Chatham Islands, New Zealand

The Chatham Islands Enterprise Trust has formalized and adopted the following philosophy:

(i) Management of the Trust:

• To administer the trust's capital and assets prudently as an endowment fund held on trust for the people of the Chatham Islands.

• To adopt policies, use consultants, and build enterprises which are appropriate to the small scale of the Chatham's economy.

• To take a long term view in planning, including the acceptance of business trading losses in the initial years where longer term viability is reasonably assured.

• To maintain the Head Office of the Trading Enterprise in the Chatham Islands and to operate its business using Chatham Islands resources to manage and staff the Enterprise where possible.

• To avoid investments in or guarantees to persons or businesses on mainland New Zealand undertaking a commercial service to the Chatham Islands.

• To recognize that a viable and growing fishing economy, a sustainable farming economy, and an effective local government council are pre-requisites to the success and commercial viability of the Trading Enterprise.

     (ii)  Relationships with the Chatham's Community:

• To cooperate with the Chatham's community on each matter of responsibility.

• To lead Chatham Islands initiatives through information and public policy seminars.

• Consistent with commercial confidentiality, to maintain a policy of "open information" on the Trading Enterprise's activities.

• Where there is radical change, to provide for support and advice to islanders as part of the implementation of that change.

• To encourage and recognize individual enterprise through the annual Enterprise Awards.

• To act as advocate for the economic interests of the Chatham Islands, both in business and to Government in New Zealand.

(ii)  Business Activities of the Trust:

• Not to compete in any area of commercial activity where a competitive and fairly priced service is provided by private entrepreneurs unless deemed to be in the best interest of the community.

• To Structure each enterprise, as nearly as possible, on a fully commercial basis, with any subsidy or other support provided clearly and separately where possible.

• To separate each business enterprise into a distinct trading corporation, so that its activities, capital, revenue, and risk are separate from the principal capital sum of the endowment trust.

• Where possible, to structure each business enterprise in a way which permits individual Islanders to provide services within it as independent contractors.

• To manage a portfolio of Chatham Island Quota with the objective of maintaining and developing the Chatham's fishery.

(iii)  Charitable Role of the Trust:

• To encourage the development of Island skills through education grants.