Government Moves to Limit Māori Land Court Oversight of Treaty Settlement Funds
The New Zealand government is advancing legislation to remove the Māori Land Court’s authority to oversee trusts managing assets from Treaty of Waitangi settlements. This move, prompted by a recent Supreme Court ruling, has sparked debate over accountability and the future of post-settlement governance.
The Supreme Court Ruling and Its Implications
The impetus for this legislative change stems from a 2024 Supreme Court decision concerning post-settlement governance entities (PSGEs) and their relationship to the Māori Land Court. The ruling established that PSGEs holding “general land” – a specific land category defined under the Te Ture Whenua Māori Act 1993 – could be subject to the court’s supervisory jurisdiction.
The case originated with a dispute within the Tūhoe settlement, specifically concerning the Te Uru Taumatua Trust (TUT). Paki Nikora, a board member of Te Kaunihera Kaumātua o Tūhoe, initially raised concerns in 2021 regarding the validity of appointments to the TUT board, alleging inconsistencies with the trust deed. Even as Nikora passed away before the Supreme Court hearing, his challenge ultimately led to the court affirming the Māori Land Court’s jurisdiction in such cases. Simpson Grierson provides further detail on the case, Nikora v Kruger.
What are PSGEs?
PSGEs are entities established to manage and distribute assets received as redress for historical Treaty of Waitangi breaches. These assets are intended to benefit iwi members socially, culturally and economically. The TUT, for example, was created in 2009 to manage the Tūhoe settlement redress. Crucially, the assets held by these trusts are not typically owned by individual iwi members, but rather are held for the collective benefit of the iwi.
Government Response and Proposed Legislation
The Supreme Court’s decision, while clarifying the court’s jurisdiction, was seen by the government as creating potential “untidiness” and uncertainty. The government argues that the current situation, where some PSGEs fall under the Māori Land Court’s oversight while others do not (depending on their land holdings), is not ideal.
the government is developing legislation to explicitly exempt PSGEs from the Māori Land Court’s jurisdiction, even in cases where they hold general land. The Spinoff reports that this proposal has been welcomed by many PSGEs.
Concerns Over Accountability
Despite support from some PSGEs, the proposed legislation has drawn criticism from those concerned about accountability. Opponents argue that removing the Māori Land Court’s oversight will diminish an accessible and effective mechanism for iwi members to hold PSGE decision-makers accountable. While the High Court will retain jurisdiction to enforce trust deed provisions, accessing the High Court is considerably more expensive and complex than utilizing the Māori Land Court.
Some suggest that a more comprehensive, purpose-built legal framework for Māori governance entities – such as the Waka Umanga proposals developed by the Law Commission in 2007 – would provide a more enduring solution to the challenges faced by PSGEs. These proposals, which were never enacted, aimed to create a bespoke regime tailored to the unique needs of Treaty settlements, and PSGEs.
The government’s current approach is viewed by some as a short-term fix that fails to address the underlying issues of governance and accountability within the post-settlement environment.
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