The Government has raised a previous "best offer" by more than $200,000 to buy a Kaikohe dairy farm chosen as the site for a 300-inmate regional prison.
The Department of Corrections said yesterday that the Government had signed up the 189ha farm at Ngawha, near Kaikohe in Northland, for $1.7 million.
Two Environment Court appeals have been lodged against a prison on the site. Dates have yet to be set for the appeals.
Six months ago, the Government was prepared to pay $1,486,000 for the farm, bought by the Roy Timperley Family Trust in May 1998 for $982,000.
Trust member Ervine Timperley said the higher price was fair, taking into account the increased production of milk solids since the trust bought the farm and the replacement cost of a similar operation.
The agreement allowed the trust to farm the property until next May.
However, Ngapuhi spokesman Kingi Taurua has reiterated the iwi's threat to occupy the site. "They cannot impose a prison on us when there are people who are totally opposed. It is something we do not want."
The iwi would dismantle the prison block by block as it was put up, he said.
Mr Taurua, a former Paremoremo prison officer, said the area needed more employment, not prisons.
- NZPA
Northern iwi fights raised jail site bid
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