Victory in long running, battle

31 July 2009 HIGH COUNTRY ACCORDMEDIA RELEASEIMMEDIATE

Victory in long running, battle

Victory for farmers in long rent battle High country families who thought they might be rented off their farms by the Crown are breathing a huge sigh of relief. The Land Valuation Tribunal, in a test case, has ruled that the Crown should not have added the value of lake and mountain views into the formula used to calculate the rents on pastoral farms.

Jonathan Wallis, chairman of the High Country Accord and co-owner of Minaret Station which was the subject of the test case, simply said "It's the right answer," when he learned of the tribunal's decision. "This is a huge relief for my family, but what makes it so rewarding is that this result can be applied to every pastoral lease, not just Minaret. It applies to all the farmers and families who have fought passionately whilst their very livelihoods hanging in the balance."

As a result of the decision, the rent on Minaret Station will increase by 400 per cent from the previous rental set 11 years before, but this a sixth of the rent proposed by the Crown. "For many farmers, the rent sought by the Crown exceeded the gross income from the farm. There is nothing rational in that," states Mr Wallis.

He says the persistent attacks and treatment of high country farmers by the previous government were cynically motivated. "The tribunal reflects this in its criticism of the previous government for choosing 'to direct and demand of its valuers a process that is intended to achieve a particular outcome'."

The tribunal determined that the previous government's approach led to an inappropriate conclusion. It accordingly ruled that significant inherent values and amenity values should not be taken into account in determining a rent for pastoral purposes. Mr Wallis says the tribunal decision has been made in a very different political climate than when Minaret Station lodged their objection to the previous government's new rental valuation formula. "We are heartened by the fact that the new government is restoring relationships in the high country, not through subsidy or preferential treatment, but by looking for the most rational and sustainable approach, based on respect for property rights and in recognition that conservation and agriculture can co-exist.

"The tribunal's decision stops short of suggesting potential legislative changes. However this decision, along with the recent High Court decision on access which confirmed that high country farmers have exclusive occupation, opens the doors for changes to legislation to ensure that this never happens again. Never ever." Mr Wallis says the tribunal has recognised the intent of the legislation that surrounds pastoral leases. Recognition of a business agreement between lessor and lessee is critical to a proper interpretation of the legislation. "

It notes that the intent of the legislation is to protect the interest of the Crown in the land, but also the interests of the lessee by transferring the rights to the land in perpetuity," he says. "This provides the lessee with security of tenure and occupation. In doing so the lessee assumes all of the risk but also the opportunity." Mr Wallis thanked the "first class team of legal, valuation and scientific professionals" for their five hard years of work on the case.

He says he and all high country farming families with Crown Pastoral Leases are indebted to the considerable expertise and leadership of Nick Davidson QC and solicitors Kelvin Reid and Kit Mouat. "This is a very good day for the South Island high country," Mr Wallis concluded.

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