The Wanganui District Council and local iwi Tupoho have "hopped on a waka together" in an attempt to revive Wanganui's ailing port, at a cost of $1.25 million.
The council and iwi yesterday signed the historic deal, which will see the two organisations form a new governance structure to manage the port.
It will also see more than 50 ha of culturally important land returned to Tupoho.
Wanganui mayor Michael Laws said the deal will finally clarify the "contradictory ownership issues" around the port, which has seen the facility fall into disrepair for the past 20 years.
During the local government reorganisation of the 1980s the Wanganui Harbour Board was abolished and its assets and responsibilities placed with the new Wanganui District Council. The council of that time formed a 99-year lease with the major port users who formed a new company, Ocean Terminals.
In 2004 Ocean Terminals sold the lease to River City Port for an estimated $1 million.
"Since then development at the port has become mired in legal and contractual wrangles and port users are being frustrated from future development by that wrangle," Mr Laws said.
"There seems to be a view by all port users and adjacent business owners that they would prefer council ownership. It is our asset and we are taking direct responsibility for it."
The $1.25 million will compensate River City Port for the loss of the lease.
The scheme will require a local bill to be passed by Parliament. The bill will be introduced by Whanganui MP Chester Borrows, and already has the backing of a majority of MPs.
The new governance structure will see a six-person board of directors, comprising four council-appointed directors and two appointed by iwi. All directors would be required to have relevant commercial experience.
Mr Laws said reviving the port was essential to Wanganui's economic future.
"Currently the port is an eyesore, and it is an impediment to the economic development of Wanganui."
Mr Laws said he believed the council-iwi partnership was unique in New Zealand.
Tupoho spokesperson John Maihi said iwi saw economic potential in the scheme and wanted to be part of it.
"[The council and iwi] have disagreed on many things, but that hasn't stopped us working together.
"We have hopped on a waka together although we're not sure who the captain will be."
Mr Maihi said the returned land was particularly significant for iwi.
"The return of our lands of old means a great deal to us."
The land – currently owned by the council – comprises over 50ha of unused land in the Landguard Bluff area. The land contains wahi tapu, or sacred sites, for Tupoho.
Mr Laws and all councillors present signed the deal, as well as representatives from Tupoho's hapu, including Putikiwharanui, Wainuiarua, Nga Paerangi, Ngati Hinetera, Ngati Tuera, Ngati Hinearo, Ngati Hineonone, Ngati Pamoana, Te Awa Iti, and Ngati Patutokotoko.
Council, iwi join forces to bail out port
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