Govt seeks clarification of pastoral leases ruling

David Carter
David Carter
The Government is asking the High Court to clarify a land valuation tribunal ruling on rent setting methodology for pastoral lease farm land, but said it was not appealing the decision.

Agriculture Minister David Carter also gave an assurance yesterday a charge for amenity values would not be included when setting rent for high country pastoral lease land.

Mr Carter yesterday released a joint statement with Lands Minister Maurice Williamson which said the Solicitor-general had advised clarification of the Otago Land Valuation Tribunal's ruling on the definition of capital value was required.

The Wallis family, the lessees of Minaret Station on the shores of Lake Wanaka, successfully appealed to the tribunal a 2100% increase in rent proposed by its landlord, Land Information New Zealand.

The higher rent included a charge for the property's amenity values following direction from the previous government that such values belonged to the tenant and should be included in the rent charged.

Jonathan Wallis said he took comfort from indications in the Government's statement that it was only seeking clarification on an aspect of the tribunal's ruling.

"But if they are seeking to have non-pastoral values included in the rental valuation, this would be highly problematic for all pastoral leases," Mr Wallis said.

"Depending on the outcome, this would raise the prospect of yet a further appeal, with Minaret supported by the High Country Accord representing all other high country lessees."

Mr Carter gave an undertaking the Government was not appealing the ruling and that amenity values such as views and lake-side positioning would not be used in setting rent values.

"We have stipulated that under no circumstances will we test the issue of whether amenity values are part of the rent setting process," he said in an interview.

"That issue, as far as we are concerned, has been settled by the judge."

Mr Carter announced the Government was also embarking on work to fulfil the National Party's manifesto promise of rent levels that took account of the income earning capacity of the property.

Mr Carter said he hoped to have some indication of what it would be in the new policy by Christmas.

"One way or the other, we are determined to deliver a sensible rent-setting process that takes account a high country farmer's ability to earn a living, pay rent and to look after the land in a husband-like-manner."

 

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