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Settlement top-ups for rich tribes unfair

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Settlement top-ups for rich tribes unfair

The two richest tribes may become $138.5-million richer now treaty settlement top-up clauses have been triggered, which raises questions of whether top-ups are fair and whether tribal corporations should trade as charities, Mike Butler, a research associate with the New Zealand Centre for Political Research think tank said today.

The government has confirmed both that treaty settlements have exceeded the $1-billion mark in 1994 dollars, and that a cash top-up of $68.5-million was offered to Ngai Tahu and $70-million to Waikato-Tainui.

“The Bolger National government entered into deals that included relativity clauses that mean, for the 50-year period between 1994 and 2044, for every dollar paid out in treaty settlements over $1-billion (valued in 1994 dollars) Ngai Tahu can claim 16..1 percent and Waikato-Tainui 17 percent,” Mr Butler said.

“By settling early, these two tribes gained two advantages over the other tribes -- use of money to make more money, plus the relativity top-up clauses. How could that be fair”, Mr Butler said.

“On top of that, tribal corporations may trade as charities, which mean they pay greatly reduced tax, giving them a competitive advantage over other non-tribal businesses. How is that fair,” Mr Butler said.

Most people are unaware that both tribes received substantial on-going payments before the 1990s settlements.

Waikato, a tribe that fought against the government, lost, and had land confiscated, received annual payments of £3000 since the 1926 Sim inquiry ruled that confiscations in were excessive. The Waikato-Maniapoto Maori Claims Settlement Act 1946 was a final settlement of confiscation grievances and provided for payments of 5000 a year in perpetuity plus a further 5000 and £1000 a year for 45 years. Tainui received £4155 in 1948 as part of a surplus lands settlement.

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Ngai Tahu, the tribe that sold most of the South Island to the government and disputed the arrangements ever since, has received five settlements for one initial complaint -- for disputed boundaries and allegedly inadequate reserves related to the 1848 Kemp purchase of 20-million acres. After settlements in 1868 and 1906, the Ngai Tahu Claim Settlement Act 1944 awarded 300,000, payable at a rate of 10,000 a year for 30 years, which was increased after 1969 to an in-perpetuity payment of $20,000 a year.

“New Zealanders expect and respect fair and equal treatment. Because politicians took a soft option while facing robust negotiation from claimants, fairness and equality is lacking in these top-up arrangements with New Zealand’s richest tribes,” Mr Butler said.

Read the full article with sources here http://breakingviewsnz.blogspot.co.nz/2012/11/mike-butler-top-ups-to-make-richest.html
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