Trust Tairāwhiti will present a new face to beneficiaries at its annual meeting next week, with new leadership and a new strategic plan since its last AGM a year ago.
The trust’s dominant asset, Eastland Group Ltd (EGL), has also shrunk back to a holding company and established Eastland Port and Eastland Generation as independent companies over the past year.
Equity in the regiona...
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Directional changes, new leadership and new strategic plans raise questions about change for change's sake and what was wrong with the status quo. For some years the Trust had a regional well-being philosophy – He Rangitapu He Tohu Ora. Distributions were made on the basis of equity, sustainability and integrity leading to well-being and outcomes for the district’s communities.
Now we are to see transformational outcomes for Gisborne and the Coast, there are now to be new opportunities and a new structure. Is this a concession that the regional well-being approach has not fulfilled expectations? Or a realization that regional well-being is not synonymous with one of the Trust’s stated purposes to “...encourage or sustain economic growth within the district...”?
So it is all rather sad to see the Trust making a grant of $100,000 to Gisborne District Council for community events and initiatives commemorating the one-year anniversary of Cyclone Gabrielle. There is no quibble about the February 2023 tragedy being remembered, but it is inappropriate to align the anniversary with one of the Trust’s stated purposes of encouraging economic growth. Grants for revitalization of native taonga, school vans and a toilet block for a sporting club may well be for public benefit but do they fit the economic growth stipulation? The point is that simply to provide for beneficiaries as the Trustees might decide is not in itself a purpose.
Ultimately it is the Trustees who exercise the discretion whether to make a grant that is in accordance with the Trust’s purposes. In many instances it will be how far can the rubber band be stretched to fit the proposal in with an economic growth criteria.
The examples I have given and the murmurs of discontent around the District of the extent of grants suggest the Trustees could well be pushing the limits.
Let us see what these transactional changes bring, but with total recognition that it must be against a background of compliance with the strict terms of the Deed of Trust.
Gordon Webb
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