Toitū te mana o ngā whenua tupuna i takea mai

Arbitration next step in rent review process

The rent review process is making slow progress with the appointment of an arbitrator to provide clarity and definition to aging legislation in a modern-day context.

PKW and the West Coast Settlement Reserves Lessee Association have been working together to set the fair annual rent over 260 whenua tupuna parcels since the middle of last year but have not yet managed to reach an agreement.

In order to maintain momentum, both parties have moved to arbitration, where legal representatives for each side will present their case, and a presiding arbitrator (retired High Court and Court of Appeal judge) passes down a decision, called an award.

“Before we can agree on a fair annual rent, we have to agree on the value of the unimproved land - which is what the land would rent for in its original state, i.e. if no improvements existed,” explains Te Rau Whakahono Pito Richard Buttimore. “Before we can do that, we must agree on what constitutes an improvement and what doesn’t.”

“And in order to do that, we have to follow the ageing legislation on the subject.”

“The picture becomes even murkier when you consider the amount of additional legislation that has been passed since the commencement of the leases, such as the Resource Management Act in 1991, for example.”

“Add in the fact that each party is coming to the discussion with opposing perspectives and it’s really no surprise that finding a common point on which to agree is proving difficult.”

Arbitration will provide the defining legal interpretation under present day conditions for the legislation, providing the foundation for PKW and the Lessees to progress towards an agreement.

“This is not a new process for us, as we went to arbitration after the first Fair Annual Rent review following the Māori Reserved Lands Amendment Act in 1997, the outcome of which stood us in good stead to reach agreement in 2010 and 2017,” says Richard. “But the legal environment we are working in when making these agreements has become less clear once more so both parties have agreed to arbitration again. The award will also help provide a clear road map for future reviews, as it did before.”

Rent paid by lessees is a significant revenue stream for PKW, so it is important that the interests of the Incorporation are protected.

“This is another step forward in what is a very complex matter and I want to acknowledge the significant mahi being put in by our legal team and subject matter experts on this kaupapa.”

“We will continue to work in partnership with the West Coast Settlement Reserves Lessee Association in an attempt to bring the review to as satisfactory a conclusion for all parties as possible.”