Crown Agrees to Buy Council's Waitara Leasehold Land

The Crown and New Plymouth District Council have entered into a sale and purchase agreement for land in Waitara that the Crown intends to use in settling Treaty claims with Te Atiawa.

The agreement concerns land confiscated by the Crown during the Taranaki Wars of the 1860s and later vested in local government for municipal development.

Under the agreement the Crown will buy approximately two thirds of this land from the Council, for use in the settlement of Te Atiawa’s historical claims for breaches of the Treaty of Waitangi.

The remaining third, consisting mainly of Council facilities, parks and reserves, will remain in Council ownership.

In negotiating the agreement with the Crown, the Council has ensured that leaseholders’ existing lease rights will be protected once ownership is transferred to Te Atiawa. The new owners will be bound by the terms of existing leases.

Mayor Peter Tennent says: “This agreement enacts the Council resolution of 30 March 2004, to offer this land to the Crown for inclusion in its eventual settlement with Te Atiawa.

“I am proud that this Council has been able to reach this point in the process, despite a number of unsuccessful legal challenges following our original resolution.

“It says a great deal about this Council’s commitment to help resolve this historical grievance and our ongoing belief that the resolution of March 2004 was the right thing to do.”

Treaty of Waitangi Negotiations Minister Chris Finlayson says: “Reaching a just and durable settlement of claims with Te Atiawa is important to the Crown, the iwi and the Taranaki region.

“The Council is to be congratulated for its work in helping ensure a positive outcome in regard to the Waitara lands both for the iwi and for its current leaseholders.”

Under the agreement:

* The land - approximately 120 hectares (subject to final survey), will be included in the Crown’s offer to settle Te Atiawa’s historical claims.
* The Council will receive fair market value for the land (the Council and the Crown have agreed a process to determine the purchase price).
* It is intended that the settlement legislation will preserve the rights of existing leaseholders under their leases (including ownership of improvements, ability to sell the leasehold interest and perpetual rights of renewal) but otherwise it will vest the land free of all statutory trusts, restrictions and other reservations.
* Transfer of the land will only occur once the settlement legislation has been passed.

Both parties may terminate the sale and purchase agreement if any of the conditions are not met or a final purchase price cannot be agreed.

The sale is dependent on the settlement of Te Atiawa's treaty claim. The Government has a goal of settling historical Treaty claims by 2014. Until a settlement is reached, the Council will continue to own the land and administer leases.

Once settlement has occurred, Te Atiawa will own the freehold interest and be landlord of the leasehold properties on the same terms as currently exist between the Council and leaseholders.

The Council has written directly to affected lessees, advising them of the sale and purchase agreement and assuring them that their lease rights will be protected and preserved, in accordance with the original resolution of 30 March 2004.

Most of the land to be sold is currently subject to the Waitara Harbour Act 1940 (WHA) and as successor to the Waitara Harbour Board, Taranaki Regional Council (TRC) has a contingent claim to the proceeds of sale of these sections. The Council has therefore entered into an agreement with TRC to distribute the proceeds from the sale of the WHA sections in a manner that is fair, reasonable and consistent with the fiduciary responsibilities of both councils.

The Waitara Leaseholders Association’s challenge to the Council’s resolution of March 2004 was concluded in the Council’s favour.

Litigation continues in the form of actions for damages from individual leaseholders but there is no longer any legal impediment to the Council implementing its decision.