maori Trustee Amendment Bill sets up the Maori Trustee as a stand-alone organisation. This bill received the unanimous support of the Maori Affairs Committee. The provisions relating to the establishment of a new statutory corporation to promote Maori economic development and to transfer money from the general purpose fund are in the second bill the Maori Trustee and Maori Development Amendment Bill. 
I will be giving careful consideration to the best ways of encouraging Maori economic development and to what if any legislation will be required in this area. I thank the 15 submitters who provided submissions to the original bill and the approximately 2000 Maori who came along to earlier consultation hui in 2007 to discuss the proposals to establish the Maori Trustee as a stand-alone organisation. 
The bill returns to the House with a small number of minor amendments that clarify aspects of the bill and I shall refer to these later. I also intend moving some minor technical amendments to the bill in the Committee stage. These will mainly tidy up the effects of dividing the original bill and will change a date in the bill to reflect the passage of time. 
One of the key changes progressed by this bill is in establishing the Maori Trustee as a stand-alone organisation. Submissions to the select committee and earlier consultation with Maori stakeholders indicated widespread support for having a stand-alone Maori Trustee provided that the trustee was funded at a sustainable level. I am committed to ensuring that the new stand-alone Maori Trustee is able to operate as an effective organisation and is able to fulfil the trustee’s responsibilities to Maori. That is very important to me. 
Last year decisions were made to significantly increase the operational funding of the Maori Trustee. Ongoing operational funding has been effectively doubled. Additional transitional and capital funding will also be provided to the Maori Trustee. Decisions were also made to write off the Maori Trustee’s accumulated debt to the Crown once this bill is passed. This debt was $61343 million at the end of June 2008. These significant funding decisions will ensure the sustainability of the Maori Trustee as a stand-alone entity and will enable the Maori Trustee to provide enhanced services to Maori. I am confident that these initiatives place the Maori Trustee in a sound financial position for the future. 
As a stand-alone entity the Maori Trustee will be listed in schedule 4 of the Public Finance Act 1989. The Maori Trustee will be required to produce an annual report and statement of service performance. This provides a balance between the Maori Trustee’s need for independence and the need for reporting arrangements that provide accountability for public funding. 
At present the Maori Trustee is an office conferred on a public servant employed in a Government department. In future the Maori Trustee will be a person appointed specifically to that position. The appointment will be made by the Minister of Maori Affairs and will be based on merit. I have previously had concerns about the process of appointing. However Ministers are accountable to the public and to Maori through well-established administrative political and legal processes. Many significant appointments such as the appointment of judges are made by Ministers or on the recommendation of Ministers. I will ensure that the processes supporting appointment include appropriate consultation. I want to make that commitment very clear here today. I intend to give priority to the consultation process to ensure that the beneficial owners of Maori land have due notice to advise me on what will best meet their needs from the office and role of the Maori Trustee. The Maori Trustee Amendment Bill also gives the Maori Trustee the power to appoint a Deputy Maori Trustee. This will help the new stand-alone organisation to operate efficiently. 
The bill makes another reform that is very important to Maori. The Maori Trustee Act 1953 currently requires the Maori Trustee to pay interest rates set by regulation. At present these are set at 3 4 and 5 percent depending on the amount of money. The bill provides that the account holders will be paid the amount the Maori Trustee gets from the investment of money that is held in trust in the common fund less a management fee where applicable. The Maori Trustee will also be required to report to the account holders on these payments. Some amendments were made at the select committee to better clarify the intention of these provisions. The term “distributable income” replaces the term “interest” as this better describes the money to be paid to the account holders. The way in which the common fund money is routed through the Maori Trustee’s accounts will be simplified. The bill currently states that these particular changes must take place by 1 July 2009. Due to the passage of time I will be proposing an amendment to allow the Maori Trustee 6 months to adjust the necessary systems. 
The bill was also amended through the select committee process to repeal sections 19 and 21 of the principal Act. These sections provide that the Maori Trustee account can be operated on only by cheques or other instruments signed by the authorised officers. New powers of delegation in clause 7 and the proposed application of section 158 of the Crown Entities Act 2004 make these sections unnecessary. Section 41 of the Maori Trustee Act gives the Minister of Finance the power to require the Maori Trustee to pay back funds advanced for salaries and other expenses of the Maori Trust Office. Once the Maori Trustee’s historical debt to the Crown has been written off this power will no longer be necessary. The bill has therefore been amended to repeal section 41 of the Maori Trustee Act 1953. A new section 29A further provides for continuity in tax-related matters. 
As a stand-alone entity the Maori Trustee will be well positioned to provide quality services to Maori. All employees of the Maori Trust Office will be transferred to a stand-alone entity on terms and conditions no less favourable than their existing terms and conditions. This will provide for continuity for clients as well as for staff. We recognise that there is an ongoing need for a Maori Trustee for the benefit of Maori. The changes proposed in this bill position the Maori Trustee to be able to fulfil that role for the future.