Trust’s 30-year legacy
How the Rotorua Trust made — and gave — its millions
It was a tense situation. Three were for, three were against.
It was 1992 and millions of dollars were at stake.
As they sat around the voting table at the Rotorua Electricity Ltd meeting, little could they have known how their decision was about to shape the future of the city.
Should the company sell up and split the funds between consumers and a new charitable trust or go back to the drawing board?
There had been much debate publicly about the pros and cons. But now the votes were evenly split so it boiled down to the chairman’s casting vote from the late John Cole.
It was a yes from Cole and the rest, as they say, is history.
The electricity reforms in the early 1990s were the catalyst for the setting up of what is today known as the Rotorua Trust, formerly the Rotorua Energy Charitable Trust.
Every area in New Zealand faced change amid the privatisation of power boards. But Rotorua was the only region to put 51 per cent of the funds – equating at the time to $32 million – into a charitable trust to benefit all residents.
By 1994, Rotorua Trust was set up. In that time it has grown the initial $32m to more than $160m while giving back more than $130m to local grant applicants over three decades.
Last Saturday, the trust celebrated its 30th birthday at a special event at Te Puia where past and present trustees, beneficiaries and those who have worked closely with the trust gathered to look back on what was described by guest speakers as a remarkable history.
The tables at the gala function included double-sided placemats depicting the more than 1000 projects Rotorua Trust has gifted money to over the years.
Some of the biggies included $13m – half the cost – to build the Rotorua Energy Events Centre and $15m committed to restoring and reopening the Rotorua Museum – work now poised to begin.
Then there was the Volcanic Playground at the Rotorua Lakefront, countless education grants, the Rotorua Young Achievers Awards, more than 25 Lakeside concerts, undergrounding powerlines throughout the city, donations from $5000 to $10,000 to the Rotorua Daily Post Christmas Appeal for the Salvation Army and buying a CT scanner for Rotorua Hospital to cut waiting lists.
Inaugural trustee and past chairman Grahame Hall was Rotorua
mayor at the time the trust was established and told the Rotorua Daily Post he recalled heated meetings all over the region over what should happen with the funds.
Hall said there were three main options – pay out consumers, give the money to the council to relieve ratepayers or set up a charitable trust.
Despite being mayor, he was in favour of the eventual split of 51 per cent to the charitable trust and 49 per cent to consumers. He recalled it meant on average the consumers got about $600 in the hand.
“Some just wanted the money out, they couldn’t see the benefit of a trust.”
The first six-person board was set up in 1994 – two were appointed by Rotorua Electricity and the community elected four.
The board was in place for a year before the three-yearly elections for six trustees started in 1995 to coincide with the local body elections.
Hall was an inaugural trustee and they set to work investing and growing the funds. Hall praised the work of past trustees, staff members and advisers, including the late Johnny Lepper, Stuart Burns and Martin Webb, who helped put the trust in such a strong financial position.
He said in the first year, the equity went from $32m to $54m. By the end of year two the fund grew to $73m, $85m in year three and by year four it was about $100m.
Trust chairman Stewart Edward said he acknowledged the “wisdom” of the city leaders at the time and it was special to look back 30 years later to see what that leap of faith had achieved.
“We are lucky to have had this trust. In my time growing up in Rotorua there was not so much as a park bench donated. Apart from the Ngāti Whakaue Endowment Fund there really wasn’t the kind of trust and money available to give back into the community.”
Edward said the grants had made a “huge impact” on Rotorua, not just with big projects but for smaller organisations that shaped the city.
“The hope and joy the trust has been able to bring to these organisations has been incredibly special over the years. We are so proud to have been part of that legacy and we hope to continue that legacy to help create a vibrant city based on the strategy we have developed.”
Today’s Rotorua Trust
Trust chief executive Blair Gilbert said the trust now had investments worth $164.4m.
Some funds go towards “impact investments” such as the Bay of Plenty Housing Equity Fund and the Rotorua Museum - Te Whare Taonga o Te Arawa.
The rest of the funds were managed by Mercer Investments, which ensured it got financial returns to give back to the community.
Gilbert said community needs had changed during the past 30 years and the trust had adapted. Its current strategy recognises the importance of the environment and housing challenges. It worked towards five priority areas; healthy families, environment, education, strengthening communities and vibrancy.
“I am enthusiastic about Rotorua’s future, knowing that Rotorua Trust holds steadfast optimism for our community. We have a role in making Rotorua a wonderful place to live and visit, and we aim to continue this legacy.”
Applying for funds?
Potential applicants for trust funding can find the criteria, trust strategy and grants application portal on the trust’s website.
Trust staff undertake the due diligence on grant applications and every grant is brought to a trust board meeting for the trustees to make the funding decision. Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.