A Tauranga iwi is demanding a fundamental rethink of the Bay of Plenty Regional Council's $3 billion investment portfolio, arguing a proposal to restructure the fund ignores its core purpose and fails to protect the environment for future generations.
Ngāti Pūkenga Iwi ki Tauranga Trust has challenged the council's consultation on its long-term plan, stating the current investment strategy is “stealing from the future” and calling for the fund to be “reoriented” towards ecological restoration and climate resilience.
The criticism comes after the regional council in February proposed an amendment to its 2024-2034 long-term plan to change the structure of its vast investment portfolio. The portfolio is managed on behalf of the community by the council-controlled organisation (CCO) Quayside Holdings, which holds a majority shareholding in the Port of Tauranga valued at $2.5 billion.
Council proposes investment shake-up
The portfolio, which also includes $470 million in non-port assets and $161 million in special purpose assets like the Rangiuru Business Park, provides a crucial annual dividend to the council. For the 2024/25 financial year, this dividend was $48 million, providing an average rates reduction of around $400 per household across the region.
Under the council's preferred “hybrid model” for restructuring, the port and non-port investments would be separated from special-purpose assets into two distinct CCOs. The proposal also seeks to cap the annual payment for council services and rates reduction at $50 million, adjusted for inflation.
Any investment returns exceeding that cap would be funnelled into supporting regionally significant infrastructure projects. The council also plans to use $200 million of debt to finance the Rangiuru Business Park development, which would be repaid as the industrial land is sold.
Iwi challenges portfolio’s purpose
However, Ngāti Pūkenga argues the consultation process has put the cart before the horse. In a statement, the trust said the purpose of the fund, which was built from the region's land and natural resources, was not included in the discussion.
Trust chairperson Kylie Smallman said any consultation should focus on “purpose before structure”. The iwi envisions the portfolio transformed into a “regional endowment” dedicated to environmental resilience, intergenerational wellbeing, and ecological restoration.
The trust points to international examples as a model for what the Bay of Plenty could achieve. These include Norway’s Government Pension Fund Global, which manages oil and gas revenues with an “explicit obligation to future generations”, and the Alaska Permanent Fund, which distributes investment returns directly to its residents.
A call for an environmental focus
Manu Caddie, a trustee and taiao (environment) advocate for Ngāti Pūkenga, said the current approach of treating environmental programmes as a secondary use of investment income is outdated and dangerous.
He highlighted the growing risks of extreme weather, coastal erosion, flooding, and biodiversity loss, which threaten the region's infrastructure, insurance availability, and overall productivity. A reoriented fund, the trust argues, should directly invest in “nature-based infrastructure” such as creating wetlands and restoring floodplains, as well as co-funding climate adaptation measures like managed retreat.
In terms of biodiversity protection and restoration, anything not going into environmental outcomes is theft from te taiao and future generations.
The iwi contends that the returns from such investments would include reduced infrastructure costs, improved ecosystem health, and, crucially, alignment with the kaitiaki (guardian) responsibilities of mana whenua.
Historical context of regional assets
The call to honour the fund's origins in the region's natural resources is deeply rooted in Tauranga's history. Much of the land base that generated the initial wealth and assets, including those now managed by Quayside, was part of widespread land confiscations, or raupatu, from Māori following the New Zealand Wars in the 1860s.
Historical reports, such as those commissioned for the Waitangi Tribunal, detail how large tracts of land across Tauranga Moana were confiscated by the Crown. While some land was later returned, the process fundamentally and permanently altered land ownership in the region, dispossessing local hapū and iwi of their ancestral lands and resources. This historical context underpins the iwi's argument that wealth generated from these resources carries a profound responsibility to protect and restore the natural environment from which it was derived.
Reflecting this, Ngāti Pūkenga is calling for a new governance structure for the fund. This would include guaranteed mana whenua appointments to a body with “real authority” and a formally recognised representative for the perspective of te taiao. “We need to protect the asset for environmental wellbeing before central government or a restructured local government entity tries to expropriate it for other purposes,” Caddie said, referencing the government's ongoing examination of local government structures.
Council awaits submissions
Bay of Plenty Regional Council chairwoman Matemoana McDonald said in a statement that the council could not comment on specific submissions while the consultation process was still open. She encouraged community participation to ensure robust decision-making.
“Regional decisions are strongest when shaped by local voices. By participating in this consultation, communities help guide how we manage long-term assets, and how best to invest in economic development and environmental management,” McDonald says. “This is an opportunity to influence the decisions that will guide our region for years to come.”
The council is also navigating uncertainty from central government, which last year proposed abolishing regional councils in favour of new boards comprised of local mayors. The government aims to have legislation passed by 2027.
Consultation on the regional council's long-term plan closes this week. Feedback will be considered through hearings and deliberations before final decisions are adopted in June.
