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Araparera Forestry Joint Venture


Annual Meeting of the JV shareholders on the Marae

Annual Meeting of the JV shareholders on the Marae


 


     Land History
     Joint Venture Background
     The Forest
     Funding
     Joint Venture Governance
     Relationships
     Conclusion

 

 

Land History

Araparera is the home of Ngati Whatua on the banks of the Araparera Stream at the junction of the Warkworth West Coast Road with the Kaipara Coast Highway [SH 16].

It is part of the prosperous farming area around Glorit, Makarau and Ahuroa, located about 30 kilometres from Warkworth to the east, and the same distance southwards to Helensville.

Araparera has approximately 600 hectares of Ngati Whatua land in multiple ownership.

Whilst the adjoining land in European title is well developed traditional pastoral farm land, this pocket of Maori land has for at least three generations produced little or no income for its owners.

There is little employment in the area other than seasonal farm work.

There has been a slow erosion of Maori land ownership in the district over the past 60 years with the remaining 600 hectares all that remains of what was predominantly Maori land in the early 1900s.

The land on which the Te Aroha Pa at Araparera is situated was gifted by Hori Kingi Te Pua and local Maori follow the Ratana faith.

Joint Venture Background

In 1982, a scrub fire on Araparera 2A2B burnt out 100 hectares of scrub and threatened nearby farm properties.

The $10,000 direct cost of this fire was met by the Rodney County Council.

At this time the Council had been attempting to recover rating debt of $26,000 through the Maori Land Court.

The Court declined to place a charge on the land securing these debts advising the Council to find ways in which it could encourage the landowners to be able to produce an income from the land to help pay the rates.

In November 1984, the Maori Land Court sitting at Orewa under Judge Hingston, appointed the Maori Trustee to represent more than 300 owners of 301 hectares of land in six blocks at Araparera.

Judge Hingston authorised the setting up of a Trust for the purpose of entering into an Agreement with the Council to plant a single rotation crop of pinus radiata on the land for a period ending at tree harvest or 35 years, whichever is the sooner.

When the Joint Venture (JV) is dissolved and the proceeds shared the landowners will make their own decision as to the future of the land.

The forest is managed by Carter Holt Harvey Ltd on behalf of the Joint Venture.

The Trust Deed instructs the Maori Trustee to make provision for improvements in housing for the landowners.

Sixteen Licences to Occupy (issued by the Trustee on behalf of the whanau owning the land) have provided sixteen individual house sites.

The Council has not contributed financially in any way towards the land owners nor to those householders.

The Forest

The Council has a 50% share in the Joint Forestry Venture and has provided funding for the planting, silviculture, and tending of 201 hectares of pinus radiate.

These trees, the first planting taking place in 1985, are pruned to 6 metres and thinned on average to 300 stems per hectare. They will produce high quality saw logs for milling from about 2012.

Actual felling will depend on the market and first option to buy under the Forest Management Agreement rests with Carter Holt Harvey although the JV may seek a better price at large.

The investment of the Council as at 30th June 2005 is $1.47 million and the landowners $364,434.

This is shared when the forest comes to harvest on the compounded base of cash input over the term of the Venture. The projected profit share today is about 80% to the Council and 20% to the landowners.

Funding

Funding for the JV is secured by a rate over the rural parts of the Northern Wards and proceeds are set aside for use on rural roads over the rating area.

The northern townships and beach settlements are not included.

The average annual direct cost to the Council for the balance of the JV term is about $80,000 annually.

The Council holds a Forestry Right over the land on which the trees grow, under the Forestry Rights Registration Act 1983. This Right protects its interest in the forest.

Joint Venture Governance

The Maori Trustee, representing the owners of the land on which the trees grow, and the Council each have a 50% share in the JV.

The Forest Manager [Carter Holt Harvey], is not part of the JV and is paid on the basis 20% on all silviculture and approved administration.

The MT receives advice from an Advisory Committee representative of the landowners. The Chairman of this group is Haahi Walker.

An Annual Meeting of the JV is required to be held at which the Council and the Forest Manager report to the landowners on progress with the JV.

This meeting is held in November on the Araparera Marae and is attended by the Northern Councillors.

Relationships

The JV is first and foremost a business association, however, an important factor in the Trust Deed granted by the Maori Land Court was to provide for the housing and social needs of the owners of the land, and an income so that their rate obligations to the Council could be met. All of these objectives have been met.

Equally important has been the relationship which has developed between the Council and the landowners. It is the first such arrangement and unique, certainly in the Auckland region.

It has been the forerunner of the dialogue between Ngati Whatua and the Council under the leadership of Mayor John Law.

Both parties now understand each other better.

Conclusion

The forest is due for harvest in 2013/2014; a realisation of the original vision.

Already many benefits have accrued for the Council in the payment of rates, closer association with the local residents, and a better understanding of local Maori people.

In turn, roads have been sealed adjacent to the forest, houses have been built and local Maori cleared much of the land before planting of the trees. 

In the near future, both parties to the JV will receive a tangible return on their investment which will have a substantial impact on the rural roading standard in the north of the District, and help the landowners to improve their land and perhaps provide educational opportunities for their children.

The JV is a rewarding and profitable business association between the Council and local Ngati Whatua.

There are no handouts or interference, both parties making an agreed contribution to a business venture managed professionally by a major forest company.

There are tangible and lasting benefits to the Council, the local people and the District as a whole.

For further information please contact Mark Johannsen 0800 426 5169.
 

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