Trust Horizon (Trust Variation) Bill

I move, That the Trust Horizon (Trust Variation) Bill be now read a first time. I nominate the Social Services and Community Committee to consider the bill.

Thank you, Mr Speaker. It’s my great privilege to stand here today and bring to the House the Trust Horizon (Trust Variation) Bill as a private bill. As the MP for the East Coast, which includes all of the Eastern Bay of Plenty, I’m honoured to be shepherding this bill through the parliamentary process for the benefit of all the people, the community, and the organisations of the Eastern Bay of Plenty.

By way of background, Trust Horizon is a local charitable trust with investments that include 100 percent ownership of Horizon Networks and Horizon Energy Distribution Ltd. Trust Horizon first began back in 1994, originally named the Bay of Plenty Electricity Consumer Trust. It was formed with the goal of keeping a portion of the local electricity company under community ownership. In 2015, the trust obtained 100 percent ownership of Horizon Energy Group, which includes the lines company that distributes electricity to homes and businesses throughout the Eastern Bay of Plenty.

The trust has distributed over $51 million to worthwhile energy-related causes in the district since its inception. However, its governing deed was drafted more than two decades ago, and while it has served the community well, the trust now faces structural and operational limitations that impede its ability to meet contemporary needs.

This private bill seeks to amend the terms of the trust deed to allow it to support a broader range of charitable activities within its district, consisting of Whakatāne, Kawerau, Ōpōtiki, and Kaingaroa, among the most deprived communities in New Zealand. It will seek to amend its deed to be able to apply in the future to the High Court for any further amendments so it does not have to come back to Parliament. The trust is not asking for unchecked powers. Future changes will still be independently tested and approved by the High Court.

In the Eastern Bay of Plenty, there are only a certain number of energy-related purposes available to support within the district, which has led to 30 years of static grant distribution, despite population growth. By the end of this year, the trust would have distributed around $55 million. It estimates that the change as part of this bill could mean an additional $1 million to $2 million a year available for the community in the Eastern Bay of Plenty. This supports community and sporting organisations and the many volunteers who keep the community’s not-for-profit sector going.

At the same time, the district includes some of the most deprived areas of New Zealand, with many worthy charitable causes that could benefit from the trust’s support. Community wellbeing goes well beyond energy, and the limitation on making grants only for energy-related purposes restricts the trust’s ability to respond to changing community needs or to support charities, societies, and other worthy groups that do not meet this definition.

With the present limitation on energy-related purposes, the trust has been able to grant about $900 per person in its district over the last 30 years. By contrast, its neighbour, the Rotorua Trust, which has broader charitable purposes, has been able to grant about $2,000 per person in its district over the same period.

In considering the need for change, the trustees have traversed many conversations. They consulted widely, including conducting a poll which 3,625 people responded to, and 80.7 percent of those people supported the changes. Those who supported the bill supported a wider range of social, educational, cultural, and environmental initiatives to include a variety of community projects and groups. Of those who opposed the changes, many felt it might result in higher power prices for consumers, which largely comes from the confusion about the difference between the trust and the electricity distribution company Horizon Energy.

Related to this, the trustees considered a variation of the energy-related purposes under Part 3 of the Charitable Trusts Act 1957. However, the ability to vary charitable purposes under that Act is limited. The trustees also explored a consumer distribution model, but as it’s a charitable trust, providing small regular payments to all electricity users across the district is not considered a charitable activity. The trust instead granted up to $2,000 to support charitable causes with energy bills and co-funded the EECA Warmer Kiwi Homes initiative to make insulation and heating free for those eligible. This equates to, on average, $1,000 for insulation and $700 for heating.

The trust has been integral in insulating more than 50 percent of all houses in the district through its insulation contribution, creating energy savings and healthy homes for past, current, and future generations. It provides low-interest lending for organisations wanting to install solar and has deployed over $1 million in funding to date for this purpose. This includes equipment such as electric lawn mowers, rollers, mobility vans, school electric vehicle chargers, community bike chargers, and very much more. They’ve done as much as they can in the electricity space. The trust supports local groups with energy transition, funding projects at around $1 million to $2 million in granting a year.

The reason I talk about all of these things is to demonstrate they have literally exhausted the electricity-related projects, and the funds continue to accumulate due to the narrow nature of the trust. The trustees have now agreed that a wider charitable purpose would be the most efficient way for it to assist with that need, and a private bill is the only way to achieve that goal.

It has, in numerous numbers, letters of support from all of the leadership agencies in the region. It has good support across the district. I think the trust’s intention is to unlock transformational change by enabling more funding that positively impacts communities and supports a wider range of community projects and groups across Whakatāne, Kawerau, Ōpōtiki, and the Kaingaroa Village.

There are a number of people to thank, but I think I’ll leave those for the right of reply and just leave that for now and commend the bill to the House. We are very excited in the Eastern Bay of Plenty to unlock some more funding and potentially more opportunities for our communities and organisations. Thank you.

ASSISTANT SPEAKER (Teanau Tuiono): The question is that the motion be agreed to.

Thank you, Mr Speaker. It’s a pleasure to take a call on this Trust Horizon (Trust Variation) Bill. The Labour Party supports this piece of legislation, although we are keen to see what comes about at the select committee process, because we have some things that we would like to see, perhaps, considered at that time.

This particular piece of legislation just simply amends the trust’s deed. The trust was set up at the time as part of the energy reforms in the early 1990s, and their remit was quite narrow. It was quite narrow in so far as they just had to be able to support applications for funding that related to energy-specific projects. Now, this trust is in an area in New Zealand where some of our highest needs are, and so what they are asking for is the ability to broaden the scope for whom they can grant funding. To me, that makes sense, because what we know is that our community, local charities, and our local volunteer groups have had funding access cut and stripped out so much that every organisation is desperately trying to seek funding from some agency wherever they can get it. This actually does make sense, in order for the communities that this trust serves to be able to access additional funding for projects that they deem worthy.

Hon James Meager: Not very collegial—that’s not a good sign for the alcohol debate.

Hon JO LUXTON: If you would like to make a contribution, feel free to make a call, Mr Meager.

However, there are some things that we would like to understand and see, perhaps, through the committee process. The trust has said that the applications for energy-related grants is somewhat limited despite population growth; they’re not seeing those applications come through. We’d be interested to explore if there’s any scope for the trust to support local residences, businesses, and groups with energy independence—for example, through initiatives such as solar power.

This bill has some really good aspects to it in that it will look to serve the community, as I said before, where there are some real deprivation issues. We’ve seen some real success stories with other trusts—for example, the likes of Trust Tairāwhiti; when they were formed in the same sort of era and issues, they didn’t have a specific clause that said that they were only mandated to be able to provide grants to those around the energy-specific area. They have gone on to achieve fantastic, fantastic things, and to support the community in incredible ways.

We are supportive of this piece of legislation. We do see the benefits that it will bring to the community, and so we support it at this point, particularly to the select committee process. We look forward to hearing from all those organisations and people that will look to benefit from it so that we can get a really good picture of how it will benefit those communities more specifically. I commend this piece of legislation to the House.

Kia ora, Mr Speaker. I rise, also, to support this bill. I want to thank Dana Kirkpatrick for engaging so productively on this bill to help me understand just how valuable it would be to make sure this passes.

I certainly have had the experience of working in the environmental non-governmental sector (ENGO), and I understand the value of the small grants that charitable trusts can make to the ENGO sector. Today, just to check where this bill was going, I took the initiative to talk to Derek Caudwell, the chief executive of the trust, to understand what their intention was. I was really pleased to hear that this isn’t going to leave behind all of those energy projects that the trust is already supporting. I think that’s really important to note, because there is so much to do with energy, and energy is fundamental to how we do things. If the trust is going to keep doing that work—supporting the sustainability options, for example, in Tauranga; supporting the 20 Degrees movement to ensure that we have healthy homes, to ensure any more work for Warmer Kiwi Homes—this is great stuff. In fact, I was told that they’ve been doing grants to help people move away from fossil fuel vehicles to electric vehicles (EVs); they’ve been doing EV chargers for schools; they’ve been moving people off fossil heating systems to heat pumps; they’ve got $1 million that they’re putting into solar on schools, marae, and council buildings. They’re already doing a really huge amount in this space.

What I also heard is that they want to do that and other things, such as operational grants to small-scale ENGOs. We know, in this day and age, where people are really struggling and our charities are finding that they are overwhelmed with people in hardship or difficult environmental problems, that those operational grants, which are so hard to get—that is what’s going to be enabled by this bit of legislation.

I think we all understand that Eastern Bay of Plenty has some great deprivation issues, and if we can do something to enable better community outcomes and community development through this bill, then let us do that. I’ve had the experience of the other trusts that operate in my jurisdiction down South, the Central Lakes Trust and the Otago Community Trust, both of whom were the recipient of those reforms from 1992. They have a wider mandate, and they do some great things in our community. I can see a future where the Horizons Trust will be able to have that wider mandate.

I’m also very, very pleased that, interestingly, they are one of the organisations that both donates or provides resourcing to Sustainability Options, a member of the Community Energy Network. They are, themselves, a member of the Community Energy Network. So there’s a nice grouping there of people who are working for our community, working at the flax roots, and making sure that things happen.

Finally, I had a really interesting conversation—because, of course, I am interested in the energy side of things and I want that to continue—and I heard that Horizons Trust is going to keep working and they want to support the Community Energy Activator. This is really important because, across the House, I’ve got to say that one big mistake the Government made was killing off the community energy fund. Now, we’re looking to the sector to provide that, and Horizon Trust is looking to do just that, which pleases me to no end. We are very happy to support this bill, and, Dana, we commend this bill to the House.

Thank you, Mr Speaker. It is a good day to see such leadership from the Eastern Bay of Plenty coming together and lobbying their local MP, who I think took not much arm-twisting to take this bill on, because getting some money into the community is what Dana Kirkpatrick is trying to do.

That community we’re talking about is the Eastern Bay of Plenty. Now, the local MP who’s ably shepherding this bill through talked about Kawerau, Ōpōtiki, Kaingaroa, and Whakatāne, but, you know, there’s other places for which I hold a special pride—

Hon James Meager: Galatea—what about Galatea?

CAMERON LUXTON: Galatea, Mr Meager; Murupara; we were talking about Kaingaroa village, but there’s Minginui, Ruatāhuna—all these places that need a bit of love in this House, and I’m happy to give it to them.

I have to tell a story about my old mate Cannon, who decided one day that he was going to trim the trees on the front of his place and happened to take out the Horizon lines, which were providing the entire valley with electricity. We went dark for a couple of days, and I think he might have hurt the profits of Horizon’s lines company, which may have meant that we didn’t quite get $200 million or maybe a bit more sitting in assets to be distributed. Because of the hard work of Dana, what is in there is going to be distributed, and I commend the bill to the House.

I’m delighted to rise on behalf of New Zealand First to support this bill, as well, and congratulations to Dana Kirkpatrick for bringing the bill to us, but, also, congratulations to Horizon Trust, not only for developing the bill but for the way they’ve gone about it. They really, really clearly signalled it to their community. It’s up there in lights in their annual report. They had a poll in their community, and I don’t know if that member said how many votes were cast, but 3,469 were cast and 80.7 percent said, yes, they liked the idea of this bill. So it’s got really, really strong support, and you can see the reason for that support.

As Dana Kirkpatrick has already said in introducing this bill, the range of different activities that are able to be supported by the trust has been limited, basically because they’ve done most of it, and you can see the investment made in schools, LED lighting for rugby clubs, and so on. Actually, one I did like—and I’m not quite sure how it fits with energy—was investment in supporting New Zealand AutoTraps’ work. AutoTraps is another wonderful, creative organisation in Whakatāne that does predator control. They have broadened out a little bit, but, obviously, this is about trying to allow them to broaden out much more and to be able to give much more benefit to the community as a whole.

Like many others around here who have been involved in some of these organisations that give grants, I know that when you have an organisation that is really focused on the community, is really embedded in that community, and has a certain amount of money to be able to give to that community, it is careful and thoughtful and it engages with the community in thinking about where that money goes to give the maximum possible benefit. I’m sure that is exactly what the trust is doing.

There are a couple of other things that I did want to note. The bill says that the trust now has more than $200 million dollars in assets—$207 million, according to the annual report—but $173 million of that is, essentially, the ownership of the lines network that is there. I hope that, in your right of reply, you will be able to cover off that the trust has a responsibility to maintain the asset on an ongoing basis to make sure not only that this generation but future generations are able to continue to benefit from that. I think of the bill we passed not that long ago for the Auckland Council, where they had set up, essentially, the idea of a perpetual fund that will benefit not just this generation but, also, future generations of Aucklanders, and likewise, I would hope that this will continue to benefit future generations of people in the Easten Bay of Plenty.

There are a couple of other things I wanted to reflect on. During the debate on the last bill, the Carter Trust Amendment Bill, comment was made about omnibus bills, and maybe there’s a whole bunch of different organisations that are limited by, as in this case, a trust deed. I have had this conversation—at least in passing—about whether there are other organisations, particularly of this nature, which are similarly limited and might want to put their hands up and say, “Hey, can we get our trust deed expanded?”, if that’s what they want to be able to do.

I think I’ve said all that I needed to say on this. I think it’s a great bill. Congratulations, again, to all who were involved with it. I look forward to seeing the submissions and to seeing its passage through the House.

Thank you, Mr Speaker. What a great day for local representation—a bill has been brought forward by a local member of Parliament with passion for her community to do the right thing, to support her community. This is what you can get, New Zealand, when you have great, strong local advocacy and local representation. It’s been an excellent debate with support across the House—no sniping, no politics. I commend the bill to the House.

Kia orana, Mr Speaker. Thank you for that. These private bills are an interesting beast, and there is a real question to be asked about whether the House’s time is best used on what is, essentially, a minor trust variation expanding the powers of the trust to distribute money beyond its original purposes. The High Court is perfectly able to do that, but efforts being created by Parliament are not seen as being within the ambit of the court’s powers. So I’m very happy to see this bill go to select committee and have a good look at the proposed trust variations—see what’s good for the community, which is ultimately what this is about, because it’s a community asset, in terms of this electricity company that we’re talking about. Let’s send if off to select committee as soon as we can and see what happens. Kia ora.

Thank you, Mr Speaker. I’ve recently had the privilege of visiting the Eastern Bay of Plenty with the outstanding member of Parliament, Dana Kirkpatrick, and have seen firsthand the high esteem in which she’s held within her community. I just congratulate Dana on bringing this bill before the House.

I note that the trust estimates a further $1 million to $2 million potential contributions annually into their community, on top of their already very generous local support. I commend them on their dedication to their community, and I commend this bill to the House.

Thank you, Mr Speaker. When I knew I was going to be speaking on this bill, I went to have a look at what the Horizon Trust does, and I have to say I’m very impressed with the work they are currently doing. I’m looking forward to seeing what they are able to do with the passing of this bill through all stages.

It seems to me that they’re almost on that journey now, when you look at what they’re doing—when you see that they have apprenticeships, they’re looking into making certain that people have warm, dry homes, and they are investing in businesses like Whakatōhea Mussel. There’s a whole lot that they are doing, and I’m just really excited.

I have personal knowledge of what a trust such as this can do, with our Western Bay of Plenty trust and the difference they can make for people in need, and I look forward to seeing what this trust is able to do when they’re able to expand their operations. I’m looking forward to seeing those questions coming through in the select committee and seeing the representation made. I, too, have no hesitation in commending this bill to the House.

ASSISTANT SPEAKER (Teanau Tuiono): A five-minute right of reply—Dana Kirkpatrick.

Thank you, Mr Speaker. I just want to cover a couple of things quickly, just to reinforce the two main parts of this bill: to broaden the funding from energy-related purposes to charitable purposes, so, to widen the scope; and, secondly, the bill will alter the trust deed so it can be updated in the future by a trip to the High Court, not a trip to the House, which will please Mr Webb to no end, I’m sure.

The trustees have worked very hard to get to this point. I just think there’s a list of a few people who need to be thanked: the settlor of the Trust Horizon Energy Distribution Ltd and their board, who support the changes; the local councils, iwi and others who have written to trustees and supported the bill; the fellow charitable trusts Bay Trust, Tauranga and Western BOP Community Trust (TECT), the Rotorua Trust, and Philanthropy New Zealand, who have supported this bill and, in the case of TECT and the Rotorua Trust, they’ve already made similar changes to their deeds to those being proposed today.

Finally, I mention the trust’s chief executive, Derek Caudwell, the staff, advisers, and trustees past and present who have had the vision and conviction to put this before Parliament to unlock greater funding support for their community, including Allison Windley and Robyn Forrester; legal advisers James Every-Palmer KC, Jonathan Orpin-Dowell from Stout Street Chambers, and Brooke Courtney from Sharp Tudhope; and trustees David Glover, David Bulley, Edwina O’Brien, Kevin Hennessey, Merrin Stables, and Yvonne Boyes. We were also just asked to pass on very great thanks to the Parliamentary Counsel Office, who offered great support; and the Clerk’s Office, who were instrumental in helping guide the trustees and us through the initial stages of getting this to this point.

I want to thank all of these people for the opportunity to do this job for the community. It’s a great privilege and an honour, and I look forward to the select process. I commend the bill to the House.

Motion agreed to.

Bill read a first time.

Referral to Select Committee