New Zealand History: Righting the Wrongs
The nation of New Zealand was founded in 1840 when the Treaty of Waitangi was signed by indigenous Maori tribes and the British Government. New Zealand is rich in opportunity for development of natural resources, including geothermal resources. In the 1990s a government-led drive to redress historic breaches by the Crown of the Treaty resulted in many native Maori tribes gaining greater control of their lands and other resources. However Tauhara North No.2 Trust chose another pathway and was formed privately by members of the Ngati Tahu Tribal Trust to manage their land, comprising 326 hectares of farmland overlying the Rotokawa Geothermal System. As well as farming, the Trust entered into a geothermal energy development with Mighty River Power Ltd (now Mercury Ltd), to build a power station on trust land.
Empowerment and self-determination
The trust now has three geothermal power stations operated in joint venture with Mercury, which deliver sufficient energy to the national grid to power more than 265,000 homes. Through this and other ventures, the trust has accrued assets worth more than $NZ 317 million. Profits from the energy business, farming and other trust ventures are channelled through a Charitable Company, giving preference to the 6,000 owners and descendants of the Trust, then persons belonging to the iwi (tribes) Ngāti Tahu-Ngati Whaoa, and finally to the public of New Zealand.
Giving back to our peoples now and in the future
The trust provides grants in the areas of Education, Health, Funeral Expenses, Maintenance and upkeep of Marae (traditional meeting places), Youth Development, Sports, Arts, and Maori Cultural Activities.
Through grants, the trust provides assistance to all its indigenous beneficiaries, including older people, people with disabilities, families, youth, and to promote social inclusion. The trust is also considering several employment-generating projects through its farming activities and potential industrial direct heat use of geothermal energy. This assistance implements the Sustainable Development Goals 1, 3, 4, 7, 8, 9, 10, 11, 16.
The trust’s motto is:
Kia mau, Ki te whenua (hold fast to the land).
Whakamahia te whenua (make use of the land).
Hei painga mo nga uri whakatipuranga (for the future generations).
In 2015 Mercury and the trust were finalists in the Deloitte Energy Excellence Awards in the category of “Community Initiative of the Year”. According to the entry document for that award:
“Both the trust and Mighty River Power say the initiative has gone far beyond an `intervention’ and is proving to be a long-term, community-wide, social turn-around project with broader benefits for the region and New Zealand as a whole.
As well as specific health and educational programmes, the local community has gained a greater sense of local resource ownership, and sustainable use, from their direct participation in geothermal generation development.
The trust and the company say the scale and breadth of the community’s benefits marks the initiative out from others.
Community grants, ranging from dental treatments and eye tests through to school tuition and tertiary scholarships, are expected to total $1.6 million this year.
While the partnerships are underpinned by aligned values, the trust says an unexpected benefit of the partnership has been the increased interconnectedness it has achieved among beneficiaries and other stakeholders.”
Success through education
As a youth, Sean Smale found school boring and nothing he was taught really caught his interest. At age 16, he knew school was not the place for him so he began a 25 year career in customer service. But there was still something missing. Sean had a talent with fixing computers, and based on this interest, at 40 years of age Sean decided to train as a computer technician. Tauhara North No.2 Trust gave him a Tertiary Grant for a three-year Bachelor Degree.
Of the grants, Sean had this to say:
"If it hadn't been for the grants I wouldn't have been able to survive studying full time ... the grants made a huge difference... A lot of students don't make it because of financial pressures. I think I was lucky to have this facility available to me."
"I am thankful every day for the grants I have received and to my whanau (family).”
Lessons learned and recommendations for the future
Responding to desire for greater engagement with beneficiaries beyond the AGM, the Trust now hosts a bi-annual weekend event attended by 1,200 stakeholders. As its educational role grows the trust also now regularly hosts other land and resource owners interested in making better use of their assets, including interest from offshore.
The trust’s goals include promoting a vibrant culture, with active decision-making participation of trust beneficiaries to develop security and well-being, while preserving the environment. There is a strong emphasis on education.
Katherine Luketina (Geothermal Scientist, Waikato Regional Council), Juliet Newson (President, International Geothermal Association), Kevin McLoughlin (Chief Executive Officer, Ringa Matau Ltd).
Learn more about the Tauhara North No. 2 Trust and the International Geothermal Association.