New pastoral lease rent system bedding inLand Information
Land Information Minister Maurice Williamson says 17 South Island High Country Crown pastoral leases are from this week on a new rent system.
There are 221 pastoral leases and each one has its rent reviewed every 11 years.
“The 17 leases were the first reviewed under new legislation (Crown Pastoral Land Amendment Act 2012) which bases rents on the earning capacity of the land and not on the value of the land exclusive of improvements.
“The old regime was problematic in many cases and often resulted in disagreement and unnecessary conflict between lessees and the Crown.
“The new rent system is much simpler and transparent to administer, and provides a fairer pastoral rent,” Mr Williamson says.
Assessor inspections for the first rent reviews occurred in March and all rents were agreed prior to July 1st.
The new rent system has also resulted in significant costs savings for both the Crown and lessees.
“Lessees don’t have to rely on costly expert valuation advice, as they would have under the previous system,” Mr Williamson says.
Between 15 and 25 pastoral leases will come under the new rent system each year, as rents come up for review.