“$450 MILLION FOR ONE HAPŪ?” - Port of Tauranga Dispute

Added: 2026-05-22

[00:00:00]Are we paying these people to front up or are we paying them to fly to Wellington to eat their lunch? Should you really lose your career for refusing to take part in a 90-minute lesson about moldy culture? This government doesn't actually have any idea how to get economic growth. Show us what you made of prime minister >> editorin chief with Duncan Ghana.

[00:00:14]>> Good day. Welcome to Duncan Garner, editor-inchief, folks. Nice to have you along. Great to have your company.

[00:00:18]Thanks so much for stopping by. And please subscribe if you can. Text my name Duncan to 3598 and I'll flick you a link and you get all my content out on the Friday plus my newsletter as well for a small monthly fee. Now, I cannot believe what I'm about to tell you, but is this really where we are now at in New Zealand? A local tribe in Toadham is demanding up to almost half a billion dollars, let me repeat that, half a billion dollars in compensation and shared revenue arrangements over the next 35 years for the cultural impacts of the expansion of the port of Toadam.

[00:00:46]This is one of the most impressive and profitable ports in New Zealand. And al it's also seeking to share in the economic benefits of that. this local ew nati kuku Shane Jones uh will join me shortly but he says no way should businesses be held to ransom by these outrageous demands a half billion dollar grift it's a standover it's a blackmail it's a ransom isn't it we've seen it before with the night standover of gold mining company Santana now this Shane Jones is about to explode thank you join us very shortly let's go >> it's the slam dunk >> New Zealand has officially entered dangerous territory many people will be shaking their heads at this demand and asking where on earth does this end?

[00:01:26]What's next? And and how are companies meant to navigate this sort of thing, this sort of standover, if you like, this demand, this this ransom. While families struggle with mortgages and power bills and food costs, we're now seeing um demands reportedly worth up to half a billion dollars tied to the expansion of one of the country's most critical export hubs. According to legal submissions, and I've seen them, and you'll see them shortly, linked to the port of Toadong's expansion, representatives connected to um Nati Cuku sought compensation and revenue sharing arrangements estimated between 335 million and 475 million bucks over 35 years, including annual payments tied to cultural impacts and a share of economic benefits from the port. Let that sink in. Let me show you their submission. This is what it says. Now, have a look at this. Compensation is required under consent conditions. The engagement process between the parties has failed to produce an outcome accordingly and absent agreement between the parties. Amen. Amended consent conditions are required to create substantial benefits to Natikuku and Fuidor Madai that materially compensate for the adverse impacts and Nati Cuku and Fuidor Mai seek compensation and I quote that is indicatively at least 19 million perom 35 uh year present value of 335 to 475 million bucks including 10 to 11 million a year of fair revenue sharing of incremental project revenues assuming a fair sharing rate based on relevant benchmarks. to 4 to 4.3% plus a further 8.7 million a year compensation for the adverse impacts of the hapu's ability to discharge cultural obligations being frustrated. The nati cuku submission describes the numbers as insignificant relative to the overall value of the approvals being sought and are deliberately conservative. It says $475 million deliberately conservative. For the record, the ports have offered $1 million in upfront compensation and $25,000 a year ongoing. Now nati cukuku have obviously rejected that and hence their push for this outrageous sum which simply won't be taken seriously will it by anyone and surely the government must make it clear in the upcoming RMA changes that this sort of ransom or standover or blackmail cannot continue this is not a small local project port of toad is you know the economic gateway for for billions in kiwi fruit dairy and forestry exports that keep New Zealand afloat thousands and thousands of jobs businesses and livelihoods depend on it functioning well and expanding and being profitable Now, New Zealand First MP Shane Jones says no group should be able to hold nationally significant infrastructure to ransom while the entire country pays the price. He'll join us shortly. And many New Zealanders are now asking the same question. Where does this end? It's outrageous.

[00:04:06]And the fact that they say it's relatively insignificant. $475 million of compensation over 35 years for a port expansion. Now, Nahu has already received um enormous treaty settlements and commercial advantages over the years, including the controversial Meridian energy payment for of $110 million not to oppose the spinning of water. Now, that sort of payment has helped create Nahu was one of the wealthiest ew wee corporations in the country. We also saw claims recently that Nahu had demanded $180 million to allow the Santana gold mine to go ahead in central. It wasn't paid and they now oppose the mine. So, this is where all the stuff stemming from. Now we're staring down another extraordinary demand linked to a single infrastructure project. This dwarfs the Santana standover. At what point does consultation become coercion? And at what point does cultural recognition become economic veto power? Cuz that's what it now appears to be. Nobody disputes the importance of history or tkanga or environmental protection. But there's a growing feeling across the country that ordinary taxpayers and businesses are being forced to bankroll endless payouts while national productivity collapses and infrastructure stalls and investment fleas. Because that's what will happen.

[00:05:15]Businesses don't like this. New Zealand cannot survive if every major road and port and dam and pipeline or energy project become subject to massive compensation demands simply for operating near ancestral associations or ancestral lands or waters. The country is drowning in red tape, drowning in separatism and co-governance and battles of of that of that nature and escalating financial demands while Australia surges ahead and our young people leave in record numbers. Still, the debate is now far bigger than Toad and the Toading port in this demand. It is about whether New Zealand remains one country with shared economic rules or whether strategic national infrastructure can effectively be negotiated project by project under threat of delay from the treaty, litigation and political pressure. Kiwis are rapidly losing patience. I suspect they'll be bewildered by this demand. Demands like this will drive businesses away from New Zealand. It's not the Kiwi way. It's making foreign investment in this land so much more complicated. In short, it scares off most investors. The problem is Meridian paid a number of years ago an outrageous fee of $110 million to local hapu in the South Island to not oppose its plans for spilling water and making more money. Nahu didn't oppose.

[00:06:24]They stayed silent and pocketed the $110 million for that and it stemmed from there. But this standover and ransom in Towang is frankly preposterous and based on what? It's so big. How can you take it seriously? It's so half a billion dollars. The problem is local governments across the land have empowered EWI allowing them to think they can get away with this. Truth is this will break the back of New Zealand.

[00:06:46]New Zealand businesses they'll be scared off. Foreign businesses scared off.

[00:06:50]investment won't happen and will become a backwater or banana republic and these compensation demands. They're over the top can't be justified. EW have settled.

[00:06:59]They've received full and final payments and this was never envisaged nor would Kiwis find it acceptable. How come they're coming back for a second lick?

[00:07:06]If anything, these demands will seriously harm race relationships and split us right down the middle at a time that we need to stick together and be on track and realize what the main game is.

[00:07:15]Targeting business for hundreds of billions of dollars is one sure way to sink the New Zealand economy. It's blackmail. It's grift. It's a tax on profit and success. And it's a cash grab for doing nothing but arriving here before the rest of us did. That doesn't warrant a corporate standover. Now ministers must be clear about this. And ew we leaders must be clear, too. If you want to ruin this country really fast, then keep trying it on. But don't cry crocodile tears when there are no businesses here hiring anyone at all. If you want us to go down the economic gurgler real fast, keep doing this.

[00:07:45]Politicians, leaders, and those who remain sane must stand up and condemn this approach or consign New Zealand to the economic basket case for banana republics forever. Our reputation as a good place to do business is under serious threat and we are now on notice.

[00:08:01]Right. If we don't condemn this in the loudest possible way, those doing the demands will only step forward and ask for more and more and think it's all okay. It's not and it never will be.

[00:08:10]>> Editor and chief with Duncan Garner.

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[00:08:39]Okay, bit of feedback in. Good day, Duncan. Um, on the public sector job cuts, I don't think the average New Zealander necessarily realizes that most of these reductions are in bureaucracy and administration, not frontline services. The cuts aren't coming from the people New Zealand relies on every day. We still have around 82,000 nurses, more than 100,000 teachers, and roughly 40,000 age care workers doing essential frontline jobs. Those are the roles that generally add value to people's lives and communities. Of course, losing a job is tough for anyone, and no one should dismiss that. But at the same time, there's a legitimate argument that shifting thousands of workers out of non-productive government administration and into the private sector could strengthen the economy overall. The private sector is what ultimately generates the wealth, exports, investment, and tax revenue that fund public services in the first place. A lot of people are frustrated uh by what they see as growing layers of bureaucracy and compliance and red tape.

[00:09:27]And that makes it much harder for businesses and farmers and ordinary people to get ahead. In many cases, it can feel like parts of the system exist mainly to manage progress rather than to produce outcomes. I think most New Zealanders support strong frontline public services, healthcare, education, policing, infrastructure, but also want government spending focus on efficiency and results rather than continual growth and administration. Cheers, Jeremy. Well said. That's why that's why you've made the podcast today, mate. Well said. Um, that is us, folks. Thanks so much for joining us. Um uh I know it's it will blow you away that um that $475 million stand over the black mound. It's it's astonishing, isn't it? It's got to end.

[00:10:03]It's got to end. And the government has to be really clear in its RMA changes that this is no longer acceptable. And you can't give the people the chance to do that. You've had if you have the treaty settlements. Why? What? Who said this was going to happen? How is it acceptable? Where's the process for it?

[00:10:19]Unbelievable. I literally am gobsmacked.

[00:10:22]Um that's us folks. I'm Duncan at rover.nz. Keep us um keep us informed, keep us in touch. Um keep um keep keep in contact. Thank you Rean. Thank you Willie. Appreciate all your all your producing efforts and all your all your time you put into the podcast. Remember life just rehearsal no curtain racer.

[00:10:36]This is it. We live in one of the best places on earth. So get out and enjoy it. Have some fun. Take care folks. Have a great weekend. Tada.

[00:10:41]>> Editor and chief with Duncan Garner.