The Government was the biggest buyer of high country land and
its involvement was driving up pastoral lease rents for
farmers, says a farming leader.
Federated Farmers high country committee chairman Don Aubrey
said prices the Government was paying for land to add to the
conservation estate and its park network was driving up land
values and therefore rents paid by lessees.
"They're working both sides of the system."
Mr Aubrey said Land Information New Zealand (LINZ) admitted
in the Land Valuation Tribunal hearing in Dunedin last week
that higher rents based on valuations for amenity values,
were designed to encourage lessees in to tenure review.
"The problem with that, is it seems to have little to do with
obtaining a fair return for the Crown and more to do with
establishing a network of high country parks."
Since December 2003, the Government has bought eight high
country properties, either outright or in part, in addition
to land acquired through tenure review.
St James was the ninth.
"It is clear to all that the New Zealand Government is at
present the biggest buyer of high country pastoral leases. As
a consequence, the prices paid by the Crown is having a
marked influence on the market," Mr Aubrey said.
He did not accept Prime Minister Helen Clark's claim that the
Crown bought St James Station to "protect it for future
generations of New Zealanders".
He said there was no indication other parties were lining up
to buy it.
Neither did he accept claims the Crown was paying comparable
prices when measured by the hectare, saying the most
important figure was per stock unit, as that dictated the
ability to service a loan or to pay rent as a lessee.
"Under a pastoral lease there is no automatic right apart
from access to pasturage. Therefore, the stock the land can
carry is going to be the most critical element in paying
bills."
The $40 million paid for St James raised questions about what
the Crown was actually paying for - topical given the Dunedin
hearing was debating what part of a pastoral lease the Crown
owned and what part was owned by lessees.
Mr Aubrey said the St James lessee received $40 million,
which raised the question of the value of the land exclusive
of improvements (LEI), a figure which has not been made
public.
"Put simply, the Crown doesn't buy what it already owns."
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