Waitangi tribunal finds in favour of Maori oil claimants

5.30pm

Maori claiming a stake in royalties from oil and gas reserves in their areas have today won the first step in their battle, with a favourable Waitangi Tribunal report.

The claimants - Nga Hau o Nga Ruahine of Taranaki and Ngati Kahungunu of Hawke's Bay and Wairarapa - believed they should receive a share of the royalties because they said the crown breached the Treaty of Waitangi when it nationalised oil and gas resources in 1937.

The Government said earlier in the week that its position was that nationalisation took place in the public interest and no breach occurred.

However, Government associate minister Tariana Turia has spoken out against her colleagues, saying the issue indicated "a further loss of a property right".

A successful claim would allow some Maori to tap into potentially billions of dollars in royalties.

The tribunal released its findings and recommendations today, saying it believed Maori did have a basis for a claim.

Its findings said that before 1937, Maori did have legal title over the petroleum on their land.

They were therefore entitled to compensation for the alienation of land and expropriation of resources under the Petroleum Act, 1937, without ongoing payment of royalties.

However, the tribunal said the petroleum was not taonga (treasure), as was argued by claimants.

"The tribunal found despite evidence presented to it that oil and gas seepage was known of, and used, in pre-colonial times, it was not sufficient to show that these resources are taonga as protected (under certain provisions in the treaty)," the tribunal said.

"There is a good argument for a collective Maori interest (hapu/iwi) in petroleum prior to the confiscations of the 1860s, crown purchases and the granting of land titles through the Native Land Court and subsequent alienations commencing in the 19th century."

It was accepted by the crown that if Maori had retained the land, they would have had every right to exploit the resources on it.

The tribunal did accept the government rationale for the nationalisation of petroleum in 1937.

"But it says the way it was done with no compensation for the loss of property rights, or provision for the payment of royalties from exploitation of petroleum resources was a breach of the treaty."

The tribunal found that little land remained in Maori hands by 1937, and that much of it was lost from Maori ownership by means which breached the treaty.

"Where legal rights to an important and valuable resource are lost or extinguished as a direct result of treaty breach, an interest of another kind is generated.

"... such a treaty interest was created in favour of Maori for the loss of legal title to petroleum."

The tribunal said its findings meant the crown was obligated to respond to Maori and negotiate some kind of compensation.

Furthermore, the crown should negotiate any new settlement on rights to petroleum on a separate basis to any other treaty settlements.

The crown should also hold off on any sale of interests in the resources until treaty matters were considered.

The Government is selling its 11 per cent stake in the Kupe natural gas field off the South Taranaki coast to state-owned power firm Genesis, which already owned a 70 per cent stake in the field.

"The crown's remaining petroleum assets ought to be on the table in any settlement negotiations with affected claimants."

The tribunal said the crown and affected Maori groups should now negotiate for the settlement of petroleum grievances.

The tribunal is to report on the remaining issues raised by the claims, concerning the regulation and management of the petroleum resource since 1937, in a further report.

It did not provide a date for the second report.

The petroleum report was prepared after an urgent hearing was held over four days in October 2000. It was given priority after New Plymouth and Associate Energy Minister Harry Duynhoven wrote a letter outlining the plan to sell the crown's shares in Kupe.


Taranaki's Nga Hapu o Nga Ruahine yesterday said it was pleased with the report and described it as "a favourable response" to the claims.

One of the claimant's lawyers, Deborah Edmunds, called it "a very balanced and fair discussion" of the legal and historical issues.

Opposition parties have called on the Government to have the issue dealt with quickly, so as to open up opportunities for further resource exploration.

- NZPA