New Zealand Executive Government News Release Archive

The Minister of Maori Affairs, Hon John Luxton responded to Federated Farmers claims of unfairness today by reiterating that the Government stands by the fairness of the decisions announced earlier this week on Maori Reserved Land.

"We are not threatening property rights, rather we have made decisions which protect and enhance the property rights of both Maori owners, and lessees," said Mr Luxton.

"The issue is not a Treaty of Waitangi issue, it is about the legislative prescription of the business relationship between the Maori landowners and lessees.

"The Government has chosen a fair and reasonable solution to a very long standing problem. However, any concerns from both parties - Maori owners and lessees, can be further addressed by making submissions to the Select Committee asking for changes to be made to the legislation.

"The key points I want to re-emphasise are:

1. The compensation model is an accepted conventional model. Government asked an independent expert, merchant bank Treasury Group Ltd to develop the model. Various reports into the model were confirmed by Southpac. It is a standard financial model used in New Zealand for these types of situations;
2. The compensation model has been further audited by independent, private sector economic analysts Berl, who have also confirmed the model;
3. We cannot leave the leases as they are - Maori owners do not have the normal rights of property owners and the Government is restoring the balance in the relationship;
4. Compensation will be paid for a term of 21 years, not the 14 currently suggested; and
5. The compensation has not been "capped" by Government at $40 million. I have consistently stated that it is likely to exceed this amount but as a fiscally responsible Government, we sought expert estimates on what could be a possible cost to the taxpayer.

"I am releasing further details on the rental compensation model which covers the main factors which will be taken into account to determine a fair level of compensation.

"The legislation will be introduced during the next Parliamentary session and I expect that the concerns being raised by lessees and owners to be further addressed during submissions to the Select Committee," concluded Mr Luxton.

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