Speech by Colin MacDonald to Federated Farmers High Country Committee

8 June 2009

LINZ Chief Executive Colin MacDonald spoke to the annual conference of the South Island High Country Committee of Federated Farmers on 5 June.

Speech by Colin MacDonald to Federated Farmers High Country Committee

1 pm, 5 June 2009

Thank you for inviting me to speak to you today.

I would like to take this opportunity to pick up on some of the topics covered by Associate Minister Wilkinson earlier today by providing you with an overview of the work LINZ is doing in the area of pastoral lease management.

From the outset I want to say how pleased I am at the strengthening relationship between pastoral leaseholders and LINZ.

LINZ is here for the long run, and we take seriously the responsibility that we have to ensure that the relationship between leaseholders and the Crown is healthy and robust.

No doubt there are some challenging issues to traverse as Government policy is progressed in the coming months. Affordability of rents, restrictions on land use, consents required to carry out activities on pastoral land, and ongoing stewardship of this land are some of the key issues in this area.

But the important thing to me as we work through these issues is that we keep the communications channels open. The relationship has made great strides over the past several months and we want to keep up the momentum.

There are a number of groups with a stake in the high country, and we want to make sure that all the relevant voices are heard.

Best use of Crown assets

Administering high country pastoral land on behalf of the Crown is a significant undertaking. LINZ administers almost 3 million hectares of Crown land outside the Conservation estate, or about 8% of New Zealand’s land area.

Of this, 1.6 million hectares, or just over half of the land we administer, is South Island high country pastoral land.

For the record we also manage Crown Forest land (mainly in the North Island), approximately 4000 properties, and significant areas of river and lake bed.

The goal LINZ is working towards for this land is “the best use of Crown assets”. Put another way, we want to make sure that the land is put to its best use for economic, environmental and social purposes.

What does this mean for the high country?

As the Minister outlined earlier, developing and implementing the Government’s South Island high country policy is one of three priorities the Prime Minister has agreed for the Land Information portfolio.

This priority is reflected in our Statement of Intent for 2009-2012, in which pastoral land management is a key areas of focus for the department over the next three years.

The driving goal of the Government is to grow the New Zealand economy in order to deliver greater prosperity, security and opportunities to all New Zealanders. The pastoral land management key initiative outlined in our Statement of Intent is designed to support this goal, and to reflect the priority given to it by the Government.

The review of pastoral land policy settings, including rental policy, as part of this key initiative has begun. Under this initiative, we’re also planning to develop a greater understanding of the current uses of pastoral land, and what future uses are likely.

We will continue to enhance the engagement between leaseholders and the Crown. And, we’ll be exploring options to recognise high country leaseholders are effective stewards of the land, reflecting the Government’s desires in this area.

By doing this LINZ aims to ensure that the right range of economic, environmental and social considerations are balanced when making decisions about the best use of Crown pastoral land. Recognising leaseholders’ proven ability to manage land for conservation and economic outcomes is a key to achieving this.

A second and related key initiative centres on improving our biosecurity programme for Crown land.

Weeds and pests on Crown land impact on the use and economic viability of the land. Effective programmes can only be undertaken in partnership with our neighbouring landowners and territorial authorities.

To this end, we intend to work with our neighbours and key stakeholders to improve the effectiveness of biosecurity programmes on Crown Land we administer. We want to foster greater collaboration with neighbouring landowners, including you as leaseholders, and with regional councils and the Department of Conservation.

These initiatives will help LINZ to enhance the economic use of land, reduce the threat of pests and weeds spreading to and from neighbouring land, and foster a collaborative approach to pest and weed management.

Tenure review

I want touch briefly on the tenure review programme. The Government has indicated its support for tenure review and for wider consideration being given to alternative mechanisms for protecting significant inherent values.

As part of the policy work we’ve embarked on, we are exploring, along with the Department of Conservation, how more use can be made of covenants as a way of protecting these values, while allowing for ongoing economic use, and recognising leaseholders’ stewardship role.

As the Minister has indicated, funding for tenure review is being closely monitored along with every other aspect of the department’s activities. The tenure review programme is proceeding, but expenditure on reviews needs to be within the constraints of the annual budget.

We have a limited baseline and can only undertake so many reviews at one time. It may be some lessees waiting to come into tenure review need to wait until LINZ has the resources and funding to accept new invitations.

Changes to LINZ’s senior leadership team
I have recently begun implementing some changes to LINZ’s senior leadership structure in response to the Government’s priorities, and increased clarity about LINZ’s strategic direction.

Of direct relevance to you is the creation of a new role of General Manager Crown Property and Investment, which carries with it responsibilities for all Crown Property and Overseas Investment Office functions.

I’m pleased to advise that Brian Usherwood, who is already well known to many of you, has been appointed to this role. Brian retains the Crown Pastoral land and tenure review functions from his previous position, including the functions delegated by the Commissioner of Crown Lands.

This area, under Brian’s leadership will now include the Commissioner of Crown Lands himself, and I am confident that this change will, over time, ensure that LINZ presents a consistent face to leaseholders.

The creation of this specific role reflects that Crown property and overseas investment are core functions of LINZ and require a strong leadership and strategic focus.

Conclusion

That’s a very broad overview of the work we’re involved in.

In conclusion, I want to reiterate that LINZ is here for the long run.

We want sustainable relationships with leaseholders.

And we will be listening to all the relevant voices as we go about our work in support of achieving the Government’s high country objectives.

I’m happy to answer any questions you may have. Brian Usherwood and Mathew Clark, manager of our Pastoral Unit, are also available to answer any questions regarding operational matters.

Media enquiries: Dave Chowdhury, Land Information New Zealand, phone +64 4 496 5402, mobile +64 27 222 9566, email media@linz.govt.nz.