Download - PSGE Development Hui Presentation
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egotiHui a-Rohe
- Post Settlement Governance Entity
Wednesday 27th March 2013
Ngāmotu
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Purpose of the Hui
• To discuss the development of the Post
Settlement Governance Entity
• An opportunity for you to provide feedback
and input into the development of the PSGE
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Settlement Negotiations Progress
MandateTerms of
Negotiation
Agreement
in
Principle
Draft
Deed of
Settlement
Ratification
and
DeedLegislation
Recognition
and
Return
of Assets
Pre-Negotiations Negotiations Legislation Post-Settle
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What is the process?
• CLT developed “strawman” in 2012 to assess Crown offer
• CLT and Trustees have discussed development of PSGE such as
key features
• Initial round of consultation Hui March 2013
– Receive feedback and input on key features via hui, email
• CLT to develop consultation document on a proposed PSGE
calling for further feedback
• Feedback will be considered and a final proposal will be put
to Nga Uri o Taranaki Iwi for ratification
• If ratified Governance Entity will be established
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What is a PSGE?
• A Post Settlement Governance Entity (PSGE) is
the legal entity a claimant group must ratify and
establish before settlement with the Crown.
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Why a PSGE?
• A Post- Settlement Governance Entity
(“PSGE”) for Taranaki Iwi is required to receive
settlement assets.
• The current Taranaki Iwi Trust is a Charitable
entity and therefore unable to receive
settlement assets on behalf of the iwi.
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Structuring Overview
• The choice of a PSGE legal structure is very
limited
• The Crown’s preference for a PSGE legal structure
is a Private Trust
• There are limited tax structuring choices
– Transition issues with charities (and fisheries entities)
– Significant value in designing optimal Group now
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What should inform the structure?
• A set of key principles
• The future requirements – clarity about purpose, role and function
• Should focus on group structure, not just PSGE – should be driven by your current and future needs, not by tax
• Best structuring window – current and future needs vital
– develop structuring needs now
– get good advice
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Considerations Affecting Structures
• Acceptable for Crown Settlement purposes– adequately represents all members of the claimant group
– is accountable to and ratified by the claimant group
– has transparent decision-making and dispute resolution procedures.
• Simple structures that are easy to understand and administer
• Appropriate separation of risk for asset protection
• Tax efficiency and tax reduction
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Considerations Affecting Structures
• Flexibility in making distributions (for example)
– Sporting activities;
– Beneficiaries outside of New Zealand
– Superannuation
– Political lobbying
– Activities outside of New Zealand, international relations
– Entertainment and recreation (festivals, children’s
entertainment, music, performances);
– Economic Development, environment and lifestyle of a region
• More difficult to do the above if a charity
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Considerations Affecting Structures
• The size of a PSGE and it’s associated functions and costs
• Other variables will also impact on the functions of a PSGE and it’s operating costs. Typical variables include:
– The components of the settlement redress including quantum size.
– The vision and priorities of Taranaki iwi including short and long-term goals.
– The human capital within the iwi, including the capabilities and qualities of leaders of the PSGE
– The existing relationships with key stakeholders such as central and local government agencies, the wider community, or neighbouring iwi.
– The position of the existing governance entity in its lifecycle and how well prepared it is to manage and receive assets.
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Considerations Affecting Structures
• Corporate Trustee / Incorporation options
– PSGE / Investment Trust / Development Trust
• Governance
– Smaller, cheaper and more efficient boards vs
appropriate representation
– Ensuring appropriate skills mix
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Why establish a PSGE now?
• Provides an opportunity to plan in advance of anypotential settlement assets being returned
• No guarantee that the settlement will proceed –this is a matter for nga uri o Taranaki iwi to determine through ratification
• A focus and emphasis on post settlement iscritical – a settlement in itself is not the end butrather a means to an end
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Common Issues - Governance
• Governance - Typical Issues
– Establishing good governance practices
– Commercial Board (representation, chair, external
members)
– Effective governance relationships (clear, effective
policies)
– Efficient subsidiary structures (e.g. entities,
boards)
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Common Issues - Management
• Operations (Management) – Typical Issues
– Establishing a robust policy framework – focus on core organisational activities (e.g. no policies for the sake of it)
– Efficient and effective internal systems and processes
– Board reporting, stakeholder reporting and management information
– Shared services
– Risk management and internal audit
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Crown Requirements for PSGE
• Adequately represents nga uri o Taranaki Iwi
• Have transparent decision making procedures
• Have transparent dispute resolution
procedures
• Be accountable to all uri of Taranaki Iwi
• Ensure that those that benefit from the
settlement are nga uri o Taranaki Iwi
• Be ratified by nga uri o Taranaki Iwi
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Taranaki Iwi PSGE Design Features
• Representative
• Accountable
• Transparent
• Viable/cost effective
• Sustainable
• Simple
• Flexible
• Tax efficient
• Legislatively compliant
• Contribute to the intergenerational aspirations of nga uri o Taranaki Iwi
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Post Settlement Governance Entity
• What does your PSGE do?
– The PSGE....
• Why?
– Because ....
• Why?
• Because....
• Why?
– Because ....
• So what are you passionate about?
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Post Settlement Governance Entity
• How do uri see themselves participating in the new post-settlement structure?
• What role do you play?
• How do you contribute to the future growth of Taranaki Iwi?
• What is the preference for a structure for Taranaki Iwi PSGE?
• Choose one from the following and explain your choice:
– Hapu
– Marae
– Individual
– Something else
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Korero / Patai