navigating our future by wuyunyi

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									navigating
     our future




    waikato raupatu lands trust
                annual report
      tuumanako - he waka o tainui




      trust Profile

      the waikato raupatu lands trust was created by the waikato
      raupatu Claims settlement act 1995, and manages distributions
      for the collective benefit of over 57,000 registered tribal members.
      established for charitable purposes, income is distributed in the
      areas of tribal administration, education, health and wellbeing,
      marae, social and cultural development.
      the waikato raupatu lands trust is the parent entity of the waikato-
      tainui tribal Group.
      waikato-tainui represents the collective interests of 68 raupatu
      Beneficiary marae.




2   Waikato Raupatu Lands Trust Annual Report 2010
navigating
  our future
                contents
                                  oVerView            04
                       kiingi taawhiao’s Vision
      whakatupuranga 2050 strategic Direction
            Performance at a Glance summary
                            Chairman’s report

                              GoVernanCe              18
                              Board members
                       te kauhanganui report

                    orGanisation reView               26
               Chief executive officer’s report
                     tribal members Profile
                              marae Grants

                   finanCial statements               36
                                                               CON TEN TS




              Waikato Raupatu Lands Trust Annual Report 2010   3
      thatCheD PalisaDes at Puke-i-aahua, nGaaruawaahia

      ...the king climbed the low knoll known as Puke-i-aahua where
      centuries before, te ngaere commanded “waahia ngaa rua” from
      which the town takes its name.
      the words spoken by the king that day tells of his depths of pain and
      concern. from Puke-i-aahua he looked back and called to the atua
      and with the following vow, he declared:
      e kore teenei whakaoranga e huri ki tua o aku mokopuna, ka puta
      ka ora.
      - this suffering will not survive beyond the days of my grandchildren
      when we shall reach salvation.
      (extract from: taawhiao - king or Prophet - Chapter: the waikato
      land wars)




       imaGes of the PalisaDes ConstruCteD at the historiC Paa site at Puke-i-aahua - launCh Ceremony june 2010.




4   Waikato Raupatu Lands Trust Annual Report 2010
kiingi
 taawhiao’s
                                      vision

       Maaku anoo e hanga tooku nei whare
   Ko ngaa pou oo roto he maahoe he patete
                  Ko te taahuuhuu he hiinau
     Me whakatupu ki te hua o te rengarenga
      Me whakapakari ki te hua o te kawariki


      I shall build my house from the lesser known trees
       of the forest. The support posts shall be maahoe
               and patete, and the ridge pole of hiinau.
        My people will be nourished by the rengarenga
                       and strengthened by the kawariki.
                                                                       VISION




                      Waikato Raupatu Lands Trust Annual Report 2010   5
      the kete is a symBoliC referenCe of the sPeCial
      relationshiP Between waikato anD taranaki.

      “taranaki, kei a koe teetehi o ngaa kiwei o te kete, kei au kei a waikato
      teetehi. teenaa te wa ka haere mai teetehi tamaiti”.
                                                                                                                    1. kiinGitanGa
      - you taranaki have one handle of the flax basket and i waikato, have
      the other. a child will come some day and gather together its contents.                             whaia ko te mana motuhake
      (extract from: taawhiao - king or Prophet - Chapter: te kete)
                                                                                       the king movement acts as a unifying korowai
                                                                                         encompassing all tribes throughout aotearoa.
                                                                                      kiingitanga was first set up in may 1858 to unite
                                                                                           maaori under the leadership of Pootatau te
                                                                                                                         wherowhero.

                                                                                       its primary goals were to halt the sale of land to
                                                                                         Paakeha settlers, stop inter-tribal warfare and
                                                                                  provide a springboard for the preservation of maaori
                                                                                            culture in the face of Paakeha colonisation.

                                                                                    today the role of kiingitanga remains as a vibrant
                                                                                   symbol of unification of maaori under the banner of
                                                                                                 the seventh monarch, kiingi tuheitia.


                                                                                            2. triBal iDentity & inteGrity
                                                                                             ko tainui te waka, ko taupiri te maunga,
                                                                                           ko waikato te awa, ko Pootatau te tangata
                                                                                                                 waikato taniwharau,
                                                                                              he piko he taniwha, he piko he taniwha

                                                                                              our strategic direction charts a course of
                                                                                          significant developments to protect our tribal
                                                                                                                   identity and integrity.


6   Waikato Raupatu Lands Trust Annual Report 2010
whakatupuranga
                                                                     2050
                                    strategic direction

    the development of a core strategy designed to                     4. triBal soCial & eConomiC
  provide maximum support for our kaumaatua, the                                                 wellBeinG
     caretakers of our maatauranga, and experts of
                                                                     kia niwha te ngaakau ki te whakauu, ki te
  our reo and tikanga, is a key priority. our whenua,
                                                                                               atawhai i te iwi
         rivers, lakes and other waterways are living
                    embodiments of our tribal identity.      social and economic wellbeing is dependent on a
                                                           number of pathways, beginning with efforts to effect
 the necessity to forge an enduring and meaningful
                                                             our treaty Partnership with the Crown and robust
 relationship with the Crown is vital to the protection
                                                             monitoring of their article three responsibilities as
                        of te taiao, our environment.
                                                                                          Government agencies.

                            3. triBal suCCess                     we will develop effective long-term solutions
                                                              for our people, through strategic coordination of
                 ki te moemoea ahau ko ahau anake                  sustainable social and economic initiatives.
              ki te moemoea taatou ka taea e taatou
                                                             other priorities include utilising our marae as the
     Priorities in this context are focused on building     catalyst to advancing tribal development, building
 capacity in all our endeavours at all levels. Coupled        strong inter-tribal and stakeholder relationships,
     with research as a key priority designed to keep             and establishing strategic alliances at local,
    the tribe abreast of all local and global shifts and     national and international levels, to ensure tribal
   developments, generations hereafter will be well-                                      socio-economic gains.
  equipped to enjoy success in all sectors of society.
                                                                                                                     STR AT EGI C D IRECTI ON




       there is recognition however, that success is
  short-term without succession, so growing leaders
         through succession planning and mentoring
                     programmes, are key priorities.



                                                           Waikato Raupatu Lands Trust Annual Report 2010            7
      korotanGi - the saCreD BirD of the tainui waka,
      waikato riVer settlement DeeD siGninG Ceremony,
      auGust 2008.


      front cover
      korotangi - the sacred carved stone bird that came to aotearoa from
      hawaiiki on the tainui waka.
      after an absence of more than 100 years, korotangi returned to tainui
      in 1995 during the waikato raupatu settlement celebrations.
      korotangi continues to guide the people of tainui waka as we navigate
      into the future.




      waikato-tainui Games, feBruary 2010. the triBe hosteD its fourth Biennial Games resultinG in 20,000 PartiCiPants
      ConVerGinG on hoPuhoPu to ComPete in sPorts anD reCreational aCtiVities unDer the umBrella of unity, PartiCiPation
      anD triBal PriDe.




8   Waikato Raupatu Lands Trust Annual Report 2010
performance
 at a glance
                     summary

                 net operating Profit         $10.7m
                             net Profit       $18.6m
                    revenue Growth               11.5%
                          total assets         $644m
                           net assets          $538m
                          Grants Paid           $4.4m
   number of Grant recipients/Groups            1,766
                     tribal members            57,036
                                                                       PER FORMANCE




                      Waikato Raupatu Lands Trust Annual Report 2010   9
       tukoroiranGi morGan, Chairman of te arataura, waikato-tainui

       ‘tuku’ morgan returns for a second term as Chair of te arataura - the   he began his secondary education at st stephens boarding school
       governance board of waikato-tainui te kauhanganui incorporated.         and returned to huntly College where he later served as a senior
                                                                               teacher before embarking on a journalistic career in television.
       elected to Parliament in 1996 to represent the western side of the
       lower north island for the new Zealand first party, mr morgan           tuku is married to Carolyn and has three children and two
       possesses a wealth of experience in parliamentary processes and         mokopuna.
       the public sector.
       he has had a diverse career from secondary school teaching,
       news and current affairs journalism, to tV producer, a member of
       Parliament, and now as an elected tribal leader.
       tuku was raised by his grandparents warupapa and ete morgan
       at waahi Paa in huntly.




       more than 200 triBal memBers traVelleD to Poneke to witness the final reaDinG of the waikato riVer settlement Bill.
       hiikoi ki Poneke, may 2010.




10   Waikato Raupatu Lands Trust Annual Report 2010
   chairman’s
                                                                       report


uea te pou o toku whare kia tu tangatanga
he kapua whakairi naaku ki runga o taupiri
taku kiri ka tokia e te anu, maatao
nau mai e taane ki taku taha
                                                the 2010 annual report heralds the tragic passing
tihei mauri ora.                                of lady raiha mahuta whose contribution to the
                                                settlement of the waikato river will be forever
e taku rangatira e raiha                        etched in the hearts of waikato-tainui and in the
e te muurau o te tini, te wenerau o te mano     history books of new Zealand.
koe kua kapohia nei e te ringa kaha o aitua     lady raiha will be remembered and celebrated
kua tika raa taua korero “waituhi ki te rangi   for her significant role in legislating co-governance
e kitea, waituhi ki te ngakau e kore e kitea”   over this country’s largest river.
waiho oo mahi mo te awa o waikato,              the challenging negotiations with ministers from
                                                                                                        C HAIRMAN’S REPORT




hei whakaatu atu i te nui o toou aroha mo te    both labour and national led Governments over a
iwi nei.                                        five year period, was testament to her unwavering
moe mai e kui, i te rua koiwi oo tupuna         determination and commitment to achieving a
maatua o ngaati manu o ngapuhi nui tonu.        magnificent outcome.



                                                 Waikato Raupatu Lands Trust Annual Report 2010         11
       te mana o te awa

       the Prime minister of new Zealand, john key in        legislative framework with other iwi and the
       a personal note acknowledged her mana and his         Government to restore the health and wellbeing of
       deep respect, “from the few occasions i have met      our tupuna awa.
       with lady raiha, i gained a clear sense of the
       profound respect that she commands from her           Greater emphasis and effort is now
       people and all those who came in contact with her.    being expended to address the
       “our last meeting at te rapa only days before she     wellbeing of our people.
       passed, will remain one of the most memorable
                                                             negotiations with Government ministers have
       moments in my time as Prime minister and i feel
                                                             been stepped up in our efforts to play a significant
       privileged that the opportunity was presented.”
                                                             role in the social transformation of our people -
       an agreement reached at the penultimate meeting       from dependency on Government handouts, to a
       with the Prime minister resulted in the Government    position of independence and self-determination.
       shortening parliamentary timeframes and the
                                                             working with key ministers, including hon
       waikato river settlement Bill passed into law with
                                                             tariana turia, hon Dr Pita sharples and hon
       royal assent granted by the Governor General well
                                                             Paula Bennett, will be critical to achieving a more
       before the projected july date.
                                                             collaborative approach with the Government in
                                                             addressing poor health, growing unemployment,
       the long journey to settle the
                                                             educational under achievement and spiraling
       outstanding waikato river Claim is                    crime amongst our people. it is time for us to
       nearly complete.                                      assume greater social responsibility for the future
                                                             of our iwi.
       the independent scoping study currently being
       undertaken by niwa to determine the health            fifteen years after the ratification of the raupatu
       status, effective ways of achieving the clean up,     land settlement, our tribal entities are poised and
       the projected costs and how long it will take to      ready to devolve resources, funding and services
       improve the health of the river, is scheduled for     through marae Clusters to strengthen and develop
       completion in late august 2010.                       our whaanau, marae communities and hapuu.
                                                             waikato-tainui will also take seriously its custodial
       full provisions of the new law will then be enacted
                                                             responsibility to look after all maaori living within
       so we can for the first time, work under the new
                                                             our tribal territory.




12   Waikato Raupatu Lands Trust Annual Report 2010
                                         waikato riVer, hamilton

a future where a healthy waikato river sustains abundant life and
prosperous communities who, in turn, are all responsible for restoring
and protecting the health and wellbeing of the waikato river, and all it
                                    embraces for generations to come.
                    te ture whaimana, Vision and strategy – july 2008




     Waikato Raupatu Lands Trust Annual Report 2010                        13
       the marae cluster approach                                new events including waka ama, surfing,
                                                                 kaumaatua games, and activities for our disabled
       represents a proposed new wave                            whaanau, is a reflection of the commitment to
       of development for waikato-tainui,                        meet the diverse needs of our people. the Games
       and is the vehicle by which we will                       will continue to be a rallying point for families to
                                                                 support their marae and an important time for
       operationalise our intergenerational                      young and old to reconnect on our sports fields
       strategic plan whakatupuranga 2050.                       and waterways throughout the rohe.
       it is proposed that our land and river settlement
       resources be distributed through the waikato
       raupatu lands trust and the waikato raupatu
       river trust, to marae Clusters for the exclusive
       benefit of tribal members. funds accessed from
       Government agencies will be also passed to allied
       social service providers for the benefit of all people.

       the marae Cluster plan provides the springboard
       for our marae communities to build their own
       future in a creative and dynamic way.

       the face of exciting change is
       also reflected in our intention to
       redevelop the hopuhopu site.
       work on the master plan for hopuhopu is well
       underway. Concept plans and costings are nearing
       completion. the redevelopment will include:
       • events Centre;
       • sports facility;
       • tribal Parliament and administration hub;
       • Corporate accommodation; and
       • a residential Village for kaumaatua.

       the purpose of the redevelopment is to establish
       hopuhopu as a recreational centre, research hub
       and tribal headquarters for waikato-tainui.

       this year’s waikato-tainui Games was an
       outstanding success attracting more than 20,000
       people young and old.




14   Waikato Raupatu Lands Trust Annual Report 2010
                hoPuhoPu reDeVeloPment - artist’s imPression
                                     Below: Proposed tribal events Centre.
right: Proposed te kauhanganui Debating Chamber, chamber with a glimpse
 of the outdoor sports stadium, Corporate Dining and administration offices.




                                                                               Waikato Raupatu Lands Trust Annual Report 2010   15
       this year will also be remembered                        notwithstanding the challenges
       for the unprecedented and                                waikato-tainui has faced this year,
       disappointing number of media                            there have been notable major
       stories resulting from leaks of                          successes including:
       confidential information to the                          •   a highly successful economic summit attended
       media.                                                       by two of the most successful native american
                                                                    indian owned corporations - the seminoles and
       what is clear is that certain people have neither            the Choctaws;
       respect nor any regard for the mana and integrity of
                                                                    Both of these high performing nations have built
       waikato-tainui.
                                                                    up several billion dollars worth of assets.
       these people will go to every length to destroy the          the summit was also attended by some of
       legacy that is being built for successive generations.       new Zealand’s foremost commercial leaders
       the dismissal of hemi rau as the tribe’s Ceo                 including rob mcleod (managing Partner of
       was a difficult but appropriate decision taken by            ernst & young, new Zealand), Brett shepherd
       te arataura who found that mr rau’s actions in               (Ceo Deutschebank), and the highly respected
       passing a story to a newspaper reporter, constituted         ngaai tahu Ceo mark solomon.
       serious misconduct.                                      •   the waikato river Deed of settlement
       mr rau challenged te arataura’s decision, but                becoming law;
       a ruling by the employment relations authority           •   a strong and significant relationship with the
       found that te arataura was justified in taking the           Government has been established with respect
       action it did, and how te arataura acted was what            to advancing social and commercial issues that
       a fair and resonable employee would have done in             bring greater benefit and recognition to the iwi;
       all circumstances at the time of the dismissal.
                                                                •   a favorable ruling in june 2010 from the high
                                                                    Court, stymied the hamilton City Council from
                                                                    proceeding with its Variation 21 Plan change to
                                                                    restrict certain commercial activities to the CBD
                                                                    centre; and

                                                                •   the rebranding of the endowed College to
                                                                    the ‘waikato-tainui College for research and
                                                                    Development’.
                                                                    a new board and key senior staff have been
                                                                    appointed resulting in the College opening its
                                                                    doors for business.




16   Waikato Raupatu Lands Trust Annual Report 2010
our commercial arm tainui Group                          •     negotiation of the remaining outstanding
                                                               claims including the west Coast harbours and
holdings ltd has recovered from                                auckland;
a deficit last year, achieving a net                     •     a revised distribution strategy targeting areas
profit of $34million.                                          of need resulting in greater accountability,
                                                               transparency and effectiveness; and
the value of the tribe’s total assets has increased      •     implementation of new initiatives aimed at
to $644 million. the change in trustee on 1                    greater employment and training opportunities.
april 2009 from the waikato raupatu trustee
Company ltd to waikato-tainui te kauhanganui             i want to convey my deepest appreciation to
incorporated, determines that the waikato                members of te arataura, our tribal staff, tGh and
raupatu lands trust controls the waikato                 te kauhanganui for their ongoing commitment to
raupatu river trust and as a result, assets of           ensure that together we deliver significant benefits
$86 million have been transferred to the waikato         and value to our people.
raupatu lands trust.
                                                         finally, i also convey my sincere gratitude to and
the opening of ‘te awa’ at the Base in hamilton in       respect for tom roa in his role as Chair of te
july 2010 and our hotel at the auckland international    kauhanganui until his sudden resignation. Vince
airport, are major achievements for tGh.                 hapi will fill this important role until the tribal
                                                         parliament resolves this matter later this year.
te awa and the tainui auckland international airport
hotel are iconic symbols of our growing economic         noho ora mai koutou i raro i ngaa manaakitanga o
power and a source of inspiration for our iwi members.   te atua.

while it is necessary to reflect on the highlights and   Paimaarire
challenges of the previous year, it is appropriate to
contemplate key events and activities for the next
12 months. we believe that waikato-tainui is at the
dawning of a golden period of prosperity.
                                                         tukoroirangi morgan
as your executive we are dedicated to delivering
the following outcomes:                                  Chairman, te arataura
• establishment of marae Cluster groups;                 waikato-tainui
• implementation of a housing strategy seeing
     more waikato-tainui members owning their
     own homes;




                                                             Waikato Raupatu Lands Trust Annual Report 2010      17
                                                                                                    Charles joe




     PatienCe te ao                       tuku morGan




                                                                                    rahui PaPa                       maxine moana-tuwhanGai




                           PatienCe te ao                         tukoroiranGi morGan                                     Charles joe jP minstD
                          tauranganui marae                          te hoe-o-tainui marae                               ngaa hau e wha marae
        Patience is deputy chair of te arataura     ‘tuku’ morgan returns for a second term as               Charles has an extensive background
     and is currently serving her third term as a      Chair of te arataura. he is co-negotiator             in education and currently manages a
                       member of the executive.        for outstanding waikato-tainui claims as               forensic Psychiatric kaupapa maaori
        Patience is an ex-officio member on all        well as an ex-officio member on all tribal                  service for the waitemata DhB.
                              tribal committees.                                    committees.             appointed secretary of te arataura and
                                                             he holds several executive positions           te kauhanganui, he has been involved
                                                                                       including:             with various community projects and
                                                                   •   Co-chair of the Guardians         organisations, and is a founding trustee of
                                                                       establishment Committee;                           a west auckland marae.

                                                         •    Chair of te kawai taumata, te ohu               a gazetted justice of the Peace for 19
                                                                                  kaimoana; and         years, Charles is a member of the audit and
                                                                                                         risk Committee and has been reappointed
                                                    •     member of the Climate Change, water                as a Director of tainui sports ltd (now
                                                            and fisheries iwi leaders forums.                      waikato-tainui Distributions ltd).


                                                                                 rahui PaPa                       maxine moana-tuwhanGai
                                                                               Poohara marae                             mookai kainga marae
                                                    rahui has represented Poohara marae on                   maxine is in her first term as a member
                                                          te kauhanganui since its inception.                 of te kauhanganui and te arataura. a
                                                         he has a background in education and                  chartered accountant, maxine brings
                                                            is Chair of both the tainui teachers         financial knowledge and experience to the
                                                        association, and the national secondary                                           board table.
                                                                      schools kapa haka board.              she is currently a member of the audit
                                                      rahui is a member of the tribe’s human                 and risk Committee and the human
                                                    resources and remuneration Committee,                resources and remuneration Committee
                                                               and the whakatupuranga 2050                and is also an accredited environmental
                                                                                  Committee.                  Commissioner, the deputy chairman
                                                                                                            of the Proprietors of taharoa C Block
                                                     he is a member of the iwi leaders forum                     incorporated, and a trustee of the
                                                              and sits on the winteC Board.                                northern health school.


18   Waikato Raupatu Lands Trust Annual Report 2010
              roBert tukiri




                                                                    rukumoana sChaafhausen            sonny wilson




                                                                                               board
                                                                                             members
         taitimu maiPi                           kinGi Porima




                                        te arataura
                         roBert tukiri               rukumoana sChaafhausen                                        sonny wilson
                          waikare marae                       rukumoana marae                                       hukanui marae
    this is robert’s first term as a board            rukumoana is in her third term as a    sonny is in his third term as a member of
   member. he is the current Chair of the                      member of te arataura.               te arataura and te kauhanganui.
   human resources and remuneration              she has a background in commercial and         with management experience in both
 Committee, and he is Deputy Chair of the          corporate law and chairs the audit and     public and private sectors, sonny has a
     whakatupuranga 2050 Committee.               risk Committee and is a member of the                background in social services.
Deputy Chair of ngaa muka Development                  whakatupuranga 2050 Committee.        he is a former chair of the waikato-tainui
trust, robert has chaired the Basic right        rukumoana is a Director of tainui Group        Games, the tainui sports awards and
     organisation for 12 years and chairs          holdings ltd and Genesis energy ltd.                                   tainui touch.
 the Board of trustees for hamilton west
                          Primary school.                                                          sonny is a Director of tainui Group
                                                                      kinGi Porima      jP    holdings ltd and tainui sports ltd (now
                                                                        waipapa marae               waikato-tainui Distributions ltd).
                          taitimu maiPi
                         te ohaaki marae         kingi has a background in forestry and is
                                                  a past murupara Borough councillor and
taitimu is the Chair of the whakatupuranga       advisor (kaitakawaenga) to te ruunanga
      2050 Committee and the koroneihana                     o te ika whenua river Claim.
 Celebrations Committee, and a Director of
  the waikato raupatu river trust and the           Past Chair of te arataura and Director
          waikato endowed Colleges trust.          of tainui Group holdings ltd, kingi has
                                                   served on te kauhanganui since 2000.
      taitimu holds several community and
                                                     he is a current member of the tainui
                                                                                                                                          BOAR D MEMBERS




                 regional positions including:
                                                                         waka alliance.
               •    Chair of te wharekura o
                        rakaumangamanga;
   •     Chair of raukura hauora o tainui;
       •      Chair of waahi whaanui trust;
    •     Chair of north waikato Pho; and
            •     member of the iwi Council,
                               waikato DhB.
                                                                         Waikato Raupatu Lands Trust Annual Report 2010                   19
     Pou - GuarDhouse, hoPuhoPu




                                                      te kauhanGanui triBal
                                                      Parliament
                                                      te kauhanganui is currently in its second year of a
                                                      three-year term and continues to sit quarterly.

                                                      two hundred elected marae members deliberated
                                                      in parliament over the reporting period with the
                                                      welcome addition of matahuru Papakainga, which
        te kauhanganui fulfills the role of tribal    signed a kawenata in november 2009 to become
                                                      the 68th marae of te kauhanganui.
        parliament for waikato-tainui and as
        sole trustee of the waikato raupatu           the development of a Corporate Group Charter
        lands trust, oversees the trust’s             has resulted in the collation of a number of key
        performance in distributing tribal income     documents that provide the tribe with the confidence
                                                      to legally structure and support our tribal entities.
        for tribal advancement.
                                                      much of this type of work can be attributed
        this report provides an insight into the      to the sound advice and guidance from tribal
        wider tribal group and highlights the         management, and the tribe’s new legal advisers
        activities of some of the key entities over   from new Zealand’s pre-eminent law firm,
        the reporting period.                         Chapman tripp.



20   Waikato Raupatu Lands Trust Annual Report 2010
tribal
    parliament
                                       te kauhanganui
 waikato-tainui CorPorate anD orGanisational struCture
                                                           (at july 2010)


                       RAUPATU BENEFICIARY MARAE OF WAIKATO-TAINUI

                                                         Each Marae elects three members (a kaumaatua, a rangatahi
                                                         and a Marae member) to represent them on Te Kauhanganui.

                           WAIKATO-TAINUI TE KAUHANGANUI
                           INCORPORATED (Tribal Parliament)
                                                                                                                 TRUSTEE OF:
                                                         Delegates management and control to
                                                         an executive of 11. (10 from its member-
                                                         ship and 1 is appointed by Kiingi Tuheitia).
                                                                                                               Waikato Raupatu
                                                                                                                 Lands Trust
                                      TE ARATAURA
                           (Executive Board of Te Kauhanganui)                                                       AND
                                                                                                               Waikato Raupatu
                                                         Delegates day-to-day administration of
                                                         Te Kauhanganui.                                         River Trust

                                CHIEF EXECUTIVE OFFICER
                                    AND EMPLOYEES                                                              Waikato Endowed
                                                                                                                Colleges Trust

           100% owned by Waikato-Tainui Te
                 Kauhanganui Incorporated
                                                                                                                                 TE KAUH ANGANUI REPORT




      *Waikato-Tainui                     *Tainui Group                     *Waikato-Tainui
     Fisheries Limited                   Holdings Limited                 Distributions Limited




    * Shares in these entities are held in trust by Te
    Kauhanganui for the Waikato Raupatu Lands Trust.




                                                                               Waikato Raupatu Lands Trust Annual Report 2010    21
       as highlighted throughout the pages of this annual      it is with great support that mr roa continues as a
       report there has been a lot of positive progress        member of te kauhanganui providing invaluable
       of which we can be proud of. however there has          input as a representative for his marae.
       been much interference raising questions as to
                                                               in accordance with the ‘rules of te kauhanganui’,
       whether intentions are to cause disunity amongst
                                                               Deputy Chair Vince hapi assumed the role of Chair
       our people.
                                                               in an acting capacity pending an election at the
       unauthorised media reports containing an array          annual General meeting later this year.
       of inaccurate information, served to undermine
                                                               mr hapi is to be congratulated for taking on the
       the integrity of te kauhanganui and the entire
                                                               acting role to enable the parliament to continue to
       tribal group.
                                                               conduct tribal business.
       a barrage of negative and unbalanced news articles
       targeting the office of the king, caused particular
       concern nation-wide.
                                                               te arataura - GoVernanCe
                                                               BoarD
       as a consequence, in march 2010 te kauhanganui
                                                               the passing of lady raiha mahuta lays heavy in
       Chair mr tom roa who had held the role for
                                                               the hearts and the minds of the tribe and the motu.
       the past two terms resigned, feeling personally
       responsible for a completely inaccurate waikato         her contributions at the board table and as co-
       times story headlined “i will abdicate”.                negotiator of the waikato river Claim, cemented in
                                                               place some of our founding governance ideals. the
       mr roa was particularly disconcerted that
                                                               strong and far reaching relationships she forged will
       the inaccurate information reportedly came
                                                               long endure tribal outcomes.
       from unnamed tribal sources following a te
       kauhanganui meeting.
                                                               Despite careers, whaanau and
       many were left saddened and                             community responsibilities, board
       bewildered that factions unwilling to                   members continue to represent
       publicly stand by their convictions,                    waikato-tainui on a number of
       continue to provoke media                               forums that aim to shape and
       interference into the affairs of                        refine our entities as well as
       waikato-tainui and in this case,                        maximise tribal interests across the
       it resulted in a long and well                          wider group.
       respected tribal leader taking such a
       drastic step.
       in tendering his resignation mr roa joined with
       others to exhort the iwi to unite. he hoped that with
       his resignation there would be a re-thinking amongst
       the tribe.




22   Waikato Raupatu Lands Trust Annual Report 2010
2010 BoarD attenDanCe

                      waikato rauPatu     waikato rauPatu             auDit & risk
                      lanDs trust         riVer trust                 Committee
                      BoarD meetinGs      BoarD meetinGs              meetinGs
                      attended/Possible   attended/Possible           attended/Possible

  Charles joe              16/17               7/7                         6/6
  lady raiha mahuta        16/17               7/7                          -
  taitimu maipi            15/17               6/7                          -
  maxine moana-tuwhangai   16/17               6/7                         5/6
  tuku morgan              17/17               5/7                          -
  rahui Papa               17/17               7/7                          -
  kingi Porima             17/17               7/7                          -
  rukumoana schaafhausen 17/17                 5/7                         5/6
  john spencer                  -               -                          5/5
  Patience te ao           17/17               7/7                          -
  robert tukiri            16/17               7/7                          -
  sonny wilson             17/17               5/7                          -


                      human resourCe      whakatuPuranGa               other
                      & remuneration      2050 Committee               meetinGs
                      Committee                  attended/Possible     attended
                      attended/Possible
  Charles joe               -                   -                           -
  lady raiha mahuta         2/3                 -                           57
  taitimu maipi             -                  11/11                        46
  maxine moana-tuwhangai    1/1                 -                           20
  tuku morgan               -                   -                          189
  rahui Papa                3/3                 8/11                            7
  kingi Porima              1/1                 -                               8
  rukumoana schaafhausen    -                   6/11                        19
  Patience te ao            -                   2/2                         34
  robert tukiri             3/3                11/11                        49
  sonny wilson              -                   9/11                        -

                                          Waikato Raupatu Lands Trust Annual Report 2010   23
                                                      two key governance driven
                                                      initiatives over the reporting period
                                                      are the redevelopment of our
                                                      tribal hub at hopuhopu, and the
                                                      establishment of marae Clusters.
                                                      the opportunity for hopuhopu to sustain itself
                                                      and generate profits by bringing its services into
                                                      the 21st century, has been discussed at length by
                                                      successive boards.
                                                      throughout 2009/2010 relationships have been
                                                      fostered with some of the biggest corporations in
                                                      the region who can see the unique and cultural
                                                      potential of our complex.
                                                      Concept plans have been developed and Phase
                                                      one is expected to begin later this year.
                                                      marae Cluster hui are causing quite a stir not just
                                                      within tribal boundaries but also amongst other
                                                      forums who watch developments with much interest.
                                                      with improved information and more clarity, the
                                                      marae Cluster ‘concept’ has been extremely well
                                                      received posing exciting opportunities and improving
                                                      the tribe’s ability to support priorities directly out in
                                                      marae communities. legal frameworks and logistics
                                                      continue to be developed whilst marae appoint their
                                                      delegates and provide feedback.

                                                      waikato rauPatu lanDs trust
                                                      under the guidance, dedication and support of our
                                                      own talented and skilled tribal members and teams,
                                                      the completion of the waikato river Claim and the
                                                      opening of the waikato-tainui College for research
                                                      and Development are the two major achievements
                                                      for the tribe in the reporting period.




24   Waikato Raupatu Lands Trust Annual Report 2010
the majority of the groundwork required to reach          also of significance, board members and managers are
these milestones was effected through our 1995            working a lot more closely compared to previous years.
settlement using resources and capacity reserved
in the waikato raupatu lands trust for tribal             although the roles of governance and management
advancement.                                              are specific, ours is a uniquely waikato-tainui
                                                          approach and improved relationships have enabled
much will be written and will continue to be written      better coordination of the board’s strategic priorities
about these historical events but it is noted that they   with an expectation that quality outcomes can be
serve as a tribute and reminder of the life works of      properly resourced and delivered.
the late te arikinui Dame te atairangikaahu, lady
raiha and sir robert mahuta.                              revised and improved procedures and policies have
                                                          enabled the efficient streamline of administration
2009 saw the widely reported termination of               practices, and have resulted in the Chief executive
employment of Chief executive officer hemi rau            officer, tGh General manager of Corporate services
and subsequent litigation in the employment               and the Chief financial officer working to increase
relations authority.                                      efficiency and cost effectiveness.
it is important to recognise the significant
contribution mr rau has made to the tribe, which
                                                          tainui GrouP holDinGs ltD
spans more than nine years. mr rau has been               and finally, as presented in the Group financial
instrumental in recruiting skilled and commited staff     Performance summary on page 9, the tribe’s revenue
to introduce a number of initiatives and he was           over the reporting period has grown by 11.5%.
personally dedicated to ensuring tribal events were
adequately managed and resourced.                         our financial arm are congratulated for a stand out
                                                          year of prudent investment during some testing
the hugely successful and well attended waikato-          economic and political times.
tainui Games was hosted in february with a
number of key sponsors on board.
                                                          “kia kaha ra taatou ki te awhi teetehi ki teetehi, ki te
the Games continue to epitomise our tribal pride            manaaki teetehi ki teetehi, kei puuhia ki taawhiti e
and whaanaungatanga. the manaaki of more than                                               ngaa hau o te ao”.
20,000 participants over a number of days would
                                                                  te arikinui Dame te atairangikaahu’s closing address to te
not have been at all possible without staff and                                                  kauhanganui in may 2005.
volunteer support, further highlighting our people
capacity and commitment to each other.


                                                          Charles joe                            Vince hapi
                                                          secretary               acting Chair
                                                          te kauhanganui, waikato-tainui




                                                           Waikato Raupatu Lands Trust Annual Report 2010                      25
       joyCe Paekau, aCtinG Chief exeCutiVe offiCer, waikato-tainui

       joyce Paekau was appointed in December last year to the position of    Pending the recruitment of a permanent Ceo, joyce continues to
       Chief executive officer in an acting capacity.                         provide confidence that “the work will get done”.
       noted for her many years of dedicated and loyal service to the tribe   joyce is married to wini and has four children and 11 mokopuna.
       since the establishment of the former tainui maaori trust Board,
       over the past nine months joyce has been instrumental in ensuring
       staff, board members and tribal forums have continued to receive
       the guidance, management and administrative support necessary to
       maintain ‘business as usual’ and deliver valued tribal initiatives.




       may - june 2009. waikato-tainui host the final CeleBrations of 150 years of kiinGitanGa.




26   Waikato Raupatu Lands Trust Annual Report 2010
                acting chief
         executive officer’s

                                                                report

e te iwi
e taku kiingi
he roimata eenei
he roimata no te puna o te aroha e

e maringi tonu ana ngaa roimata ki ngaa
tai o te tokerau
ka pupuu te tai ki taumarere              together with te arataura and senior management,
ka mimiti ki hokianga                     i am honoured to present the 2010 annual report of
ka pupu te tai ki hokianga                the waikato raupatu lands trust (the Group).
ka mimiti ki taumarere                    the ongoing commitment of our people has ensured
                                          that the trust continues to deliver real benefits to
e te whaea e rai                          tribal members during some very testing times.
moe mai raa haere atu raa ki a raatou     we are reminded that our people are our
maa                                       greatest resource and to that end, we continue to
                                                                                                 ACTIN G CEO’S REPORT




raatou i moemoea i wawatatia ai           successfully progress our aims and objectives in
                                          the face of adversity.
haere atu oki atu raa
                                          this is a testament to our combined strength and
taatou ngaa kanohi ora                    unshakable belief in our time honoured vision “to
teenaa taatou katoa                       build our own whare.”



                                          Waikato Raupatu Lands Trust Annual Report 2010         27
       2010 finanCial PerformanCe                                                total assets
                                                                 $m
       the Group earned an operating profit of $10.7             700
       million (2009 –$7.7 million) and a net profit of $18.6
                                                                 600
       million (2009 – loss of $52.7 million) in the financial
       year to 31 march 2010.                                    500
       this is a pleasing result highlighting the strong
                                                                 400
       financial performance of the Group.

       the dividend paid to the waikato raupatu lands            300
       trust from tainui Group holdings ltd, was                 200
       maintained at $10 million. this is due in a large
       part, to rental revenues from stable, long term and       100
       high quality tenants.
                                                                  0
                                                                       2006 2007     2008 2009 2010
                         net Profit
        $m
        90
                                                                  2009/2010 year in reView
        60                                                        in my years of service i have experienced some
                                                                  challenging times and seen a number of changes.
        30                                                        today, whilst we have amassed commercial
                                                                  wealth and an enviable reputation that places
                                                                  our tribal brand on a par with some of the largest
        0
              2006 2007      2008 2009 2010                       corporations in the region, the ideals first espoused
                                                                  by those who went before us continue to guide the
       (30)                                                       direction we take as an iwi.

       (60)                                                       as a tribal administration we are
                                                                  acutely aware that our successes
                                                                  are not measured by the wealth we
                                                                  amass, but by the prosperity we can
                                                                  effect through creating opportunities
                                                                  for our tribal members.




28   Waikato Raupatu Lands Trust Annual Report 2010
Despite the impact of negative media stories                to realise the completion of many
and the instability created by key positions being
vacated suddenly, we have successfully achieved a
                                                            years of negotiations first initiated
number of key milestones in the past 12 months –            over 12 decades ago, was indeed a
the most significant being the historical settlement        mammoth occasion for the tribe.
of the waikato river Claim.
                                                            the waikato river settlement act 2010 will come
waikato riVer Claim                                         into force later this year once an independent
                                                            scoping study that will identify priorities for the
our tribal record which is now stored across a
                                                            clean-up of the waikato river, has been completed.
number of facilities, began its life in the boot of a car
and at that time, attendance at raupatu negotiations        there are a number of key settlement provisions
was only made possible through the contributions            that have and will continue to dictate priorities in
of a dedicated few who gave what little money               annual work plans, including the establishment of
they had to ensure we were represented at the               the waikato river authority comprising of 50:50
Government table in wellington.                             Crown-maaori membership, and the establishment
                                                            of the waikato river Clean-up trust which will
1995 saw the first waikato-tainui settlement over
                                                            receive $210 million over 30 years.
lands and the waikato river was excluded from that
settlement and set aside for future negotiation.            recognition of te ture whaimana (a Vision and
                                                            strategy document) which has special and unique
the signing of the waikato river Deed of
                                                            legislative status as the primary direction-setting
settlement was celebrated in august 2008, and
                                                            document for the river, is definitely a key settlement
in 2009 enhanced co-management arrangements
                                                            provision, and i also acknowledge the efforts
were finalised.
                                                            of the Guardians establishment Committee for
i acknowledge co-negotiators tukoroirangi morgan,           progressing this work.
the late lady raiha mahuta, and our talented team
                                                            a number of co-management agreements and
and advisors for achieving this historical settlement
                                                            accords including joint management agreements
for our people.
                                                            between waikato-tainui and local authorities, are
many who attended the final reading of the waikato          already in place and will continue to be developed
river settlement Bill in Poneke earlier this year,          over the next reporting year.
would have also been present to witness our land
settlement in 1995.




                                                             Waikato Raupatu Lands Trust Annual Report 2010          29
       waikato-tainui ColleGe for                            reView of Grants
       researCh anD DeVeloPment                              Grants for charitable purposes are available for
       whilst the waikato-tainui College for research and    registered waikato raupatu marae and waikato-
       Development opened its doors in may 2010, much        tainui members who reside in new Zealand,
       of the ground work was completed throughout 2009.     and for other groups in new Zealand whose
                                                             services or activities are beneficial to waikato-
       the trustees of the College are nanaia mahuta,        tainui tribal members.
       Gordon Chesterman, Bentham ohia, taitimu maipi
       and shane solomon.                                    Distributions of $4.4 million were paid over the
                                                             financial year (2009 - $7.3 million). the $2.9 million
       the College has its own governance trust and the      decrease from the previous year was due to a
       waikato raupatu lands trust provides oversight        conditional $1 million marae facilities provision
       and financial contributions in the form of interest   being reversed in 2010, because two marae had
       earned on a $20 million endowment fund to allow       not met certain criteria to allow for final payment.
       the trust to become established and eventually
       self-sufficient.                                      also, the trust received less applications for marae
                                                             facilities grants than what was received in the
       in December 2009 the operations of the waikato        previous year.
       raupatu lands trust relocated from the College to
       the hopuhopu base.
                                                             $m                Distributions
       the College’s administrative Director tuti Cooper
                                                              8
       was appointed late last year, and i welcome sarah-
       jane tiakiwai who recently accepted the position of
       academic Director.
                                                              6



                                                              4



                                                              2



                                                              0
                                                                    2006 2007        2008 2009 2010




30   Waikato Raupatu Lands Trust Annual Report 2010
following are details of the main grants distributed:   marae faCilities Grants
                                                        these are available for registered waikato raupatu
offiCe of the kinG                                      marae for significant capital development projects.
$1,280,000         (2009 - $1,263,317)                  $464,334*          (2009 - $2,851,802)
                                                        4 marae.
eDuCation Grants
                                                        *excludes the reversal of prior year’s grants of
includes Doctoral scholarships, tertiary (under
                                                        $950,000.
graduate) grants, the tumate mahuta memorial
scholarship (post graduate and masters), te
                                                        sPorts Grants
reo, tribal waananga, maatauranga maaori and
maatauranga toi grants.                                 these are provided for registered tribal members to
                                                        support sport and physical recreation. sports grants
$1,132,028         (2009 - $863,411)
                                                        are not considered charitable in nature and are
816 individual recipients.                              therefore distributed to tribal members through the
                                                        Groups taxable entity, tainui sports limited.
marae Grants
                                                        $220,966           (2009 - $201,391)
these are distributed based on the number of
                                                        146 individual recipients and 20 organisations.
beneficiaries registered to each marae plus a base
amount of $5,000 per marae.
full disclosure is provided on page 35.                             2010 Grant allocations
$1,000,000         (2009 - $1,000,000)
68 marae.                                                                    sports
                                                                               4%
Grants for other PurPoses BenefiCial                                  marae
                                                                    facilities          office of
to the Community
                                                                       9%               the king
includes grants paid towards the upkeep of taupiri             health                     24%
maunga, support for Poukai, koroneihana and the                 11%
ngaaruawaahia regatta.
$661,390           (2009 - $960,741)                            other
                                                                12%                       education
health Grants                                                              marae            21%
these are grants provided for the health and                               Grants
wellbeing of kaumaatua and includes medical                                 19%
support and transportation.
$566,593           (2009 - $203,423)
712 individual recipients.




                                                         Waikato Raupatu Lands Trust Annual Report 2010        31
       other aCtiVities                                      •   the inaugural iwi leaders forum was held at
                                                                 hopuhopu cementing relationships with iwi;
       to compliment the events already reported,
                                                             •   a new scholarship was introduced in
       following are other activities hosted with
                                                                 partnership with the school of maaori and
       administration support over the reporting period:
                                                                 Pacific Development, university of waikato.
       •   waikato-tainui marae information seminars
                                                             •   in september 2009 the waikato museum
           - the third series of workshops were held
                                                                 unveiled the exhibition entitled ‘raupatu,
           throughout the period along with Governrite
                                                                 redress and resurgence’ and a new internship
           governance training;
                                                                 with the museum was announced;
       •   marae health and safety training Pilot was
                                                             •   as a result of efforts to encourage whaanau to
           held, covering fire and food safety, first aid
                                                                 register their babies, 402 pepi aged 0 - 1yr were
           training, building compliance, insurance and
                                                                 added to the tribal register;
           injury prevention;
                                                             •   navigating our future - economic summit was
       •   the tribe supported the first poukai for ngaati
                                                                 hosted in september 2009 with international
           Pikiao at taheke marae, okere falls in may
                                                                 guests as well as business leaders giving
           2009 taking the round to 29 Poukai per year;
                                                                 presentations on innovation, growing economic
       •   also hosted were the final celebrations of 150        wealth and working together to succeed;
           years of kiingitanga which included:              •   october 2009 saw the launch of the ko wai
           • the waikato te awa, waikato te iwi expo             taatou survey. information collated will support
               with 1,300 rangatahi enjoying exhibitions         tribal development initiatives;
               and tribal resources;
                                                             •   waikato-tainui hosted whaanau groups and
           • the launch of the tuurangawaewae house
                                                                 service providers at a ‘Purely tribal say kao
               ‘ninety years’ book;
                                                                 to P!’ hui. the CD “one Voice, one heart,
           • the release of kiingitanga documentaries;           one People” showcasing the musical talents
           • the launch of the Poukai Book ‘te Puna              of waikato-tainui musicians and supporting
               tangata me te Punakai’; and                       messages of anti-violence amongst the tribe,
           • the release of tPm Band CD, maumahara.              was also released; and
       •   the maaori trade training Carpentry Programme     •   the tribe hosted its fourth biennial games in
           was introduced in collaboration with winteC           february 2010 resulting in 20,000 participants
           and te wananga o aotearoa, the second science         converging on hopuhopu. 51 marae registered
           waananga was hosted, as well as a agribusiness        for 20 sports and recreational activities.
           taster Day;
                                                             Conferences and facilities staff along with the
       •   the second waikato-tainui kura reo was            maintenance team, continue to generate revenue
           hosted in july 2009 with over 150 participants;   and support the many tribal events, activities and
       •   the tribe and the motu celebrated the             forums throughout each year.
           third year of kiingi tuheitia’s coronation;




32   Waikato Raupatu Lands Trust Annual Report 2010
our future successes will continue                        the past year has been challenging and i
                                                          commend the staff, management and our
to rely on clear and transparent                          governance who have shown perseverance,
communications within our tribal                          loyalty and an unwavering commitment to the
forums and must remain open to our                        performance of their duties, particularly over the
                                                          last nine months.
own scrutiny.
                                                          Paimaarire
But let us be very clear - our
business is no-one elses business
but our own.
a focus we will take into 2011 is to further
                                                          joyce Paekau
strengthen our internal relationships and to facilitate
wider understanding of the collective achievement         acting Chief executive officer
of our strategic interests.
                                                          waikato-tainui
as noted by the Chair, there are a number of
innovative and to some extent, ground-breaking
and complex initiatives being undertaken.

if we are to maximise the opportunities for tribal
members, there must be an accelerated effort to
share information, value input and establish robust
frameworks and support mechanisms.

By maintaining a commitment to deliver on
agreed outcomes, continuing to support the
needs of diverse whaanau, hapuu and iwi,
upholding our ideals and improving the way in
which we communicate with each other, waikato-
tainui will continue to grow and prosper.




                                                           Waikato Raupatu Lands Trust Annual Report 2010      33
       tribal members profile

        this profile explores characteristics of registered waikato-tainui tribal members.


       tribal members            57,036
       the tribal register has grown by approximately 4,000 tribal members over the reporting period.


        age
       0 to 4yrs - 2.6%             5 to 14yrs - 11.5%            15 to 24yrs - 23.3%
       25 to 34yrs - 19%            35 to 44yrs - 16.9%           45 to 54yrs - 13.4%
       55 to 59yrs - 4.2%           60 to 64yrs - 3.1%            65 to 70+yrs - 6%


       Gender                                                     marital status

                                                                               not
                                                                             recorded
                                                                               14%

              male                          female                      other
                                                                        15%                  single
              49%                            51%
                                                                                              54%
                                                                            married
                                                                             17%




34   Waikato Raupatu Lands Trust Annual Report 2010
marae grants
marae                     memBers     total    marae                    memBers                   total
aaruka                         236    $7,731   *tahunakaitoto                273                  $8,159
aotearoa                       303    $8,506   taniwha - tangoao             964                 $16,155
hiiona                         446   $10,161   tauhei                        220                  $7,546
horahora                     1,485   $22,184   taupiri                       553                 $11,399
hukanui                      2,341   $32,089   tauranganui                 1,103                 $17,764
kahotea                      1,323   $20,309   te aakau                      274                  $8,171
kai-a-te-mata                  694   $13,031   te awamaarahi               1,248                 $19,441
kaitumutumu                    734   $13,494   te hoe o tainui               489                 $10,659
makaurau - ihumatao            498   $10,763   te iti-a-hauaa-tauwhare       808                 $14,350
maketuu                        770   $13,910   te kaharoa-aramiro            896                 $15,368
mangatangi                   1,133   $18,111   te kauri                      679                 $12,857
mangatoatoa                  1,081   $17,509   *te koopua                    467                 $10,404
matahuru                       197    $7,280   te kooraha                    405                  $9,687
maungatautari                1,979   $27,900   te kotahitanga                928                 $15,738
maurea                       1,846   $26,361   te ohaaki                     534                 $11,179
mookai kainga                  228    $7,638   te Papa o rotu               2214                 $30,620
mootakotako                    607   $12,024   te Papatapu                   183                  $7,118
ngaa hau e wha                 732   $13,470   te Puea                       641                 $12,417
ngaataierua                  1,044   $17,081   te tihi o moerangi-makomako   337                  $8,900
ngaatira                       619   $12,163   tikirahi                      219                  $7,534
ookapu                         776   $13,980   te tokanganui-a-noho          923                 $15,681
ookarea                        183    $7,118   tuurangawaewae              3,666                 $47,422
oomaero                        481   $10,566   umupuia                       323                  $8,738
ooraeroa                       582   $11,735   waahi                       2,242                 $30,944
opuatia - te Poho o tanikena   211    $7,442   waikare                       633                 $12,325
owairaka                       530   $11,133   waikaretuu-weraroa            512                 $10,925
Paaraawera - te taumata      1,306   $20,113   waikeri - tangirau            310                  $8,587
Poihaakena                     755   $13,737   waimakariri                   269                  $8,113
Poohara                      1,394   $21,131   waingaro                    1,364                 $20,784
Pukerewa                       170    $6,967   waipapa                     1,836                 $26,246
Puukaki                        316    $8,657   waiti                         598                 $11,920
Puurekireki                  1,102   $17,752   whaataapaka                   784                 $14,072
raakaunui                    1,219   $19,106
                                               total                               57,036     $1,000,000
raungaiti                    1,318   $20,251
rereteewhioi                   287    $8,321   *note: the annual allocations to tahunakaitoto and te koopua
                                               have not been paid since settlement.
rukumoana                    1,215   $19,060




                                                Waikato Raupatu Lands Trust Annual Report 2010                35
       WAIKATO RAUPATU LANDS TRUST
       DIRECTORY
       Date of estaBlishment              auDitor                  Postal aDDress
       10 november 1995                   PricewaterhouseCoopers   Private Bag 542,
                                          Private Bag 92162,       ngaaruawaahia 3742
       funCtion                           auckland 1142
       to administer the trust’s assets                            telePhone
       for the general benefit of its     soliCitor                +64 7 824 8689
       beneficiaries as defined in the    Chapman tripp
       waikato raupatu lands trust        Po Box 2206,             faCsimile
       Deed, the waikato raupatu          auckland 1140            +64 7 824 5133
       Claims settlement act 1995,
       and the waikato raupatu river      Bank                     weBsite
       trust Deed.
                                          Bank of new Zealand      www.tainui.co.nz
                                          524 te rapa road,
       trustee
                                          hamilton 3200
       waikato-tainui te kauhanganui
       incorporated




36   Waikato Raupatu Lands Trust Annual Report 2010
financial
  statements
                        for the year ended
                             31 March 2010




     statements of Comprehensive income                   38
     statements of financial Position                     39
     statements of Changes in equity                      40
     statements of Cash flows                             41
     notes to the financial statements                    42
     auditors’ report                                     78
                                                                 FIN AN CI AL STATEMENTS




                Waikato Raupatu Lands Trust Annual Report 2010   37
     WAIKATO RAUPATU LANDS TRUST
     STATEMENTS OF COMPREHENSIVE INCOME
     FOR THE YEAR ENDED 31 MARCH 2010	



                                                                                          ConsoliDateD                         Parent
                                                                                          2010                     2009        2010         2009
                                                                  note                    $'000                    $'000       $'000        $'000


     revenue                                                      4(a)                      29,153                26,154        10,594      10,923
     other income                                                 4(a)                       3,706                       960       994         436
     expenses                                                     4(b)                    (19,423)              (14,508)       (8,381)      (6,222)
     finance costs - bank loans                                                             (4,711)              (5,859)           (1)          (7)
     finance income - short term deposits                                                    1,522                       858       182         619
     share of profit of associates                                5                             473                       53           -            -
     net oPeratinG Profit for the year                            6                         10,720                 7,658         3,388       5,749


     other gains/(losses)                                         4(c)                      12,232              (52,989)       (6,240)     (12,669)
     Grants                                                       7                        (4,375)               (7,344)       (4,154)      (7,143)
     net Profit/(loss) for the year                                                         18,577              (52,675)       (7,006)     (14,063)


     other ComPrehensiVe inCome for the year
     (loss) on revaluation of farm
     and other properties               8(c)                                               (2,172)                  (651)              -            -
     transfer of net assets of subsidiaries                       24                        85,785                         -           -            -
     other ComPrehensiVe inCome for the year                                                83,613                  (651)              -            -
     total ComPrehensiVe inCome for the year                                              102,190               (53,326)       (7,006)     (14,063)




     these financial statements should be read in conjunction with the accompanying notes to the financial statements.
38   Waikato Raupatu Lands Trust Annual Report 2010
WAIKATO RAUPATU LANDS TRUST
STATEMENTS OF FINANCIAL POSITION
AS AT 31 MARCH 2010	

                                                                                      ConsoliDateD                     Parent
                                                                                      2010                    2009     2010        2009
                                                             note                     $'000                   $'000    $'000       $'000


eQuity
retained earnings                                                 8                 517,354                  412,992   190,407     197,413
revaluation reserves                                              8                  18,675                   20,847         -           -
minority interest                                                 8                   1,539                        -         -           -
                                                                                    537,568                  433,839   190,407     197,413

Current assets
Cash and cash equivalents                                                             34,686                  11,767     2,200       5,834
trade and other receivables                                     10                    50,654                   5,616     4,026       3,255
inventory                                                       11                     3,508                   2,246         -           -
Biological assets                                               12                       616                     815         -           -
advances - subsidiaries                                         13                         -                       -    74,027      74,027
                                                                                      89,464                  20,444    80,253      83,116


non-Current assets
other receivables                                               14                   13,898                        -       479           -
other financial assets                                          15                   63,047                   63,896         -           -
investment in associates                                         5                   13,010                   13,178         -           -
investment in subsidiaries                                      16                        -                        -    70,253      70,253
intangible assets                                               17                   20,622                   18,494         -           -
Biological assets                                               12                    1,905                    1,765         -           -
Property, plant and equipment                                   18                   45,141                   58,882    10,336      11,301
investment properties                                           19                  367,779                  313,016     4,105       3,586
te wherowhero title properties                                  20                   29,626                   36,070    29,626      36,070
                                                                                    555,028                  505,301   114,799     121,210
total assets                                                                        644,492                  525,745   195,052     204,326

Current liaBilities
trade and other payables                                        21                    15,548                  12,778     3,269       5,280
interest bearing liabilities                                    22                    18,470                     348         3           3
advances - subsidiaries                                         13                         -                       -     1,350       1,599
                                                                                      34,018                  13,126     4,622       6,882

non-Current liaBilities
interest bearing liabilities                                    22                    69,256                  74,531       23          31
other financial liabilities                                     15                     3,650                   4,249        -           -
                                                                                      72,906                  78,780       23          31


total liaBilities                                                                   106,924                   91,906     4,645       6,913
                                                                                                                                               C OMPR EH E NS IV E I N COME A ND




total net assets                                                                    537,568                  433,839   190,407     197,413
                                                                                                                                                   FIN AN C IA L P OSI TI ON




exeCutiVe memBer                                                         exeCutiVe memBer
waikato-tainui te kauhanganui incorporated                               waikato-tainui te kauhanganui incorporated
25 june 2010                                                             25 june 2010
these financial statements should be read in conjunction with the accompanying notes to the financial statements.
                                                                                              Waikato Raupatu Lands Trust Annual Report 2010     39
     WAIKATO RAUPATU LANDS TRUST
     STATEMENTS OF CHANGES IN EQUITY
     FOR THE YEAR ENDED 31 MARCH 2010	



                                                                              attriButaBle to the owner of the Parent

     GrouP                                                                    reValuation              retaineD                         minority   total
                                                                              reserVes                 earninGs           total         interest   eQuity
                                                                              $’000                    $’000              $’000         $’000      $’000


     BalanCe as at 1 aPril 2008                                                  24,285                462,880            487,165              -   487,165

     ComPrehensiVe inCome
     net (loss) for the year                                                            -              (52,675)           (52,675)             -   (52,675)

     other ComPrehensiVe inCome
     reclassification                                                           (2,787)                   2,787                  -             -         -
     (loss) on the revaluation of farm and other properties                       (651)                       -              (651)             -     (651)
     total other ComPrehensiVe inCome                                           (3,438)                   2,787              (651)             -     (651)
     BalanCe as at 31 marCh 2009                                                 20,847                412,992            433,839              -   433,839

     ComPrehesiVe inCome
     net profit for the year                                                            -                18,577            18,577              -    18,577

     other ComPrehensiVe inCome
     transfer of net assets of subsidiaries                                                              85,785            85,785              -    85,785
     (loss) on the revaluation of farm and other properties                     (2,172)                       -            (2,172)             -    (2,172)
     total other ComPrehensiVe inCome                                           (2,172)                  85,785            83,613              -    83,613
     minority interest                                                                  -                       -                   -      1,539     1,539
     BalanCe as at 31 marCh 2010                                                 18,675                517,354            536,029          1,539   537,568




     Parent                                                                   reValuation              retaineD
                                                                              reserVes                 earninGs           total
                                                                              $’000                    $’000              $’000

     BalanCe as at 1 aPril 2008                                                         -               211,476          211,476

     ComPrehensiVe inCome                                                               -
     net (loss) for the year                                                                           (14,063)          (14,063)
     BalanCe as at 31 marCh 2009                                                                       197,413           197,413

     ComPrehensiVe inCome
     net (loss) for the year
                                                                                        -                (7,006)          (7,006)
     total other ComPrehensiVe inCome                                                   -                        -              -
     BalanCe as at 31 marCh 2010                                                        -              190,407           190,407




     these financial statements should be read in conjunction with the accompanying notes to the financial statements.

40   Waikato Raupatu Lands Trust Annual Report 2010
WAIKATO RAUPATU LANDS TRUST
STATEMENTS OF CASH FLOW
FOR THE YEAR ENDED 31 MARCH 2010	



                                                                                     ConsoliDateD                        Parent
                                                                                     2010                     2009       2010        2009
                                                                  note               $'000                    $'000      $'000       $'000

Cash flows from oPeratinG aCtiVities
receipts from customers                                                                 30,401                29,499       10,981     13,854
Payments to suppliers                                                                 (19,932)              (17,650)     (13,974)   (16,532)
net finance (costs)                                                                    (3,188)               (5,001)          181        612
net cash generated from/(used in)
operating activities                                                 9                   7,281                  6,848     (2,812)    (2,066)

Cash flows from inVestinG aCtiVities
transfer of subsidiary                              24                                  30,135                     -           -           -
Proceeds from sale of managed funds                                                     16,832                 6,770           -           -
Payment for investments in unlisted companies                                            (494)               (1,025)           -           -
amounts paid to related parties                                                              -                     -       (250)           -
Proceeds from sale of property, plant and equipment                                         11                   144          11         114
Payments for property, plant and equipment                                             (6,579)               (2,804)        (95)     (1,742)
Proceeds from sale of investment properties                                              1,228                 3,315           -           -
Payment for investment properties                                                     (38,097)              (15,769)           -           -
Payment for intangible assets                                                            (245)                     -           -           -
Payments for unsecured loan                                                                  -                     -       (480)           -
net cash generated from/(used in) investing activities                                   2,791                (9,369)      (814)     (1,628)

Cash flows from finanCinG aCtiVities
Proceeds from borrowings                                                                12,850                  1,945           -          -
repayment of borrowings                                                                     (3)                    (3)        (8)        (4)
net cash generated from/(used in) financing activities                                  12,847                  1,942         (8)        (4)
net inCrease/(DeCrease) in Cash                                                         22,919                  (579)     (3,634)    (3,698)
anD Cash eQuiValents


Cash anD Cash eQuiValents at
the BeGinninG of the year                                                               11,767                12,346       5,834      9,532
Cash anD Cash eQuiValents at
the enD of the year                                                                     34,686                11,767       2,200      5,834




material non-cash transactions entered into during the year include the transfer of the waikato raupatu river trust and waikato-tainui
te kauhanganui incorporated (note 24).
                                                                                                                                               CHA NGE S IN E QU ITY A ND
                                                                                                                                                     C A SH FLOW




these financial statements should be read in conjunction with the accompanying notes to the financial statements.

                                                                                             Waikato Raupatu Lands Trust Annual Report 2010     41
     WAIKATO RAUPATU LANDS TRUST
     NOTES TO THE FINANCIAL STATEMENTS
     FOR THE YEAR ENDED 31 MARCH 2010	

     1 General information
       the waikato raupatu lands trust (“trust” or “Parent”) and its subsidiaries (together referred to as the “Group”) principal activities are
       grant distribution, property investment, property development and investment activity in new Zealand.
        the consolidated financial statements have been prepared in accordance with Generally accepted accounting Practice in new Zealand
        (“nZ GaaP”). they comply with the new Zealand equivalents to international financial reporting standards (“nZ ifrs”), international
        financial reporting standards (“ifrs”) and other applicable financial reporting standards as appropriate for public benefit entities.
        the Parent is a trust incorporated and domiciled in new Zealand.
        on 1 april 2009, it was approved that the waikato raupatu trustee Company limited be removed as trustee of the waikato raupatu
        lands trust and shareholder of tainui Group holdings limited and be replaced by waikato-tainui te kauhanganui incorporated.
        the financial statements were authorised for issue by the trustee on 25 june 2010
        the principal accounting policies applied in preparation of these financial statements are set out below. these policies have been
        consistently applied for all years presented, unless otherwise stated.
        waikato rauPatu lanD settlement
        on 22 may 1995, waikato-tainui signed the Deed of settlement with the Crown’s representatives for a full and final settlement of
        its raupatu claim to be made to the waikato raupatu lands trust. this agreement formed the basis for the waikato raupatu Claims
        settlement act 1995.
        the settlement, being the redress value, is specified as $170 million. the settlement was realised as follows:
        (a) te rapa airforce Base transferred to waikato-tainui in 1993 as an advance on the settlement (at agreed 1993 market value);
        (b) Crown reimbursement of negotiation and research costs incurred by tainui maaori trust Board being amounts paid from 21
            september 1992 totalling $2,646,580;
        (c) lands situated in the waikato-tainui claim area which were owned by the Crown and selected by waikato-tainui (the process is
            outlined in the Deed of settlement) at values agreed between the parties using the valuation methodology stated in the Deed of
            settlement; and
        (d) any balance remaining was paid in cash to the waikato land acquisition trust which transferred the cash to the waikato raupatu
            lands trust as and when required to fund the purchase of other lands.
        the lands referred to in (c) above were identified, transfer dates agreed upon and transfer values determined by both parties by 30
        november 1996. these lands were to be returned over a 5 year period from 22 may 1995. in addition, interest was paid by the Crown
        on the outstanding balance of the redress value.
     2 summary of siGnifiCant aCCountinG PoliCies

        2.1 Basis of PreParation
            entities rePortinG
            waikato raupatu lands trust is the ultimate parent entity of the Group. the waikato-tainui te kauhanganui incorporated is the
            corporate trustee of the waikato raupatu lands trust.
            the financial statements for the Parent are for the waikato raupatu lands trust as a separate legal entity. the consolidated
            financial statements for the Group are for the economic entity comprised of the waikato raupatu lands trust and its subsidiaries.
            historiCal Cost ConVention
            the consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of
            farm and other properties, investment properties, te wherowhero investment properties, biological assets and financial assets and
            liabilities (including derivative instruments) at fair value through the profit or loss which are carried at fair value.
        2.2 CritiCal aCCountinG estimates anD juDGments
            the preparation of financial statements in conformity with nZ ifrs requires the use of certain critical accounting estimates. it also
            requires management to exercise its judgment in the process of applying the consolidated Group’s accounting policies.
            the estimates and judgments are reviewed by management on an ongoing basis. revisions to accounting estimates are recognised
            in the period in which the estimate is revised. the following are the critical estimates and judgments management has made in the
            process of applying the Group’s accounting policies and that have the most significant impact on the amounts recognised in the
            financial statements.




42   Waikato Raupatu Lands Trust Annual Report 2010
  (a) fair Value of assets
      the Group record certain assets and liabilities at fair value on the statements of financial position as follows:
      other receivables (note 14) are valued using discounted cash flow techniques to determine fair value.
      Biological assets (note 12) comprise livestock and trees. Both are valued by independent valuers using current market prices less
      point of sale costs (livestock) and expectation value method less point of sale costs (trees).
      financial assets at fair value through profit or loss (note 15) include shares in unlisted companies held at fair value. the fair value of
      these shares in the absence of quoted prices has been determined using valuation techniques.
      interest rate swaps (note 15) are valued by the bank using discounted cash flow techniques to a determine fair value.
      farm and other properties (note 18), investment properties (note 19) and te wherowhero properties (note 20) have been valued
      by independent valuers as at 31 march 2010 and 31 march 2009 using a mixture of market evidence of transactional prices for
      similar properties, direct comparison, capitalisation and discounted cash flow approaches.
      the determination of fair value for each of the assets and liabilities above requires significant estimation and judgments which have a
      material impact on the statements of comprehensive income and statements of financial position.

  (b) imPairment testinG
      intangible assets with indefinite useful lives being quota (note 17) is required to be tested for impairment at least annually. this
      requires an estimation of the recoverable amount of the quota based on the higher of value in use or fair value less costs to sell. the
      determination of the recoverable amount of the quota requires significant estimation and judgment.

2.3 ChanGes in aCCountinG PoliCies anD DisClosures
  new anD amenDeD stanDarDs aDoPteD By the GrouP
  the Group has adopted the following new and amended nZ ifrss which have an impact on the financial statements:

  (a) nZ ias 1 (reViseD) ‘Presentation of finanCial statements’
      the amendments are effective for annual periods beginning on or after 1 january 2009.
      entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements
      (the income statement and statement of comprehensive income). the Group has elected to present one statement: a statement
      of comprehensive income. these financial statements have been prepared under the revised disclosure requirements. Comparative
      information has been re-presented so that it also is in conformity with the revised standard. as the change in accounting policy only
      impacts presentation aspects, there is no impact on net profit/(loss) for the year.

  (b) nZ ias 40 (amenDment) – ‘inVestment ProPerty’
      the amendments are effective for annual periods beginning on or after 1 january 2009. the transitional provision requires that
      property under construction previously reported under nZ ias 16 - ‘Property, Plant and equipment’ at historical cost, be reclassified
      as investment property under nZ ias 40 at fair value, with the fair value adjustment from cost being taken to the current year profit
      and loss. fair value measurement is only applied if the fair value is considered to be reliably measureable. this amendment has
      been adopted prospectively on 1 april 2009. the impact on the current years net profit/(loss) and investment property is a fair
      value loss of $7.8m.

  (c) nZ ifrs 7 (amenDment) - ‘finanCial instruments - DisClosures
      the amendments are effective for annual periods beginning on or after 1 january 2009. the amended nZ ifrs 7 introduces
      a three level hierarchy for fair value measurements. in addition, the amendments clarify and enhance the existing requirements for
      the disclosure of liquidity risk. the amendment was adopted on 1 april 2009. as the change in accounting policy only results in
      additional disclosure, there is no impact on net profit/(loss).

  (d) nZ ifrs 9 - ‘finanCial instruments’
      nZ ifrs 9 - ‘financial instruments’ is the first part of phase 1 to replace nZ ias 39 - ‘financial instruments’. it is effective for annual
      periods beginning on or after 1 january 2010 with early application permitted. the Group adopted nZ ifrs 9 on 1 april 2009 and
      elected to restate prior period amounts on an asset by asset basis. this amendment has been early adopted from 1 april 2009.

      the first phase replaces the multiple classification and measurement models in nZ ias 39 with a single model that has only two
                                                                                                                                                    FI N AN CI A L S TATE MEN TS




      classification categories: amortised cost and fair value. it removes the requirement to separate embedded derivatives from financial
                                                                                                                                                          N OTES TO TH E




      assets and hosts and requires a hybrid contract to be classified in its entirety at either amortised cost or fair value. nZ ifrs 9
      classification principles indicate that all equity investments should be measured at fair value. however, management has an option
      to present in other comprehensive income unrealised and realised fair value gains and losses on equity investments that are not
      held for trading. such designation is available on initial recognition on an instrument-by-instrument basis and is irrevocable. there
      is no subsequent recycling of fair value gains and losses to profit or loss; however, dividends from such investments will continue
      to be recognised in profit or loss. nZ ifrs 9 removes the cost exemption for unquoted equities and derivatives on unquoted equities
      but provides guidance on when cost may be an appropriate estimate of fair value.

                                                                             Waikato Raupatu Lands Trust Annual Report 2010                          43
            as a result, the Group has restated all equity instruments previously held as available for sale to assets at fair value through profit or
            loss. this has resulted in an unrealised gain of $14.9m being recognised as other gains/(losses) in the statements of comprehensive
            income for the year ended 31 march 2010, additional $1.4m loss recognised in the statements of comprehensive income, being the
            loss previously recognised in equity as at 31 march 2009, and a transfer of $1.8m from the revaluation reserve to opening retained
            earnings as at 1 april 2008.
     2.4 stanDarDs, amenDments anD interPretations to existinG stanDarDs that are not yet effeCtiVe anD haVe
         not Been early aDoPteD By the GrouP
         the following standards and amendments and interpretations to existing standards that are not yet effective and have not been early
         adopted by the Group.

        nZ ifrs 5 (amenDment) - ‘measurement of non-Current assets (or DisPosal GrouPs) ClassifieD as
        helD-for-sale’
        the amendment is part of the iasB’s annual improvements project published in april 2009. the amendment provides clarification that
        ifrs 5 specifies the disclosures required in respect of non-current assets (or disposal groups) classified as held for sale or discontinued
        operations. it also clarifies that the general requirement of nZ ias 1 still apply, particularly paragraph 15 (to achieve a fair presentation)
        and paragraph 125 (sources of estimation uncertainty) of nZ ias 1. the Group will apply nZ ifrs 5 (amendment) from 1 april 2010. it is
        not expected to have a material impact on the Group financial statements.

     2.5 ConsoliDation
         the consolidated financial statements comprise of the trust, the Group and the Group’s interest in associates and joint ventures.
        (a) suBsiDiaries
            subsidiaries are all entities over which the Group has the power to govern the financial and operating policies so as to obtain
            benefits from their activities. subsidiaries are consolidated from the date on which control is transferred to the Group. they are de
            consolidated from the date that control ceases.

            the purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. the cost of an acquisition
            is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of
            exchange, plus costs directly attributable to the acquisition. identifiable assets acquired and liabilities and contingent liabilities
            assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of
            any minority interest. the excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets
            acquired is recorded as goodwill. if the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the
            difference is recognised directly in the statements of comprehensive income.

            the Group applies a policy of treating transactions with minority interest as transactions with parties external to the Group.
            Disposals to minority interests result in gains and losses for the Group and are recorded in the statements of comprehensive income.
            Purchases from minority interests result in goodwill, being the difference between any consideration paid and the relevant shares
            acquired of the carrying value of net assets of the subsidiary.

            inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated in the
            consolidated financial statements. accounting policies of subsidiaries have been changed where necessary to ensure consistency
            with the policies adopted by the Group.

        (b) assoCiates
            associates are all entities over which the Group has significant influence but not control. investments in associates are accounted
            for using the equity method of accounting and are initially recognised at cost.

            the Group’s share of its associates’ post-acquisition profits or losses are recognised in the statements of comprehensive income,
            and its share of post-acquisition movements in reserves is recognised in reserves. the cumulative post-acquisition movements
            adjust the carrying amount of the investment.

            when the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured
            receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the
            associate.

            unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the
            associates. accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted
            by the Group.

        (c) joint Ventures
            the Group’s interests in jointly controlled entities are accounted for by proportionate consolidation. the Group combines its share
            of joint ventures’ individual income and expenses, assets and liabilities on a line by line basis with similar items in the Group’s
            financial statements.


44   Waikato Raupatu Lands Trust Annual Report 2010
       the Group recognises the portion of gains or losses on the sale of assets by the Group to the joint venture that is attributable
       to the other ventures. the Group does not recognise its share of the profits or losses from the joint venture that result from the
       Group’s purchase of assets from the joint venture until it resells the assets to an independent party. however, a loss on the
       transaction is recognised immediately if the loss provides evidence of a reduction in the net realisable value of current assets, or an
       impairment loss.
        joint venture accounting policies have been changed where necessary to ensure consistency with the policies adopted by the Group.

2.6 Common Control transaCtions
    Business combinations in which all of the combining entities or businesses ultimately are controlled by the same party or parties both
    before and after the combination are recognised as common control transactions.

    in a common control transaction, the Group incorporates the assets and liabilities at the amounts recorded in the financial statements of
    the acquired or transferred entity (the predecessor carrying values). the gain or loss arising on the acquisition or transfer is recognised
    in equity. the results of the acquired or transferred entity are recognised in the statements of comprehensive income of the Group from
    the date of the acquisition or transfer.

2.7 foreiGn CurrenCy translation

    (a) funCtional anD Presentation CurrenCy
        items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
        environment in which the entity operates (“the functional currency”). the consolidated financial statements are presented in new
        Zealand dollars, which is the trust’s functional and the Group’s presentation currency.
    (b) transaCtions anD BalanCes
        foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
        transactions. foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year
        end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statements of
        comprehensive income.

        Changes in the fair value of monetary securities denominated in a foreign currency classified as at fair value through the profit or loss
        are analysed between translation differences resulting from changes in the amortised cost of the security and other changes in the
        carrying amount of the security. translation differences related to changes in amortised cost are recognised in the statements of
        comprehensive income.

        translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are
        recognised in profit or loss as part of their fair value gain or loss.

2.8 Cash anD Cash eQuiValents
    Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original
    maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current and non-current liabilities
    in the statements of financial position.

2.9 traDe anD other reCeiVaBles
    trade receivables are recognised initially at fair value plus transaction costs and subsequently measured at amortised cost using the
    effective interest method, less provision for impairment. a provision for impairment of trade receivables is established when there is
    objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. significant
    financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in
    payments are considered indicators that the trade receivable is impaired. the amount of the provision is the difference between the
    asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. the
    amount of the provision is recognised in the statements of comprehensive income within “expenses”. when a receivable is
    uncollectable, it is written off against the provision.

2.10 inVentories
    inventories are stated at the lower of cost and net realisable value. Cost of inventory is comprised of sections costs and other direct
    costs. net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the
    estimated costs necessary to make the sale.

2.11 BioloGiCal assets
    Biological assets are measured at fair value less estimated point of sale costs. the fair value of livestock is determined based on
    market prices of livestock of similar age, breed and genetic merit. the fair value of trees is determined annually by independent valuers
    by calculating the crop expectation and future value discounted back to the present value, based on the rotation age of the crop and the
    current market prices of the logs.


                                                                                Waikato Raupatu Lands Trust Annual Report 2010                           45
     2.12 finanCial assets anD liaBilities
        reCoGnition anD measurement
        a financial asset or liability is recognised if the Group becomes party to the contractual provisions of the instrument. regular purchases
        and sales of financial assets and liabilities are recognised on the trade date, the date on which the Group commits to purchase or sell the
        asset or liability. a financial asset or liability is recognised initially at its fair value and in the case of a financial asset or liability measured
        at amortised cost includes transaction costs that are directly attributable to the acquisition or issue of the instrument.

        finanCial assets anD liaBilities measureD at amortiseD Cost
        financial assets and liabilities measured at amortised cost are non-derivative financial assets and liabilities which meet the following
        criteria:
        a) held within a business model whose objective is to hold an instrument in order to collect contractual cash flows; and
        b) the contractual terms of the instrument gives rise on specified dates to cash flows that are solely payments of principal and interest
           on the principal amount outstanding.

        a gain or loss on a financial asset and liability that is measured at amortised cost and is not part of a hedging relationship is
        recognised in profit and loss when the instrument is derecognised, impaired or reclassified and through the amortisation process.

        trade and other receivables are classified as financial assets measured at amortised cost. trade and other payables and debt
        instruments are classified as financial liabilities measured at amortised cost.

        finanCial assets anD liaBilities measureD at fair Value throuGh Profit or loss
        financial assets and liabilities are measured at fair value unless measured at amortised cost. at initial recognition, an entity may
        make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an
        equity instrument within the scope of this nZ ifrs that is not held for trading. if an entity makes this election, it shall recognise in profit
        or loss dividends from that investment when the entity’s right to receive payment of the dividend is established in accordance with
        nZ ias 18 ‘revenue’. an entity may also at initial recognition, designate an instrument as measured at fair value through profit or loss
        if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring the
        instruments or recognising gains and losses on them on different bases.

        the fair values of quoted investments are based on current bid prices. if the market for a financial asset is not active (and for unlisted
        securities), the Group establishes fair value by using valuation techniques. these include the use of recent arm’s length transaction
        pricing models refined to reflect the Group’s specific circumstances.

        a gain or loss on a financial asset or liability that is measured at fair value and is not part of a hedging relationship shall be recognised in
        profit and loss unless the financial asset is an investment in an equity instrument and the entity has made an irrevocable election to
        present gains and losses on that investment on other comprehensive income.

        financial assets are de-recognised when the rights to receive cash flows from the financial assets have expired or have been transferred
        and the Group has transferred substantially all risks and rewards of ownership. financial liabilities are de-recognised if the Group’s
        obligations specified in the contract expire or are discharged or cancelled.

        investment property liabilities and derivative financial instruments are classified as financial liabilities measured at fair value through
        profit or loss.

     2.13 inVestments in assoCiates, suBsiDiaries anD joint Ventures
         investments in associates, subsidiaries and joint ventures are valued at cost less impairment in the Group.

     2.14 intanGiBle assets
         (a) Quota
             separately acquired fishing quota has an indefinite useful life and will generate economic benefits beyond one year. fishing quota is
             tested annually for impairment and is carried at cost less accumulated impairment.

            the useful life is assessed annually to determine whether the indefinite useful life assessment continues to be supportable.

        (b) ComPuter software
            separately acquired computer software and licenses at a cost greater than $10,000 are capitalised on the basis of the costs incurred
            to acquire and bring to use the specific asset. these costs are amortised on a straight line basis over their estimated useful lives of
            two years

            Costs under $10,000 associated with maintaining computer software programmes are recognised as an expense as incurred.




46   Waikato Raupatu Lands Trust Annual Report 2010
2.15 ProPerty, Plant anD eQuiPment
    farm and other properties are comprised of land, buildings and plant and are shown at fair value, based on periodic, but at least
    triennial, valuations by external independent valuers, less subsequent depreciation for buildings. any accumulated depreciation at the
    date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is restated to the revalued amount
    of the asset. trust and other properties, land at cost, hotels under construction, vehicles, plant, equipment, fixtures and fittings are
    stated at historical cost less depreciation and impairment. historical cost includes expenditure that is directly attributable to the
    acquisition of the items.

   subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
   that future economic benefits associated with the item will flow to the trust and Group and the cost of the item can be measured reliably.
   all other repairs and maintenance are charged to the statements of comprehensive income during the financial period in which they are
   incurred.

   increases in the carrying amount arising on revaluation of farm and other properties are credited to the statements of comprehensive
   income, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense in the
   statements of comprehensive income, in which case the increase is credited to the statements of comprehensive income to the extent
   of the decrease previously recognised. a decrease in the carrying amount arising on the revaluation of land and buildings is charged as
   an expense in the statements of comprehensive income to the extent that it exceeds the balance, if any, held in the asset revaluation
   reserve relating to a previous revaluation of that asset.

   Development property and land at cost is not depreciated. Depreciation on other assets is calculated using the diminishing value
   method (to allocate their cost or revalued amounts less their residual values over their estimated useful lives) as follows:

       farm and other properties                                       2.0% - 11.4%
       trust buildings                                                 2.0% - 21.6%
       Buildings                                                       2.0% - 11.4%
       Plant and equipment                                             4.8% - 48.0%
       Vehicles                                                        12.0% - 31.2%
       Computer, office equipment, furniture and fittings              9.5% - 50.0%

   the asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.

   an asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
   estimated recoverable amount.

   Gains and losses on disposals are determined by comparing proceeds with carrying amounts. these are included in the statements of
   comprehensive income. when revalued assets are sold, the amounts included in other reserves are transferred to retained earnings.

2.16 inVestment ProPerties
    investment properties include properties held to earn rental income, and/or for capital appreciation. a property is also classified as an
    investment property if it does not have an operating lease in place, but is held with the intention of attaining an operating lease.

   investment properties are initially recognised at cost, including transaction costs. subsequent to initial recognition, investment properties
   are carried at fair value, representing open-market value determined annually by external valuers. Changes in fair value are recorded in
   the statements of comprehensive income.

   where a property sub-lessors interest is held under an operating lease, it is recognised as investment property with a corresponding
   liability designated at fair value through profit or loss.

2.17 te wherowhero ProPerties
    te wherowhero title is the mechanism set up to protect the title of lands in the tribal estate. the benefits and the land in te wherowhero
    title are for all waikato-tainui and the land cannot be succeeded to, sold, alienated, mortgaged or gifted without adherence to a process
    to obtain the mandate of the voting beneficiaries or their representatives and unanimous consent of the Custodial trustees.

   Custodians of te wherowhero title are the head of the kahui ariki and two elected successors to the late sir robert te kotahi mahuta
   and the late tumate mahuta.
   as at 31 march 2010 (and 31 march 2009), the title is protected by the Custodial trustee - kiingi tuheitia. lands under this title are
   separately disclosed in note 20.

   te wherowhero investment property is carried at fair value, representing open-market value determined by external valuers. Changes in
   fair value are recorded in the statements of comprehensive income.

   te wherowhero property that is not investment land is not leased and is recorded at historical cost.

                                                                             Waikato Raupatu Lands Trust Annual Report 2010                        47
     2.18 imPairment of non-finanCial assets
         assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. assets that are subject
         to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
         recoverable. an impairment loss is recognised when the asset’s carrying amount exceeds its recoverable amount. the recoverable
         amount is the higher of an asset’s fair value less costs to sell and value in use.

        impairment losses are recognised first against the revaluation reserves in respect of the impaired asset, and second as an expense in
        the statements of comprehensive income.

        where an impairment loss subsequently reverses, the carrying amount of the asset (cash generating unit) is increased to the revised
        estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that
        would have been determined had no impairment loss been recognised for the asset (cash generating unit) in prior years. a reversal of
        an impairment loss is recognised in the statements of comprehensive income immediately, unless the relevant asset is carried at fair
        value, in which case the reversal of the impairment loss is treated as a revaluation increase.

        for the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows
        (cash-generating units). non-financial assets that suffered impairment with the exception of fishing quota are reviewed for possible
        reversal of the impairment at each reporting date.

     2.19 traDe anD other PayaBles
         trade payables and other accounts payable are recognised when the Group becomes obliged to make future payments resulting
         from the purchase of goods and services. trade and other accounts payables are recognised initially at fair value plus transaction
         costs and subsequently measured at amortised cost using the effective interest method.

     2.20 interest BearinG loans anD BorrowinGs
         Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised
         cost using the effective interest rate method. any difference between the proceeds (net of transaction costs) and the redemption value is
         recognised in the statements of comprehensive income over the period of the borrowings using the effective interest method.

        Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12
        months after balance date.

     2.21 Current anD DeferreD inCome tax
         the inland revenue Department approved the trust as charitable for the purposes of the income tax act 1994. accordingly, no income
         tax is payable.

        however some subsidiary and associate entities are taxable. in the instances where an entity is taxable, current tax is calculated by
        reference to the amount of income taxes payable or recoverable in respect of the taxable profit or loss for the period. it is calculated
        using tax rates and tax laws that have been enacted or substantively enacted by the reporting date. Current tax for current and prior
        periods is recognised as a liability (or asset) to the extent that tax is unpaid (or refundable).

        the Group is not liable for taxes payable on profits or losses from joint ventures as the Group’s holders of all joint venture agreements
        have charitable tax status.

        Deferred tax is accounted for using the comprehensive statements of financial position liability method in respect of temporary
        differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the
        corresponding tax base of those items.

        in principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent
        that it is probable that sufficient taxable amounts will be available against which deductible temporary differences or unused tax losses
        and tax offsets can be utilised. however, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to
        them arise from the initial recognition of assets and liabilities (other than as a result of a business combination) which affects neither
        taxable income nor accounting profit. furthermore, a deferred tax liability is not recognised in relation to taxable temporary differences
        arising from goodwill.

        Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when the asset and liability
        giving rise to them are realised or settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by
        reporting date. the measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner
        in which the consolidated entity expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.




48   Waikato Raupatu Lands Trust Annual Report 2010
   Current and deferred tax is recognised as an expense or income in the statements of comprehensive income, except when it relates to
   items credited or debited directly to equity, in which case the deferred tax or current tax is also recognised directly in equity, or where it
   arises from the initial accounting for a business combination, in which case it is taken into account in the determination of goodwill or
   excess.
   see note 3 for details of entities that have charitable status.

2.22 reVenue reCoGnition
    revenue is comprised of the fair value for the sale of goods and services, net of goods and services tax (Gst), rebates and discounts
    and after eliminating sales within the Group. revenue is recognised as follows:

   (a) rental income is recognised on a straight line basis over the lease term;
   (b) sale of goods are recognised when the Group has transferred the significant risks and rewards of ownership of the goods sold. for
       sections, recognition is on the sale contract becoming unconditional and the title passing. the recorded revenue is the gross amount
       of the sale;
   (c) Quota lease income is recognised when the Group has receipted income from the quota lessee. Quota is recognised on a monthly
       accruals basis;
   (d) Dairy income is recognised when the Group has transferred the significant risks and rewards of ownership of the goods sold;
   (e) interest income is recognised on a time proportion basis using the effective interest method. when a receivable is impaired, the
       Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original
       effective interest rate of the instrument, and continues unwinding the discount as interest income. interest income on impaired loans
       is recognised either as cash is collected or on a cost-recovery basis as conditions warrant; and
   (f) Dividend income is recognised when the right to receive payment is established.

2.23 emPloyee Benefits
    liabilities are recognised for benefits accruing to employees in respect of wages and salaries, annual leave, and sick leave where it is
    probable that settlement will be required and they are capable of being measured reliably.

   liabilities in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the
   remuneration rate expected to apply at the time of settlement.

   liabilities in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of
   the estimated future cash outflows to be made by the Group in respect of services provided by employees up to reporting date.

   the Group recognises a liability and an expense for bonuses based on a formula that takes into consideration the achievements
   of agreed key performance indicators, including the achievement of financial budget targets. the Group recognises a provision where
   contractually obliged or where there is a past practice that has created a constructive obligation.

2.24 leases
    leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.
    Payments made under operating leases (net of any incentives received from the lessor) are charged to the statements of comprehensive
    income on a straight-line basis over the period of the lease.

   Property interests held by a lessee under an operating lease are recognised as part of the carrying amount of the investment property
   with a corresponding liability designated at fair value through profit or loss being recorded.

2.25 BorrowinG Costs
    Borrowing costs incurred for the construction of assets that take a substantial period of time to prepare for their intended use or sale are
    capitalised during the period of time that is required to complete and prepare the assets for their intended use. other borrowing costs
    are expensed.

2.26 statements of Cash flows
    the statements of cash flows are prepared exclusive of Gst. for the purposes of the statements of cash flows, cash and cash
    equivalents include cash in banks and investments in money market instruments, net of outstanding bank overdrafts.

   operating activities include all transactions and other events that are not investing or financing activities.

   investing activities are those activities relating to the acquisition and disposal of current and non-current investments and any other
   non-current assets.
   financing activities are those activities relating to changes in the equity and debt capital structure of the trust and Group and those
   activities relating to the cost of servicing the trust’s and Group’s equity capital.




                                                                              Waikato Raupatu Lands Trust Annual Report 2010                        49
     2.27 Gst
         revenues, expenses, assets and liabilities are recognised net of the amount of Gst, except for receivables and payables which are
         recognised inclusive of Gst. Cash flows are included in the statements of cash flows exclusive of Gst.

     3 ConsoliDation
                                                      CharitaBle oPeratinG              ownershiP anD VotinG interest              BalanCe
        suBsiDiaries :                                  status    DiVision                2010                2009                   Date
        maori Development Corporation limited              no           investment          100%                   100%              31-mar
        mDC finance limited                                no           investment          100%                   100%              31-mar
        mDC funds management limited                       no           investment          100%                   100%              31-mar
        mDC nominees limited                               no           investment          100%                   100%              31-mar
        raukura moana seafoods limited                     yes           fisheries          100%                   100%              31-mar
        raukura moana seafoods Quota limited               yes           fisheries          100%                   100%              31-mar
        raukura whare limited                              yes          investment          100%                   100%              31-mar
        tainui auckland airport hotel lP                   no           investment           70%                     -               31-Dec
        tainui auckland airport hotel GP limited           no           investment           70%                     -               31-Dec
        tainui Corporation limited                         yes            Property          100%                   100%              31-mar
        tainui Development limited                         yes            Property          100%                   100%              31-mar
        tainui Group holdings limited                      yes          investment          100%                   100%              31-mar
        tainui sports limited                              no           investment          100%                   100%              31-mar
        tDl no. 1 limited                                  yes          investment          100%                     -               31-mar
        te rapa 2002 limited                               yes            Property          100%                   100%              31-mar
        tGh no. 1 limited                                  no           investment          100%                   100%              31-mar
        the Base te rapa limited                           yes            Property          100%                   100%              31-mar
        waikato raupatu trustee Company limited            yes          investment          100%                   100%              31-mar
        waikato-tainui fisheries limited                   no            fisheries          100%                   100%              31-mar
        waikato-tainui te kauhanganui incorporated         yes          investment          100%                     -               31-mar
        waikato raupatu river trust                        no           investment          100%                     -               31-mar
                                                      CharitaBle oPeratinG              ownershiP anD VotinG interest              BalanCe
        assoCiates :                                    status    DiVision                2010                  2009                 Date
        hamilton riverview hotel limited                   no           investment          41%                       41%            31-Dec
        raukura moana fisheries limited                    yes           fisheries           -                        49%            30-sep

                                                      CharitaBle oPeratinG              ownershiP anD VotinG interest              BalanCe
        uninCorPorateD joint Ventures:                  status    DiVision                2010                  2009                 Date
        Boat harbour Ventures                               no           Property           63%                    63%               31-mar
        Callum Brae tainui                                  no           Property           50%                    50%               31-mar
        taG forestry joint Venture                          no           Property           50%                    50%               31-mar


        tainui auckland airport hotel GP limited and tDl no. 1 limited were incorporated on 22 july 2009. tainui auckland airport hotel lP
        was registered on 23 july 2009. in july 2009, an agreement was entered into between tDl no. 1 limited, auckland airport limited and
        aaPC nZ Pty limited (accor) to develop a hotel at auckland airport.

        raukura moana fisheries limited, an associate of the tainui Group holdings limited, was wound up in march 2010.

        the subsidiaries, interest in associates and joint ventures with balance dates other than 31 march have been included based on
        their actual balances at 31 march 2010 and not the balances at their respective reporting dates. tainui auckland airport hotel lP,
        tainui auckland airport hotel GP limited and hamilton riverview hotel limited have a balance date of 31 December to align with other
        shareholders and partners operations.

        on 1 april 2009 it was approved that the waikato raupatu trustee Company limited, be removed as trustee of the waikato raupatu
        lands trust and shareholder of tainui Group holdings limited and be replaced by waikato-tainui te kauhanganui incorporated, trustee
        of the waikato raupatu river trust. as a result of this change in trustee it was determined that the waikato raupatu lands trust
        controls the waikato raupatu river trust and a transfer was recorded on this date. the impact on the Group's statements of financial
        position is provided in note 24.

        the country of incorporation for all subsidiaries, associates and joint ventures is new Zealand.




50   Waikato Raupatu Lands Trust Annual Report 2010
the Group's interest in the joint ventures had the following effect on the financial statements:


                                                                        ConsoliDateD                         Parent
                                                                        2010                 2009            2010                2009
                                                                        $'000                $'000           $'000               $'000


    statements of ComPrehensiVe inCome
    revenue                                                              4,062              1,655                    -               -
    expenses                                                            (2,329)              (591)                   -               -
    net contribution to Group’s profit                                   1,733              1,064                    -               -


    statements of finanCial Position
    Current assets                                                       4,220              4,283                    -               -
    non-current assets                                                   5,145              5,165                    -               -
    total assets                                                         9,365              9,448                    -               -
    Current liabilities                                                     79                     92                -               -
    total liabilities                                                       79                     92                -               -
    net assets                                                           9,286              9,356                    -               -




    the results of Callum Brae tainui and Boat harbour Ventures included in the statements of comprehensive income are for the year
    ended 31 march 2010. the results for taG forestry are for the year ended 31 march 2010 (2009 - 8 month period since inception).
summarised financial information for the Group’s associates is provided below.




                                                                        ConsoliDateD                         Parent
                                                                        2010                 2009            2010                2009
                                                                        $'000                $'000           $'000               $'000


    statements of ComPrehensiVe inCome
    revenue                                                              13,898               15,397
    expenses                                                            (12,856)             (15,299)            -                   -
    net profit                                                            1,042                     98           -                   -


    statements of finanCial Position
    Current assets                                                        6,161               6,714              -                   -
    non-current assets                                                   44,177              45,397              -                   -
    total assets                                                         50,338              52,111              -                   -
    Current liabilities                                                   1,722               2,887              -                   -
    non-current liabilities                                              17,199              17,644              -                   -
    total liabilities                                                    18,921              20,531              -                   -
    net assets                                                           31,417              31,580              -                   -




    the results of hamilton riverview hotel limited and raukura moana fisheries limited included in the statements of comprehensive
    income are for the year ended 31 march 2010. the statements of financial position results are for hamilton riverview hotel limited only.



                                                                                Waikato Raupatu Lands Trust Annual Report 2010                 51
     4 oPeratinG inCome anD exPenses
       operating income and expenses include:

       (a) reVenue anD other inCome

                                                                    ConsoliDateD            Parent
                                                                    2010           2009     2010        2009
                                                                    $'000          $'000    $'000       $'000


       reVenue
       rental income                                                20,949         20,746      227        433
       sale of sections                                              4,014          1,410       -           -
       Quota leasing income                                          1,833          1,795       -           -
       Dividends
           subsidiaries                                                  -              -   10,000      10,000
           listed and unlisted companies                             1,272          1,186        -           -
       Dairy income                                                    922            809        -           -
       revenue from the rendering of services                          163            208      367         490
                                                                    29,153         26,154   10,594      10,923
       other inCome
       other                                                         3,706           960       994        436
       total reVenue anD other inCome                               32,859         27,114   11,588      11,359




       (b) exPenses
                                                                    ConsoliDateD            Parent
                                                                    2010           2009     2010        2009
                                                             note   $'000          $'000    $'000       $'000


       Cost of sales                                                 2,362          1,191       85         95
       DireCt Costs from inVestment ProPerties
       income generating properties                                  1,956           740            -           -
       non-income generating properties                                232           265            -           -
                                                                     2,188          1,005           -           -

       DePreCiation anD amortisation
       Depreciation
          trust properties and other buildings                18      466            410       457        399
          farm and other properties                           18      231            275         -          -
          Plant and equipment                                 18       59             76        59         76
          Vehicles                                            18      172            222       134        175
          Computer, office equipment, furniture & fittings    18      177            196        68         91
       amortisation of intangibles                                      -             23         -          -
                                                                     1,105          1,202      718        741

       ConsultanCy fees                                              2,267          1,721      650        984




52   Waikato Raupatu Lands Trust Annual Report 2010
                                                                ConsoliDateD                           Parent
                                                                2010                2009               2010                2009
                                             note               $'000               $'000              $'000               $'000


other exPenses
audit of the financial statements
    PricewaterhouseCoopers                                         113                   85                40                  25
other non-audit services
    PricewaterhouseCoopers                                          28                  229                17                186
Bad debts written off during the year                               63                   18                 3                 13
employee benefits                                                5,178                4,766             2,838              2,764
Directors and trustee fees                    13                 1,506                1,000               936                808
Doubtful debts provision                                           (85)                  70                (2)                 (5)
operating lease - minimum payments                                  77                   80                 9                 10
other expenses                                                   4,621                3,141             3,087                601
                                                                11,501                9,389             6,928              4,402
total exPenses                                                  19,423              14,508             8,381               6,222




Cost recoveries from the office of treaty settlements of $0.7m (2009 - $2.4m) have been offset against other expenses, being the
reimbursement of costs incurred for the waikato river claim

(c) other Gains/(losses)

                                                                ConsoliDateD                           Parent
                                                                2010                2009               2010                2009
                                             note               $'000               $'000              $'000               $'000


BioloGiCal assets
fair value gains - unrealised                  12                  439                 561                     -                   -

shares in listeD ComPanies
fair value gains/(losses) - unrealised                          14,850               (7,930)                   -                   -

shares in unlisteD ComPanies
fair value (losses) - unrealised                                  (510)              (8,419)                   -                   -

inVestments in manaGeD funDs
De-recognition gains                                               696                1,507                    -                   -
fair value gains                                                     -                  917                    -                   -
                                                                   696                2,424                    -                   -

interest rate swaPs
fair value gains/(losses) - unrealised                             599               (4,281)                   -                   -

ProPerty, Plant anD eQuiPment
(loss) on disposal of property, plant and equipment                (40)                 (35)              (36)                  -
impairment of property, plant and equipment                          -               (3,319)                -              (1,427)
                                                                   (40)              (3,354)              (36)             (1,427)




                                                                        Waikato Raupatu Lands Trust Annual Report 2010                 53
                                                                           ConsoliDateD                             Parent
                                                                           2010                 2009                2010                2009
                                                                           $'000                $'000               $'000               $'000


     inVestment ProPerties
     fair value gains/(losses) - unrealised                                   685               (23,960)                74                 (467)
     (loss)/profit on sale of investment properties                           (98)                2,745                  -                    -
                                                                              587               (21,215)                74                 (467)

     te wherowhero title ProPerties
     fair value (losses) - unrealised                                      (6,444)              (10,775)            (6,444)             (10,775)

     fisheries settlement
     fishing quota settlement                                               2,055               -                     166                       -
     total other Gains/(losses)                                            12,232               (52,989)            (6,240)             (12,669)




     realised profit on the sale of investment properties of $2.7m classified as other income in 2009 has been reclassified to other gains/(losses).
     the early adoption of nZ ifrs 9 has also resulted the reclassification of an unrealised loss of $1.6m from equity to other gains/(losses).

     5 inVestments in assoCiates
                                                                           ConsoliDateD                             Parent
                                                                           2010                 2009                2010                2009
                                                                           $'000                $'000               $'000               $'000


     inVestments in assoCiates                                             13,010               13,178                      -                   -

     CarryinG Value of assoCiates
     Carrying value at beginning of year                                   13,178               13,491                      -                   -
     Dividends received                                                     (641)                 (366)                     -                   -
                                                                           12,537               13,125                      -                   -
     share of total recognised income and expense                            473                    53                      -                   -
     CarryinG Value at enD of year                                         13,010               13,178                      -                   -

     the CarryinG Value is ComPriseD of:
     Cost                                                                   6,940                   6,940                   -                   -
     share of associate revaluation reserves                                7,222                   7,222
     share of associate post acquisition retained earnings                 (1,152)                   (984)                  -                   -
                                                                           13,010               13,178                      -                   -




     6 inCome tax
                                                                           ConsoliDateD                             Parent
                                                                           2010                 2009                2010                2009
                                                                           $'000                $'000               $'000               $'000
     unreCoGniseD DeferreD tax BalanCes
     the following deferred tax assets have not been brought
     to account as assets:

     tax losses                                                              2,186              2,164                   -                  -




54   Waikato Raupatu Lands Trust Annual Report 2010
  the taxable members of the Group have sufficient losses to carry forward to meet any potential income tax liability. the taxable
  losses are not recorded in the financial statements as it is not probable that sufficient taxable amounts will be available against which to
  utilise the tax losses.

  as at balance date there is no current tax expense, tax payable or tax receivable (2009 - nil).


7 Grants
                                                                      ConsoliDateD                             Parent
                                                                      2010                2009                 2010                2009
                                                                      $'000               $'000                $'000               $'000


  Grants PaiD DurinG the year ComPrise
  the followinG:
  marae                                                               1,000                1,000                1,000               1,000
  marae facilities                                                      464                2,852                  464               2,852
  education                                                           1,132                  863                1,132                 863
  other                                                               2,729                2,629                2,508               2,428
  less reversal of prior years marae facilities provision              (950)                   -                 (950)                   -
                                                                      4,375                7,344                4,154               7,143




8 eQuity
                                                                         ConsoliDateD                              Parent
                                                                         2010             2009                     2010             2009
                                                  note                   $'000           $'000                     $'000            $'000


  (a) retaineD earninGs
  Balance at beginning of year                                        412,992           462,880                197,413           211,476
  net profit/(loss) for the year                                       18,577           (52,675)                (7,006)          (14,063)
  transfer of subsidiaries                                             85,785                 -                       -                 -
  transfer from revaluation reserve (quota)                                 -             2,787                       -                 -
  Balance at end of year                                              517,354           412,992                190,407           197,413

  (b) reValuation reserVe (Quota)
  Balance at beginning of year                                                 -           2,787                        -                  -
  transfer to retained earnings                                                -          (2,787)                       -                  -
  Balance at end of year                                                       -               -                        -                  -


  the revaluation reserve for quota arose on a historical valuation of quota to fair value. Quota is carried at cost less accumulated
  impairment. the revaluation reserve was transferred to retained earnings in 2009 on the basis that quota is carried at cost less
  accumulated impairment.


  (c) reValuation reserVe
  (farm anD other ProPerties)

  Balance at beginning of year                                         13,625             14,276                        -                  -
  revaluation (loss) during the year                 18                 (2,172)             (651)                       -                  -
  Balance at end of year                                                11,453            13,625                        -                  -




  the revaluation reserve is the Group’s share of revaluation in plant and equipment and arises on the revaluation of farm and other
  properties. where revalued farm and other properties are sold that portion of the asset revaluation reserve which relates to that asset,
  and is effectively realised, is transferred directly to retained earnings.


                                                                              Waikato Raupatu Lands Trust Annual Report 2010                     55
                                                                          ConsoliDateD                            Parent
                                                                          2010                2009                2010                2009
                                                                          $'000               $'000               $'000               $'000
              (d) reValuation reserVe (assoCiates)
              Balance at beginning of year                                   7,222             7,222                       -                   -
              Balance at end of year                                         7,222             7,222                       -                   -


              the revaluation reserve is the Group’s share of revaluation in property, plant and equipment recorded in the associate entity.


              total reValuation reserVes                                   18,675             20,847                       -                   -


              (e) minority interest                                          1,539                    -                    -                   -
              total eQuity                                                537,568            433,839              190,407           197,413




     9 reConCiliation of Profit/(loss)                                    ConsoliDateD                            Parent
       for the year to net Cash from
                                                                          2010                2009                2010                2009
       oPeratinG aCtiVities
                                                      note                $'000               $'000               $'000               $'000

     net Profit/(loss) for the year                                       18,577              (52,675)              (7,006)           (14,063)


     aDD/(less) non Cash items:
     Depreciation and amortisation                    4(b)                 1,105                1,202                  718                741
     Bad debts written off                            4(b)                    63                   18                    3                 13
     movement in doubtful debts provision             4(b)                    85                  (70)                   2                  5
     (Gain) on revaluation of biological assets       4(c), 12              (439)               (561)                    -                  -
     (Gain)/loss on shares in listed companies        4(c), 15           (14,850)               7,930                    -                  -
     loss on shares in unlisted companies             4(c), 15               510                7,099                    -                  -
     (Gain) on managed funds                          4(c), 15                 -                (917)                    -                  -
     (Gain)/loss on interest rate swaps               4(c), 15              (599)               4,281                    -                  -
     loss on disposal of property, plant
     and equipment                                    4(c), 18                40                   35                     36                -
     impairment of property, plant and equipment      4(c), 18                 -                3,319                      -            1,427
     (Gain)/loss on revaluation of investment
     properties                                       4(c), 19               (685)             23,960                  (74)               467
     loss/(gain) on disposal of investment
     properties                                       4(c)                    98               (2,745)                    -                    -
     loss on revaluation of te wherowhero
     title properties                                 4(c), 20             6,444               10,775                6,444            10,775
     share of (profit) of associates                  5                     (473)                 (53)                   -                 -
     transfer of subsidiary                           24                  55,649                    -                    -                 -
     other non cash items in relation to
     investing/financing activities                                        (1,015)                886                (154)                 22

     (inCrease)/DeCrease in assets:
     trade and other receivables                                         (58,936)               2,152                (771)            (2,694)
     inventory                                                            (1,262)               (789)                   -                  -
     Biological assets                                                       199                (323)                   -                  -

     inCrease/(DeCrease) in liaBilities:
     trade and other payables                                              2,770                3,324               (2,011)             1,241
     net Cash from oPeratinG aCtiVities                                    7,281                6,848               (2,813)           (2,066)


56   Waikato Raupatu Lands Trust Annual Report 2010
10 traDe anD other reCeiVaBles
                                                                     ConsoliDateD                             Parent
                                                                     2010                2009                 2010          2009
                                               note                  $'000               $'000                $'000         $'000


   trade receivables                                                  7,504               1,777               1,186            408
   settlement receivable                                             40,000                   -                   -              -
   Property settlements                                               1,742               3,734                   -              -
   less provision for impairment                                        (38)              (123)                  (4)            (6)
   trade receivables from related parties        13                       -                   -               2,800          2,800
   interest receivable                                                    -                  10                   -             10
   sundry debtors                                                       403                  39                   -              -
   Prepayments                                                          350                 179                  44             23
   Gst                                                                  693                   -                   -             20
                                                                     50,654               5,616               4,026          3,255



   settlement receivable is comprised of the waikato raupatu river trust river initiative fund receivable (note 24(b)).
   movements in the provision for impairment of trade and other receivables are as follows:



                                                                     ConsoliDateD                             Parent
                                                                     2010                 2009                2010          2009
                                                                     $'000                $'000               $'000         $'000


   Balance at beginning of the year                                     123                  33                   6             11
   additional provisions                                                 32                  91                  10               6
   Provision reversals                                                 (117)                  (1)               (12)           (11)
   Balance at end of the year                                            38                 123                   4              6




11 inVentory
                                                                     ConsoliDateD                             Parent
                                                                     2010                2009                 2010          2009
                                                          note       $'000               $'000                $'000         $'000


   land - sections for sale                                           2,150               2,246                    -             -
   transfer from property, plant and equipment             18         1,358                   -                    -             -
                                                                      3,508               2,246                    -             -



  the Bank of new Zealand currently holds a registered first mortgage over property situated at huntington/Gordonton road, hamilton
  (see note 22). the transfer of inventory from Property, Plant and equipment includes sections at rotokauri ($0.9m). Development at
  rotokauri will commence in 2012.




                                                                             Waikato Raupatu Lands Trust Annual Report 2010            57
     12 BioloGiCal assets
                                                                          ConsoliDateD                             Parent
                                                                          2010                2009                 2010                2009
                                                                          $'000               $'000                $'000               $'000


        Balance at beginning of the year                                   2,580               1,976                   -                   -
        additions                                                            135                 573                   -                   -
        sales                                                              (633)               (530)                   -                   -
        Change in fair value                                                 439                 561                   -                   -
        BalanCe at enD of the year                                         2,521               2,580                   -                   -

        Current                                                              616                 815                   -                   -
        non-current                                                        1,905               1,765                   -                   -
        BalanCe at enD of the year                                         2,521               2,580                   -                   -




        the current biological assets represent livestock consisting of mixed age sheep, cattle and cows, which are held for dairy and dry stock
        farming. B Bougen and C heggie from waikato farmers limited determined the fair value of sheep, cattle and cows at 31 march 2010
        (2009 - B Bougen from waikato farmers limited and w sweeny from allied farmers limited). Both valuers provided valuations based
        on reference to market evidence of current market prices less point-of-sale costs. at balance date there were 3,301 sheep, 390 cattle
        and 101 cows (2009 - 3,040 sheep, 385 cattle and 230 cows).
        the non-current biological asset is comprised of a 374 hectare Pinus radiata forest planted in 1996 and 1997 and a 151 hectares Pinus
        radiata forest planted in 2001 and 2002. it is expected that the rotation age for the forest crop will be 27 to 28 years, at which time
        the crop will be harvested. r h webster nZif registered Valuer valued 374 hectares of the forest crop as at 31 march 2010 (2009 - 374
        hectares) using the Crop expectation Value method at a 7% discount rate (2009 - 7%) to determine fair value, less point-of-sale costs.
        alan Bell nZif registered Valuer valued 151 hectares of the forest crop as at 31 march 2010 (2009 - 151 hectares) using the discounted
        future value method at a 10% discount rate (2009 - 10%)to determine fair value, less point-of-sale costs. the non-current biological
        assets are held for investment.
        all valuers are independent registered valuers not related to the Group (other than that disclosed in note 13). all valuers hold recognised
        and relevant professional qualifications and have recent experience in the categories of biological assets they have valued.


     13 relateD Party transaCtions
                                                                          ConsoliDateD                            Parent
        amounts outstanding between the trust and related
        parties are:                                                      2010                2009                2010                 2009
                                                             note         $'000               $'000               $'000                $'000


        aDVanCes owinG By suBsiDiaries:
        tainui Group holdings limited and subsidiaries                         -                   -               74,027             74,027


        aDVanCes owinG to suBsiDiaries:
        maori Development Corporation limited                                  -                   -               (1,350)            (1,599)
                                                                               -                   -               72,677             72,428


        traDe anD other reCeiVaBles owinG
        By suBsiDiaries
        tainui Group holdings limited                           10             -                   -                2,800              2,800
        traDe anD other PayaBles owinG
        to suBsiDiaries
        tainui Group holdings limited and subsidiaries          21             -                   -                    40                 1




       waikato raupatu lands trust is the ultimate parent entity of the Group. all members of the Group are considered to be related parties
       of the trust.

58   Waikato Raupatu Lands Trust Annual Report 2010
   transactions between related entities include loans and advances to and from certain subsidiaries and associates.
   all amounts owing by and to the trust, Group and ultimate Parent are repayable on demand and are interest free. there is no
   impairment of any related party balances.
   tainui Group holdings limited charged the trust $548,805 (2009 - $413,114) for administration services. there were no purchases of
   goods or services from the Group's subsidiaries.
   tainui Group holdings limited declared a dividend for the year ended 31 march 2010 of $10m (2009 - $10m), $0.1667 cents per share
   (2009 - $0.1667 cents per share) to waikato-tainui te kauhanganui incorporated on 31 march 2010 (2009 - waikato raupatu trustee
   Company limited).
   the Base and university of waikato land is owned by the trust. there is an operating lease in place between the trust and tainui Group
   holdings limited.
   the Chairman of the tainui Group holdings limited, john spencer, is also the Chairman of telfer young limited. telfer young (waikato)
   limited valued properties for the Group (see note 18, 19 and 20). the valuation was conducted independently and at an arms length
   basis.

key manaGement Personnel
                                                                    ConsoliDateD                           Parent
                                                                    2010                2009               2010               2009
                                                                    $'000               $'000              $'000              $'000


short term employee benefits                                        1,161                991                 216                 162



there are no post employment, other long term employment, termination, or share based payment benefits.

DireCtors anD trustee fees
                                                                    ConsoliDateD                           Parent
DireCtor                                                            2010                2009               2010               2009
anD/or             entity                                           $'000               $'000              $'000              $'000
trustee
m allen            tainui Group holdings limited                      46                   -                   -                   -
j eriksen          tainui Group holdings limited                      35                  38                   -                   -
C joe              waikato-tainui te kauhanganui inc.                 39                  37                  39                  37
r mahuta*          waikato-tainui te kauhanganui inc.                285                 105                 113                 105
t mahuta           waikato-tainui te kauhanganui inc.
                   and tainui Group holdings limited                   -                  78                   -                  48
t maipi            waikato-tainui te kauhanganui inc.                 56                   2                  56                   2
t martin           waikato-tainui te kauhanganui inc.                  -                  49                   -                  49
m moana-
tuwhangai        waikato-tainui te kauhanganui inc.                   52                   2                  52                   2
t morgan*        waikato-tainui te kauhanganui inc.                  364                 141                 192                 141
s Papa           waikato-tainui te kauhanganui inc.                   47                  38                  47                  38
k Porima         waikato-tainui te kauhanganui inc.
                 and tainui Group holdings limited                    48                  63                  48                  36
r schaafhausen waikato-tainui te kauhanganui inc.
                 and tainui Group holdings limited                    77                  56                  53                  56
s solomon        waikato-tainui te kauhanganui inc.                    -                  62                   -                  62
j spencer        tainui Group holdings limited                        65                  65                   -                   -
P te ao          waikato-tainui te kauhanganui inc.                   64                  34                  64                  34
r tukiri         waikato-tainui te kauhanganui inc.                   59                   2                  59                   2
k wetere         tainui Group holdings limited                        32                  32                   -                   -
j wilson         waikato-tainui te kauhanganui inc.
                 and tainui Group holdings limited                    69                  34                  45                  34
te kauhanganui representatives                                       168                 162                 168                 162
                                                                   1,506                1,000                936                 808



* Consolidated trustee fees for r mahuta and t morgan includes a one-off payment of $165,837 being co-negotiators fees for the
  negotiation of the waikato river claim.

                                                                            Waikato Raupatu Lands Trust Annual Report 2010                  59
     14 other reCeiVaBles
                                                                         ConsoliDateD                            Parent
                                                                         2010                2009                2010               2009
                                                                         $'000               $'000               $'000              $'000


        other receivables                                                13,419                -                    -                 -
        unsecured loan                                                      479                -                  479                 -
                                                                         13,898                -                  479                 -




        other receivables is comprised of the waikato raupatu river trust co-management funds receivable (note 24(c)). unsecured loan is
        comprised of a loan to horahora marae. interest is charged on the loan at 5% and the term of the loan is for a period of 10 years.


     15 other finanCial assets anD liaBilities
                                                                         ConsoliDateD                            Parent
                                                                         2010                2009                2010                2009
                                                     note                $'000               $'000               $'000               $'000


        other finanCial assets
        fair Value throuGh Profit
        or loss

        inVestments in:
        listed companies                                                 46,575              31,725                -                      -
        unlisted companies                           15(a)                3,537               3,713                -                      -
        unlisted company - afl income shares         15(b)               12,935              12,935                -
        managed funds                                                         -              15,523                -                      -
                                                                         63,047              63,896                -                      -
        other finanCial liaBilities
        fair Value throuGh Profit or loss

        interest rate swaps                                               3,650               4,249                -                      -




        (a) the fair value on shares in unlisted companies are largely represented by fonterra Co-operative Group limited shares.

        (b) the fair value of afl income shares are based on cash flows calculated on an annual basis from 2008 to 2017 and a terminal value,
            based on cash flows in 2017 with an assumed growth factor of 2.6% per annum (2009 - 2.6%) and a post tax discount rate of 9.5%
            (2009 - 9.5%). a 20% (2009 - 20%) liquidity and minority interest discount has been taken into account in determining the fair value
            (see note 23(c)).


     16 inVestments in suBsiDiaries
                                                                         ConsoliDateD                            Parent
                                                                         2010                2009                2010                2009
                                                         note            $'000               $'000               $'000               $'000


        shares in subsidiary                              13                   -                   -              60,000             60,000
        Contribution to subsidiary                                             -                   -              10,253             10,253
        transfer of waikato raupatu river trust           24              85,785                   -                    -                 -
                                                                          85,785                   -              70,253             70,253




60   Waikato Raupatu Lands Trust Annual Report 2010
17 intanGiBle assets
                                                                     ConsoliDateD                           Parent
                                                                     software           Quota               software            Quota
                                                                     $'000              $'000               $'000               $'000


   Gross CarryinG amount
   Balance at 1 april 2008                                              286              18,451             144                  -
   additions                                                             24                   -               -                  -
   Disposals                                                            (45)                  -               -                  -
   Balance at 31 march 2009                                             265              18,451             144                  -
   additions                                                            245               1,889                -                 -
   Balance at 31 march 2010                                             510              20,340             144                  -


   aCCumulateD amortisation anD imPairment
   Balance at 1 april 2008                                             (245)                    -           (144)                -
   Disposals                                                             23                     -              -                 -
   Balance at 31 march 2009                                            (222)                    -           (144)                -
   amortisation                                                          (6)                    -              -                 -
   Balance at 31 march 2010                                            (228)                    -           (144)                -


   net Book Value
   at 31 march 2009                                                      43              18,451                -                 -
   at 31 march 2010                                                     282              20,340                -                 -




                                                                     ConsoliDateD                           Parent
                                                                     2010               2009                2010                2009
                                                                     $’000              $’000               $’000               $’000


   total intanGiBle assets                                           20,622              18,494                -                 -



Quota management systems limited was contracted as an independent valuer to perform an impairment assessment. fair value has been
assessed with reference to individual fish stock, the valuers knowledge of the market and the ministry of fisheries Quota monitoring system
reports.




                                                                             Waikato Raupatu Lands Trust Annual Report 2010                   61
                                                          -
                                                          -
                                                          -
                                                          -
                                19                        -
                                                          -
                                                          -
                                                          -
                                                          -
                                                          -
                                                      -   -   -

                                                          -




62   Waikato Raupatu Lands Trust Annual Report 2010
Waikato Raupatu Lands Trust Annual Report 2010   63
64   Waikato Raupatu Lands Trust Annual Report 2010
Waikato Raupatu Lands Trust Annual Report 2010   65
     telfer young (waikato) limited and Curnow tizard limited were contracted as an independent valuer to value farm and other properties.
     fair value has been assessed as the amount for which an asset could be exchanged or a liability settled between knowledgeable willing
     parties in an arms length transaction. the significant methods and assumptions telfer young (waikato) limited applied in estimating the fair
     value were:
     • the direct comparison approach (based on analysis of sales of vacant property. this analysis includes determination of land value, other
       improvements and residual value for principal improvements);
     • the traditional capitalisation approach (focusing on the net maintainable income and the level of investment return);
     • the discounted cash flow approach (based on establishing a cash flow budget for the property having particular regard to the length of
       lease term and nature of the leasehold interest and the following factors; discount rate, land inflation and rental rates); and
     • comparing market evidence of transaction prices for similar properties.
     the total value of farm properties valued by telfer young (waikato) limited at 31 march 2010 is $20m (2009 - $22m). the carrying amount
     that would have been reported for land, buildings and plant under the historical cost method would have been $9.5m (2009 - $9.5m).
     the total value of other properties valued by Curnow tizard limited at 31 march 2010 is $1.6m (2009 - nil). the carrying amount that would
     have been reported for other properties under the historical cost method would have been $1.3m (2009 - nil).
     there is no property, plant and equipment pledged as security.
     an impairment loss has been recognised in 2009 in relation to development properties and trust properties where the assets carrying
     amounts exceed its recoverable amount. the impairment loss recognised for trust properties ($1.4m) is based on value in use whereas the
     impairment loss recognised in development properties ($1.9m) is based on fair value less costs to sell.
     all valuers are independent registered valuers not related to the Group (other than that disclosed in note 13). all valuers hold recognised
     and relevant professional qualifications and have recent experience in the locations and categories of farm and other properties they have
     valued.



     19 inVestment ProPerties
                                                                           ConsoliDateD                             Parent
                                                                           2010                2009                 2010               2009
                                                               note        $'000               $'000                $'000              $'000


         Balance at beginning of the year                                   313,016           332,710               3,586               4,053
         transfer from property, plant and equipment             18          15,786              5,401                446                   -
         additions and acquisitions                                          39,618                826                  -                   -
         subsequent recovery of initial cost                                      -            (1,391)                  -                   -
         Disposals                                                           (1,326)             (570)                 (1)                  -
         net gain/(loss) from fair value adjustments             4(c)           685          (23,960)                  74                (467)
         Balance at end of the year                                        367,779           313,016                4,105              3,586




     investment property valuations were completed as follows:

     t. arnott from CB richard ellis limited valued properties at fair value of $135m on 31 march 2010 (31 march 2009 - $91m) using a mixture
     of market evidence of transaction prices for similar properties, capitalisation and discounted cash flow approaches.

     D.j. saunders from telfer young (waikato) limited valued properties at fair value of $120m (Parent - $1m) on 31 march 2010 (31 march
     2009 - $108m) using a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and
     discounted cash flow approaches.

     m. j. snelgrove from Curnow tizard limited valued properties at fair value of $106m (Parent - $3m) on 31 march 2010 (31 march 2009
     $108m and Parent $4m) using a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and
     discounted cash flow approaches.

     r. h. martin from Property Valuations limited valued properties at fair value of $5m on 31 march 2010 (31 march 2009 - $6m) using a
     mixture of market evidence of transaction prices for similar properties and direct comparison approaches.

     r. Peters from seagar & Partners valued properties at fair value of $2m on 31 march 2010 (31 march 2009 - nil) using a mixture of market
     evidence of transaction prices for similar properties and the direct comparison approaches.

66   Waikato Raupatu Lands Trust Annual Report 2010
all valuers are independent registered valuers not related to the Group other than that disclosed in note 13. all valuers hold recognised and
relevant professional qualifications and have recent experience in the locations and categories of the investment property they have valued.

refer to note 22 for borrowing costs capitalised to investment properties.


20 te wherowhero title
                                                                      ConsoliDateD                            Parent
                                                                      2010                2009                2010                2009
                                                                      $'000               $'000               $'000               $'000


inVestment ProPerty
Balance at beginning of the year                                      34,034              44,809              34,034               44,809
net loss from fair value adjustments                                  (6,444)            (10,775)             (6,444)             (10,775)
                                                                      27,590              34,034              27,590              34,034
other lanD
at cost                                                                 2,036              2,036               2,036               2,036
                                                                      29,626              36,070              29,626              36,070




te wherowhero title property valuations were completed as follows:

t. arnott from CB richard ellis limited valued properties at fair value of $14m (Parent - $14m) on 31 march 2010 (31 march 2009 $20m
and Parent $20m) using a mixture of market evidence of transaction prices for similar properties, capitalisation and discounted cash flow
approaches.

D.j. saunders from telfer young (waikato) limited valued properties at fair value of $7m (Parent - $7m) on 31 march 2010 (31 march 2009
$8m and Parent $8m) using a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and
discounted cash flow approaches.

m. j. snelgrove from Curnow tizard limited valued properties at fair value of $6m (Parent - $6m) on 31 march 2010 (31 march 2009
$6m and Parent $6m) using a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and
discounted cash flow approaches.

all valuers are independent registered valuers not related to the Group other than that disclosed in note 13. all valuers hold recognised and
relevant professional qualifications and have recent experience in the locations and categories of the investment property they have valued.




21 traDe anD other PayaBles
                                                                      ConsoliDateD                            Parent
                                                                      2010                2009                2010                2009
                                                            note      $'000               $'000               $'000               $'000


trade payables                                                         1,296                781                 110                 358
accruals                                                              11,889              6,944                 999                 994
Grants payable                                                         1,748              3,464               1,748               3,464
trade payables to related parties                           13             -                  -                  40                   1
employee entitlements                                                    615                843                 358                 463
Gst                                                                         -               746                  14                   -
                                                                      15,548             12,778               3,269               5,280




                                                                              Waikato Raupatu Lands Trust Annual Report 2010                    67
     22 interest BearinG liaBilities
                                                                         ConsoliDateD                           Parent
                                                                         2010                2009               2010                2009
                                                                         $'000               $'000              $'000               $'000


     Bank loans                                                          87,700              74,845                   -              -
     housing Corporation of new Zealand                                      26                  34                  26             34
     total borrowings                                                    87,726              74,879                  26             34
     Current borrowings                                                  18,470                 348                  3               3
     non-current borrowings                                              69,256              74,531                  23             31




     tainui Group holdings limited holds a multi option credit line facility agreement with westpac new Zealand limited for $38m (2009 - $38m)
     which matures on 28 february 2011. Borrowings of $18.5m of the available facility had been drawn at balance date (2009 - $34.5m).

     tainui Group holdings limited holds a wholesale term loan facility with westpac new Zealand limited for $22m (2009 - $22m) which
     matures on 2 December 2011. this facility had not been drawn at balance date (2009 - nil).

     tainui Group holdings limited holds a term loan with westpac new Zealand limited for $40m (2009 - $40m) which matures on 26 july 2012
     and is fully drawn at balance date (2009 - $40m).

     tainui Group holdings limited holds a multi option credit line facility agreement with westpac new Zealand limited for $38m (2009 - $38m)
     which matures on 28 february 2011. Borrowings of $18.5m of the available facility had been drawn at balance date (2009 - $34.5m).

     tainui Group holdings limited holds a wholesale term loan facility with westpac new Zealand limited for $22m (2009 - $22m) which
     matures on 2 December 2011. this facility had not been drawn at balance date (2009 - nil).

     tainui Group holdings limited holds a term loan with westpac new Zealand limited for $40m (2009 - $40m) which matures on 26 july 2012
     and is fully drawn at balance date (2009 - $40m).

     tainui Group holdings limited holds a Committed Cash advances facility agreement with the Bank of new Zealand for $50m (2009 - $50m)
     which matures on 9 april 2011. Borrowing of $29.2m of the available facility had been drawn at balance date (2009 - nil).

     tainui Group holdings limited and guaranteeing subsidiaries (tainui Corporation limited, tainui Development limited, tGh no.1 limited,
     raukura moana seafoods limited, raukura moana seafoods Quota limited, the Base te rapa limited and te rapa 2002 limited) have
     granted to westpac new Zealand limited and Bank of new Zealand a charge in and over all present and future assets and present and
     future rights and interest in any asset as security for the finance facilities (see note 26(c)).


     BorrowinG Costs CaPitaliseD                                         ConsoliDateD                           Parent
                                                                         2010               2009                2010                2009
                                                                         $'000              $'000               $'000               $'000


     investment properties                                               2,024               456                 -                  -
     weighted average capitalisation rate                                7.80%              7.90%                -                  -
     on funds borrowed generally




68   Waikato Raupatu Lands Trust Annual Report 2010
23 finanCial risk manaGement

exposure to credit, liquidity and market (currency, interest and price) risks arise in the normal course of the Group's business. the Group
has various financial instruments with off-statement of financial position risk.

senior management is required to identify and report major risks affecting the business and develop strategies to mitigate these risks. the
board reviews and approves overall risk management strategies covering specific areas.

   (a) CreDit risk
       Credit risk is the risk that a third party will default on its obligation to the trust and Group, causing the trust and Group to incur a
       loss. the trust and Group do not have any significant concentrations of credit risk, other than the Co-management funds expected
       from the Crown (see note 24(c)). the maximum exposure to credit risk at the reporting date is the carrying amount of the financial
       assets as shown in the statements of financial position. the trust and Group do not require any collateral or security to support
       financial instruments as it only deposits with, or lends to, banks and other financial institutions with high credit ratings except for
       funds lent to a related party and an external entity for which the trust and Group has appropriate security and guarantees. the trust
       and Group further minimises credit exposure by limiting the amount of profit funds placed with any one financial institution. the trust
       and Group do not expect non-performance of any obligations at balance date. there are no material financial assets held by the
       trust or Group at balance date which are past due but not impaired.

   (b) liQuiDity risk
       liquidity risk is the risk that the trust and Group will encounter difficulty raising liquid funds to meet commitments as they fall due.
       the trust and Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by
       continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

       the table below analyses the trust and Group’s financial liabilities that will be settled based on the remaining period at balance date
       to the contractual maturity date. the amounts disclosed are the contractual undiscounted cash flows.


                                                  CarryinG             less than                      Between              Between
                                                  amount               2 yrs                          2 & 5 yrs            5 & 10 yrs
                                                  $’000                $’000                          $’000                $’000
ConsoliDateD
at 31 marCh 2010
Creditors and other payables                        15,548             15,548                              -               -
Borrowings                                          87,726             22,846                         69,697               -
                                                  103,274              38,394                         69,697               -
at 31 marCh 2009
Creditors and other payables                        12,778             12,778                              -               -
Borrowings                                          74,879             40,927                         42,422               -
                                                    87,657             53,705                         42,422               -

Parent
at 31 marCh 2010
Creditors and other payables                         3,269              3,269                              -               -
Borrowings                                              26                 13                             19               -
                                                     3,295              3,282                             19               -
at 31 marCh 2009
Creditors and other payables                         5,280              5,280                              -               -
Borrowings                                              34                  8                             36               -
                                                     5,314              5,288                             36               -




                                                                             Waikato Raupatu Lands Trust Annual Report 2010                       69
     the table below analyses the Group's net-settled derivative financial liabilities, into relevant maturity groupings (Parent - nil), based on
     the remaining period at the statements of financial position date to the contractual maturity date. the amounts disclosed in the table are
     the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not
     significant.

                                                       CarryinG            less than                      Between             Between
                                                       amount              2 yrs                          2 & 5 yrs           5 & 10 yrs
                                                       $’000               $’000                          $’000               $’000
     ConsoliDateD
     at 31 marCh 2010
     Derivative financial instruments (outflows)       (3,650)             (1,746)                        (1,606)             (298)
                                                       (3,650)             (1,746)                        (1,606)             (298)
     at 31 marCh 2009
     Derivative financial instruments (outflows)       (4,249)             (1,823)                        (1,836)             (590)
                                                       (4,249)             (1,823)                        (1,836)             (590)




     (c) market risk
        CurrenCy
        the Group has no exposure to currency risk at balance date.
        there are no notional principal or forward foreign exchange contracts at 31 march 2010 (2009 - nil).

         sensitiVity analysis
         as at 31 march 2010 there was no foreign currency on hand. as at 31 march 2009, if the nZ dollar had weakened/(strengthened) by 5%
         against the australian dollars with all other variables held constant, the Group profit/(loss) and equity for the year would have been
         $561,351/($620,485) higher/(lower), (parent nil for 2010 and 2009).

         interest rate risk
         the Group's interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow
         interest rate risk. Borrowings issued at fixed rate expose the Group to fair value interest rate risk.
         the Group adopts a policy of ensuring that between 25 and 90 per cent of its exposure to changes in interest rates on borrowings is on a
         fixed rate basis
         the Group manages its cash flow interest rate risk by using floating to fixed interest rate swaps. such interest rate swaps have the
         economic effect of converting borrowings from floating rates to fixed rates.
         under interest rate swap contracts, the Group agrees to exchange the difference between contract fixed and floating rate interest
         amounts calculated by reference to the agreed notional principal amounts. such contracts enable the Group to mitigate the risk of
         changing interest rates on the fair value of issued fixed rate debt held and the cash flow exposures on the issued variable rate debt held.
         the fair value of interest rate swaps at the reporting date is determined by discounting the future cash flows at reporting date and the
         credit risk inherent in the contract, and are disclosed below. the average interest rate is based on the outstanding balances at the start
         of the financial year.




70   Waikato Raupatu Lands Trust Annual Report 2010
sensitiVity analysis
as at 31 march 2010, if the 90 day bank bill rate had been 50 basis points higher or lower, with all other variables held constant, the
Group's profit/(loss) for the year and the equity would have been $89,800 (2009 - $37,452) higher or lower (parent nil for 2010 and
2009). this movement is attributable to an increase or decrease in the interest expense on floating rate loans. the sensitivity is higher
than 2009 due to a proportionally lower level of debt being fixed by swap contracts and the waikato raupatu river trust's term deposit
investment exposure to short term interest rate movements.

PriCe risk
the Group is exposed to equity securities price risk because of investments held by the Group and classified as financial assets at fair
value through profit or loss.

sensitiVity analysis
the table below summarises the impact of increases/(decreases) of the new Zealand equity index on the Group (Parent for 2010 and
2009 - nil) and the Group's profit and equity for the year (2009 - new Zealand and australian equity indexes). the analysis is based on
the assumption that should the equity indexes increase/(decrease) by 10% (2009 – 10%) with all other variables held constant and all
the Group’s equity instruments move according to the historical correlation with the index.


                                                      +10%                                               -10%
                                               imPaCt              imPaCt                         imPaCt              imPaCt
                                               on Profit           on eQuity                      on Profit           on eQuity
                                               $’000                $’000                         $’000               $’000
ConsoliDateD
at 31 marCh 2010
financial assets and liabilities
     at fair value through profit or loss      4,658               4,658                          (4,658)             (4,658)
at 31 marCh 2009
financial assets and liabilities
     at fair value through profit or loss      3,173               3,173                          (3,173)             (3,173)




Profit for the year would increase/(decrease) as a result of gains/(losses) on shares in listed companies classified as at fair value through
profit or loss. equity would further increase/(decrease) as a result of gains/(losses) on shares in listed companies classified as at fair
value through profit or loss.




                                                                           Waikato Raupatu Lands Trust Annual Report 2010                       71
         PriCe risk in relation to afl inCome shares
         (a) increasing the weighted average cost of capital (waCC) by 1 percentage point decreases the estimated total value of the afl
             shares by approximately 22%. Decreasing the waCC 1 percentage point increases the estimated value of the afl shares by
             approximately 29%;
         (b) Varying exchange rate assumption by 10% changes the total valuation of afl shares by approximately 15% (with a lower nZD
             increasing the value of afl);
         (c) Varying the projected national hoki quota by 10% (13,000 tonnes per annum by 2014) results in a 9% change in the total valuation
             of afl shares; and
         (d) an increase of 1% in average seafood prices in real terms over the period 2009 to 2018 and remaining at that level thereafter
             would result in the value of afl shares increasing by 50%. Conversely if average seafood prices reduced by 1% the value of afl
             shares would decrease by 50%.
         the price risk for other unlisted securities is immaterial in terms of the possible impact on profit or loss or total equity. it has therefore not
         been included in the sensitivity analysis.

     (d) fair Value estimation
         the fair value of financial instruments traded in active markets is based on quoted market prices at balance date. the quoted market
         price used for financial assets held by the Group is the current bid price, with the exception of investment in subsidiaries, joint ventures
         and associates.
         investment in subsidiaries, joint ventures and associates do not have a quoted market price in an active market and the fair value cannot
         be reliably measured.
         the carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. the fair
         value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market
         rate that is available to the Group for similar financial instruments.
         there are no financial liabilities with a carrying value different to their fair value.

     (e) finanCial risk manaGement strateGies relatinG to aGriCultural aCtiVities
         the Group undertakes agricultural activities through its farm operations and forestry land. these operations are exposed to business
         risks, including the volatility of revenue and valuation of its assets.
         the Group utilises the skills of appropriately qualified and experienced farm consultants, farm managers and sharemilkers to mitigate the
         financial risk relating to farming activities.
         the Group utilises the skills of appropriately qualified and experienced forestry consultants and forestry contractors to mitigate the
         financial risk relating to forestry activities.




72   Waikato Raupatu Lands Trust Annual Report 2010
(f) CaPital manaGement risk
    the Group’s capital is its equity, which is comprised of retained earnings/(losses) and other reserves. equity is represented by net
    assets. the trust is subject to the financial management and accountability provisions of the Charities act 2005, waikato raupatu
    Claims settlement act 1995 and the waikato-tainui raupatu Claims (waikato river) settlement act 2010. the Group manages its
    revenues, expenses, assets, liabilities, investments, and general financial dealings prudently. the Group's equity is largely managed as
    a by-product of managing revenues, expenses, assets, liabilities, investments, and general financial dealings. the objective of managing
    the Group’s equity is to ensure the Group effectively achieves its objectives and purpose, whilst remaining a going concern in order to
    provide returns for stakeholders and to maintain an optimal capital structure to reduce the cost of capital. the Group has not breached
    any bank covenants as required by the Bank of new Zealand and westpac new Zealand ltd during the reporting period (see notes 22
    and 26). there are no externally imposed capital requirements at balance date (2009 - nil).



                                                                 ConsoliDateD
                                                                 2010         2009
                                                 note            $'000        $'000
   Borrowings                                        22           87,726             74,879
   less cash and cash equivalents                                (34,686)           (11,767)
   net debt                                                       53,040             63,112
   total equity                                                  537,568            433,839
   total capital                                                 590,608            496,951
   Gearing ratio                                                      9%                  13%




(g) fair Value hierarChy
    effective 1 april 2009, the Group adopted the amendment to nZ ifrs 7 for financial instruments at fair value. the amendment requires
    disclosure of fair value measurements by level of the following fair value measurement hierarchy:
   level 1:        as quoted prices for identical instruments.
   level 2:        indirectly observable market inputs other than level 1 inputs.
   level 3:        inputs which are not based on observable market data.
   as at 31 march 2010, the Group held the following financial instruments measured at fair value in each level described above:



                                                                                                   total              total
                                                                                                   fair Value         fair Value
                                       leVel 1             leVel 2              leVel 3            2010               2009
   finanCial assets                    $’000               $’000                $’000              $’000              $’000
   investments in:
   listed companies                     46,575                    -                 -              46,575              31,725
   unlisted companies                        -                    -             3,537               3,537               3,713
   unlisted company
   - afl income shares                       -             12,935                    -             12,935              12,935
   managed funds                             -                  -                    -                  -              15,523
   finanCial liaBilities
   interest rate swaps                       -               3,650                   -              3,650               4,249




                                                                            Waikato Raupatu Lands Trust Annual Report 2010                     73
     (h) finanCial instruments By CateGory

       finanCial assets as Per               at fair
       statements of finanCial Position      Value
                                             throuGh
                                             Profit    measureD at
                                             or loss   amortiseD Cost   total
                                             $’000     $’000            $’000

       ConsoliDateD
       at 31 marCh 2010
       other financial assets                63,047         -           63,047
       trade and other receivables                -    63,509           63,509
       Cash and cash equivalents                  -    34,686           34,686
                                             63,047    98,195           161,242
       at 31 marCh 2009
       other financial assets                63,896         -           63,896
       trade and other receivables                -     5,437            5,437
       Cash and cash equivalents                  -    11,767           11,767
                                             63,896    17,204           81,100
       Parent
       at 31 marCh 2010
       investments and advances              74,027        -            74,027
       trade and other receivables                -    4,461             4,461
       Cash and cash equivalents                  -    2,200             2,200
                                             74,027    6,661            80,688
       at 31 marCh 2009
       investments and advances              74,027        -            74,027
       trade and other receivables                -    3,212             3,212
       Cash and cash equivalents                  -    5,834             5,834
                                             74,027    9,046            83,073




74   Waikato Raupatu Lands Trust Annual Report 2010
finanCial liaBilities as Per                  at fair
statements of finanCial Position              Value
                                              throuGh             measureD
                                              Profit              at amortiseD
                                              or loss             Cost               total
                                              $’000               $’000              $’000

ConsoliDateD
at 31 marCh 2010
Borrowings                                         -              87,726              87,726
other financial liabilities                    3,650                   -               3,650
trade, other payables and advances                 -              15,548             15,548
                                               3,650              103,274            106,924

at 31 marCh 2009
Borrowings                                         -              74,879              74,879
other financial liabilities                    4,249                   -               4,249
trade, other payables and advances                 -              12,032              12,032
                                               4,249              86,911              91,160
Parent
at 31 march 2010
                                                  -                   26                  26
Borrowings
                                                  -                4,605               4,605
trade, other payables and advances
                                                  -                4,631               4,631

at 31 marCh 2009
Borrowings                                        -                    34                 34
trade, other payables and advances                -                 6,879              6,879
                                                  -                 6,913              6,913




24 transfer of waikato rauPatu riVer trust anD waikato-tainui te kauhanGanui inCorPorateD
   on 1 april 2009 it was approved that the waikato raupatu trustee Company limited, be removed as trustee of the waikato raupatu
   lands trust and shareholder of tainui Group holdings limited and be replaced by waikato-tainui te kauhanganui incorporated, trustee
   of the waikato raupatu river trust. as a result of this change in trustee it was determined that the waikato raupatu lands trust
   controls the waikato raupatu river trust and a transfer was recorded on this date. the impact on the Groups statements of financial
   Position is set out below:


                                                                     $'000

   Current assets
   Cash and cash equivalents                                         30,135
   trade and other receivables                                       41,024
   income tax                                                            50
                                                                     71,209
   non-Current assets
   trade and other receivables                                       14,584
   total assets                                                      85,793

   Current liaBilities
   trade and other payables                                                  (8)
   net assets transferreD/Gain on transfer                           85,785




                                                                       Waikato Raupatu Lands Trust Annual Report 2010                    75
     waikato rauPatu riVer settlement

     on 17 December 2009, a Deed of settlement (the "settlement") was made between the Crown and waikato-tainui to settle the claim by
     waikato-tainui for the waikato river.

     the settlement, being the redress value, is specified as $70m plus $30m over a period of 28 years. the settlement is to be realised as
     follows:
          (a) the sir robert mahuta endowment ($20m) is to be applied to support the vision of sir robert mahuta for the waikato endowed
              College at hopuhopu as an educational centre providing leadership, innovation, research and scholarship in indigenous development
              and practices and support research management practices on improving the health and well-being of the waikato river and
              waikato-tainui's tribal histories associated with the waikato river;

        (b) the river initiatives fund ($50m) is to be applied for the purposes of cultural and environment development projects related to the
            waikato river, enhancing the restoration and protection of the relationship of waikato-tainui with the waikato river and protecting
            and enhancing sites of significance, fisheries, flora and fauna;

        (c) Co-management fund shall be received for the purpose of assisting waikato-tainui engage in new co-management arrangements
            under the settlement. the Co-management funding of $3m shall be received on settlement date with an annuity of $1m per year for
            27 years. the Co-management funding has been valued based on a discounted cash flow method using the nZ Government Bond
            coupon rate for bonds maturing in December 2017. the coupon rate applicable is 5.68%; and

            included in the waikato raupatu river settlement, but excluded from these financial statements is the settlement funding for the
            waikato river clean up. on settlement date the waikato river Clean up trust will be established with the waikato river authority
            being the trustee. the waikato river Clean up trust's objective will be the restoration and protection of the health and wellbeing of
            the waikato river. settlement of $21m will be received on settlement date with an annuity of $7m per year for 27 years.

     25 leases

        Commitments for minimum lease payments/receipts in relation to non-cancellable operating leases are payable/receivable as follows:



                                                                          ConsoliDateD                            Parent
                                                                          2010                2009                2010                2009
                                                                          $'000               $'000               $'000               $'000


              (a) Group and parent as lessee
              within one year                                                     49                  40                  9                 9
              Between one and five years                                          78                  48                  9                18
                                                                              127                     88              18                   27
              there are no options to purchase
              attached to any lease agreements

              (b) Group and parent as lessor
              within one year                                              22,067              18,499                  -                   -
              Between one and five years                                   87,135              66,865                  -                   -
              after five years                                            151,127             142,716             21,395              29,463
                                                                          260,329             228,080             21,395              29,463




        operating leases (with Parent and Group as lessor) relate to the investment properties owned by the Parent and Group with a range
        of lease terms from less than one year through to ninety-nine years. some of the longer term leases have perpetual rights of renewal.
        all operating lease contracts contain market review clauses and the lessee will usually have an option to renew. the lessees do not
        have any options to purchase the properties at the expiry of their lease period.




76   Waikato Raupatu Lands Trust Annual Report 2010
26 ContinGent liaBilities anD Gains

   (a) raukura whare limited has agreed to underwrite certain housing Corporation of new Zealand mortgages. raukura whare limited
       is liable for any mortgages which default if total claims exceed $23.3m. the life of the loan is 20 years. the trustees believe that
       the expectation of defaulting mortgages exceeding $23.3m is remote.

   (b) the trust has first priority security of $15m over the present and future undertakings, property, assets, revenues and capital of
       raukura moana seafoods limited, tainui Corporation limited, tainui Development limited and tainui Group holdings limited. each
       company jointly and severally, unconditionally and irrevocably guarantees to the trust all secured monies.

   (c) tainui Group holdings limited and guaranteeing subsidiaries (tainui Corporation limited, tainui Development limited, tGh no.1
       limited, raukura moana seafoods limited, raukura moana seafoods Quota limited, the Base te rapa limited and te rapa 2002
       limited) have granted to westpac new Zealand limited and the Bank of new Zealand a charge in and over all present and future
       assets and present and future rights and interest in any asset as security for the finance facilities (see note 22).

   (d) the Bank of new Zealand currently holds a registered first mortgage over property situated at wairere Drive / huntington Drive,
       hamilton. this property is part of the joint venture Callum Brae tainui (see note 11).

27 CaPital Commitments

   Capital expenditure contracted for at balance date but not recognised as liabilities is as follows:


                                                                       ConsoliDateD                         Parent
                                                                       2010                 2009            2010                2009
                                                                       $'000                $'000           $'000               $'000


   Capital commitments excluding joint venture and associates          84,503               45,047             -                   -
   Proportionate interest in joint venture commitments                    264                  610             -                   -
   share of associates’ commitments                                         -                   55             -                   -
                                                                       84,767               45,712             -                   -




28 eVents suBseQuent to the rePortinG PerioD

   in march 2010, a hearing was held at the hamilton high Court between the waikato-tainui te kauhanganui incorporated and the
   hamilton City Council. the hearing was to provide a judicial review over the decision of hamilton City Council to vary the hamilton
   City Proposed District Plan. the variation provided a new assessment criteria which emphasised the need to maintain hamilton CBD
   as the principle retail and commercial hub of the city and which would have impacted the future development potential of certain
   investment properties within the Group. waikato-tainui te kauhanganui incorporated was successful and a ruling was issued in june
   2010 stating that the variation to the hamilton City Proposed District Plan was unlawful and invalid. this ruling is likely to have a
   favourable impact on investment property valuations reported at 31 march 2010.




                                                                               Waikato Raupatu Lands Trust Annual Report 2010                 77
          



                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                     PricewaterhouseCoopers
                                                                                                     188 Quay Street
                                                                                                     Private Bag 92162
                                                                                                     Auckland 1142
                                                                                                     New Zealand
                                                                                                     www.pwc.com/nz
                                                                                                     Telephone +64 9 355 8000
                                                                                                     Facsimile +64 9 355 8001
         Auditors’ Report
       AUDITORS’ REPORTTrust
       To the Trustee of Waikato Raupatu Lands

       To the Trustee of the Waikato Raupatu Lands Trust.
        We have audited the financial statements on pages X to XX. The financial statements provide
        information about the past financial performance and cash flows of the Trust and Group for the
        year ended 31 March 2010 and their financial position as financial statements provide information about
       we have audited the financial statements on pages 38 to 77. the at that date. This information is stated in the
        accordance with the accounting policies set out on pages X to XX.
       past financial performance and cash flows of the trust and Group for the year ended 31 march 2010 and their financial
                as at is date. solely to the Trust’s Trustee, as a body, the accounting with the Trust Deed.
       positionreportthatmade this information is stated in accordance with in accordance policies set out on pages 42 to 50.
         This
         Our audit
                     made solely to undertaken so that a body, in state to the Trust’s Trustee those matters
       this report iswork has beenthe trust’s trustee, as we might accordance with the trust Deed.
         which we are required to state to them in an auditors’ report and for no other purpose. To the fullest
         extent work has by undertaken so accept or assume the trust’s trustee those other than the Trust
       our audit permittedbeenlaw, we do not that we might state toresponsibility to anyone matters which we are required
         and the Trustee’s beneficiaries as a body, for our audit work, for this report, or for the opinions we
       to state to them in an auditor’s report and for no other purpose. to the fullest extent permitted by law, we do not accept
         have formed.
       or assume responsibility to anyone other than the trust and the trustee’s beneficiaries as a body, for our audit work, for
         Trustees’ for the opinions we
       this report, or Responsibilities have formed.

       trustee’s resPonsiBilities
        The Trust’s Trustees are responsible for the preparation and presentation of the financial
         statements which give a true and fair view of the financial position of the Trust and Group as at
         31 March 2010 and responsible for the preparation and presentation of the financial statements date.
       the trust’s trustees aretheir financial performance and cash flows for the year ended on that which give a true
       and fair view of the financial position of the trust and Group as at 31 march 2010 and their financial performance and
         Auditors’ the year ended on
       cash flows forResponsibilities that date.

       auDitors’ resPonsiBilities
        We are responsible for expressing an independent opinion on the financial statements presented
         by the Trustees and reporting our opinion to you.
       we are responsible for expressing an independent opinion on the financial statements presented by the trustees and
         Basis our opinion to
       reporting of Opinion you.

       Basis of oPinion examining, on a test basis, evidence relevant to the amounts and disclosures in
        An audit includes
         the financial statements. It also includes assessing:
       an audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial
                  the significant assessing:
       statements. it also includesestimates and judgements made by the Trustees in the preparation of the
         (a)
                   financial statements; and
       (a)     the significant estimates and judgements made by the trustees in the preparation of the financial statements; and
         (b)       whether the accounting policies are appropriate to the circumstances of the Trust and
       (b)     whether the accounting policies are appropriate to the circumstances of the trust and Group, consistently applied
                   Group, consistently applied and adequately disclosed.
               and adequately disclosed.
         We conducted our audit in accordance with generally accepted auditing standards in New Zealand.
                                                     generally accepted the information and explanations which we
       we conducted our audit in accordance with so as to obtain all auditing standards in new Zealand. we planned and
         We planned and performed our audit
                                                   information and explanations which we considered necessary to provide us
       performed our audit so as to obtain all the with sufficient evidence to give reasonable assurance that the
         considered necessary to provide us
         financial statements are free from material misstatements, whether caused by fraud material In
       with sufficient evidence to give reasonable assurance that the financial statements are free fromor error. misstatements,
         forming our by fraud or also in forming the overall adequacy of the presentation of information in
       whether causedopinion we error.evaluated our opinion we also evaluated the overall adequacy of the presentation of
         the financial statements.
       information in the financial statements.
        We have relationship with with or interests in the any or any of its subsidiaries in our capacity as
       we have no no relationship or interests in the trust orTrustof its subsidiaries other than other than in our auditors.
         capacity as auditors.


          
          
78   Waikato Raupatu Lands Trust Annual Report 2010
      Auditors’ Report
      Waikato Raupatu Lands Trust

AUDITORS’ REPORT
Waikato Raupatu Lands Trust
 Unqualified Opinion

      We have obtained all the information and explanations we have required.

      In our opinion
unqualified opinion
      The financial statements on pages X to XX:

              (i)      comply with generally accepted accounting practice in New Zealand;
we have obtained all the information and explanations we have required.

                   financial statements on pages 38 to 77:
in our opinion the comply with International Financial Reporting Standards; and
            (ii)

(i)       comply withgive a true and fairaccounting practice in new Zealand; Trust and Group as at
             (iii)    generally accepted view of the financial position of the
                       31 March 2010 and their financial performance and cash flows for the year ended on
(ii)      comply with international financial reporting standards; and
                       that date.
(iii)     give a true and fair view of the financial position of the trust and Group as at 31 march 2010 and their financial
      Our audit was completed on 2 July 2010 and our unqualified opinion is expressed as at that date.
          performance and cash flows for the year ended on that date.



our audit was completed on 2 july 2010 and our unqualified opinion is expressed as at that date.



      Chartered Accountants
      Auckland


 Chartered accountants
 auCklanD

                                                                                                                               AU DITOR S’ REPORT




                                                                                                                    (2)
                                                                     Waikato Raupatu Lands Trust Annual Report 2010            79

								
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