A win, but rent war goes on

The fight may be far from over for farmers facing what they say are crippling rent increases on some of our most prized high country land.

The question at the heart of the issue is whether farmers who lease the Crown land to raise stock should have to pay the taxpayer for the spectacular views and prime lakeside locations they enjoy.

Farmers say that if these amenity values are taken into account in fixing their new rents, the increases could put them out of business.

But critics say the farmers are getting a sweet deal at the expense of the taxpayer.

So far, farmers with "pastoral leases" on high country land have the judiciary on their side.

In a test case, involving Minaret Station near Lake Wanaka, the Otago Land Valuation Tribunal found in favour of the farmer. The station's rent therefore would increase 400 per cent from the amount set 11 years ago - a sixth of what the Crown had proposed.

The Crown has until Friday to decide if it will appeal. Of 235 pastoral leases, 115 are before the tribunal.

Forest and Bird said the Crown risked losing millions of dollars in taxpayers' money if it did not seek a higher court ruling.

"This severely reduces the extent of public ownership of the high country," said advocacy manager Kevin Hackwell.

"In effect it will mean the Government will end up handing over millions of dollars of public money to private interests."

Labour's land information spokesman Iain Lees-Galloway said low rents would make the leases more attractive for potential buyers and push prices up "to the point where only wealthy overseas investors could afford to buy".

Jonathan Wallis, co-owner of Minaret Station, said he was concerned about the prospect of an appeal, but felt there was an "unprecedented amount" of legal opinion in favour of farmers.

"You're there to pay for the pastoral use [of the land]. Don't forget that when the Crown created the pastoral leases these were deemed wastelands. They couldn't get people to live here."

A system had been created where the farmers assumed the risk and took it upon themselves to improve the land.

"And there is a lot of risk. It's a wonderful place to live ... . But it's a very challenging place to farm. We farm with no road access - so we use a barge to cross a lake, we have a radio telephone link, a satellite for internet, we generate our own power, we are as far away from the freezing works as you could ever imagine."

"There is a genuine desire to see these properties transfer to the next generation, and to keep developing them."