Agreement reached on first resumptions in seven years

In the first major resumptions since Operiki in 2014, Ātihau-Whanganui Incorporation has resumed two large blocks on the Whanganui River.

The blocks, totalling 2679 hectares between Koroniti and Matahiwi, were leased separately by the Marshall brothers, Kevin and Barry.

Incorporation chief executive Andrew Beijeman said compensation payable to the lessees, based on an agreed value of the lessee improvements, is $1.425 million, payable in two $712,500 tranches, this year and in 2022.

The resumption is being funded out of cash flow and will not increase debt.

The blocks are not adjoining but are close to each other, separated by private land owned by one of the brothers.

Andrew said negotiations took place for about 18 months with the help of former chair Dana Blackburn, before an agreement was reached earlier this year.

“The Marshalls have been very good to deal with during the process, and linking into Dana’s experience with previous resumptions was definitely helpful, so it was a relatively easy resumption.”

The blocks were farmed in the past but are now predominantly in mānuka. Ātihau will use the blocks for its mānuka honey business and lease back grazing rights for one of the blocks to the Marshall family.

“It’s a decent area – about 6 percent of our total area,” Andrew said. “Compared to past resumptions it’s nowhere near the same cost, because the majority is in mānuka. However, that will allow us to increase hive numbers by quite a bit.”

The family, which has been on the blocks for some generations, will also continue to place hives on the land, at least in the short-term, and will share any revenue with the organisation.

This latest agreement is likely to be the last of the large resumptions for some time. There are a few smaller leases which could be resumed soon, covering less than 600 hectares across six leases.

The next big ones will be the 500-hectare Roke lease – the only one in perpetuity – which can’t be resumed unless the lessees wish to give up the lease, and the 99-year lease on a 2300-hectare forestry block on the Pipiriki-Raetihi Road. Held by forestry company Ernslaw One, it expires in 2077.

The Marshall resumptions bring 38,500 hectares of 42,000 hectares of total land ownership under Ātihau-Whanganui Inc management, with only about 3500 hectares yet to be resumed – twothirds of which sits in the forest block.

The Incorporation will increase its apiary staff as it sustainably grows hive numbers and is considering housing on the land for six or seven workers.

“With this land, we’re also increasing our presence on the river. It raises the future potential for diversification into tourism on the land such as hunting operations, horse treks or walks,” says Andrew. “The land links into the back of Papahaua, so there is interesting potential for a walking route and huts from Pipiriki to Parikino.”

TOITŪ TE WHENUA