Iconic lake landscapes protected forever

The protection of iconic landscapes around lakes, such as Tekapo, Wanaka and Wakatipu, is to be tightened, as part of a new approach by the government to tenure review in the South Island high country.

"We are making changes designed to ensure some of the most spectacular alpine lakesides in New Zealand are safe from inappropriate subdivision or development," Conservation Minister Chris Carter and Land Information Minister David Parker said today.

Until now, Crown pastoral lease land around high country lakesides has been available for tenure review with pastoral lessees. This exposes areas of lakeside land to potential subdivision and intensification of land use when land is freeholded.

“Tenure review has provided real gains for conservation, recreation and access. However, the government is concerned about the cumulative impact tenure review could have on lakeside areas as the process gradually advances across the high country," the Ministers said.

"From now on, pastoral lease properties will be excluded from tenure review if they have highly significant lakeside, landscape, biodiversity or other values that are unlikely to be protected satisfactorily by tenure review. Such land will not be allowed to pass into private hands unless it is demonstrably in the public interest."

Tenure review has always been a voluntary process for both the Crown and lessees, and the effect of the government's decision is that the Crown will now exercise its discretion not to participate in tenure review in some cases.

Officials have been asked to report back on the leases likely to be affected. For example, there are approximately 40 properties bordering lakesides that will be looked at. Other pastoral leases can still undergo tenure review as before, but all proposed settlements will be seen by Ministers in future. In addition, funding approval from the Minister for Land Information will be required before they can proceed.

"This is consistent with other protections announced earlier this year to closely monitor the disposal of any ‘sensitive’ Crown land to ensure land with significant non-commercial values remains in public hands,” the Ministers said.

“Protecting special landscapes from over-development, and improving public
access to them, is essential if future generations are to enjoy the same opportunities we do today."

Land excluded from tenure review will either continue to be managed as a pastoral lease or, if available for sale, may in some circumstances be purchased by the Crown and vested as public conservation land.

Pastoral leases restrict what can be done with land and, if properly managed, can provide good protection of natural values. Officials will review land management practices on pastoral leases, and the issuing of consents for non-pastoral activities, to ensure natural values are not being undermined.

Officials will also report on how existing provisions in the 1948 Land Act can be used to provide public access through pastoral lease land. Any proposals are to be integrated into the government’s response to the Walking Access Consultation Panel report and work being done to address implications of rent increases on pastoral lease land.

"The government places a high priority on the preservation of the essential natural characteristics of the South Island high country, " the Ministers said.

"In addition to these new changes, a network of high country parks and reserves is being created. Six parks have already been opened, and a seventh – the proposed Oteake Conservation Park – is taking shape around Michael Peak station, which was purchased by the government earlier this month."

See attached Q&A for further background.

For the Cabinet paper and minute South Island High Country: Landscape, Biodiversity and Access Issues, see www.linz.govt.nz

Questions and Answers – High Country landscapes

What are the government’s high country objectives?
In 2003 the government adopted 10 South Island high country objectives, which set out the wide range of things that the government wants to achieve in the high country – environmental, economic, social, and financial. The objectives include:

• Promoting the management of the Crown’s high country land in a way that is ecologically sustainable
• Enabling (tenure) reviewable land that is capable of economic use to be freed of current management constraints
• Protecting significant inherent values of reviewable land by the creation of protective measures; or preferably by the restoration of the land concerned to full Crown ownership and control
• Securing public access to and enjoyment of high country land
• Progressively establishing a network of high country parks and reserves.

What is a pastoral lease?
The Crown owns nearly 2 million hectares of South Island high country land, located from Marlborough to Southland, which is leased or (in a few cases) licensed for pastoral farming. Pastoral leases were established under the Land Act 1948 (Land Act), although land in the South Island high country has been licensed or leased since the 1850s.

The Land Act granted lessees secure rights to the land, namely perpetual right of renewal and exclusive occupation of the land, and the right to use the land for a limited purpose, namely pastoral farming.

What is tenure review?
Tenure review of a pastoral lease is a voluntary negotiation between the Crown and the lessee that results in the transfer of some land with significant values (biodiversity, landscape, recreation, historic, public access etc) to the Department of Conservation (DOC) as public conservation land, and the freeholding of some land capable of productive use to the lessee.

Land Information New Zealand (LINZ) negotiates with the lessee, consults with DOC, stakeholders and the public, and seeks an outcome that best takes account of the views of all parties. Final decisions on each review are made by the Commissioner of Crown Lands (the Commissioner) after comment from the Land Information and Conservation Ministers. Before any tenure review proposal can proceed, it must now receive funding approval from the Minister for Land Information.

Where is tenure review at?
Of the 304 pastoral leases eligible for the tenure review process under the Crown Pastoral Land Act 1998 (CPLA): 58 leases (about 15% of the eligible land) have completed (or nearly completed) tenure review; 130 other leases are currently in the process; 114 leases are not in the process; and 2 leases have been purchased (in whole) by the Crown outside of tenure review.

Tenure review has resulted in about 176,000 hectares (58%) of land being freeholded and about 127,000 hectares (42%) being returned to full Crown ownership as conservation land.

Where all or most of a property should become public conservation land, a whole lease purchase has on occasion been made instead by LINZ or the Nature Heritage Fund, e.g. the Birchwood and Michael Peak pastoral leases. Partial property purchases have also been made by the Fund.

Tenure review under the CPLA and lease purchases have, in total, resulted in an overall 50/50 split between land being transferred to public conservation land and land being freeholded.

What has tenure review achieved?
Tenure review has delivered important gains for conservation, public access, recreational opportunities and the establishment of high country parks and the protection of distinctive and rare ecosystems. It has also resulted in diversified economic use of freeholded land.

With freeholded land subject only to RMA requirements, wide-ranging activities are possible that were not permitted when the land was under pastoral lease, e.g. viticulture, lifestyle subdivision, and greater commercial recreation.

What has prompted today’s announcement?
The government shares public concerns that have increasingly been raised about how well tenure review is protecting values such as lakeside landscapes within the high country from subdivision and intensification of land use that can follow freeholding.

What has the government decided?

• South Island high country pastoral lease properties with highly significant lakeside, landscape, biodiversity or other values that are unlikely to be protected to the satisfaction of the Crown by the tenure review process are to be excluded from the process
• The default assumption for lakeside properties is that they should be excluded from tenure review unless it is clear that tenure review would not significantly impact on their landscape, biodiversity, access and other values, and would demonstrably be in the public interest
• Pastoral lease land is to be managed (in accordance with the CPLA and the Land Act) in a way that protects its values and ensures that they are not undermined by the issuing of discretionary consents
• Before any tenure review proposal can proceed, it must receive funding approval from the Minister for Land Information
• Priority is to be given to completing high country parks that are currently being progressed, and to making desirable additions to existing parks
• Issues of public access through pastoral lease land to rivers, lakes, public conservation land or other public accessways are to be considered further in conjunction with the government response to the Walking Access Consultation Panel report and proposals.

What happens from now?

• LINZ, in consultation with DOC, will identify pastoral lease properties where the Crown should withdraw from the tenure review process or not enter into it. The results of this review are to be reported to Cabinet by 31 August 2007.
• DOC and LINZ are to report to their Ministers by 31 July 2007 on how to progress the high country parks network by the end of 2008.
• LINZ and DOC are to report to their Ministers by 31 July 2007 on how existing Land Act provisions might be used to provide access through pastoral lease land. Any proposals will be integrated with the government response to the Walking Access Consultation Panel report and work being done to address implications of rent increases for pastoral lease land.
• LINZ and DOC will review land management practices on pastoral lease land and the issuing of discretionary consents by the Commissioner, and report to their Ministers by 30 November 2007 on the results and any recommendations for change. (Activities carried out under discretionary consents can diminish or even destroy values, e.g. converting tussockland to exotic grass or plantation forestry.)

Can the Crown withdraw from tenure reviews currently underway?
The Commissioner has the discretion under the CPLA to withdraw properties from tenure review at any time before a final proposal is accepted by a lessee. This is the same as for lessees, who can withdraw at any time before a final proposal is accepted.

If tenure review is no longer an option for some properties, how will values be protected?
Because pastoral leases cannot be subdivided, they already offer a degree of protection from unsuitable development. Furthermore, where non-pastoral activities or land disturbance (e.g. recreation/tourism, tussock burning, oversowing, topdressing, forest planting) are proposed, the lessee must apply for a discretionary consent from the Commissioner, as ‘landlord’ of the Crown’s pastoral land assets.

LINZ and DOC are to review land management practices on pastoral lease land and the granting of discretionary consents to ensure that activities undertaken do not undermine the land’s values.

What progress is being made on high country parks?
Significant progress has been made towards the establishment of a network of high country parks (about 20 are proposed). Six new parks have been opened (Ahuriri, Korowai-Torlesse, Te Papanui, Eyre Mountains/Taka Ra Haka, Ruataniwha, and Molesworth).

Except for Molesworth, the parks were formed from land obtained through tenure review and lease purchases being combined with already existing public conservation land.

The establishment of further parks depends on land being made available from tenure review and lease purchases, which are voluntary, negotiated processes. Broadly speaking, however, park formation is anticipated in areas such as the Ida/Hawkdun/St Bathans range (Oteake), the Pisa range, the Remarkables, the Ashburton lakes area, and the Kaikouras.

Many high country reserves – historic, recreation, scenic, scientific, and wildlife – have been created as a result of tenure review. Reserves are often used to protect significant lowland biodiversity in the high country.

Is the government committed to high country farming?
The government is committed to high country farming that is environmentally sustainable and economically viable, and values its contribution to the New Zealand economy and South Island rural communities.

This is reinforced by today’s announcement, which shows that the Crown is willing to remain a high country pastoral lessor indefinitely.

Market forces are putting up the price of land, and hence the rent farmers have to pay to the Crown. The government wants to work with high country lessees to ensure high country farming remains sustainable. The government is willing to consider reductions to rents where higher rents are unaffordable, and wants to achieve outcomes that that are lawful and fair for both parties.