The issue of how to set pastoral lease rents has been tested thoroughly in recent times, including through the Courts. The new system for high country rentals, termed ‘earning capacity rents’, is a culmination of sound legal, valuation and economic principle which in no way changes the contractual foundation.
“The acknowledgement by Labour that the new system is ‘a good principle’ is a reflection of strong Government policy producing fair rents,” says High Country Accord Chair Jonathan Wallis.
“Labour has clearly accepted how pastoral lease rentals should be set and is looking to move on to developing its own more rational position towards the high country, irrespective of whether or not their stance is similar to the current policy.”
“The process for setting pastoral lease rents is extremely specific and should not be compared to more common ground rental calculations. It is this that causes confusion which often leads to misinformation on the issue.”
“But much has been clarified recently,” says Mr Wallis
“Whilst the turbulent process of clarification has certainly taken its toll on high country communities it is reassuring to know that the new Government policy has widespread support in Parliament.”