HEALTH AND SAFETY UPDATE
+
FUTURE PROOFING PARIHAKA
WORKING WITH PKW NEIGHBOURS
PA E N G A- W HA W H A 2 0 1 5 i s s u e
14
& KAHU NGAIA RETIRING FROM PKW
BRENDAN ARIKI LAURENCE PKW ALUMNI
Real value lies beyond the numbers economy – an increase from $2.5b in 2010.
“Rigorous health and safety requirements could be applied to other industries such as forestry to increase safety and protect workers in those sectors, or the technologies developed for the oil and gas industry could help harness more renewable energy.”
The Wealth Beneath Out Feet – The Next Steps updates and extends
“The report underscores that the most valuable resources are not
extent of the sector’s employment and value, and goes beyond the economic and employment impacts to include a detailed snapshot
industry,” Stuart says.
A new report by Venture Taranaki has found that New Zealand’s oil and gas industry and its supply chain employ 11,720 people –
“While there are many people employed in the industry here in Taranaki, this report looks beyond the jobs and economic measures and looks at the many other ways the oil and gas industry makes
to make informed decisions on how they can interact with the oil and gas industry in Taranaki and Aotearoa New Zealand.
about where this industry is heading and how we can ensure that beneath our feet.”
Download Wealth Beneath Our Feet: The Next Steps from www.taranaki.info or www.energystream.co.nz
Taranaki’s Regional Development Agency 9 Robe Street, New Plymouth, 06 759 5150, info@venture.org.nz www.taranaki.info
Venture
TARANAKI Te Puna Umanga
EDITORIAL Welcome to the latest edition of Whenua. You might notice something has changed with our layout so let me explain why this has happened. As a Māori business we try very hard to reflect our cultural values and aspirations throughout the Incorporation; to some degree make it our organizational culture. When Whenua magazine was initiated we developed four broad themes by which we could group our stories. As Whenua has grown so has its purpose and reach and recently we thought we needed to reinforce our three strategic values by reflecting them in the way we present our magazine. He Tangata, He Whenua, He Oranga is not just a slogan. It is the way by which we mark out our point of difference, our cultural lens on why we do business and engage with our community the way we do.
“He Tangata, He Whenua, He Oranga is not just a slogan”
So stories from each part of our organisation regardless of whether its operations, farming, trust or shareholders will be grouped accordingly. We have some exciting initiatives underway from land development in North Taranaki, growing our beef farming activities, to new premises on the horizons where PKW scholar and Architecture Masters graduate Brenda Laurence’s talents will be utilised. We also explore new relationships, see the benefit of investing in old ones at Parihaka, and also get to farewell longstanding staff member Kahu Ngaia. Remember we are always keen to receive feedback so we can improve your reading experience. No reira, ngā mihi.
IMPORTANT NOTICES Key Events for 2015 2 May - Half Yearly AGM 28 August - Committee of Management Nominations Close 31 October - Annual Gene
ral Meeting
20 November - Dividend Payment 18 December - PKW Offi ce Closes for Christmas
Half yearly GENERAL MEETING NOTICE Parininihi ki Waitotara Incorporation Half yearly general meeting NOTICE IS HEREBY GIVEN THAT the half yearly meeting of Shareholders will be held at Waiokura Marae, Winks Road, Manaia, Taranaki on Saturday, 2 May 2015 9.00am 10.00am
Powhiri and registrations Meeting commences
BUSINESS 1. Apologies 2. Presentation on Performance to 31 December 2015 3. General Business
Parininihi ki Waitotara Trust Half yearly general meeting NOTICE IS HEREBY GIVEN THAT the half yearly meeting of Beneficiaries will be held immediately following the meeting of the PKW Incorporation
BUSINESS 1. Presentation on Performance to 31 December 2015 2. Scholar presentations 3. General Business D Tuuta SECRETARY
PKW Shareholder Farm Tour A bus tour of nearby PKW farms is being organised following the 2015 Half Yearly meeting. Those shareholders wishing to visit the farm need to book a seat by contacting Candy Harrison at the PKW office by email to office@pkw.co.nz or by telephone to 0800 759 462. The tour will be dependent on bookings received.
Please let us know you are coming / RSVP Please let us know if you are attending the Half Yearly AGMs to allow sufficient seating and catering to be arranged. RSVPs to be sent to Candy Harrison at the PKW Office by email to office@pkw.co.nz or by telephone to 0800 759 462.
04
07
CONTENTS HE TANGATA
04 11
16
05
Staff Profile - Farm Administrator for PKW Farms Limited Partnership
18
21
11 26
28
13
20
THE IMPORTANCE OF LEARNING NEW SKILLS
Milk price drop continues to affect the farming business
21
Editor Dion Tuuta Deputy Editor Amokura Panoho Creative Director Kristy Ramage Photography Quentin Bedwell Graphic Design iStudios Multimedia PARININIHI KI WAITOTARA Postal PO Box 241, New Plymouth 4340 Physical Taranaki House, 109 Devon Street West, New Plymouth 4310 Telephone +64 (6) 769 9373 Fax +64 (6) 757 4206 Email office@pkw.co.nz www.pkw.co.nz
16
LEASING YOUR WHENUA Renegotiating your lease
PKW ALUMNI - Designing for people, place and land
HE ORANGA
KAHU NGAIA PKW's first and longest serving staff member retires
24 26
SHAREHOLDER UPDATE
28
KAIMAHI ENGAGEMENT Kaimahi (staff) gather together at Whakaahurangi Marae
30
FUTURE PROOFING PARIHAKA The ongoing value of a PKW Grant
WORKING WITH PKW NEIGHBOURS Extending our dairy operation in North Taranaki through collaboration
PKW TRUST ALUMNI PROJECT Sharing common learnings
PKW NEW WHARE Direct ownership of our property
HEALTH AND SAFETY UPDATE Changes to the legislation
HE WHENUA
14
FONTERRA MILK PRICE PAYOUT
BRENDAN ARIKI LAURENCE
Important information for shareholders
WHENUA MAGAZINE
TE ORANGA LIVESTOCK The drystock farming business is going from strength to strength
KYLA MAAKA
The trades and vocational services are making a comeback
07
18
32
CULTURAL UNDERSTANDING PKW's commitment to building cultural understanding
ISTUDIOS MULTIMEDIA PO Box 8383, New Plymouth 4342 77B Devon Street East, New Plymouth 4310 Telephone +64 (6) 758 1863 Email info@istudios.co.nz www.istudios.co.nz
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KYLA MAAKA STAFF PROFILE Joining the team at PKW July of last year, 2014, as Farm Administrator for PKW Farms Limited Partnership, is Kyla Maaka (Ngāruahine) who is quite happy to be in the background and not draw too much attention to herself. Whenua managed however to spend time with Kyla recently. Born and raised in Eltham, Kyla, the only daughter of Maurice and Dorothy Maaka, attended both Eltham Primary and Stratford High along with her older brother, Vaughan, and younger brother, Dion, who presently works for PKW as General Manager, Corporate Services. She then furthured her education at Palmerston North College of Education. Prior to coming to PKW, Kyla spent 15 years overseas in England and Egypt working as a primary school
4 | HE TANGATA
teacher, where she gained significant experience in administration, communications and being part of a team environment. “I was at a crossroads in my career, and when this opportunity arose I thought this role played at my strengths in administration, and I could transfer those skills and apply them to this position,” adds Kyla. Returning to New Zealand to work in Taranaki was also a major incentive in applying for the position. “Returning home after so many years has allowed me to both reconnect with my whānau and my culture. Being back in Taranaki will also allow me the opportunity of furthering my Te Reo studies, which has been a lifelong goal.” “The main purpose of my job is to compile, input and report on key
farming activities in order to improve the assessment of individual unit performance. I really enjoy the role as everything is new and exciting, and I’m getting the opportunity to learn how to use new software. It gives me a whole new appreciation about what makes a successful farming business.” “My motivation is to contribute to maintaining PKW’s reputation of being a successful Taranaki Māori Business, and knowing that I can play a part in that process.”
Photo Kyla Maaka at Whakaahurangi Marae in Stratford
Photos courtesy of WITT
The importance of learning new skills trading up Did you know that:
Trade Training.
those who wish to transform
•
$23,400 is the average income for Māori households in Taranaki; compared to $29,000 for nonMāori; and
From forestry, hospitality and
labourer to a skilled tradesperson.’
Labouring is the largest occupational group for Māori in
to Māori and Pasifika rangatahi
•
Taranaki. One of the key reasons for this difference is education and training. This is the reality for many Māori in Taranaki. The government has recognised the importance of the trades and vocational sectors with the Ministry of Business Innovation and Employment (MBIE) contracting roopu throughout the motu to deliver Māori and Pasifika
automotive programmes through to a Certificate in Dairy Farming a range of offerings are being made available aged between 18-34 years. These programmes are aimed at increasing the average income for Māori households and shifting the number of Māori from labourers to skilled
themselves from an unskilled Says Community Development Manager Allie Hemara-Wahanui. “Skills training improves access to opportunity and greater choice in life for yourself and your whanau.” Last year Parininihi ki Waitotara Trust supported the creation of trade scholarships to support those
trades’ people.
who wanted to pursue post-school
At the present time no such
level.
programme exists in Taranaki although Parininihi ki Waitotara is supportive of this initiative operating
education albeit not at the university
PKW’s support of Māori and Pasifika Trade Training is one positive way of
in Taranaki.
improving post-school educational
“Education and training remains one
you consider only 3 out of 10 Māori
of the key avenues for developing
options for Taranaki Māori. "When go onto university it is clear that a HE TANGATA | 5
huge amount of Māori talent is not necessarily being presented with options for the future. Trade training is a powerful option for our people to consider.” The value of trades is not lost on PKW. The unsung heroes who help to keep PKW’s farms operating all hours of the day are the ‘tradies’. Builders, fencers, plumbers and electricians, they play a vital role in supporting your farmers to operate the farms successfully. Beyond PKW itself trades people are key in the ongoing maintenance and development of Taranaki marae facilities and businesses generally. PKW shareholders located outside of Taranaki can contact the following organisations if you are interested in Māori and Pasifika Trade training near you:
Māori and Pasifika Trade Training is also available through: •
Northland
Te Matarau Education Trust and Northland Polytechnic
•
Auckland
Auckland Council (The Southern Initiative Māori and Pasifika Trades Training); and
Unitec, Manukau Institute of Technology and Te Wānanga o Aotearoa
•
Waikato
Waikato Institute of Technology (Wintec)
•
East Coast Te Rūnanganui o Ngāti Porou
•
Gisborne
•
Hawke’s Bay Youth Futures Trust (Te Ara o Tākitimu)
•
Rotorua
Waiariki Institute of Technology
•
Wellington
WelTec and Whitireia
•
Canterbury Te Tapuae o Rehua and Christchurch Polytechnic Institute of Technology
Te Runanga o Turanganui a Kiwa
Photos courtesy of WITT 6 | HE TANGATA
Brendan ARIKI LAURENCE - pkw scholar DESIGNING FOR PEOPLE, PLACE AND LAND When Brendan Laurence (Taranaki/ Te Atiawa) presented his First Light architectural studies project to the PKW annual general meeting at Ōwae Marae in 2012 he had no idea how close to home he would end up working. The process for any architectural graduate is that upon completion of the university part of your studies, you then become essentially an apprentice which means you go and get work experience in the field for three years. This enables you to build up case studies demonstrating your work and knowledge. Once you have done that, a professional board then interviews you, and then, all going well, approves your certification/ registration to become a qualified architect.
For Brendan, coming to this point in his life has felt like just reward for the years he put into his studies. “I grew up in Hawera, and at High School I always enjoyed tech' drawing, but not necessarily school itself. After I left school, I gave draughting a go for about a year but didn’t stick with it, as it didn’t seem to fit with my desire to pull things apart, put them back together, and work out the space by which that could all happen”, advises Brendan. After seven-odd years of farming, building, construction work, and finding opportunities to make things, Brendan returned to draughting. “It was the middle of the recession and, well, draughting was boring, so I decided to pursue a degree, heading to Wellington in 2007 to study at Victoria University.” “The first three years are essentially about learning the conceptual and technical aspects of architecture. Being able to see the big picture, working your way into seeing the detail that comes from the design process.”
By his fourth year Brendan had started to explore Māori dimensions, and says Māori artist Ralph Hotere heavily influenced him. “I do a lot of art works, painting and stonework. The canvas knows what it wants to be and architecture is very similar. The building is already there; you just need to find it.” In his fourth year, Brendan began taking on Māori influences into his designing and, as a result, started to explore his connection to Parihaka, thinking through how his profession can find new ways to do things, and by doing so help him explore what it means to be Māori in today’s world. “I lost my koro [Waru Wharehoka] in my fourth year, so I utilised that period to demonstrate our intergenerational connection to Parihaka in my thesis. My thesis contains images for the three Wharenui I designed for my Master of Architecture Professional Degree. The first wharenui is conceptually located at Parihaka, the other two are on the Wellington waterfront. All three buildings are my attempts to "find" architecture within the context of the
HE TANGATA | 7
site and emotional understanding of oneself. It seems quite airyfairy, really, but for me was quite a rewarding journey of discovery.” It was during his fourth year of study that Brendan applied for and was successful in gaining a PKW Scholarship. “The money was obviously a great help, a real benefit. But for me it was also the wider connection, the
8 | HE TANGATA
associations that were established by being a PKW scholar. I got to know the key movers and shakers in the Incorporation and so, when I heard that PKW were looking to move into new premises, I felt confident to make an approach to see if I could be involved.” That approach has since seen Brendan employed by Elliots Architects, who successfully tendered to undertake the refit of the newly
purchased property. “I had the benefit of knowing the principals, Jim and Vanessa, and when they contacted me to do some conceptual work for PKW, that also led to doing some other work at Pukeiti, another place of significance to the Incorporation.” Having returned to Taranaki to set up his own practice, Brendan is quite happy that circumstances eventuated
where he was offered a job and he can grow from the opportunities that come his way. “I encourage students to work hard if they receive a similar grant,” advises Brendan. “If you are going into architecture, remember it is a lifestyle choice and to be careful not to get too insular, as we tend to socialize, work and play hard together,” says Brendan with a laugh.
With his university days behind him, Brendan prefers to think of that exciting new project he can get his teeth into. Though designing a skyscraper on the New Plymouth skyline might be a bit ambitious, a monument is still a dream project for most young Architects. Who knows, maybe Brendan could help PKW and Parihaka reach for the stars.
HE TANGATA | 9
Page 8 & 9 "This is the entry to the first of the 3 wharenui I designed. This one is based at Parihaka, and the concept revolves around the creation myth, with the roof (Ranginui) and floor (Papatuanuku) forms growing out from a central point (Te kore, Te Po). It was my first attempt to derive a design from a purely MÄ ori mythology perspective." Top "This is the interior of the third wharenui I designed which sits on the Wellington waterfront. This is my favorite one as it is a simple reaction to the site as i explored the idea of the architecture already existing. I love the simplicity and directness of the space. it feels like it belongs." Middle Left "This is the exterior entrance view of the third Wharenui." Bottom "This is the interior of the main room in the first wharenui at Parihaka. You can see the way the wall curves up and over to create the roof structure, which was my representation of the birth and separation of Ranginui & Papatuanuku."
10 | HE TANGATA
KAHU NGAIA pkw's first and longest serving employee retires After a 30-year career at PKW, Kahu Ngaia finally hangs up his workboots. With over 50 years of hard work and a passion for pig hunting, Kahu has spent most of his life in the great outdoors. This will continue, but now he gets to complete his own list of jobs that includes sorting out his vegetable patch and preparing to build a double garage on his section. Whenua caught up with him recently at his Stratford home.
Words: Deena Coster (Te Ātiawa) Photos: Hamiora Perawiti (Ngāti Raukawa, Ngāti Toa, Ngāi Tahu) HE TANGATA | 11
Retired since January, Kahu said every day involved a different project but there was one small pleasure to his recent lifestyle change. "Ever since I retired, I haven't put on a pair of shoes," the 65-year-old said. His working life began as a teenager and he has been based mainly in the central and south Taranaki areas with stints in places like Taumarunui, when he worked for the New Zealand Electricity Department. He moved back to Stratford in 1965 with his young family, which included three sons. Kahu was first approached to work for PKW in 1992, by then secretary Peter Charleton. He was working in management in the forestry industry at the time but looking for a change. However Kahu made one thing clear to Peter from the start. "I just looked at him and said, 'I'm not going to milk cows'." What followed was a role where Kahu was responsible for the maintenance and upkeep of PKW's farm and properties. Putting up fencing, helping out contractors, fixing windows and repairing roofs were all in a day's work for him. "I used to call myself a jack of all trades and a master of none," he said. It was his practical, self-taught skills, which he learnt as a young teenager growing up in Pungarehu, which proved so useful for PKW. The starting point for this happened after his father died. At that time, Kahu was 14 and had to step into his shoes. "I had to be the head of the house. This meant heading out to work, often taking on milking or haymaking jobs, to get a few pennies for home." "Life wasn't always easy back then," he said. Through his early introduction to the workforce, he developed and perfected the ability to be able to fix and make things.
12 | HE TANGATA
"You had to be able to do just about everything then." PKW’s farm supervisor, Shane Miles, said Kahu’s versatility was something the company appreciated most about him. ‘‘Kahu could turn his hand at anything thrown his way,’’ he said. Known affectionately around the firm as ‘‘Mr Fix-it,’’ Shane said Kahu was also known for his reliability and how well he was able to get on with people. While PKW's legacy is rooted in Māori history, Kahu, who is Te Ātiawa, said until recently his own whakapapa was unknown to him. One of six children born to Kahukura Ngaia and Dorothy Thomas, Kahu said although he knew he was Māori, his father never spoke te reo to him in the home, despite being a fluent speaker. "We weren't really told anything. That’s the way it was those days." Life outside of work was one of the key drivers behind Kahu's decision to give up his job at PKW. Although his health problems were a factor, he also talked to a few of his retired neighbours who all told him they never regretted giving up work, so he decided to take the plunge. But he remembers his time at PKW with fondness and said in the three decades he worked for the company
he had seen more than grass grow. The business had changed a lot in that time too. He said the appointment of younger leaders had helped turn the company's finances, along with its focus, around. "You could see things moving ahead. They had a direction they wanted to go in." The move to include dry-stock farming and the increased number of farms PKW now owned around Taranaki was something Kahu was also proud to be associated with. PKW thanks Kahu for his long years of service, seen out by an impressive work ethic and a deep-seated commitment to developing and sustaining our land. >>
Page 10 Feet up - Kahu Ngaia takes time out at his Stratford home following a 30 year career at Parininihi ki Waitotara. Page 12 Hard work - Since retiring in January, Kahu Ngaia has been working in the backyard of his home, including tidying up the vegetable garden. Page 11 Tender care - Kahu Ngaia holds a stone adze his father found in the 1920s when ploughing a field in Waitara. Like his father, Kahu's own life has been closely tied to the land.
His 30 year contribution is one that truly represents our mission in action “He Tangata, He Whenua, He Oranga”. The PKW whanau have been lucky to have Kahu as a key member of the team and wish him all the best with his retirement. “Tino kai, tino ora te kōpū” - Your labours will bear fruit for the future generations and will never be forgotten. Arohanui Kahu.
SHAREHOLDER register
magazine, annual dividend payment, advice on dates of shareholder meetings and the opportunity to cast your vote in the Committee of Management’s elections. We will be updating the missing shareholder register in due course and separating out the deceased from the missing. To succeed to the shares of deceased shareholders, whānau are required to submit an application to the Māori Land Court. Missing shareholder procedure
PKW Shareholder Registrar Nedina Hohaia provides an update on matters important for shareholders. ‘Missing Shareholder’ register Our ‘Missing Shareholder’ register has been available for viewing on our website for over a year now. We are pleased with the responses we have been receiving, which have enabled many of you to reconnect with your Parininihi ki Waitotara whānau, and actively participate by receiving the quarterly publications of Whenua
When contacting us as a shareholder who has been missing for a period of time, we need to be able to correctly identify you as the rightful owner. To this end, we will ask you pertinent whakapapa questions, and request that you provide us with your birth certificate and one form of photo I.D. Please do not be offended by these requests as this process is in place to protect what is yours. Parininihi ki Waitotara will only release unclaimed monies upon being satisfied of the correct identity of the applicant.
Voting in Committee of Management elections At one time, there was only one way to submit a vote for the person of your choice, and that was by attending the AGM in person. This is no longer the case. With the introduction of both Postal and Internet Voting, shareholders can now cast their vote from wherever they reside. While the option of bringing your voting paper to the meeting remains in place, our preference is for shareholders to use the postal or internet options to allow for a faster final result which is generated from our election managers, Electionz.com Ltd. We envisage that the only votes to be cast at an AGM would be by shareholders who have not received their voting papers by mail and would need to use the special voting facility. We ask therefore that you assist us in the voting process by using the options of postal and internet voting in the first instance.
HE WHENUA | 13
Existing site of proposed development on Leach Street, New Plymouth
New Whare to house PKW Incorporation Direct ownership of our property Since the establishment of the Incorporation in 1976, a key focus for PKW has been to regain direct ownership and control of our property. The focus is to ultimately enable control over our own affairs for the prosperity of our shareholder whānau and future generations. Whenua reports on the latest commercial acquisition and the reasons for its development.
This piece of legislation provided a mechanism for the Incorporation to purchase back leases over time (as they are sold by the Lessees) under a first right of refusal process. This mechanism, though fraught with fundamental flaws due to the reliance on significant amounts of capital (cash or loans), has permitted PKW to actively pursue the purchase of strategic leases for the purpose of again actively controlling the lands.
Throughout our journey, we have been hampered by the disadvantage of the perpetual leasing regime imposed on our lands. Thanks to the undaunted and sustained pressure of our tūpuna, their actions saw the establishment of PKW in 1976 and then the passing of the Māori Reserves Land Amendment Act in 1997 that facilitated a small compromise. (Refer Whenua Issue 4 page 20)
The past 6 years has seen PKW rapidly expand its operations across all facets of its businesses. We have now moved from being a passive landlord to an active business operator and significant economic participant within Taranaki.
14 | HE WHENUA
With the purchase back of over 50 leases, the implementation of Managed Farms in 2011, PKW Farms LP is Taranaki’s largest milk supplier
to Fonterra and we are well on our way to becoming a major player in the Livestock / Beef industry. Coinciding with this expansion has been the development of a range of other business interests, including lobster, forestry, commercial property and venture capital investments. With strategic priorities to grow our sustainability and diversifications, PKW’s ability to provide meaningful and long-term opportunities for our shareholders is immense. With exponential growth (and more to come) PKW needs to prepare for a future focused on our mantra of being an intergenerational landowner that has the stability and capability to sustain and grow prosperity for our owners, both now and into the future. For the past 6 years, PKW has made its home in the rental premises at 109 Devon Street West, New Plymouth,
as a tenant. Our rapid growth has meant our need to acquire more office space is acute. The current premises have served a function that we have now outgrown. This also does not align with our strategy to take control of our own destiny and have our own home. It is on this principle that we are pleased to announce the purchase of our very own premises at 35 Leach Street, New Plymouth – previously the old Gen-I building. This building will enable PKW to: •
Reflect our values as a property owner capable of managing our own affairs
•
Reflect our values as an intergenerational business
•
Provide a clear message that we are active owners
•
Alter or change premises without recourse to a landlord
•
Avoids sourcing occupancy space in a competitive rental market, lessening exposure to rent reviews and high-cost rentals
•
•
Provides capital gain from the building acquisition for the benefit of our shareholders Will enable us to create a positive environment for visitors in a space that can tell the PKW story
•
Create a space that has the potential for multiple uses which could potentially be used by shareholders or other Taranaki Māori businesses for meetings or workshops
•
Have the potential to cater for a growing PKW team over a 10-20 year timeframe.
Throughout 2015, the building will be refitted to maximize the capital investment and commercial value. As part of the pre-development phase, we are pleased to have engaged Elliott Architects for the conceptual designs, including the specific engagement of one of their new architects, Brendan Ariki Laurence who is a recent architectural graduate and a proud PKW Trust scholar. (Refer feature on pages 7-10). For PKW this is a great example of demonstrating our mission of sustaining our people
through prosperity. Jim Elliot, principal of Elliot Architects explains how the working relationship with PKW evolved. “Our business has an intimate knowledge of the building having worked with previous occupants and that has been helpful. But the process of meeting with PKW staff, finding out their existing and future needs has been the most important part of the design process as it allowed us to nut out a twodimensional layout and work from there. Bringing Brendan into the project has meant we could take the design concepts to another level, linking appropriate cultural elements into important features for the interior and exterior refit of the building that reflects visually the relationship to the land, the mountain, and the people.” Development will commence around June 2015 with the aim of relocating PKW’s office to the new Whare for the start of the 2016 year. We will be sure to let shareholders know when we will be having the official opening, so watch this space.
HE WHENUA | 15
Working with pkw neighbours PKW Farms LP is working with the Māori Trustee and whānau land owners to extend its dairy support operation in North Taranaki while significantly improving the financial return Māori land owners receive. After leasing their land to a local farmer for many years, the advisory Trustees of Rimutauteka 1 Block, in conjunction with the Māori Trustee, tendered their land as part of a competitive process. “PKW successfully bid for the lease,” advises PKW CE. Dion Tuuta. “This deal has resulted in an improved rental return for the landowners, many of whom are also PKW shareholders, and an outcome where the land will be developed through a development lease.” The development lease includes a dedicated water supply from a new bore that has been drilled so the land can be farmed as a self-contained block. Previously the land was reliant on water supply from adjoining private land, owned by the former Lessee. “We have the management expertise to farm the block, which will be run in conjunction with our Otaraoa Road dairy support operation, managed by Chris Patterson,” says Dion. Chris is pleased with the new lease, and believes the block will be a great addition to PKW’s land portfolio. “This block is about 155 acres, with land contour 80% flat and 20% hill.
16 | HE WHENUA
We are currently fencing off the Manganui and Waitara rivers where they both meet, fencing off all the little gullies and creeks to stop stock getting through,” advises Chris.
and though we took over the block on 1 December, it had taken about a month to get things in place. We will be running 250-300 hold over cows and about 60 weaners on the block.”
PKW also intends to construct dedicated cattle yards, rectify the gorse reversion problem, and upgrade the internal infrastructure as part of its obligations as a Responsible Lessee.
Rimutauteka 1 is an example of successful dialogue and collaboration between PKW and its adjoining whānau trust neighbours through the Māori Trustee. The collaboration outcome adds critical mass and scope to PKW’s active farming operations and provides greater scope for more diversification with PKW's growing farming business.
“It’s a whole refit, re-fence and rewater by putting in the bore, building 25 troughs and laying 3.5km piping in the ground it’s been quite a big job,
“PKW Farms LP’s interest in this area provided the whānau with choice they previously didn’t have,” Dairy Support Manager, Andrew Gibson, noted. “The whānau have aspirations to grow their land ownership over time and get their whānau back onto the land. We can work with them to help that happen.” PKW hopes that other Whānau Trusts might see the potential of working collaboratively with PKW in a positive light and consider similar arrangements for the utilisation of their own Māori freehold land.
"The whānau have aspirations to grow their land ownership over time and get their whānau back onto the land. We can work with them to help that happen."
Chris Patterson and son Josh who will be overseeing the block
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Te Oranga livestock In August 2014 PKW Farms decided to pursue new diversification opportunities and started Te Oranga Livestock to capture a new stream of revenue through internal and external livestock sales. We provide a brief update on developments with this operation. PKW Drystock Operations Manager, Andrew Gibson, also became the manager of Te Oranga Livestock when this venture was initiated. His 10 years’ experience as a Livestock agent /auctioneer has meant that business has been busy from the start with what is shaping up to be a successful venture in an exciting sector. The core business is to capture commission when PKW farms purchases cattle or sell cattle onto further markets. With our dairy herd 18 | HE WHENUA
numbers at 7500 and ongoing growth every year, the farming business needs to be in total control of buying and selling. Andrew’s strong, loyal client base from the last 10 years has also allowed three herd sales for 1st June settlement, four Autumn calving herd sales for 1st March settlement, a large number of service bulls sold or leased out, and every day sales on all classes of beef cattle, empty cows/heifers and large numbers of 4-day old dairy and beef calves. It is possible that with the rapid growth of this business, Te Oranga Livestock will need to get more agents on the ground to cover the work that arises. “I feel with the increasing strength of Māori Agri-Business, this part of the PKW Farms business will continue to
grow very quickly. We are looking to work alongside Ngāi Tahu and other similar entities that can benefit both parties with the buying of cattle from the North Island and trucking them south.” says Andrew. “Taranaki cattle are always sought after as we are disease free, herds are well recorded and we get all weather conditions to harden the cattle up before experiencing the southern winds.” “Te Oranga Livestock appreciates the support of the loyal clients we gain daily and also thanks outside businesses that we have linked with to become a leading Livestock company in Taranaki.” Whenua looks forward to reporting further on this exciting business venture as it goes from strength to strength.
HE WHENUA | 19
fonterra milk payout remains unchanged In the last edition of Whenua it was reported that Fonterra has reduced its forecast milk price from $7.00 per kg of milk solids to $4.70 per kg of milk solids for the 2014/15 dairy season. As shareholders are aware, PKW Farms LP makes the majority of its revenue from supplying milk to Fonterra Cooperative Group (Fonterra). Fonterra then trades (sells) processed milk products to international customers through GlobalDairyTrade (GDT). This is an international auction platform that occurs twice a month and determines the price that bidders are prepared to pay for the milk products. GDT is owned by Fonterra, though it is operated separately and independently. 20 | HE WHENUA
The GDT trades in dairy products processed by Fonterra and other sellers. Rather than the standard milk or dairy products Kiwi’s are used to, the bulk of this milk is converted into a range of dairy ingredients. These include milk powders (skim, sweet whey and whole milk), anhydrous milk fat, butter and butter milk powder, cheese, lactose and casein products. PKW – along with most dairy farmers - watches the fortnightly auction closely to determine whether or not the price has the potential to go up or down. Each quarter, Fonterra is required to consider its forecast Milk Price and releases their best estimate for the end of the season. Despite recently reported increases in the amount that international buyers are willing to pay for dairy
products, Fonterra has decided to keep its forecast milk price at the current $4.70/kg of milk solids level. While the milk price reduction represents 40% less revenue for the farming partnership compared to the previous year, PKW Farms LP has tightened its costs across the board while preparing itself for the coming season. Despite managements best efforts, the profitability of the farming business will be impacted by this year’s price drop. PKW is hopeful that global demand and pricing will rebound further, allowing Fonterra to raise its forecast payout, but this is yet to be seen.
leasing your whenua Renegotiating your lease Parininihi ki Waitotara reviews its perpetual leases every seven years and this process determines how much a lessee will pay to PKW. This is an important process which – because of the large number of leases involved – requires a long time to prepare for and complete. As you can imagine, lessees (those who lease the land), want to pay as little possible, while the landowner /lessor (PKW), aims to negotiate the best market rate possible. This is the healthy tension that exists when reviewing leases. Knowing what the land is worth for leasing purposes is a very important part of any land manager’s role. Proprietors of PKW corpus land (Lessees)
PKW Farms Limited Partnership (Active Control) HE WHENUA | 21
In addition to the 275 remaining leases owned by Parininihi ki Waitotara (covering approximately 16,000 hectares of whenua), there is a significant number of leases covering other Māori freehold land. These lands are managed by organisations such as Te Tumu Paeroa (the Māori Trustees Office), or managed privately by hapū, marae or whānau trusts. Many are not actually overseen by organised governance structures, leading to potential loss of value for the owners. It is estimated that a proportion of Māori land is leased below the prevailing current market rental – primarily due to a lack of knowledge regarding the market.
A lease agreement states how much they will pay, how regularly the rent will be reviewed, when and how long they can lease the land for, and any renewals of the term. The lease also covers all obligations of both parties, including key requirements of the lessee, such as the maintenance of the land and/or any buildings. If the land is Māori leasehold land, special lease conditions should be added (if applicable) to ensure there is protection of any wāhi tapu on the land, agreed access for owners (such as to urupā) as well as provision for the surrender of part of the leased land. This is important if the landowner wishes to later utilise part of the land to establish an urupā or papakāinga.
The lease agreement
Lawyers should prepare this agreement to ensure all legal aspects are covered and the parties are appropriately protected. The cost of preparing this lease is at the expense of the successful lessee.
A written lease agreement is strongly recommended. This must be signed between you (the landowner) and the lessee (person leasing the whenua).
It also pays to get an agriculture consultant/expert to review the agreement to ensure the agriculture aspects are covered as well.
In our experience, there are a few important things landowners should consider when deciding to lease land.
22 | HE WHENUA
Benchmarking report A benchmarking report is an independent report that describes the condition of the whenua at the start of the lease period. The value of the report arises when the term of the lease is near completion, when the Trustees should expect to have their whenua returned in the condition it was first leased (ideally it should be better). Again, this report is prepared at the cost of the lessee. Together, the lease agreement and benchmarking report become invaluable if either party decides to contest or challenge the relationship or conditions of the property at the expiry of the lease. The author of the benchmarking report can also be called as an expert witness to help protect your interests, therefore the author should be qualified, experienced and prepared to give evidence in a court of law or a dispute resolution hui. Valuation report A valuation report is an independent report describing the value of your land. This is a guide for what you
should expect to receive in rent, but is not a guarantee that this level will be reached. The cost of this report is met by the landowners, and can cost between $750-$900. Where’s the water? Do you know how your whenua accesses water? This will determine who could be interested in leasing your land. For example, if the whenua has water then more people might be interested. This increases potential number of bidders for the land and allows you to consider who you want to lease the land to. If there is no water access then your options are limited. Relationships Talk with your lessee ahead of time to let them know of your intention to renew the lease. This is normal for them, and as the current lessee, they are more likely to be interested in continuing to lease your land. They also understand current market value, and while they may prefer to pay less, ‘current market rental’ is a term they should understand. Also, land is a scarce commodity, so
farmers will generally try to hold onto what they have and, if possible, lease more. Throughout the term of the lease, good management practices should be put in place. These will include ensuring invoices are sent to the lessee, checking the rent is paid on time, arranging rent reviews, conducting regular inspections of the land and any buildings, requesting work be carried out to correct any breaches of the lease, and requesting a regular report on the land.
negotiate comes from having the knowledge and practice. There’s a lot of work that goes into negotiating your lease, but once you have a checklist it becomes easier. Disclaimer: This article discusses leasing in general terms only and is drawn from PKW’s personal experiences. It should not be relied upon as legal advice. If you have any specific questions about leasing your whenua, you should consult your solicitor or other professional legal services provider.
A relationship with the lessee is based on a partnership where both parties have something they wish to trade. If one party does not know their rights and entitlements then these are at risk, resulting in a partnership where the power balance is uneven. As a landowner, or a trustee representing the interests of the owners, you have a responsibility to get the best possible deal and to protect it throughout the duration of the lease. The confidence to
Photo Farm 16 in Eltham HE WHENUA | 23
HEALTH AND SAFETY UPDATE PKW SAFE WORK PRACTICES a
"For MÄ ori, manaakitanga sits at the heart of our culture so ensuring the wellness of our manuhiri (and our own) is imperative to ensuring we practice this important value." 24 | HE ORANGA
The health and safety environment is changing, with new legislation expected to be in place by October 2015. PKW Health & Safety Manager, Bronwyn Macfarlane reports on how this is important for PKW workplace practices. Following the Pike River Disaster, a number of recommendations were made to the government which has led to substantial changes. These changes include a new regulator (WorkSafe New Zealand), with greater resources being applied to
occupational health and safety. On average 75 people die per year at work, 1 in 10 is harmed. These facts don’t count the social and psychological costs on friends, whānau and co-workers of those people hurt at work. The legislation will change the primary focus from Employer / Employee to a Person Conducting a Business or Undertaking (PCBU) and Workers. One of the significant legislative changes is a new due diligence on Officers. An ‘Officer’ can include a Director, Chief Executive and other Senior Managers whose decisions impact the business. Officers have a number of responsibilities; including H&S knowledge of the business and that the PCBU has processes and resources in place for eliminating or minimising risks to health and safety. PCBU’s are in the best position to control risks to work health and safety as they are the ones carrying out the work or undertaking. All PCBU’s have a primary duty of care in relation to the H&S of workers and others affected by the work carried out by the PCBU (including visitors). It is also important to note, a PCBU who provides accommodation (for the purposes of the job and which is owned or under the
control of the PCBU), as in farming, must ensure that accommodation is maintained so that it wont expose the work to any health and safety risks. Another important consideration to understand is the relationship a PCBU has to a worker. A worker can be described as a person who carries out work in any capacity for a PCBU, including employees and contractors, subcontractors, trainees or people gaining work experience. PCBU’s cannot contract out their duty. How does this affect PKW? There will be increased visibility of the Inspectorate and more focus on enforcement. WorkSafe NZ has recently rolled out the Safer Farms initiative. The aim is to increase farmer awareness regarding risks involved in their workplace and how best to manage these risks. While legislative 'requirements' are very important, PKW sees its Health and Safety practices as a key way of valuing the mana of our fellow workers and visitors while on our sites. For Māori, manaakitanga sits at the heart of our culture so ensuring the wellness of our manuhiri (and our own) is imperative to ensuring we practice this important value. PKW will continue to develop a Health and Safety culture where ‘best practice health and safety is business as usual’. This will be done by a variety of mechanisms, including visible leadership, increasing H&S capability throughout the organisation and the management of risks. No matter where you work, the common objective is, we all return home to our whanau at the end of our day fit and well and unharmed mentally or physically by our work.
HE ORANGA | 25
PKW Trust Alumni Project sharing common learnings PKW Trust recently met with a group of PKW scholars as part of the process of establishing a Taranaki Alumni group with strong ties to Taranaki. Leadership mentoring was one of many ideas the scholars identified which could make their studies that much easier. Workshops on how to take notes and speed reading were other useful ideas which can improve student outcomes. The group highlighted their respective institutes’ student support services as examples of how some educational institutions supported their students to achieve. In saying this they acknowledged that the institutes’ area of expertise was the subject areas, not strengthening their connection to Taranaki. As a group they agreed the Parininihi ki Waitotara Trust could play a
26 | HE ORANGA
positive role by helping to facilitate students’ connection back home through an Alumni or Taranaki Māori student network. The roopu noted that there were a number of positive Taranaki-wide initiatives which drew our people home. For one participant, Taranaki Tū Mai was a key reason to return home from Otago University and represent her Iwi playing tennis. Consequently her iwi (Taranaki) were the overall winners of Taranaki Tū Mai 2013. Another example is the Ngāti Ruanui Iwi Festival attracting Taranaki descendants home to participate in the cultural life of their iwi. The rōpū mentioned Ngā Pae o te Māramatanga (NPM) which is a conduit for conducting and promoting research relevant to Māori communities. They do this by hosting seminars where researchers can share their learnings. The roopu supported wānanga opportunities
like these to learn about each other, the rohe and what research is being done by Taranaki descendants that could support Taranaki aspirations. Allie Hemara-Wahanui, Community Development Manager likened the hui to the on-farm discussion groups the Farms manager host with their teams. “Sharing ideas, listening and learning from each other is a powerful way of sharing information and generating new ideas.” says Allie, “The challenge is to now turn those ideas into action.”
Page 27: (l-r) PKW Community Development Manager Allie HemaraWahanui with Mitchell Ritai (Te Ātiawa/Taranaki), Miaana Walden (Taranaki), Brian Smith (Te Ātiawa) and Kyla Maaka (Ngāruahine) (PKW Farms Administrator)
"Sharing ideas, listening and learning from each other is a powerful way of sharing information and generating new ideas"
If you are interested in participating in the PKW Trust Alumni project contact Allie on allieh@pkw.co.nz or 06 769 9373
Management Massey University Te Aroha Hohaia (Taranaki/ Te Ātiawa/ Ngāruahine) Ngaruahine, 2014 Edward Tamati Postgraduate Scholar, PhD Victoria
Members of the first discussion group were:
University Brian Smith (Te Ātiawa)
Mitchell Ritai (Te Ātiawa/Taranaki)
Te Ātiawa, 2014 Tertiary Grant
Te Ātiawa, 2014 Charles Bailey
recipient, Masters in Education
Postgraduate Scholar, Masters of
Waikato University
Miaana Walden (Taranaki) Taranaki, 2013 Undergraduate scholar and recent graduate of Otago University, Bachelor of Law and Arts now employed by Govett Quillian, New Plymouth. Kyla Maaka (Ngāruahine) Farms Administrator for PKW Farms LP
MULTIMEDIA DESIGN + MARKETING
Proud to support the PKW whanau
HE ORANGA | 27
KAIMAHI Engagement PKW staff event On 25 February 2015, PKW kaimahi (employees) gathered together at
Whakaahurangi Marae in Stratford for their team meeting. Kaumātua David West, Tony Salsano, Anna Marriner, Maakere Patene and Shauna Goble of the marae
whānau welcomed PKW team
members with a pōwhiri. Whenua reports on the day’s purpose.
PKW’s growth as a business has seen team numbers grow significantly over the last few years and our team is made up of a broad range of positions (from Administration Assistants to Farm Assistants) spread throughout Taranaki. This regular event is an opportunity to bring the farming team together with the office team to collectively learn about the purpose of PKW, why we are in this business and the key role each team member plays in ensuring we realise the mission and vision of PKW. The jam-packed day-long event included a range of topics that covered the following highlights: Community Engagement and Development Community Development Manager, Allie Hemara-Wahanui provided an overview of the PKW Trust as a key vehicle for enabling the Incorporation’s social aspirations for 28 | HE ORANGA
our people. It was noted that the more success PKW businesses have, the more support it will be able to provide through the Trust. PKW Shareholders PKW Registrar, Nedina Hohaia presented an outline of the history of PKW shareholding, noting that we now have over 9,500 shareholders and this is growing rapidly due to share fragmentation. Nedina also promoted how whānau trusts can stop this fragmentation and how her role helps individual shareholders give due consideration to these matters. PKW History and Purpose Dion Tuuta, PKW’s CEO, revisited the significant events that led to the formation of the Incorporation and retierated the importance of the staff understanding the history of PKW and how the visions of our tūpuna are being realised by the work that the team carries out each day. PKW Vision, Mission and Values It was an opportune time for PKW’s Chair, Hinerangi Raumati-Tu’ua to spend the day with the team and she was able to share her personal background, experiences, connection with and history of working for PKW. Her participation was appreciated by all present.
Key themes from a governance point of view were shared, particularly on ensuring that PKW realises its vision and its mission. Hinerangi views PKW’s present position and future role as one of empowerment and self-determination in action, and is proud to chair a team that develops the strategy and makes the decisions to see this continue now and for future generations. Hinerangi has an ambitious vision for PKW and believes that if we want to, we can achieve “world domination”. To this end, "we don’t want any barriers to what we can achieve. We have our land, we have our people and magic can happen”. Other key items of focus for the governance team are to cement a health and safety culture into our workplace to ensure team members “go home safe to their whānau every day”; raising our game on best practice environmental management; and focusing on capturing PKW’s “magic” through systemisation and improvement, streamlining what we do well to protect the Incorporation from any “speed wobbles”. Operational Updates Management team members, Shane Miles, Andrew Gibson and Dion Maaka, provided a quarterly update on what was happening
in the PKW farming business and also acknowledged some of the challenges being experienced, particularly the significant drop in the milk-price and the dry weather conditions. Irrespective, the teams were still up on production targets and the dairy support business was doing exceptionally well.
PKW’s resident Quiz Master, Drystock Manager Andrew Gibson, ran a series of quizzes throughout to test the teams on PKW general knowledge, which proved to be a valuable way to add some humour and fun into the day’s programme, and build comararderie amongst team members.
Health and Safety Update
With the day enjoyed by all ending with a special acknowledgement of the excellent facilities and hosting by the marae whānau, the teams went away looking forward to the next time they will meet to further sthrengthen their knowledge and understanding of the organisation they work for.
Health and Safety Manager, Bronwyn MacFarlane backed up expectations in this area from the committee of management by highlighting some key areas of improvement PKW are focusing on to ensure it is at the forefront of Health and Safety Practices on Farms. However the day wasn’t all about presentations.
Page 28: PKW kaimahi gather at Whakaahurangi Marae Top Left: CE Dion Tuuta with kaumatua David West, Anna Marriner, Maakere Patene, Shauna Goble and Tony Salsano. Bottom Left: Chairperson Hinerangi Raumati-Tu'ua addresses the PKW team Bottom Right: Greg McLean and Hamish Mitchell, PKW staff, with CE Dion Tuuta (centre)
He mihi aroha ki te whānau o Whakaahurangi Marae. Mō tō koutou manaakitanga ki Parininihi ki Waitotara. Mauriora! HE ORANGA | 29
TE ARANGA O PARIHAKA FUTURE PROOFING PARIHAKA
solutions to the challenges of the
state of the infrastructure and
time.
buildings, Parihaka continues to
This was achieved and can be clearly demonstrated by many innovative developments that occurred at Parihaka when it was an economically independent and thriving community. However, due to the actions
A community grant project
of colonial forces in 1881 and
continues to add value to ongoing
against the leadership of Tohu
be a potent symbol of non-violent action, autonomy, reconciliation and resilience, providing optimism for the future. This has been demonstrated with the continuation of the 18th and 19th Raa days each month every year. It was with this in mind that the PKW Trust supported a request from the Parihaka Papakāinga Trust in 2008 to
funded by PKW Trust in 2008/9
successive government legislation
developments at Parihaka.
Kākahi and Te Whiti o Rongomai
The legacy of Parihaka can be traced
unfortunately, severely affected.
well as x-raying the land to show
iwi of Taranaki to have greater control
Parihaka today is now a small
powerlines, water tables etc, were
over their future. As a result of Crown
settlement of unassuming buildings
located. A necessary exercise,
actions and the longstanding impact
and homes with three separate
given that when the Toroānui Marae
of decades of war, Parihaka sought
Marae – Takitūtū, Toroānui and
DIY project was held earlier that
to find innovative and progressive
Parāhuka. Despite the present
year, trenches were dug to put
back to the original intention of the
30 | HE ORANGA
and the people of Parihaka, this was
undertake a mapping project. This included mapping the geography and geology of the land blocks as where the underground pipes,
in telephone cables that instead
Parihaka Papakainga Trust chair
Rongomai to engage in the ongoing
damaged existing water main pipes.
Amokura Panoho.
developments that are happening.
As a result of this project, the
“The mapping project basically
“We want to encourage our people to
Papakāinga Trust has been able to secure funding from the Ministry of Health to protect and improve the health of their water supply; initiate a power-generation research project, ‘Taiepa Tiketike, Passive resistance to climate change’ in conjunction with Massey University, as well as undertake a master planning programme that was funded by Te Puni Kōkiri that has identified housing, community and commercial opportunities. “At the time we undertook this
gave us the evidence we needed to show firstly that our tupuna were advanced in their use of technology as we were amazed at the level of infrastructure still in existence since their time. Secondly it gave us a better appreciation of our constraints, challenges and what we needed to do to seek solutions. Without these
be part of the dialogue, conversation and decision-making about what should be our responsibility to the legacy of our prophets - what should be the vision for Parihaka’s future?” For more information on these hui contact Maata Wharehoka 0278966759.
tools we would have been very much working from a blank page when it came to resolving our infrastructure issues as a lot of that information had been lost over time.”
exercise we didn’t fully appreciate
A number of important hui are due to
how much value the investment
be hosted at Parihaka to encourage
Photo
from the PKW Trust would add to
the descendants and followers
our ongoing development,” explains
of Tohu Kakahi and Te Whiti o
Image provided by Taylor Patrick Limited HE ORANGA | 31
Cultural understanding building capabilities In addition to holding shareholder meetings at Taranaki marae,
kaimahi (staff) hui are now marae based as well.
“It is important for our staff to get together regularly to review our performance and make sure we are all headed in the right direction – given our growing staff numbers, what better place to do that than at our marae?” says CEO, Dion Tuuta. “Holding staff hui at marae is also a useful way for the home people to get to know our staff one-on-one. They get to see that PKW is made up of normal, hard-working people.” It also helps our non-Maori staff appreciate the value and strength of our culture in our daily working lives at PKW. Taranaki Māori language 32 | HE ORANGA
specialists, Te Reo o Taranaki Trust, have also been contracted to deliver a series of cultural awareness sessions covering Taranaki karakia, waiata, kōrero-ā-iwi and tikanga, with special attention being paid to pronunciation. These sessions have been established to assist all PKW staff to better understand the Taranaki Māori worldview and improve their understanding of the importance of whenua to PKW’s owners and iwi, hapu and whanau. Some staff have taken a further step by enrolling with Te Wānanga o Aotearoa for Māori language lessons. We know that the team will be able to participate in all areas of PKW activities with more confidence and understanding. Therefore it was fitting that the first karakia the team learned asked:
Kia uruuru mai a hauora, a haukaha, a haumāia, ki runga, ki raro, ki roto, ki waho, Rire, rire hau, pai mārire. Come forth the essence of life, strength and courage That surrounds us from above, below, within and all around, and that it is tied to us through peace and goodness.
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