MIKE MOORE'S ALLEGATIONS BASELESS

Information released today by Lands Minister Denis Marshall showed that all the sales of land banked property to Ngai Tahu have been handled correctly, with some even turning a small profit.

Mr Marshall said he hoped the information will put an end to the ridiculous allegations Christchurch North MP Mike Moore has made about land deals between Ngai Tahu and the Crown.

"I also want to lay to rest any impressions that my department, Land Information New Zealand, has been incompetent in any way when handling these sales," Mr Marshall said.

"In the middle of 1994 the government offered Ngai Tahu the opportunity to buy some of the properties in which the rununga had identified an interest, as a gesture of good faith after settlement negotiations had been in stalemate for some time. This included properties that were in the land bank and those destined for it. This policy was reviewed in early 1995 and restricted to those properties already in the land bank."

"Of the 47 sales to Ngai Tahu of properties that were either in the land bank or destined for the land bank, all but two or three of them sold at or for more than the current market value, as assessed by an independent registered valuer."

"These current market values were the best assessments valuers could make of the lands value without testing it on the market. They were no more than three months old when the land was offered to Ngai Tahu. In only two cases did Ngai Tahu obtain its own valuation; in the rest it accepted the valuation obtained by the Crown."

Mr Marshall said the Crown wanted to sell these properties to free them up for development.

"At that time the value of land in the land bank was approaching the cap of $35 million, with more identified through the Ngai Tahu early warning system. This land was all in limbo with Ngai Tahu the only possible buyer."

"Selling this land had considerable benefits. Firstly, it smoothed the market by providing a steady flow of property onto it. As long as land remained locked in the land bank, other surplus Crown-owned property was building up behind it. This land was all off the market, which may have put up the price of similar land on the market."

"When the Crown and Ngai Tahu reach their inevitable settlement this surplus Crown-owned land will be released onto the market. This could cause considerable disruption and depress prices for some types of property in the South Island."

"Secondly, selling the land to Ngai Tahu freed up money for government departments to spend. It is far better that the Ministry of Education, for instance, is able to use its money to spend on education than to have it tied up in unused property."

"Both of these factors benefited the wider community by stimulating the South Island property market and saving the Crown money by allowing it to sell property, some of it vacant land, that was draining taxpayers' money for no return."

Mr Marshall also rejected calls for the value of the land sold to be taken off the final settlement.

"Mike Moore appears to be confused about the difference between purchasing land and paying compensation."

"Ngai Tahu has bought the land in question with its own money. To deduct the value of that land from the final settlement would mean that Ngai Tahu has paid for land that it was entitled to get for nothing from the Crown as part of the settlement package."

"This is obviously illogical."

"To claim that the profits made by Ngai Tahu from these sales should be taken off the final settlement also makes no sense. It implies that the Crown is entitled to any profits made by Ngai Tahu if it sells any former Crown land. That is just not so; no vendor has any claim to profits made through subsequent sales of their property."

"Mike Moore has also insinuated that if there are any profits to be made from selling surplus Crown land then the Crown should make sure it gets them all."

"Making a profit on property deals often requires adding value to the property in some way. This can include surveying, raising title for subdivisions and obtaining resource consents."

"It is in the taxpayers' interest that the Crown obtains the current market value for property in its current state, rather than take the risk of enhancing its value by development, in expectation of a better price."

"The Crown is not a property developer, and should not put taxpayers' money at risk by behaving like one."

Mr Marshall said that Mike Moore's allegations have been shown to be baseless.

"Mike Moore has obviously decided Labour doesn't need the Maori vote. His feeble attempts to smear me, my department and Ngai Tahu have all failed. He will have to do better than this to find a genuine local election issue to campaign on."

Ends

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