Transpower not budging Landowner payment request denied

Transpower says it will not consider changing its method of compensating landowners for transmission infrastructure on their properties, despite requests from Federated Farmers New Zealand.

This week Federated Farmers released a report it commissioned to investigate the viability of possible changes to compensation.

Federated Farmers economics and commerce spokesman Phil York said the report provided the organisation with a clear case to take to Transpower and Minister of Energy and Resources Gerry Brownlee.

Mr York said some landowners wanted the option of periodic payments or rent subject to reviews, rather than a lump sum.

"A letter will be going out today to Mr Brownlee and various other people, in the hope of organising a meeting in the not-so-distant future.

We at least want the opportunity to discuss [the report] with Transpower and what those [changes] would actually cost, as well as how they could be implemented," Mr York said.

He hoped Federated Farmers would have initial talks with Mr Brownlee and Transpower before Christmas, if possible.

But Transpower communications manager Rebecca Wilson said the company offered fair and generous compensation and would not consider changing its payment method.

"For us rentals aren't on the agenda - we are not considering rental payments. We believe our current compensation is adequate and generous . . . We have been in discussions with Federated Farmers for a long time and our position is very clear," she said.

Mrs Wilson said the report confirmed Transpower's notion its compensation was fair and generous, and the company was not in a position to offer periodic payments.

The 48-page report - by independent consulting firm NZIER - identified room within the electricity transmission industry for landowners to be paid a compensatory rental, which was able to be reviewed, rather than a lump sum.

It concluded the option of providing a rental or periodic payments, with the ability to adjust payment amounts based on reviews, would cost Transpower an additional $50,000 each year.

"This is not a significant amount when compared to the net cost of easements and it may improve the efficiency of electricity transmission," the report stated.

Transpower uses easements to build and maintain transmission infrastructure across private property where it is cheaper than alternatives such as running lines beside public roads or purchasing land corridors.

Landowners are compensated by Transpower, as easements lower land value and transmission infrastructure increases the costs associated with farming.

At present, land owners are compensated with an upfront lump-sum payment.

rosie.manins@odt.co.nz

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