Land Tenure: High Country Rents Put On Fairer Basis
August 16th, 2010
Exactly how much rent to charge for the 231 pastoral leases of NZ’s photographically iconic high country farms has been a fraught discussion for a century or so. The Govt has announced a new formula which will change the Land Act 1948 tenure rules and charging regime. Previous lease payments have been based on the value of unimproved land, a tricky calculation at the best of times especially as land values have been increasing while income has declined. The leaseholders have property rights, like freehold, over the improvements they make.
High Country Accord chairman Jonathon Wallis says “The new system brings transparency and certainty to a process that was becoming increasingly complex and costly to implement correctly.” The new formula, the legislation for which is about to move through Parliament, is to base rents on a property’s productive capacity, with a fixed component and a variable amount which will change six monthly or yearly. Agriculture Minister David Carter says he wants the Bill, for the 1.6m hectares of leasehold land, mainly in Canterbury and Central Otago, introduced to the House later this year.
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