KEY POINTS:
Critics say the $9 million the Government spent on a sprawling Central Otago farm was well above market rates.
The land will be used as a conservation park.
Industry sources say similar properties going through tenure review were valued at $400 a stock unit, but the Government paid
the equivalent of more than $600 a stock unit for the 9165ha Michael Peak Station, of which 8479ha was pastoral lease.
The Government plans to include 6900ha of Michael Peak high country in its proposed Oteake Conservation Park.
But valuers say the Government is now setting the price for high-country land.
"That would be through the roof," one source said when told of the price.
High-Country Accord co-chairman Geoffrey Thomson said the price indicated the Government was buying the amenity values from the Waldron family, the pastoral lessee.
The Crown and lessees are in dispute over who owns amenity values on pastoral lease properties. The Crown says it does and lessees have to pay rent for them.
Land Information Minister David Parker rejected the over-paying claims, saying the price was lower than the price paid for Birchwood Station near Omarama, which the Government bought in January 2004.
"The valuation advice Land Information New Zealand received is that we did not pay way over the top."
The purchase included 686ha of low-land freehold irrigated land which, with 1579ha of downland lease-hold land, had a higher price than the run country.
It would be used to exchange with conservation land in the vicinity to add to the proposed park.
Mr Parker also rejected accusations the Government was setting the market, saying private purchases were also occurring.
In a joint statement, he and Conservation Minister Chris Carter said the property was offered on the open market.
"It made sense to tender for the whole property and subsequently use the down-valley farmland areas to trade for further conservation gains."
The price was agreed to in "willing seller and willing buyer"negotiations after the tender had closed.
Lessee John Waldron, the third generation of the family to farm the property, said he had several reasons for selling.
"Our objectives have changed and there were issues facing the high country that helped make our decision to sell."
One was the uncertain outcome should he enter tenure review.
"There was no certainty that we would end up with a viable unit."
The tender process meant anyone could bid for the property, he said, but he was aware of the Government interest.
Mr Waldron said he was leaving with pride in his family's stewardship of the land.
"I am very proud of the way we are leaving Michael Peak. Each generation has left it in a better state than it was previously."