MŌ Te Ohu - About Te Ohu
Allocation Model
The model contained within the Maori Fisheries Act is a finely balanced set of compromises that was supported by more than 90 percent of iwi. It covers both the assets provided to Maori in 1989 as an interim settlement and those assets contained in the 1992 ‘full and final’ Sealord deal.
QUOTA AND CASH
All fishing quota and the majority of cash held directly by the Treaty of Waitangi Fisheries Commission will be transferred to mandated iwi organisations who will manage these assets on behalf of all of their iwi members. These assets represent around half of the settlement assets estimated at $350 million.Quota is generally allocated and transferred as either inshore or deepwater quota. The allocation formula for inshore quota is based solely on the proportion of an iwi’s coastline to the total coastline in each quota management area. The allocation formula for deepwater quota will see 25 percent transferred using the coastline formula and 75 percent transferred using the proportion of the tribe’s population to the overall Maori population.
An exception has been made for the Chathams Islands. A special 200 nautical mile zone around the Chathams has been created for allocation purposes. All inshore quota within that zone is allocated to Chathams Islands iwi. The allocation formula for deepwater quota within the zone will see 50 percent transferred to Chatham Island iwi on the basis of their coastline and 50 percent transferred to all iwi on the basis of each tribe’s population.
Cash is allocated based on the proportion of an iwi’s population to the overall Maori population. Some iwi will receive a ‘top-up’ of cash to ensure that each iwi organisation receives a minimum allocation of $1-million in ‘capital’ from the settlement. The iwi that are likely to receive the largest parcel of assets represent a mix of coastal and populous iwi. They are Ngai Tahu, Ngati Kahungunu, Ngapuhi, Ngati Porou, Chathams iwi (Moriori and Ngati Mutunga) and Waikato.
COMPANY SHARES
A new company called Aotearoa Fisheries Limited (AFL) will consolidate into one group the current share holdings in Sealord (50 percent), Prepared Foods (50 percent) and 100 percent ownership of Moana Pacific, Chathams Processing, Pacific Marine Farms and Prepared Foods Processing .
AFL will receive and commercially manage those companies and their assets for Te Ohu Kaimoana on behalf of all iwi. AFL will be a substantial business by New Zealand standards and particularly within the New Zealand fishing industry. The value of the company is estimated at $350 million.
AFL will have both voting and income shares. Te Ohu Kaimoana will initially hold both the voting and income shares but 80 percent of the income shares will be allocated to iwi based on the proportion of an iwi’s population to the overall Maori population. Iwi will receive dividends from AFL based on the income shares they hold.