Tribe writes down value of fishery

Sonny Tau

Moves by the country's largest iwi have thrown into question the value of the $750 million Maori fisheries asset.

Northland's Ngapuhi has written down the value of its shares in Aotearoa Fisheries Ltd by 90 per cent, a move that could trigger another row over the long-disputed Maori slice of the fishing industry.

Aotearoa Fisheries is a tribally owned company set up by the Waitangi Fisheries Commission - Te Ohu Kaimoana - to manage commercial assets out of the 1992 treaty fisheries settlement.

The settlement has been racked by conflict between iwi scrapping over how the $170 million settlement - estimated to have grown in worth to $750 million when a distribution model was legislated in 2004 - would be carved up.

The commission values Ngapuhi's shares at $45 million.

But in Ngapuhi's annual report released this week, the tribe has slashed the value to $5 million, an amount chairman Sonny Tau said was a truer reflection of the share worth.

"The shares cannot be traded for two years, with strict criteria on whom they can be sold to, and the company will not return a dividend for five years," he said.

"This is a non-dividend paying company - that is what we value it at if we sold it today."

Mr Tau said the share value was only worth what someone was prepared to pay.

The new value also reflected how tough the fishing industry had become, a sunset industry with a huge decline in profitability likely, he said.

"This is an exercise in ensuring our people know the true value and position of their assets."

Ngapuhi hold around 10 per cent of AFL shares, the rest divided among the country's iwi, based on population and coastline length within tribal boundaries.

The move potentially benchmarks the share value, eroding the asset base of the country's iwi, many of whom have few assets barring the AFL shares.

Tahu Potiki, chief executive of Ngai Tahu, which controls around 8 per cent of AFL, said the tribe would study the audit notes in Ngapuhi's annual report.

The South Island tribe's allocation, which has yet to be made, will not be included in this year's annual report.

Mr Potiki did not rule out following the Ngapuhi lead.

That position is shared by Tainui chairman Tuku Morgan, who agreed that a true value of shares was hard to determine based on the strict trading policy and dividend holiday enjoyed by AFL.

However, Te Ohu Kaimoana chief executive Peter Douglas said there was little basis for the low value determined by Ngapuhi's accountants.

He said it appeared to be a decision for auditing purposes, and was not a real reflection of the value of the company.

"When we have had a chance to have a good look at this evaluation, I would be in a better position to comment. I don't want to rush out and rubbish it until I have had a look."

Mr Douglas said the AFL was valued around $350 million, and returned $16 million profit for the past financial year.

He said an independent valuation would be completed before the end of the year to assist iwi in providing a value for audit purposes.

Sanford managing director Eric Barrett said the move by Ngapuhi was politically driven and not a fair reflection of the company's value.

He said with assets including a 50 per cent stake in Sealords, AFL had assets alone in excess of the valuation penned by Ngapuhi.

"I think you will find politics in play here. Their [Ngapuhi's] writedown is not a fair reflection of value."