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May 1994. 'Public Access', No. 4

Land tenure under review

Lands Minister Denis Marshall has released a discussion paper on issues and options for changing the tenure of Crown pastoral land in the South Island high country. This coincides with a separate review of the Rabbit and Land Management Programme.

There are approximately 350 pastoral leases and licences covering 2.8 million hectares of high country which is equivalent to 10 per cent of New Zealand's land area. As a consequence of 150 years of burning and grazing it is widely believed that remaining 'unimproved' tussock grasslands are at the point of ecological collapse, and along with it the fine wool industry.

The extremely diverse landscapes along the eastern side of the Southern Alps, from inland Marlborough to northern Southland, are increasingly recognised as the last major unprotected part of New Zealand's natural heritage. It also has great potential for public recreation. However under pastoral leasehold tenure the occupiers hold trespass rights and the right to bar public use. Many lessees are seeking to diversify into tourism ventures, with a direct potential to exclude all who cannot, or do not wish to, pay for their recreation (see Public Access Nos. 1 and 2 for more background to this issue).

Most conservation and recreation groups, including PANZ, support negotiated exchanges of property rights between lessees and the Crown to create public lands on areas of high natural and recreation value, and rights of access to them, with, as a quid pro quo, freehold offered over the better farm land. We also believe that special leases should be created over the extensive "in-between lands" (e.g., see Molesworth) where there are over-lapping conservation and grazing values.

Tenure changes have been occurring at a slow rate, with a handful of deals in the last few months producing welcome results. There are eighty lessees wishing to instigate land tenure reviews. However the Commissioner of Crown Lands has only sufficient funds to pay for the processing of only a few of these. The profits the Government is making from freeholding is disappearing into the Consolidated Fund and is unavailable for processing more deals. However Mr. Marshall does not see "redirecting funds as necessarily the answer" (ODT 8/4/94).

Six options for the future of pastoral leases are outlined in The Tenure of Crown pastoral Land-issues and options:

1. Total resumption of all leases to the Crown estate. This is dismissed as an extreme option.
2. The status quo-the retention of the current pastoral leasehold arrangement, or similar.
3. Freeholding of only that pastoral leasehold which is demonstrably suitable for sustained commercial production or use, with the balance being assigned to the Conservation estate (or protected in some other way) i.e., a 2-way split.
4. Freeholding as in 3 above, with the balance either assigned as a special lease or to the Conservation estate. This is another 2-way split that is falsely portrayed as "essentially the three-way process" currently being applied on a limited scale.
5. Freeholding of all pastoral lease land, except areas of high conservation or public recreation value which would be assigned to the Conservation estate (or protected in some other way).
6. Freeholding of all pastoral leasehold.


PANZ believes that an amended option 4 best fits the diverse character of the land and conservation and public needs. The "either-or's" must be amended to "and" plus provision made for secure access through freeholded lands.

PANZ has communicated with Mr. Marshall concerns over the adequacy of the document and the skewing of options based on pre-determined preferences to privatise as much Crown land as possible. There is a misplaced reliance on the Resource Management Act (RMA) to ensure "sustainable management" but with little or no consideration of public recreation needs (see Public Access No. 2 for a discussion of the inadequacy of the RMA).

Mr. Marshall has instigated a public consultation process on tenure review with the intention of amending the Land Act. "It is fair to say over time the pendulum of power is swinging more towards the non-agricultural stakeholders...the advent of MMP...will only enhance those trends..." (Hon. Denis Marshall, The New Zealand Farmer, March 9, 1994). Federated farmers high country section chairman Bob Brown agreed with Mr. Marshall that ideally the tenure question should be settled before the next election under MMP (The New Zealand Farmer, March 9, 1994).

There have been mixed reactions from the high country farming community to the proposals. While some runholders wish to retain pastoral leases, the Otago Federated Farmers high country section unanimously approved option six for freeholding of all pastoral-lease land despite this option being dismissed by the Commissioner of Crown Lands as an extreme one which would bring widespread public opposition. The section is also opposed to deals that lead to ecological sustainability (Otago Daily Times, May 6, 1994).



May 1994. 'Public Access', No. 4

Land deals so far

PANZ is putting considerable effort into consultation with officials and submission-making on high country tenure reviews. Our representations, with one notable exception, have had a significant influence on the shape of the finally approved deals.

While our advocacy frustrates some runholder ambitions for freehold title over lands unsuitable for such, most of the outcomes are proving sensible and acceptable from both pastoral and conservation-recreation perspectives. These will result in enhanced land use opportunities for the most productive lands and major gains for nature conservation and public recreation. These are the kinds of models we believe should result from review of the Land Act. Much more could be achieved within the framework of the existing Act, given greater funding and commitment from Government.
Approved or well-advanced land exchanges include-

Mt Difficulty (Cromwell area)

400 ha has been surrendered to become conservation areas with public access provided and 1500 ha is retained as pastoral lease. Another 120 ha is being freeholded. PANZ is concerned that the majority has been retained as pastoral lease.

Closeburn (Queenstown area)

1800 ha above Moke and Dispute Lakes will be reserved, in return for freeholding of 1100ha.

Cairnmuir (Cromwell area)

2355 hectares, consisting of the steep faces above Lake Dunstan, will become a special lease with provision for public access. 4300 hectares will be freeholded. A 3492 ha block on the Old Woman Range will become public land.

Halwyn (Lawrence area)

3687 hectares are to be freeholded. 3600 ha of tussock grasslands on the Lammerlaw Range will be reserved. 160 ha of beech forest in Bowlers Creek beside State Highway 8 to become reserve.

Blackstone Hill (St. Bathans area)

Freeholding of 2552 ha, being the homestead block and near Falls Dam. 3197 ha on the Hawkdun Range is to be reserved with a public access easement to it.

Bendigo (Cromwell area)

1920 ha on the tops of the Dunstan Mountains to become special lease with rights of foot access at all times. 1372 of kanuka and historic gold mining relics to become reserve. 7992 ha to be freeholded.

Michael Peak (Mt St. Bathans)

It appears that earlier plans to offer freehold over 1500 ha of Class VII land have been dropped after objections by PANZ.

Waiorau (Pisa Range near Wanaka)

This has been the scene of most debate. Our submissions have resulted in improvements on the original proposals with one major exception. PANZ lodged objections to proposed freeholding of over a thousand hectares of mid-altitude Class VII tussock grassland on the basis that it would be ultra vires the Land Act, with inadequate protection for the high natural values of the area. Part of the area concerned is used for a commercial cross country skiing venture.
Earlier legal opinion obtained by PANZ, that such areas could not be legally reclassified from 'pastoral' to 'farm land' as a precursor to freeholding, were accepted by the Commissioner of Crown Lands. However it now appears that he has disregarded our opinion by partly reclassifying the area as 'farm land' and the balance as 'commercial'. Freehold title has been offered over both classifications. Potentially there are major adverse implications for other high country lands. The Commissioner's decision fits in with runholder pressures and government leanings towards privatisation of any pastoral leasehold with potential for commercial use, irrespective of its suitability for farming use.

The Commissioner has also approved 4000 ha of the tops of the Pisa range going to DOC. Public foot access will be provided up a legal road to the southern end of the new public lands (a right that already existed), and on payment of "a reasonable fee", vehicle access will be available along the ski area road to get to the northern end of the new public area.

PANZ believes that only good farm land should be available for freeholding. The rest should remain in Crown ownership, either under special Crown lease or under DOC's control.

Clarence Reserve (Seaward Kaikoura Range)

A tenure exchange involving this huge pastoral holding was interrupted by sale of the property. Negotiations are proceeding that may result in 41,000 ha becoming reserve, with a special Crown lease over 11,000 ha adjoining the Clarence River, in return for freeholding of 700 ha on the eastern side of the range. Public access will be provided through the freehold and unrestricted foot access over most farm tracks through the special lease. DOC will be able to establish three public camping sites beside the river within the leasehold. Marginal strips will be provided.




May 1994. 'Public Access', No. 4

Molesworth management plan released

New Zealand's largest farm, the 180,000 hectare Molesworth Station, now has a management plan to guide its use for pastoral farming, protection of the environment, and public use. This area of high country, situated in inland Marlborough, has been Crown land farmed by the Government since it was abandoned by pastoral lessees in the 1930s and 1940s The preface to the plan states that the rehabilitation of the land over the last 50 years, from four desolate runs-laid to virtual waste by a combination of fire, grazing and rabbits-represents one of New Zealand's major conservation and farming achievements.

In 1987, at the time of the establishment of DOC and state-owned enterprises, Government decided to retain public ownership of Molesworth because of its range of overlapping production, conservation, and recreation values. It is now leased to Landcorp under a non-freeholdable 15 year special lease. The plan and lease is over-seen by a 'Steering Committee' set up to advise the Minister of Lands.

Like much of the rest of the South Island high country, Molesworth is subject to continuing problems of rabbits, and the spread of invasive hieracium weed species.

25 areas totalling over 50,000 hectares, or 30 per cent of the station, has been identified as Recommended Areas for Protection (RAPs) by DOC. However the expansive nature of the area, basins, mountains, rivers, and natural features have much wider appeal to the public than the RAPs alone.

The principle goals and objectives for the management of Molesworth over the next 5 years include-

Protection


Farming


Recreation

 


Recreation and access issues are-


The management plan is a significant improvement on earlier drafts which gave priority to pastoral farming, at the expense of all else. PANZ believes that all alpine areas of the station could have been separated out from grazed areas and reserved as public lands, rather than have a leasehold issued over them.

The plan highlights the reality that for much of the station there are overlapping production, nature conservation, and recreation values that are not so easily separated. This demonstrates that there is a place for new leaseholds over those parts of the South Island high country with a mix of values.

Contrary to the leanings of the New Right and The Treasury, in most high country situations a simple two-way split between public 'conservation' land and private land does not always reflect realities on the ground. We prefer the option of three-way splits-public land, special leaseholds, and freehold in place of pastoral leases-although all three categories may be unnecessary on every property.

We believe that at the end of the first 15 year term of the Molesworth lease that the property go through a categorisation assessment to determine a more confined leasehold and additions to public lands. In the interim DOC and Landcorp are negotiating in secret the future tenure of RAPs. We believe, for reasons set out in Public Access No. 2, that covenants provide inadequate protection and may not provide for public use. We believe that all the identified RAPs should be taken out of the lease and reserved for nature conservation and appropriate public use.

What you can do
Write to Hon. Denis Marshall, Minister of Lands, Parliament Buildings, Wellington (no postage required) and ask for all through-roads on Molesworth Station to be made public roads.



13 July 1994

Address to Workshop on Sustainability of the High Country
and the Role of Tenure Review

Bruce Mason, Public Access New Zealand Inc
Invermay Conference Centre, Mosgiel
Wednesday 13 July 1994

The current review has been sparked by a resurgence of rabbits, the spread of hieracium, high costs of pest control, and loss in production. The Government has decided that it wants out of financial liability for pests. We perceive that many runholders either feel trapped, or uncertain in their futures. This is caused by declining returns from a declining resource base, and increasing pest control costs.
There is a realisation that there is a crisis afoot in the pastoral high country-a perception that pastoral use of extensive areas is unlikely to be sustainable, and that change away from a sole use of pastoralism is necessary. That perception has been picked up by Government who appears committed either to long-term goals of sustainable land use or to getting out of yet another area of government by off-loading its responsibilities on to "the community".

Lest we forget, this is not the first occasion that a crisis of land degradation has received public recognition. There is a recurring cycle of degradation spanning at least the last 150 years. The last crisis was in the 1930s and 1940s, which resulted in the Crown passing a new Land Act plus soil conservation legislation. The Crown also accepted land management and rehabilitation responsibilities for some of the most degraded and unprofitable lands. The cases of Eyre Creek, Cainard, and Molesworth are there for anyone to see.

What has changed since the 1940s has been scientific understanding as to the nature of land degradation. Whereas previously soil loss through erosion was seen as the primary and possible only cause for concern, today decline in soil condition, in addition to soil loss, is perceived to be the overriding cause of degradation.

From my understanding of the screeds of official and learned reports on the last crisis, in the past there was no less concern for the land or less willingness for decisive remedies. There was however a differing understanding as to the nature of the problem, and consequently the remedies needed.

Since passage of the current Land Act in 1948, and the introduction of a new pastoral tenure, there is plenty of documentary and anecdotal evidence of improvement in land condition as indicated by enhanced vegetative cover. It is interesting to note that the Martin report hasn't discounted the importance of preventing soil erosion. The report notes a high potential for wind erosion where there is bare ground.

I do not for a moment believe claims that the Land Act and pastoral leases have been a failure in preventing land degradation. The evidence is that they have been partially successful. An unfair criticism is that pastoral leases have failed to ensure "sustainability". The simple truth is that they were not designed to achieve "sustainability"-the concept was probably unknown back in 1948 and certainly wasn't the buzz word of that decade!

Where pastoral leases have 'failed' is that the high country has been locked into a monoculture of pastoral use and the leasehold instruments have proved inadequate to accommodate new and rapidly growing community aspirations for nature conservation and recreation. That is not to say that leases are inherently incapable of achieving new or differing ends.

Rather than overturn all the accumulated experience of the past in favour of a grand new experiment dependent on market forces, under the oversight of a resource management Act with unknown meaning and consequences, it would be more prudent to redefine rather than relinquish the Crown's interest over the 80 percent that is believed to be at risk. This needs to be in the light of current scientific understanding as well as community aspirations for conservation and recreation. The Crown should only consider disposing of its interest over the 20% that is believed not to be at risk.

This generation does not have a monopoly on knowledge or understanding of the processes at play, just as the last generation clearly did not. A lesson that can be drawn from our history is that there are no sure-fire 'final solutions' for fragile mountain environments. Future generations would better judge us if we took an evolutionary rather than revolutionary approach.

I believe that it is time for principled pragmatism in the high country. This should be based on mutual recognition of the respective property interests of the Crown and lessees, and on new understandings as to the nature and cause of land degradation. There must also be recognition that in the 1990s there are much wider community aspirations for the high country than existed previously.


I think that it is necessary for the main interest groups to be explicit in what they are trying to achieve and why. The results of such an approach can be beneficial for everyone. For instance PANZ is generally heartened by the negotiated tenure reviews that are taking place in Otago and Marlborough. Obviously the deals must have been acceptable to the runholders concerned for them to proceed.

The deals struck so far contradict the notion that there is difficulty in defining the public interest.

As Hamish Ensor [former Chairman Federated Farmers' High Country Committee] acutely observed at the first meeting with the Minister of Lands in Dunedin on 18 May on this subject, difficulties in the way of reform of the high country exist more in theory than in practice.

PANZ is looking for practical solutions in the high country and would welcome discussions with other interest groups to that end.



November 1994. 'Public Access', No. 5

Access 'Number One'

Public submissions have made public access the number one issue arising from Government's review of pastoral leases under the Land Act--

'High country access wanted'

'Timaru Herald', November 8, 1994

"Public access to the South Island high country was the most frequently mentioned issue in the submissions to Government on proposed pastoral lease tenure reform and conservation goals," said Lands Minister, Denis Marshall in releasing the report on the analysis of submissions.

"Many environmental and recreation groups want to see stronger public access and as a minimum, they wished to see secure public foot access to areas of significant, natural character and to water margins."

"A trial of 575 valid submissions were made, 448 by the due date of August 15 and 127 were late submissions. As a sign of good faith, late submissions were accepted up to September 6 and they have been given equal weight with those received by August 15. The submissions have been professionally analysed by consulting group Connel Wagner and are now available for public scrutiny," Mr. Marshall said.

"The submissions were based on three public discussion documents released earlier this year. They are: The South Island High Country Review (commonly known as the Martin Committee's report); The Tenure of Crown Pastoral Leases: the Issues and Options (produced by the Commissioner of Crown Lands); and a Draft Discussion Document: Public Interest Goals for the South Island High Country (produced by the Department of Conservation).

Of the tenure options put forward, the key farming groups favoured options maximising freeholding of pastoral lease tenure. The major conservation and recreation groups are strongly in favour of as much of the lease as possible being retained under Crown ownership in the conservation estate.

A significant number of individual submissions favoured the status quo, arguing that the Crown should retain ownership of all pastoral leases to protect the public interest.
"While a wide variety of views were expressed, there was substantial agreement that tenure reform should be voluntary and done by negotiation, and the Government has always made it clear that there will be no element of compulsion in its proposed tenure reform package."
"The submissions have been of great benefit to the Government in deciding on the best options for progressing tenure reform as part of the broader policy of promoting sustainability in the high country," Mr. Marshall said.




November 1994. 'Public Access', No. 5

The third report

In June (1994) the third paper entitled 'Public interest goals for the South Island high country' was released to selected interests but was not publicly notified. The paper was prepared by DOC at the request of the Minister, and released by his office.

PANZ believes that the Minister has prejudiced the outcome of the Land Act review by his acceptance, prior to public submissions closing, of the working party on sustainable land management's recommendation that 'public interest' goals need to be identified in the high country--with everything else made available for freeholding.

What started as a promising, well-considered review, has quickly degenerated into a ideologically driven advancement of private property rights. An early clue as to why there is a sudden rush to amend the Act is provided by Mr. Marshall's reported comment to the New Zealand Farmer (March 9, 1994) that non-agricultural stakeholders interests would be enhanced with the advent of MMP.

The content of the 'public interest goals' paper has caused us to reverse our support for review of the Land Act. We do not see any necessity for legislative change for the purpose of tenure review. This is occurring successfully under the present Act.

In our view all that is needed are relatively minor amendments to the Land Act to--


We are completely opposed to any enhancement of pastoral lessees' property rights such as removal of the current prohibition on freeholding. Reclassification from 'pastoral' to 'farm land', as provided for under the existing Act, should remain the only way of obtaining freehold title. We completely reject the approach that it be a matter of open-ended negotiation which determines land ownership. The whole approach is fatally flawed for protection of the public interest and must be dropped.

In our view the working party on sustainable land management was not competent to come to the conclusion that there is difficulty in identifying public interest goals in the high country and that this must be done as a precursor to offering freehold over everything else. The Minister's acceptance of their recommendation, and extending that to proposals for freeholding of identified public interest values, before public consultation has been completed, makes a mockery of the consultation process.

We have conveyed to Mr. Marshall our assurance of continuing and strenuous opposition to Government's privatisation plans.

Mr. Marshall has accused NGOs of "continual misrepresentation" (Radio NZ 9/8/94) while failing to respond to our detailed concerns. Likewise Bill Mansfield, Director-General of Conservation has accused PANZ of "serious misrepresentation" of DOC's intentions and has questioned our honesty.

Insight into the official position is revealed by an address by DOC's director of estate protection, to Federated Farmers in June this year. John Holloway said that "we [DOC] certainly do not consider it necessary for the department to obtain full control of all areas of conservation interest in the high country. There are areas which can be as effectively managed if held in private ownership with appropriate mechanisms to recognise the public interest. Increasingly conservation is not just a matter of Crown ownership and control of certain specific lands but also a matter of joint community based effort across all lands".

In the department's submission on the high country review there is antagonism to prescriptive criteria for determining which land is retained in public ownership. Any criteria are perceived as removing "flexibility" and the ability to "compromise". This is 'official-speak' for wheeling and dealing without any rules or assurance that the public interest will be adequately protected.

"The department does not believe that any criteria for determining which land requires protection by retention in Crown ownership...should be prescriptive."


Apparently the department has already forgotten that it acquired huge areas of conservation and recreation land by the application of prescriptive criteria during the 'Great Land Carve-up' of 1986-87 between DOC and SOEs. This included 600,000 hectares that were mis-allocated to SOEs and clawed back into public ownership by the application of presciptive criteria.
We replied to Mr. Mansfield that we would welcome a well-researched paper from the department on the adequacy of private ownership mechanisms for protecting the public interest versus that provided by public ownership. Such a paper should have been the prerequisite to preparation and release of the 'public interest goals' paper.



November 1994. 'Public Access', No. 5

Private management of 'the public interest'?

In the absence of such a paper from DOC (a well-researched paper from the department on the adequacy of private ownership mechanisms for protecting the public interest versus that provided by public ownership), in August PANZ released a review of proposals for private management of recreation and conservation lands in the South Island high country.


The review concluded that the shortcomings of Government's proposals are so severe that they cannot be taken seriously as a substitute for continuing public ownership.

PANZ reviewed the adequacy of several 'protective' mechanisms if Crown lands are freeholded, including covenants, management agreements, protected private land agreements, and district plan rules. An analysis of relevant legislation found the mechanisms seriously lacking compared to the security, accountability, and public remedies afforded by public ownership under the Reserves, National Parks, and Conservation Acts. Examination of the law showed a lack of security, with covenants able to be modified or extinguished at any time without any requirements for public notification or objection.

A practical consideration is a lack of accountability to the public for the actions of a landowner, or for public officials responsible for upholding the terms of an agreement. A case was unearthed where there is a confidentiality clause preventing public disclosure of the terms of an agreement between DOC and a runholder.

It is assumed by the Government that it will save money if the land is under private control. However costs to the Government may be the same or higher than if held under public ownership. Under the terms of some existing agreements Government is liable for paying rates, weed and wild animal control, for wildfire suppression, fencing, and providing technical assistance and public services. In addition the Government will need to monitor compliance with the terms of the agreements. This will be a substantial burden if Government is serious about such agreements. It will also forgo revenue from commercial activities on the land.
These costs can be regarded as subsidies to the private sector for management of a privately-owned outdoors. PANZ believes that it would be more economical, and democratic, for the Crown to continue to manage conservation and recreation land itself.

The biggest bugbear with the Government's proposals is a well demonstrated lack of political will to enforce the terms of covenants when breached by private landowners (for example Mt. Hikurangi on the East Cape).

However because covenants are legally enforceable on the Crown they are likely to become number one priority for the Department of Conservation. This will draw scarce funds away from management of public lands, causing reduced public services and protection. Paralleling what is happening in other areas of state services, the resultant public dissatisfaction with DOC's performance could then be used by Government as justification for privatisation of the public estate.

PANZ believes that Government should get on with providing a substantial body of public reserves in the high country with guaranteed public access, rather than continue with the pretence of providing for public needs under private ownership.

Private management of the public interest?: Freehold with covenants etc., vs public ownership of the South Island high country. A review of 'protective' mechanisms for nature conservation, public recreation and access over private land, compared to public ownership and control. 12 pages. ISSN 0-9583363-6-9. Available from Public Access New Zealand Inc., for $3.50 incl. postage.



November 1994. 'Public Access', No. 5

Conservation Authority advocates public ownership

The Minister's appointed adviser, the New Zealand Conservation Authority, is convinced of the need for retention in Crown ownership of lands of (highest) conservation and recreation value. The Authority submitted to the Minister that only minor adjustment to the Land Act is necessary to encourage the property-by-property tenure reviews already under way. The Authority recommended "an amended Act to reinforce the purpose of the Resource Management Act in promoting sustainable management where land remains under leasehold tenure. The recognition of nature conservation, landscape and heritage values need to recognised in some form in the Act's objectives. The new Act could include "conservation" among its purposes by adopting the definition used in section 2 of the Conservation Act, which include the protection of natural and historic resources and opportunities for their recreational enjoyment."

In relation to the sustainability working party's claimed need for goals for identifying 'public interest goals', the Authority pointed out that it had published such criteria for conservation in the high country in 1992. The Authority also noted that "the Crown's interest is also clearly identified in the Reserves Act, National Parks Act, and Conservation Act, as well as in international agreements such as the Convention on Biodiversity".

PANZ believes that Government should place greater weight on the Authority's views than that of the 'Martin' committee or departmental advisors.

It appears that a Land Bill will not be introduced to Parliament before the end of February 1995. Meanwhile several land tenure reviews are underway in Marlborough and Otago. It is hoped there will also be action in Canterbury in the near future. PANZ is putting considerable effort into liaising with officials, other NGOs, and undertaking field inspections and writing submissions. The overall success of the existing "inflexible" tenure review process confronts the officially promoted alternative of private ownership of the outdoors.

 


Public Access New Zealand, P.O.Box 17, Dunedin, New Zealand