Editorial: Treelords - Big name, big deal

The signing yesterday of the country's largest Treaty settlement to date, the so-called "Treelords" deal, envisages the transfer of a vast national estate to the collective ownership of seven iwi representing 100,000 people. Together the tribes will recover ownership of the land under Kaingaroa and eight other central North Island forests. The 176,000-hectare estate land is reckoned to be worth $196 million.

Since 1989, the state has been paying rent for the forest land to a trust that has been jused to finance claims' research and other activities. The accumulated rent has reached $223 million. This fund, too, will pass to the Treelords collective, which is set to become the largest landowner in the forestry sector.

For the time being at least, the Crown will retain a minority stake in the tribes' land-holding company, 13.3 per cent by value, which will fall to 10 per cent if an eighth iwi can be reconciled to the settlement. The Crown is said to be keeping its portion only to settle other possible claims to forests on the central plateau. Those claims will have six years to be settled, then any remaining Crown interest passes to the collective.

By any definition this is a big deal, the largest Treaty settlement by value and by number of possible beneficiaries. The task now facing the successful claimants, predominantly Tuhoe and Tuwharetoa, is to manage almost $500 million in assets in such a way that they generate income for investment in the education, health, family supports, employment, culture, creativity and identity of all their people. The forestry claim has been a vexed one for the best part of 20 years, forbiddingly so given the number of iwi with overlapping interests. The claimants appear to have settled most of their differences late last year and approached the Crown with a new urgency. It has taken just four months to tie up the agreement. One claimant, Ngati Rangitihi, fell out along the way but the door has been left open for it if it can resolve its differences within six months.

At the signing yesterday, the Minister of Treaty Negotiations, Michael Cullen, praised the contributions of the paramount chief of Tuwharetoa, Dr Tumu te Heuheu, and the Crown's facilitator during negotiations, Wira Gardiner. But credit must also be given to Dr Cullen. Treaty negotiations appear to have gathered pace on several fronts since he took over the portfolio last year. Just this week, terms of negotiation have been agreed with Raukawa and a deed of settlement initialled with Taranaki Whanui.

The activity could be attributed to election year, though perhaps more on Dr Cullen's part than the claimants. Labour's likely demise should not trouble Treaty negotiations given National's efforts when last in office and the party's impatience to bring all claims to a conclusion. But the Government will struggle to hold seats against the Maori Party at the coming election and needs every ounce of Maori goodwill that it can muster.

Dr Cullen declared the Treelords deal to be the most significant Treaty settlement so far and of benefit to all New Zealanders because it gives us, "a chance to acknowledge difficult aspects of our history". That it might be, if agreement can be reached on how the central North Island came to be wrongly acquired for state forests. A historical account remains to be negotiated, along with Crown acknowledgment of Treaty breaches and a formal apology.

If that seems to put the settlement cart before the historical horse, it is the way of the Treaty process. That quibble aside, the reconciliation exercise can generate good will. Treelords is going to be a big name in New Zealand's investment news soon. Let's hope it is never a deal to regret.