Appendix: Description of current licensing trusts
Ashburton Licensing Trust group
Ashburton Licensing Trust
Ashburton Licensing Trust operates two bottle stores, a café/deli, five bars, four restaurants, a hotel with 54 rooms and six conference rooms, and a 12 unit motel. It holds a 4.97% share in DB South Island Brewery Limited. Ashburton Licensing Trust has about 112 fulltime equivalent (FTE) staff.
Braided Rivers Trust
Braided Rivers Trust owns Ashburton Licensing Trust's subsidiaries. It is 100% owned by Ashburton Licensing Trust. Braided Rivers Trust has no staff.
Somerset Ashburton Limited
Somerset Ashburton Limited owns an investment property building with café/deli (the business is owned by Ashburton Licensing Trust), Ashburton Licensing Trust's headquarters, and rented office space. Somerset Ashburton Limited is 100% owned by Braided Rivers Trust. Somerset Ashburton Limited has no staff.
Braided Rivers Limited
Braided Rivers Limited was set up to subdivide and sell excess land associated with Ashburton Licensing Trust's conference facility – Hotel Ashburton. Braided Rivers Limited is 100% owned by Braided Rivers Trust. Braided Rivers Limited has no staff.
Birkenhead Licensing Trust group
Birkenhead Licensing Trust
Birkenhead Licensing Trust operates two bar-and-restaurant facilities. It has about five FTE staff. It contracts the services it needs for certain administration and accountability requirements from Birkenhead Charitable Trust and an external accountant. It also receives revenue from gaming site rentals operated on its premises by a privately owned charitable trust.
Birkenhead Charitable Trust
Birkenhead Charitable Trust owns one of the premises that Birkenhead Licensing Trust operates from. It provides small grants to the community using rent received from Birkenhead Licensing Trust. Birkenhead Charitable Trust and Birkenhead Licensing Trust have the same trustees.
Cheviot Licensing Trust
Cheviot Licensing Trust operates one small hotel, with two motel units, four hotel rooms, a camping ground, and a bar and restaurant facility. Cheviot Licensing Trust holds a 0.13% share in DB South Island Brewery Limited. It has about nine FTE staff.
Clutha Licensing Trust
Clutha Licensing Trust operates seven licenced premises in the Clutha region. All are directly managed by the Trust. The businesses include a hotel, a restaurant, five bar/bistros, a sports bar, six bottle stores, and one conference, function, and catering facility. Clutha Licensing Trust has about 53.5 FTE staff.
Flaxmere Licensing Trust group
Flaxmere Licensing Trust
Flaxmere Licensing Trust is non-trading and owns 3.2% of Trust House Limited. It has cash held in term deposit investments. Flaxmere Licensing Trust contracts the services it needs for administration and accountability requirements from Trust House Limited. Flaxmere Licensing Trust oversees Flaxmere Licensing (Charitable) Trust.
Flaxmere Licensing (Charitable) Trust
Flaxmere Licensing (Charitable) Trust was established by Flaxmere Licensing Trust for charitable purposes. Flaxmere Licensing (Charitable) Trust owns 1.4% of Trust House Limited. It recommends to the trustees of Trust House Foundation how gaming profits should be distributed to the community.
Geraldine Licensing Trust
Geraldine Licensing Trust owns three properties in Geraldine, which it leases to the Village Inn, Westpac Bank, and Bradley West Solicitors. Geraldine Licensing Trust holds a 0.39% share in DB South Island Brewery Limited. It has no staff.
Hawarden Licensing Trust
Hawarden Licensing Trust owns one tavern property and a residential property that are leased to independent operators. It holds a 0.0255% share in DB South Island Brewery Limited. Hawarden Licensing Trust does not directly employ any staff, but it does pay a secretary/treasurer on a time-required basis. The tavern operations are carried out by the independent licensee, who employs any staff required.
Invercargill Licensing Trust group
Invercargill Licensing Trust
Invercargill Licensing Trust operates a wide range of businesses in the hospitality industry in Invercargill. It also operates a motel in Dunedin and a motel in Christchurch. Invercargill Licensing Trust operates two hotels, four motels, 14 taverns and bars, six major liquor outlets, eight convenience bottle stores, and one conference and catering business. Invercargill Licensing Trust also provides alcohol wholesale to supermarkets throughout Otago and Southland. Invercargill Licensing Trust has exclusive rights to operate hotels, taverns, and off-licences in its district. It holds a 28.3% share in DB South Island Brewery Limited. Invercargill Licensing Trust has about 420 FTE staff.
Invercargill Licensing Trust Foundation
Invercargill Licensing Trust Foundation owns and operates all gaming machines in Invercargill Licensing Trust's establishments. It currently owns 181 gaming machines.
Masterton Licensing Trust group 22
Masterton Licensing Trust
Masterton Licensing Trust's principal activity is owning shares in Trust House Limited. It is non-trading. Masterton Licensing Trust owns a 75.2% share in Trust House Limited. Masterton Licensing Trust receives a royalty from Trust House Limited to finance its small operating costs. Masterton Licensing Trust contracts the services it needs for administration and accountability requirements from Trust House Limited. Masterton Licensing Trust oversees the performance of Trust House Limited, Trust House Foundation, Masterton Licensing (Charitable) Trust, and, to a certain extent, Tararua Foundation. Masterton Licensing Trust has no staff.
Masterton Licensing (Charitable) Trust
Masterton Licensing (Charitable) Trust was established by Masterton Licensing Trust for charitable purposes in the Masterton district. Masterton Licensing (Charitable) Trust has a 20.2% share in Trust House Limited. Masterton Licensing (Charitable) Trust recommends to the trustees of Trust House Foundation how gaming profits should be distributed to the community. Masterton Licensing (Charitable) Trust has no staff.
Trust House Limited
Trust House Limited is the main trading entity in the Masterton Licensing Trust group and is controlled by Masterton Licensing Trust. Trust House Limited is primarily involved in the hospitality industry. Trust House Limited operates several bars, restaurants, bottle stores, a mid-range supermarket, and a major hotel in the Wairarapa, Wellington, and Flaxmere areas. Trust House Limited also operates a large rental residential housing portfolio. This portfolio comprises about 487 properties in the lower North Island. Trust House Limited provides management services for all of the entities in the Masterton Licensing Trust group in exchange for a management fee. Trust House Limited employs about 200 FTE staff.
Trust House Foundation
Trust House Foundation was established by Trust House Limited. It has responsibility for the licences for the class 4 gaming machines it operates in Trust House Limited and Rimutaka Licensing Trust premises. Trust House Foundation contracts Trust House Limited to perform administrative and management functions. By agreement, the trustees of Rimutaka Trust, Masterton Licensing (Charitable) Trust, and Flaxmere Licensing (Charitable) Trust recommend to the trustees of Trust House Foundation how gaming profits should be distributed to the community. Trust House Foundation approves these recommendations. Trust House Foundation has no staff.
Tararua Foundation Incorporated
Tararua Foundation Incorporated is controlled by Trust House Limited. The primary activity of Tararua Foundation is to own and operate the Kourarau Hydro Scheme. Tararua Foundation sells electricity to the spot market through its agent, Simply Energy Limited. Tararua Foundation is also potentially a vehicle for the development of a sports stadium in the Wairarapa and is currently holding some funds for this. Tararua Foundation has no staff.
Mataura Licensing Trust
Mataura Licensing Trust operates four hotels, one motel, four taverns, two restaurants, and two bottle stores. Mataura Licensing Trust holds a 4.83% share in DB South Island Brewery Limited. Mataura Licensing Trust has exclusive licence rights to operate hotels, taverns, and off-licences in its district. Mataura Licensing Trust has about 110 FTE staff.
Mount Wellington Licensing Trust group
Mount Wellington Licensing Trust
Mount Wellington Licensing Trust operates as an investment-holding entity. All of its activities are carried out through its subsidiaries. Mount Wellington Licensing Trust is effectively a governing entity with no staff.
Mount Wellington Trust Hotels Limited
Mount Wellington Trust Hotels Limited is 100% owned by Mount Wellington Licensing Trust. It operates a 148-room hotel with extensive conference facilities, a stand-alone conference centre and a community bar. All operations are managed centrally to maximise management expertise and purchasing power. Mount Wellington Trust Hotels Limited has about 165 FTE staff.
Mount Wellington Charitable Trust Board
Mount Wellington Charitable Trust Board is 100% owned by Mount Wellington Licensing Trust. The Trust Board includes the six trustees of Mount Wellington Licensing Trust and three independent trustees. The Trust Board makes donations to qualifying organisations in the local community. It has no staff. However, administration is undertaken by two contactors on a part-time basis.
Mount Wellington Foundation Limited
Mount Wellington Foundation Limited is a gaming society, which is 100% owned by Mount Wellington Charitable Trust Board. Mount Wellington Foundation Limited has a class 4 operator's licence and operates 36 machines in two venues. Mount Wellington Foundation Limited employs a part-time manager and two part-time staff.
Keri Corporation Limited
Keri Corporation Limited operates one bar. It has no FTE staff. All administration, including staff, are provided by Mount Wellington Trust Hotels Limited.
Oamaru Licensing Trust
Oamaru Licensing Trust owns and operates four establishments in Oamaru – one hotel with conference facilities and 49 rooms, one sports bar, one off-premise liquor franchise outlet, and one motel-restaurant-bar and bottle store with conference facilities and 16 motel rooms. Oamaru Licensing Trust holds a 5.66% share in DB South Island Brewery Limited. Oamaru Licensing Trust has about 84 FTE staff.
Parakai Licensing Trust
Parakai Licensing Trust owned one tavern that was leased out. Its sole revenue source was rent. During 2013, the lease was terminated and Parakai Licensing Trust became a community trust. Its assets were subsequently vested in a local health trust.
Porirua Community Trust group
Porirua Community Trust
Porirua Community Trust receives management fees from Trust Porirua. It has minimal transactions of its own. It consolidates the results of its wholly owned subsidiary, Trust Porirua. Porirua Community Trust was reconstituted under the Sale of Liquor Act 1989 after it ceased to have any interest in the alcohol industry after the sale of its trading operations by its then subsidiary, Mana Taverns Limited. Porirua Community Trust employs no staff.
Trust Porirua
Trust Porirua was established and is 100% owned by Porirua Community Trust. The principal activities of Trust Porirua are to promote charitable purposes in Porirua. Trust Porirua holds investment properties and other investments. Trust Porirua employs no staff.
Mana Community Grants Foundation
Mana Community Grants Foundation was established by Porirua Community Trust as a charitable trust. It operates gaming machines with the goal of maximising the returns from these machines for the benefit of the local community. Mana Community Grants Foundation owns 90 machines operating out of five separate and independently owned venues. Mana Community Grants Foundation's management and accounting requirements are provided by an independent contractor, under a management agreement. Kauri Finance Limited funds the purchase and maintenance of Mana Community Grants Foundation's gaming machines. Mana Community Grants Foundation employs no staff.
Kauri Finance Limited
Kauri Finance Limited is 100% owned by Trust Porirua. Its revenue consists of interest from loans to Mana Community Grants Foundation and to a company that operates a tavern in Petone. Kauri Finance Limited employs no staff.
Rimutaka Licensing Trust group
Rimutaka Licensing Trust
Rimutaka Licensing Trust owns and operates a wholesale liquor outlet and a public bar facility in Rimutaka. It also owns the land and building where the wholesale and public bar are situated. Rimutaka Licensing Trust currently contracts the services it needs for administration and accountability requirements from Trust House Limited. Rimutaka Licensing Trust has about 10 FTE staff.
Rimutaka Trust
Rimutaka Trust is a subsidiary of Rimutaka Licensing Trust. Its main function is to recommend to Trust House Foundation (controlled by Trust House Limited) how gaming machine profits should be distributed to the community. The trustees of Rimutaka Trust are the same as the trustees of Rimutaka Licensing Trust. Rimutaka Trust contracts the services it needs for administration and accountability requirements from Trust House Limited.
Te Kauwhata Licensing Trust
Te Kauwhata Licensing Trust is the owner of one tavern property, in which it operates two bars, and a wholesale bottle store. Te Kauwhata Licensing Trust has about five FTE staff.
West Auckland
Portage Licensing Trust
Portage Licensing Trust has exclusive rights to operate hotels, taverns and off-licences in its district. It operates six bars, one restaurant, and nine bottle stores. Management, administrative, and accounting services are provided to Portage Licensing Trust by the shared-services company, West Auckland Trust Services Limited. Portage Licensing Trust has about 127 FTE staff.
Waitakere Licensing Trust
Waitakere Licensing Trust has exclusive rights to operate hotels, taverns, and off-licences in its district. It operates seven bars, two restaurants, one hotel, and 14 bottle stores. Management, administrative, and accounting services are provided to Waitakere Licensing Trust by the shared-services company, West Auckland Trust Services Limited. Waitakere Licensing Trust has about 226 FTE staff.
West Auckland Trust Services Limited
West Auckland Trust Services Limited is a shared-services management company providing services to Portage Licensing Trust and Waitakere Licensing Trust. It is 50% owned by each of these trusts. It has a board comprising five independent directors (including the Chair) and two trustees from each shareholding trust. A board appointments panel appoints the independent directors on the basis of an agreed skills assessment process.
Wiri Licensing Trust
Wiri Licensing Trust owns some investment property that has several long-term tenants and some short-term tenants because Wiri Licensing Trust intends to redevelop some of its investment property in the near future. Wiri Licensing Trust owns two bars. One is operated under management contract, and the other is operated directly by Wiri Licensing Trust. The Trust also receives revenue from gaming site rentals operated on its premises by a privately owned charitable trust. Wiri Licensing Trust has about 13 FTE staff.
22: From a legal and technical accounting perspective, Trust House Limited is the group. We have listed Masterton Licensing Trust first to align with the rest of the Appendix.