29 March 2001 Media Statement
Solution to ensure equity in lessees' compensation
Finance Minister Michael Cullen tonight announced that the Government had reached agreement with Federated Farmers and
the Maori reserved land leaseholders which will ensure fair treatment without need for legislation.
The deal was agreed at a meeting in Dr Cullen's office with Lyn Williams, spokesperson for the West Coast Lessees
Association, the Association's lawyers, Chapman Tripp, PricewaterhouseCoopers partner, John Shewan, Alistair Polson of
Federated Farmers and representatives of Te Puni Kokiri and the Crown Law Office.
"Ensuring taxation equity between those leaseholders who were compensated under the first formula and those who are
about to argue their case before the Land Valuation Tribunal was always the Government's only objective in this issue
and I am satisfied it has been achieved," Dr Cullen said.
Both parties - the Crown Law Office for the Government and the lawyers for the leaseholders - have agreed to specify in
their submissions before the Tribunal that they expect the Tribunal in calculating compensation to take into account the
impact of tax on cash flows.
It was agreed that a market value approach to compensation does incorporate the impact of tax on cash flows.
"What this means in effect is that both sets of leaseholders will be compensated on a net of tax basis.
"I am pleased that this will avoid the need for the Government to subject the House to urgency and to further hasty
legislation of the type enacted by the previous government," Dr Cullen said.
ENDS