Govt announces new pastoral lease rent policy

A new system for setting rents for South Island high country pastoral leases administered by the Crown has been approved by Cabinet, Agriculture Minister David Carter and Land Information Minister Maurice Williamson announced today.


The new system implements the Government's strategic direction for Crown pastoral land, announced last year, which specified that rent should be charged based on the earning capacity of a property.


Mr Williamson says the new system for setting rents takes into account a number of factors, including the productive capacity of the lease and pastoral economic conditions.


"The way rents are currently calculated is complicated and costly and often produces disputes over both the process used and the result," he says.


Agriculture Minister David Carter says the new system will provide greater certainty to farmers.


"It is simpler to administer, more transparent and provides a fair rent. It will allow farmers to get on with the job of farming and looking after the high country rather than fighting bureaucracy."


Officials have worked closely with the High Country Accord, a representative group for Crown pastoral lessees, during the development of the new policy.


There are 231 pastoral leases, mainly in Canterbury and Central Otago, which represent around 1.6 million hectares of pastoral land.


Officials will begin drafting legislation to implement the policy, and the Government hopes to introduce a Bill into the House later this year.


The public will have the chance to make submissions on the Bill during the Select Committee phase of the passage of legislation.


Further information on the proposed rent-setting process, including Cabinet papers and questions and answers, is available on the Land Information New Zealand website: www.linz.govt.nz