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Maori Reserved Land Amendment Bill

Tuesday, 27 March 2001 Media Statement

Maori Reserved Land Amendment Bill

The intention of the Maori Reserved Land Amendment Bill is to ensure that compensation is calculated on a fair basis for all the lessees affected by the reforms.

The bill seeks to redress an inequity in the two compensation options. Under the first option, compensation is calculated under a formula in the 1997 Act, and paid on an after-tax basis. Under the second option, compensation that is determined by the Land Valuation Tribunal is not adjusted for tax.

The Amendment Bill provides consistency to ensure that both options are adjusted for tax. The Bill also provides the affected lessees with a further right to elect compensation under option one, plus interest.

Under the Bill, the affected lessees would also have the right to continue to pursue compensation through the Land Valuation Tribunal. However, such compensation would be adjusted for tax.

Approximately 2000 leases are affected by the reserved land reforms and the lessees of over 1800 of them chose the first option. They have received their compensation. 170 lessees, mostly from Taranaki, chose the second option. Their compensation has yet to be determined by the Land Valuation Tribunal.


NOTE: The formula for option one (as set out in Schedule 2 of the Maori Reserved Land Amendment Act 1997) makes adjustments for tax so that the compensation payments are net of tax.

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