New Zealanders gain conservation and public access benefits from sale

New Zealanders have gained access to popular angling, tramping and hunting opportunities through the scenic Poronui Station near Taupo, after the government imposed strict conditions on an overseas land sale.

Finance Minister Michael Cullen and the Minister for Land Information David Parker announced the sale of the American-owned Poronui Station today, to American company Westervelt Sporting Lodges Ltd.

Westervelt Sporting Lodges Ltd had applied to the Overseas Investment Office to purchase the 6500 hectare property, which borders the Kaimanawa Forest Park.

Dr Cullen said the station was overseas owned before and remains overseas owned. "But the government has used the sale process to make important riverbeds publicly owned, and to ensure permanent legal walking access to the rivers and through the station for all New Zealanders."

Poronui Station is a privately owned world-class sporting lodge currently owned by an American family. It offers guided trout fishing, sika deer hunting and other eco-tourist activities, including nature trails, mountain biking, horse trekking and hiking. Most of the property is devoted to farming and forestry. These activities will continue under the new ownership.

"Because Poronui Station is a site with special environmental values, the potential purchaser of this property had to undergo a rigorous screening process as required by the Overseas Investment Act 2005. The Act is designed to recognise that it is a privilege for overseas investors to own or control sensitive New Zealand land," Dr Cullen said.

"Those investors must show ministers that their ownership of the land will benefit New Zealand. They must provide details of how they will manage any conservation or public access factors relevant to the property as well as any economic development undertaken. The plans they submit are made conditions of consent.

"We are satisfied that the investment proposal by Westervelt Sporting Lodges meets all the legal requirements. The new terms agreed for public access and conservation are a big improvement on the status quo," Dr Cullen said.

David Parker said: "Poronui is a beautiful part of the country and the marked route through the property is popular with hunters, trampers and anglers. The conditions of consent attached to the sale of this land will mean people are guaranteed legal access through Poronui Station to the adjoining Kaimanawa Forest Park, and to the Taharua and Mohaka Rivers."

David Parker said an important benefit of this deal was that the vendor of Poronui Station would transfer to the Crown its interest in the Taharua and Mohaka rivers. "Both are renowned for trout fishing. Westervelt has agreed to allow public access to these special rivers. This means about 80 per cent of the fishable area of both rivers becomes legally accessible to the public.

"The Poronui case is an excellent example of what we have been achieving for some time using the 2005 legislation – that is, getting waterways into public ownership and improving walking access for the public."

Michael Cullen said: "We welcome foreign investment that has real benefits for New Zealand. Westervelt plans to expand the hunting business and market the lodge more aggressively overseas, which will help our tourism profile.

"This is further proof that the process introduced by the Overseas Investment Act in 2005 to ensure land sales benefit New Zealand is working."

Conditions of consent for the sale of Poronui Station include:

• Westervelt will grant a legal easement over parts of a marked route through the property that is not already legal road. The easement will include three angler access points to the Taharua River
• The parts of the riverbeds of the Mohaka and Taharua Rivers currently in the Poronui Station land titles are transferred to the Crown
• Westervelt has developed a Public Access Policy that outlines requirements around the other “on request” access routes. Details must be published on Poronui's website
• Westervelt must work with Fish and Game New Zealand to promote jointly branded information including mapping and signage which make clear “as of right” and “on request” access routes over the property
• The indigenous beech forest on the land will be protected by a covenant with the Department of Conservation
• The skink population on the property will be protected by way of a management agreement with the Department of Conservation
• Westervelt must continue to allow local iwi access to the property for eeling.

The Overseas Investment Office decision sheet is available here