CIET Philosophy – 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: