10. Hon DAVID CARTER (National) Link to this
to the Minister for Land Information
Does he stand by his statement that “The government is committed to high country farming that is environmentally sustainable and economically viable”; if not, why not?
Hon DAVID PARKERAs the Armstrong report is an interim report and has been disregarded by the Government, will Donn Armstrong now be asked to present a final report?
No, I do not envisage engaging Mr Armstrong any further. The Crown charges its high country lessees at an annual rate of 2 percent if paid on time on the land value, excluding improvements. The 1982 Clayton report dealt with Crown pastoral leases and stated that that rate of return to Crown was more than generous to lessees. It noted that discounts are often capitalised into value by the farmers who get the discount, and it also stated that charging on the basis of land value excluding improvements, and a percentage thereof, was preferable to a rental based on livestock carrying capacity.
Hon Marian HobbsWhy is the Government having discussions with high country farmers about the impacts of rent increases?
Because the Crown wants a fair financial return on its high country land both by way of rent and in valuation of its interest during tenure review. But it is not the intention of the Government to make rents unaffordable, which is why the Government is discussing with high country farmers ways to achieve rental outcomes that are fair, reasonable, and durable for both parties. Rents set in accordance with the law at higher levels will be affordable for many, but may be unaffordable for some. Possible options for those for whom it is unaffordable include rent reductions in return for additional sustainable management contributions such as pest and weed control or improved public access.
Jacqui DeanIs he satisfied that the high country farmers in the South Island have been good custodians of the land since 1948—yes or no?
Is the Minister aware that under current leases farmers’ income can be derived only from grazing, and does he argue that a sheep with a view will grow more wool than a sheep without a view?
Yes, I am aware that that is the restriction on land use, but I am also aware that the bundle of rights that is enjoyed and protected by lessees goes further than pure pastoralism, and includes rights of exclusive occupation, which is why one of the remedies for those lessees for whom rents may be unaffordable is that they give up some of those rights but retain their rights of pastoralism.
Will the Minister confirm today that the valuers acting for Land Information New Zealand were instructed on 13 October this year to immediately apply amenity values to valuations, and if that is the case, what is the purpose of the Minister’s sham consultation round that he now promises the high country farmers?
The round of consultation is not about what the law requires me to do; it is about the consequences of that for lessees.
Why does the Government want to set high country rents according to their views and not income, yet sets State house rentals for a multimillion-dollar house in Ōrākei with views over Auckland harbour on the basis of income and not its views?