Federated Farmers national spokesperson plays electricity peacemaker

The spread of farmer unrest about transmission infrastructure has Federated Farmers national office stressing the importance of annual rentals being added to the compensation mix.

“As electricity is vital to life, the public can rest assured that emergency repair personnel and their equipment will have complete access to Transpower’s infrastructure,” says Philip York, Federated Farmers electricity spokesperson.

“Yet it indicates just how raw this issue is among farmers and we can now add South Canterbury to a growing list. That farmers there are prepared to engage in protest and risk arrest really rams home a strong sense of grievance.

“While Federated Farmers central analysis is at odds with our local members’ plan to lock-out Transpower vehicles and equipment for routine maintenance, it may need intervention by the Environment Court to resolve any impasse.

“But you cannot help but think that lining the pockets of high priced lawyers could be avoided by a simple commercial expediency. That expediency is giving farmers the option of receiving annual payments with periodic review.

“It seems strange to incur legal and other costs that could end up being more than an annual rental, let alone seeing Police called away from more important duties.

“To my mind annual payments would turn something that is a disbenefit to farm operations into a benefit. Instead of farmers begrudging pylons, they would farm them for their economic worth.

“While last year’s NZIER report - Compensation for transmission infrastructure – was centred on new build infrastructure, it validated the need for Transpower to offer market based payments that are subject to regular valuation reviews.

“For this new build infrastructure, the NZIER estimated the net benefits to Transpower considering the costs but also the benefits such as reduced legal costs and faster network build, would be just $29,000 per year.

“Federated Farmers at the national level just wishes to ensure taxpayers, consumers and farmers all get a fair deal. A fair deal starts with annual payments that many would know by its simpler name, rent,” Mr York concluded.

For a copy of the NZIER report Compensation for transmission infrastructure click here.