Waikato River AuthorityAnnual General Meeting

for the period 1 July 2011 to 30 June 2012

Address by Bob Penter, Chief Executive

8 November 2012, Novotel Hotel, Hamilton

Tooku awa koiora me oona pikonga he kura tangihia o te maataamuri

―The river of life, each curve more beautiful than the last

Our vision is for a future where a healthy Waikato River sustains abundant life and prosperous communities

who, in turn, are all responsible for restoring and protecting the health and wellbeing of the Waikato

River, and all it embraces, for generations to come.

Vision for the Waikato River

Waikato River

New Zealand’s longest river (425km), quarter the length of the country

Mean discharge of 340m3/s 9 hydro-power stations, and provides

cooling water for Huntly power station (coal): 13% of NZ’s electricity generation

Significantly degraded particularly in middle and lower reaches of the catchment due to multiple factors

Huka Falls

Lake Karapiro

Hamilton City

Largest tributary to the Waikato River

116km long Major source of

microbes and sediment in lower Waikato River catchment

Waipa River (Ngaruawahia)

Te Puuaha o Waikato

Funding announced for 26 projects in under $50k category in February 2012. A total of $800,000 allocated

Over $50k projects announced in April 2012. A total of 20 projects in this category with a total of $4.8m

A funding ratio of 0.73 was achieved, for every dollar allocated by the WRA, 73cents was contributed by project partners

Highlights 2011/12

Funded projects 2011/12

Waikato River Trails Trust – Riparian planting projects ($143k)

Funded projects 2011/12 .. cont’d

DairyNZ – Reduce nutrient loads, sedimentation and faecal microbes in the Upper Karapiro catchment by implementing auditable Environmental Management Plans ($1.5m DairyNZ and catchment farmers, $685k Trust)

Funded projects 2011/12 .. cont’d

SMP Muir Family Trust restoration of whitebait habitat ($11k)

Funded projects 2011/12 .. cont’d

National Wetland Trust of NZ – Promote Rotopiko/Lake Serpentine as a showcase site for visitors, education, training and research ($600k)

Te Awa River Ride – a major cycle way 3-year project providing riparian planting, access and education on river ($150k)

Funded projects 2011/12 .. cont’d

Highlights 2011/12 .. cont’d GST Registration

GST status of both entities were reviewed during statutory audit and non-binding rulings obtained from Inland Revenue

Waikato River Authority non-binding ruling obtained from Inland Revenue to confirm GST status of entity is not required to be registered

– Not registered

Waikato River Clean Up Trust non binding ruling obtained from Inland Revenue to confirm GST status of entity is entitled to be registered – Registered for GST

For the Trust in particular this was a key milestone

Inclusion of the Vision & Strategy in a number of planning documents throughout our region. Notably the Proposed Regional Policy Statement for the Waikato Region encompasses the Vision & Strategy

A refresh of the Funding Strategy undertaken with up to $6m again allocated in this current round

Nga Wai o Maniapoto (Waipa River) legislation passed in April 2012 expanding the WRA area to include all of the Waipa River catchment

Highlights 2011/12 ..cont’d

Highlights 2011/12 cont’d ..

“I commend the Authority in prudently exercising its fiscal responsibilities .. to appropriately address its reasonable costs over and above the level of Crown funding.”Dr Paul ReynoldsSecretary for the Environment

Recognition from the Crown of the Authority’s actual and reasonable costs. And a commitment from the Ministry to review the level of funding in two years, to meet those costs.

Financials –Waikato River Authority

Revenue 30 June 2012 30 June 2011

Government grants 302,632* 1,250,000

Finance income 35,171, 4,201

Expenses

Personnel costs (15,039) -

Operating (400,607) (398,185)

Surplus/(deficit) for the period (77,843) 856,016

*Note government operating grant of $910,000 split between Authority and Trust for 2012 year.

Balance sheet 30 June 2012 30 June 2011

Total assets 806,017 982,643

Total equity 778,173 856,016

Total liabilities 27,844 126,627

Financials – Waikato River Clean-up Trust

Revenue 30 June 2012 30 June 2011

Settlement funds* 5,310,313 113,473,739

Government grants 607,368 -

Other income 289 -

Finance income 6,619,716 351,329

Expenses

Operating (597,340) -

Depreciation (4,327) -

Amortisation (2,873) -

Grant payments (713,989) -

Surplus/(deficit) for the period 11,219,157 113,825,068

*Note the settlement funds represent the present value of the Waikato Tainui Raupatu Claims (Waikato River) Settlement Act 2010 and Nga Wai o Maniapoto (Waipa River) Act 2012.

Balance sheet 30 June 2012 30 June 2011

Total assets 125,261,954 113,825,068

Total equity 125,044,225 113,825,068

Total liabilities 217,729 -

Financials – Waikato River Clean-up Trust

Grants 30 June 2012 30 June 2011

Grant payments (excl. GST) 713,989 -

Made up as follows:

3 Way Trust 46,378 -

Fish and Game 58,261 -

Boffa Miskell 34,600 -

Cambridge Primary School 9,900 -

Cambridge Tree Trust 33,421 -

Hamilton Fish & Game Assn 18,750 -

Landcorp 7,500 -

NZ Landcare Trust 37,000 -

Solid Energy 49,900 -

Eel Enhancement Co Limited 40,000 -

NZ Farm Environment 15,000 -

Raukawa Charitable Trust 87,910 -

SMP Muir 9,400 -

Waipa District Council 24,500 -

Hamilton City Council 122,761 -

Nga Muku Developement Trust 36,535 -

Puna Whakaata ki Oruanui Charitable Trust 34,696 -

Tauranganui Marae 4,000 -

Mangakotukutuku Puna Koira Trust 43,478 -

Key Messages Good practice is being applied to the evaluation

process used to assess grant applications Pleased to note monitoring procedures are being put

in place to monitor the work of grant recipients The financial statements fairly reflected the entities’

activity for the year and their financial position at the end of the year.

Key Issues arising during the audit this year included: Treatment of settlement funds

receivable under Waipa River legislation;

GST status of both entities The above issues have been resolved

during the audit.

Audit NZ Management Report

Completion of our 2nd Annual Report Appointment of key WRA

contractors including the position of Fund Manager (Sean Newland)

Our 2nd funding round opened in September 2012 with applications closing on 2nd November.

We have received 61 applications seeking total funds of $10.4m

Current Status

Completion of the 2nd funding round Establish GIS web enabled mapping tool Auditing funded projects Further and continuing improvements to

WRA website Creation of key stakeholder database for

improved communication

Immediate Tasks Ahead

How do we know if we are if we are being effective?• One funder among a number of others• Actual river health difficult to monitor in the short to

medium term (changes occur over decades) Developing an integrated, cohesive and logical

multi-year funding programme rather than potentially fragmented yearly funding

Are there enough capable organisations to annually take on new projects?

Balancing prosperous communities with a restored and protected river and catchment

Challenges Ahead

Ends