KEY POINTS:
Farmers have accused the Government of being "grossly unfair" after moves to protect some of the country's most precious lakeside land from development.
But conservationists have welcomed the new protections provided to 65 picturesque properties in the South Island high country.
Land Information Minister David Parker said the "spectacular lakeside landscapes" were part of New Zealand's identity and had to be protected.
The high country has been going through huge change because of a process called tenure review, in which the Government has been buying back the leases of land used for farming to create more public conservation land, and in turn gifting some land to the farmers as freehold.
The Government has grown concerned the precious lakeside land might suffer if passed into freehold, and Mr Parker announced yesterday that 65 lakeside properties had been identified for protection, 38 of which were currently in tenure review.
Tenure review funding is being withdrawn for the bulk of the 38 properties.
The effect of the decision is that crown land around Lakes Wakatipu, Wanaka, Pukaki, Hawea, Tekapo, Benmore, Ohau, Coleridge, Aviemore, Dunstan, Sumner, North Mavora, Heron, Alexandrina, Waitaki and Roxburgh will not be freed up for subdivision.
The High Country Accord, which represents high-country farmers, said yesterday's announcement ran contrary to all of the Government's objectives in the high country, and showed the tenure review process was in "disarray".
Many lakeside farmers who had worked for many years towards tenure review, restructuring their families and businesses, suddenly were told it was not going ahead, said Accord co-chairman Ben Todhunter.
"Some of them have invested substantial sums of money in what is a statutory process, with a legitimate expectation of getting some outcome at the end of it."
Mr Todhunter said the Government was changing the rules "as fast as they can", to the detriment of a small group of farmers.
Mr Parker said a lakeside property might still be considered for tenure review if a lessee was prepared to meet certain conditions, including restrictions on the land's future use and development.
"I do not expect many lakeside lessees will now want to proceed with tenure review, but some may. In fact, I have approved funding of tenure review proposals for two of the 38 lakeside properties because both meet the Government's conditions."
Forest and Bird said the Government announcement was welcome because it meant there would not be a repeat of a controversy where a significant portion of the eastern side of Lake Tekapo was privatised and then threatened with development.
"We are pleased with the clear signal that unless these values can be adequately protected through tenure review, the properties will remain as pastoral leases," said advocacy manager Kevin Hackwell.
The National Party has been critical of the land tenure review process for preventing leaseholders from developing iconic landscapes and for forcing up their rents.
* OFF LIMITS
The Government has decided that 65 picturesque lakeside properties in the South Island should be protected.
This affects 38 properties now excluded from a process called tenure review - effectively a land swap between farmers and the Department of Conservation.
Angry high-country farmers say the Government has gone back on its earlier agreement.
