Tainui firms hit stormy seas

Both Tainui's fishing companies have run into storms. One closes this week and the other may split following a fallout between iwi.

Tainui's struggling inshore fishing company, Raukura Moana Seafood (RMS), will close on Friday with the loss of 12 jobs.

The closure decision was made after the tribe's financial arm, Tainui Group Holdings (TGH), rejected a staff proposal to keep the company afloat.

TGH chief executive Steve Murray said the company's assets would be valued then sold.

The company's fishing quota, worth about $5 million, would be leased.

Mr Murray refused to discuss the redundancy cost, but said it was less than the loss the company made this year.

The retail and wholesale fish company has struggled to make a profit since it was bought by the tribe in 1997.

In July 2002 its Five Cross Roads retail shop was closed.

A review of RMS in March 2000 found Tainui paid too much for the company, it had performed poorly since Tainui took over, was badly managed and lacked financial information and control systems.

Meanwhile, one of Tainui's top performing assets, Raukura Moana Fisheries (RMF), looks likely to be split up because Raukawa and Maniapoto are not happy with their share in the company's profits.

RMF boosted Tainui's coffers by more than $1 million this year, while Maniapoto and Raukawa earned $100,000 each.

Raukawa chairman Wally Papa believes the share is not a fair return for the 45 per cent of fishing quota they provide to the partnership.

Tainui have rejected an offer by the pair to buy a further 24 per cent stake in the company, lifting their share to a third each.

Mr Murray said it was imprudent to dilute Tainui's shareholding.

He accepted that the rejection looked likely to force a split in the company.

"At the end of the day we are in a good position to run the company on our own," he said.

Mr Papa said it was disappointing Tainui was reneging on a verbal agreement made in 1995 to allow the partners to raise their share back to a third. He said Raukawa and Maniapoto were considering a number of options, including buying out Tainui.

"We are in the process of valuing the company, and will make a proposal," he said.

Mr Papa said the two iwi were prepared to walk if they could not get a better share for their beneficiaries.

RMF was formed in 1993 when Tainui, Maniapoto and Raukawa boards invested $37,500 each. They pooled their fish quota allocated as part-settlement of Maori commercial fishing claims.

- NZPA