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The future of perpetual compensation





18 November 2009


The future of perpetual compensation for power lines

Federated Farmers has successfully negotiated a ‘sunset clause’ with Transpower that opens the way for future annual compensation payments when productive land is lost to transmission line projects.

“Farmers are all amped up over the prospect of future ongoing compensation payments,” says Phil York, Federated Farmers electricity spokesperson

“Federated Farmers has been working for sometime to secure a system of annual compensation payments to the landowner, based on the ongoing economic cost of having transmission lines on their property.

“Many landowners, including those along the Whakamaru to Auckland transmission line, are doing their country a great service by allowing transmission lines on their land. In the very least, they deserve an appropriate form of compensation for their loss of property value.

“The deal means landowners who have already signed up for a one-off payment will be eligible for ongoing payments if the Government moves towards a system of annual compensation in the future.

“All we need now is for the Government to play ball and change the system of only providing up-front, lump sum payments to one that provides the option of annual compensation payments.

“Considering transmission lines are hugely intrusive, limit landowners’ future options and are there forever, a one-off payment is simply not good enough.

“The Federation will continue to insist the Government consider a system of annual compensation payments. These should, in the very least, be based on the ongoing economic cost of losing the use of productive land to transmission lines.

“The sunset clause provides some much needed assurance to today’s landowner that they can benefit from future improvements to the compensation system. It also reaffirms Federated Farmers commitment to changing a system that we believe is fundamentally flawed,” Mr York concluded.


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