$1 billion limit on treaty settlements abolished

The Government has confirmed the final abolition of the $1 billion fiscal envelope for settlement of historical Treaty of Waitangi claims.

Under a new policy announced yesterday, Treaty Negotiations Minister Margaret Wilson released a set of six key principles to guide treaty settlement negotiations, including the abolition of relativity clauses in settlements.

Two big tribes which have settled with the Crown, Ngai Tahu and Tainui, have a relativity clause in their $170 million settlement agreements entitling them each to another 17 per cent of any extra payout that takes total settlements over the $1 billion limit.

Margaret Wilson said while the Government would honour those relativity clauses, they would not be included in future because each claim would be treated on its merits and did not have to come under a predetermined fiscal threshold.

"This Government has ensured the final abolition of the fiscal envelope policy of the former National Government, while maintaining a fiscally prudent approach."

Existing settlements would be used as benchmarks for future settlements, where that was deemed appropriate.

Under the June Budget, $400 million has been appropriated for from 1999 to 2004 for treaty settlements, but that funding could be boosted if necessary.

Margaret Wilson said she would also take to the cabinet a proposal to review the Treaty of Waitangi Act, which sets out the role of the Waitangi Tribunal in treaty settlements.

At present, the tribunal has the power to make binding recommendations on private and state-owned properties with special memorials over their titles, a power used for the first time in 1998 over a claim in Turangi.

The minister also confirmed that existing policy that public conservation land would not be readily available for treaty settlements.

Crown minerals, including petroleum, which were owned and managed in the public interest, would also not be considered for the historical claims process.

"However, the Government will explore ways to address the Crown's contemporary obligations to Maori under the treaty with regard to natural resources."

The minister said the "principles framework" announced yesterday would provide certainty in the general approach the Government would take to negotiations. It would also allow for flexibility, so that genuine differences among various claimants could be recognised and accommodated.

The principles underpinning the historical settlement process are:

Good-faith negotiating.

Restoration of the relationship between Crown and Maori.

Just redress, relating to the nature and extent of breaches suffered.

Fairness and consistency between claims so similar claims receive similar fiscal settlements.

Transparency so that claimants have sufficient information to understand the basis on which claims are settled, and so there is greater understanding among the public of the treaty and settlement process.

Government-negotiated settlements.

Margaret Wilson said that direct Government negotiation with claimants ensured the delivery of the agreed settlement and minimised costs to all parties.

According to the Budget, heads of agreement have been signed with Ngati Awa, Ngati Ruanui, Ngati Mutunga, Ngati Tama, Rangitane o Manawatu and Te Uri o Hau for the settlement of historic treaty claims, totalling around $170 million.

- NZPA