65 Iwi offered a chance to *purchase* shares

October 17th, 2012 at 2:55 pm by David Farrar

Bill English and Chris Finlayson have announced:

groups yet to complete their Treaty settlements will be offered the opportunity to participate in the Government share offer programme, Finance Minister Bill English and Minister Chris Finlayson say.

“This is a result of our constructive engagement with Iwi leaders and their technical advisers,” the ministers say. “It is another example of how direct engagement with the Crown can produce pragmatic solutions that provide an opportunity for more New Zealanders to participate in the share floats and support Iwi and the Crown to settle historic Treaty claims.” …

As a result of today’s announcement, Iwi yet to settle their claims can choose to receive a percentage of their forecast settlement package “on account” in the form of shares in the Government share offer companies. Mr Finlayson says “on-account” arrangements were not new for Iwi in negotiations with the Crown. The facility has been used by many Iwi in the past.  They must pay the full issue price and any amount drawn down will be deducted from the final settlement.

This is the key point. All shares will be purchased at the same price as other New Zealand buyers.

Effectively what the Government has done is say some Iwi already have negotiated a settlement, while some have not concluded their negotiations – so we’ll allow those not yet concluded to purchase shares in advance of their final settlement.

They are limiting the amount they can purchase to around 10% of their likely settlement, so there is no danger of any share purchase being greater than the actual settlement.

“It does not change the total amount of Treaty settlements. It simply allows Iwi more flexibility about how their settlement money is invested, and we believe it will enhance the share offer programme,” Mr Finlayson says.

A key point also. There will be no extra money for share purchases. It is just basically a credit facility.

Mr English says the actual amount to be advanced as on-account payments for shares will depend on the level of take-up by Iwi. The Treasury estimates that if all Iwi take up their full entitlement, this will amount to $145 million over the entire Government share offer programme.

“Even if all Iwi take up their full entitlement and allocate all of it to the Mighty River Power share offer alone, it would still represent less than 5 per cent of the shares of Mighty River Power,” Mr English says.

I hope many Iwi do purchase shares. As a permanent part of NZ, Iwi owning shares will help keep more of them in NZ ownership.

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30 Responses to “65 Iwi offered a chance to *purchase* shares”

  1. Pete George (21,796 comments) says:

    I think this is a fair and a good way to do it. Equal rights and equal value for shares.

    Oh, and if Iwi think likewise it won’t do the share floats any harm.

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  2. RRM (8,988 comments) says:

    I hope many Iwi do purchase shares. As a permanent part of NZ, Iwi owning shares will help keep more of them in NZ ownership.

    Got it in one – on a related note, I know a guy from Greymouth, even whiter and more NZ Euro than me (if that’s possible) and he said Ngai Tahu becoming a big business around there is the best thing that’s happened for ages. Their asset managers are not idiots and you don’t have to be any particular colour to do contract work for them..

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  3. Cactus Kate (538 comments) says:

    What total nonsense David.
    Maori proved yesterday just as capable of selling their property to rich foreigners as anyone else. That was land. Imagine how quickly they can dispose of shares once they put their minds to it.

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  4. liarbors a joke (1,069 comments) says:

    “This is the key point. All shares will be purchased at the same price as other New Zealand buyers”.

    And so they should be. Why should maori expect a discount. I bet they are spewing having to even pay for them.

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  5. Nostalgia-NZ (4,683 comments) says:

    What they do with with their shares is their business Cactus Kate.
    Good foresight from National, about bloody time and I support it.
    There’s a divide and conquer argument but it remains that it’s a matter of choice for individual iwi.
    I hope we also see a pragmatic solution advanced, as has already been heralded, for settlement over water rights/usage.
    Best bit of news for ages, now just get rid of Banks, full disclosure into GCSB activities and move on.

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  6. Kevin (1,122 comments) says:

    And exactly what is “Equal rights” about this.

    “their full entitlement” says it all.

    “As a permanent part of NZ, Iwi owning shares will help keep more of them in NZ ownership”

    Isnt preventing Iwi taking their capital offshore racist? Everyone else can.

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  7. Pete George (21,796 comments) says:

    Imagine how quickly they can dispose of shares once they put their minds to it.

    So what? Same as everyone else who buys them, including Iwiw who have settlement money available to invest in the shares. Their shares, their choice of holding them or flicking them on.

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  8. Manolo (12,614 comments) says:

    The greedy Stone Agers will get shares as payment for grievances that are never settled because they are never “full and final”?

    Another Labour lite concoction paid by taxpayers, and more pandering to the racists. Weak as piss.

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  9. Kevin (1,122 comments) says:

    Summarising Nostalgia’s post take ..|..that all you who believe in equality.

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  10. Kevin (1,122 comments) says:

    Do you mean this Cactus?

    http://www.stuff.co.nz/business/industries/7821993/Maori-land-sold-for-golf-course

    Any idea how much for, otherwise I will do a “calculation”

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  11. Ross12 (926 comments) says:

    Abit of positive, cunning politics. It doesn’t cost Government anything , Maori save face and the sales process possibly gets
    some more support.

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  12. nocommentkiwi (32 comments) says:

    Let’s not blow the trumpets of triumph too soon DPF – the underlying issue; whether or not Maori have an exclusive proprietary right in water.
    Neither Shares Plus, nor this current announcement address that question.

    Today’s announcement revolves around whether or not by offering these shares is the government ameliorating a breach of treaty that the WT suggests privatizing these Assets would do.

    Holdfast to your hats, this isn’t over yet. Iwi will not be appeased with an offer to participate in investing in these companies because that was never what their claim was about.

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  13. Longknives (4,039 comments) says:

    The Golf Course incident makes a further mockery of the joke that is the Treaty Gravy Train…
    ‘We have a ‘Spiritual Connection to the land’ Blah Blah
    Oh please do fuck off you greedy fraudsters..

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  14. Yvette (2,589 comments) says:

    Why may iwi anticipate possible Treaty settlements to purchase shares?
    Will other New Zealanders be able anticipate for example their income from Kiwisaver and purchase shares for their future benefit?
    If not, why not.

    Or is this to somehow placate iwi?
    Get them to shut up by offering something to them as a payment, but actually comprising a portion of what they are claiming a right to, which is what National want them to get over. Follow that? See if iwi can.

    And obviously this could take the total settlements over the billion thresh-hold to trigger the catch up clause which Ngai Tahu, for one, has – so will they be topped up with shares too. Or will shares not count as cash, not trigger the thresh-hold, and so cheat Ngai Tahu?

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  15. Kevin (1,122 comments) says:

    “Te Uri chief executive Deborah Harding said a conservation trust would be established to boost resources for the protection of endangered shorebirds.”

    Translation: The general public will be banned from the beach.

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  16. nocommentkiwi (32 comments) says:

    Yvette – the shares will still be paid for; and will count towards the Fiscal envelope.

    IIRC the Relativity clause is pretty much a ‘go’ now that Tuhoe has settled, or will be sometime next year. It’s just a case of those iwi (Ngai Tahu / Tainui) fleshing out with the crown how it will be rolled out in effect.

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  17. nocommentkiwi (32 comments) says:

    Kevin – What a terrifying world it must be for you if you believe all the sensationalism you come across.

    Review the Marine and Coastal (Takutai Moana) Act, and then see if you can identify all the cases of Maori exercising exclusive customary rights while simultaneously preventing access to the public to foreshore/seabed (and then for context you might want to work that out as a ratio to privately-owned beach title in terms of area). You might be disappointed to find that Maori are far less likely to put up a ‘fence and fuck-off-sign’ than the media, or John Ansell like to think. Those savages are surprisingly co-operative (it’s not really surprising actually, given that co-operation and compromise are at the core of New Zealand’s history).

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  18. Yvette (2,589 comments) says:

    When the Government has said they will deal with only those Maori, iwi by iwi, concerned directly with Mighty River Power, and the hui [apart from the first one] seemed to confirm that, why is this offer being made to iwi who may be hundreds of miles away from the Waikato River and nothing to do with it?

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  19. Bob R (1,250 comments) says:

    ***As a permanent part of NZ, Iwi owning shares will help keep more of them in NZ ownership.***

    Umm, why not just keep them in Crown ownership? That way won’t they stay in NZ ownership?

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  20. Kevin (1,122 comments) says:

    You might be disappointed to find that Maori are far less likely to put up a ‘fence and fuck-off-sign’….

    yes at great expense to the taxpayer which is not an acceptable solution.

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  21. Nostalgia-NZ (4,683 comments) says:

    Yvette

    I don’t think that is the offer exclusively, rather treaty settlements.

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  22. Nostalgia-NZ (4,683 comments) says:

    Bob R

    Because it’s toward outstanding treaty settlements. However, I can’t see that there can be any restriction on iwi later selling if they so decide.
    I’ve got a friend who is very angry about the sale on land up north for a golf course. But I don’t see that as anyone business except the owners. Just because there are land claims associated with historical grievances that’s not associated with in anyway with what the individual owners do with the title of the land. Arguments that say it is are similar to one saying I’ve sold you my house or land but I still want to control what you do with it, that isn’t ownership.

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  23. nocommentkiwi (32 comments) says:

    Indeed Nostaligia-NZ,
    Re: golf course
    Ironic that the same people whining about these commercial developments then go on about how those greedy post-settlement maoris concentrate all their settlement-wealth so the alleged ‘maori aristocracy’ can make a fortune off administering trusts that don’t yield dividends for the ‘every day’ beneficiaries.

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  24. Yvette (2,589 comments) says:

    They must pay the full issue price and any amount drawn down will be deducted from the final settlement.

    So the Election promise was that partial sale of the assets would retire current debt.
    I am a little puzzled then as to why now is a good time to pay off any future debt, like that of Waitangi settlements, which as yet are unsettled?

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  25. Nostalgia-NZ (4,683 comments) says:

    Actually I think Yvette treaty settlements are current debt of a yet to be confirmed amount. The government are saying up to 10% advance, I’d expect that is moderate and a ‘feeler.’ Anyway, to my mind, it certainly confirms a ‘finish line’ for perhaps a lot of unsettled claims.

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  26. Muzza M (286 comments) says:

    Maori, fucking Maori, fucking Maori. I am sick of their shit. There is barely a 50% one left. Why can’t some political party have the guts to tell them to go and get fucked.

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  27. pq (728 comments) says:

    Muzza, I don’t think Winston Peters would put it quite that way, it does seem to be never ending, and it will never stop so long as we have racist Maori seats in parliament.

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  28. Mark (1,301 comments) says:

    The government should just get on with the process and stop shagging around. If Iwi have agreed to what is essentially no concession at all then that has to be a good outcome for the Government

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  29. Paulus (2,291 comments) says:

    It hasn’t happened yet !
    I will believe it when I see it.
    History has shown that in Maoridom nothing is settled.

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  30. deadrightkev (175 comments) says:

    John Key, a gutless quisling and hopelessly weak prime minister.

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