17 South Island high country Crown pastoral leases moved to a new rent system this week. They’re the first leases reviewed under the Crown Pastoral Land Amendment Act 2012, which bases rents on the earning capacity of the land, not on the value of the land exclusive of improvements.
All 221 pastoral leases have their rent reviewed every 11 years. Between 15-25/year will come under the new rent system as rents come up for review.
Land Information Minister Maurice Williamson said yesterday: “The old regime was problematic in many cases and often resulted in disagreement & unnecessary conflict between lessees & the Crown. The new rent system is much simpler & transparent to administer, and provides a fairer pastoral rent.”
Assessor made their inspections for the first rent reviews in March and all rents were agreed by 1 July. Mr Williamson said the new rent system had also resulted in significant cost savings for both the Crown & lessees: “Lessees don’t have to rely on costly expert valuation advice, as they would have under the previous system.”
Attribution: Ministerial release.