Nick Hanson: Landowners feel railroaded on rents

The grass is pricier on the other side of the fence.

Kiwirail's treatment of farmers while it implements a new charging regime was the source of aggravation at Federated Farmers National Conference.

Federated Farmers spokesman for transport, Guy Wigley, says many farmers have been left stunned by the proposals they have received for new lease rents, rail crossing charges and annual inspection fees for underpasses and bridges.

"Recent hikes in rentals range from 200to more than 400per cent," he says.

"An example is of a farmer's rental going from $300 to $2200 plus annual increments of 2per cent. This doesn't include new inspection and admin fees."

KiwiRail is citing a need to quantify its property assets and get them managed on a commercial basis. Farmers see the scale of increase in lease rentals and new charges for crossing, bridges and underpasses as onerous.

Federated Farmers is supporting farmers and making the case that farmers have been safe and vigilant custodians of stock crossings across railway lines.

As lessees, farmers maintain fencing and are keeping weeds and pests under control at no additional cost to KiwiRail.

"Despite reporting to the contrary, Federated Farmers has reached no agreement with KiwiRail on either the rental issue or the new charges for crossings.

"We have met with KiwiRail recently and are currently pursuing ways to reduce the impact of this new and additional expense," Mr Wigley said.

"It is important that revised charges are an accurate reflection of the costs incurred by KiwiRail. We will be working constructively with them to ensure there is transparency around their charging.

"KiwiRail's negotiations with lease holders are in the early stages and it has committed to reviewing its policy for engagement with farmers over the coming months.

We certainly appreciate the early discussions and will continue to work with them for a reasonable outcome for our members."

- Nick Hanson is a policy adviser with Federated Farmers