Milford Sound Tourism (MSTL) runs much of Milford’s infrastructure, including the cruise visitor centre. It has come under fire recently for being a duopoly of two major shareholders, poor infrastructure provision and payments of dividends to its shareholders from levies raised from cruise customers, which fund the firm.
MSTL, originally set up in the 1980s as Milford Sound Development Authority to develop infrastructure, was, until now, 49% owned by cruise boat operators Real Group Ltd (RealNZ) and Skeggs Group Ltd, with Southland District Council holding the remaining 2%. The arrangement meant neither commercial operator had more than a 50% say and a public authority was involved.
As part of the new partnership, the council is selling its shareholding and Kāi Tahu will acquire 33.33% by March 31.
Milford Sound Tourism chief executive Haylee Preston said the firm had been talking with Kāi Tahu for six months, which had created a "strong foundation for the future".
The arrangement "delivered the best possible outcome for the world-renowned destination through a combined wealth of experience in environmental, land and infrastructure management".
Awarua Runaka chairman Barry Bragg, who represents one of the eight Kai Tahu Papatipu Runaka with interests in Piopiotahi, said the move would strengthen Kāi Tahu’s long-term stewardship of a place deeply significant to the iwi.
"Kai Tahu welcome the opportunity to become the third equal shareholder and play a greater role in decision-making for a special place that holds deep significance to our people. This is an investment in the future of Piopiotahi and strengthens our commitment to its long-term care," he said.
Te Rananga o Ngai Tahu Kaiwhakahaere Justin Tipa hoped the iwi would have a more visible presence in Piopiotahi.
"Having the opportunity to be formally part of the tourist operations in Milford is significant. It allows us to exercise our kaitiakitanga obligations in a way that has been difficult in the past," he said.
"Our journey in tourism began several decades ago as a way for us to invest in our takiwa, tell our own stories, and share our heritage with the world. We look forward to strengthening how Kai Tahu history is shared and understood by all who visit Piopiotahi."
Southland District Mayor Rob Scott said the decision to sell the shares was a "commercially sensitive transaction".
"In an ideal world it would have been nice to have gone through a public process of consultation, but this would have been physically impossible."
"However, we did do a thorough analysis ... and we are happy and comfortable with the end outcome and it is in the public interest."
