Tuhoronuku says $500k loan justified

Minister of Treaty Negotiations Chris Finlayson.

The chairman of Tuhoronuku says the $500,000 loan it took out from the Ngapuhi Runanga was justified as it was used for costs related to Tuhoronuku becoming separate from the runanga.

The loan was raised as a concern in a letter to Tuhoronuku chairman Hone Sadler from the Minister of Treaty Negotiations Chris Finlayson following a meeting between the two and deputy chairman Kara George on September 17.

Mr Finlayson said he was "deeply concerned" Tuhoronuku had borrowed more than half a million dollars from the Ngapuhi Runanga as at June 30, 2015.

Mr Sadler, who was elected as chairman of the group in September, said the loan was not made during his time but said it was made to cover costs related to Tuhoronuku becoming independent from the runanga after Tuhoronuku was given mandate to negotiate the Ngapuhi Treaty Settlement.

He said there was no Crown funding available to them at the time.

"There was a time there during that transition where Tuhoronuku became independent from the runanga and there was no Crown funding. That money was for bills in that transition period in becoming independent from the runanga. We've got people to pay wages to. I'm not sure of the exact kind of issues off the top of my head," he said.

In the letter Mr Finlayson said Tuhoronuku would not be underfunded in the negotiation provided he was confident it was on a path to settlement based on good planning and budgeting. However Mr Sadler said that was not the case.

"The reality is different. What we're now doing is budgeting to stay within our budget. That will be worked out once we have negotiators - they will drive that."

Finances are not the only thing Mr Sadler said the group is working on setting in order, they are also working at improving their relationship with groups in opposition.

"We've set up a sub-group to engage with hapu in opposition and that is being led my the former acting deputy chairwoman Moana Tuwhare.

As the former acting deputy chairwoman, Ms Tuwhare and the former acting chairman Sam Napia, were invited by Mr Finlayson to sit in on the meeting held in September however Mr Sadler declined his request, which disappointed the Minister.

"Well it is like this, they are the old leaders," he said.