New Māori Trustee Questions & Answers
The Māori Trustee Amendment Act 2009 established Māori Trustee as a stand-alone organisation, separate from Te Puni Kokiri. Here are some commonly asked questions about what the legislation means for the Māori Trustee and our clients.
1. Why is the Māori Trust Office changing?
The Government has been reviewing the Māori Trust Office for a number of years and in 2007, the review concluded that the Māori Trustee should be a stand-alone organisation rather than being part of a government department. The Māori Trustee Amendment Act 2009, which came into force on July 1 2009, sets up Māori Trustee as a corporation sole, separate from government and independent in its functions - and establishes a funding agreement with the Crown.
The changes are intended to help Māori Trustee be well placed to meet future challenges in its delivery of services to Māori.
2. What difference does the legislation change make to me as a client?
The amendment to the Act doesn't affect how you deal with us or our day-to-day work. The changes mainly relate to the organisation of the Māori Trustee office. The key change for clients is in how the Common Fund is administered.
3. What is the Common Fund?
The Common Fund is the fund in which Māori Trustee holds all the money collected on behalf of clients. (Read further for more questions on the Common Fund.)
4. Will you have a new name?
The name of our organisation under the new legislation is "Māori Trustee".
5. Will I be dealing with the same people?
Yes. You will continue to deal with the same staff and the same office.
6. Who is the Māori Trustee?
The current Māori Trustee is John Paki.
7. How is the Māori Trustee appointed?
Under the amended Act, the Māori Trustee is appointed by the Minister for Māori Affairs. The appointment is for a maximum term of five years. Also under the Act, the current Māori Trustee remains the Māori Trustee for a period of up to five years.
8. How can the Māori Trustee be independent of the Crown when the appointment is made by the Minister?
Although the Minister appoints the Māori Trustee, the Māori Trustee, once appointed cannot be directed as to what to do in his role by the Minister.
9. Is the office still a government department?
No. Māori Trustee (including all staff and assets) is a statutory corporation sole, separate from government and independent in its functions. It has been set up under its own legislation.
10. Who is the Māori Trustee accountable to?
The Māori Trustee is accountable directly to clients. As trustee, the Māori Trustee must act in the interest of the beneficiaries of the trusts and can be brought to account through the Māori Land Court or High Court. Similarly, as agent, the Māori Trustee must act within the agency contract which sets accountability requirements and obligations.
11. Will I still get my money?
Yes, if Māori Trustee holds funds for you and has your up-to-date address or bank account details.
12. Will the distribution date change?
As is currently the case, Māori Trustee will continue to distribute payments where trusts and agency agreements authorise annual distributions. Any distribution to your Māori Trustee client account will continue to be made over the period of October - December.
13. Will my fees change?
Fees and commissions will continue to be charged in accordance with the Act and Regulations as they are today. We will be reviewing our fees to ensure that fees charged are in line with the services that are provided.
14. Is my money in the Common Fund safe?
Yes. The Māori Trustee acts as a prudent manager of the fund. In addition, any money held in the Common Fund is guaranteed by the Crown.
15. Will I get interest on my money in the Common Fund?
From 1 July 2009, you will be entitled to a share of any income received from the investment of the Common Fund (less the Māori Trustee's management fee). Your entitlement will be apportioned pro rata on the basis of how much money you have in the Common Fund.
16. Will you tell me about my Common Fund account?
We will send you a report once a year on your Common Fund account if we have your contact details.
17. Will unclaimed money still be there?
Yes. A client's unclaimed money will be held by the Māori Trustee in the name of that client until it is claimed. This money will be held in the Common Fund.
18. Will there be interest paid on unclaimed money?
From 1 July 2009, unclaimed money held in the Common Fund will be treated the same as all money held in the Common Fund. (See above: Will I get interest on my money in the Common Fund?)
19. Will my tax rate change?
Your tax rate is related to your own income and circumstances. Income tax rates are set by Inland Revenue.
20. Will the Crown funding continue?
As part of the changes, the Government has agreed to negotiate a funding agreement for the annual delivery of specified services.
21. Will you still be looking after our land and other assets?
Yes. The Māori Trustee will continue to look after your land and other assets where the Māori Trustee is now trustee or agent, and will continue in this role when appointed by the Māori Land Court or at the request of owners in future.
22. What new services will you be offering?
Right now we are looking at how we can better match the services we offer with the needs of our clients. This is likely to mean that in future we will be offering some new services, but it is too early to say what those will be.
23. Will services be stopped?
There will be no change to services on July 1.
24. Will your lending policy change?
Our lending will continue to be based on the strength of the loan proposal, the security offered, and the ability to repay the loan.
25. Will the Māori Trustee still provide reports?
Reports will continue to be sent to owners and Trustees to provide information about the Māori Trustee's administration of their land and assets. The Māori Trustee will also continue to produce an annual report which will now include details of how the funding from the Crown has been spent, along with a Statement of Service Performance.
26. How long will you be around for?
Māori Trustee has a very long history and fully expects to have a long future. Our objective is to be a sustainable and viable organisation focused on providing relevant services to clients now and into the future.
27. Will you sell our land off?
The Māori Trustee can only sell land on the direction of owners and the Māori Land Court. Te Ture Whenua Māori Act 1993 sets rules around selling land and disposing of interests in land, and these are unchanged.
28. Will you still be linked with Te Puni Kokiri (TPK)?
The new Māori Trustee organisation is now separate from TPK. We will, however, continue to use some of the TPK systems in the short term.
29. What's happening about MBANZ?
Māori Business Aotearoa New Zealand was included in the first version of the legislation, but was later removed from the Bill.
30. Where can I see the Act?
You can see the Māori Trustee Amendment Act online at http://www.legislation.govt.nz/act/public/2009/0012/latest/DLM1583803.html
A "consolidated" Act which incorporates the amendment into the Māori Trustee Act 1953 will be produced and be available on www.legislation.govt.nz.
If you have any further enquiries please contact your local Māori Trustee office.