KEY POINTS:
The Government is undervaluing Treaty of Waitangi settlements by tens of millions of dollars, says a leading iwi claim negotiator.
In a submission delivered at an urgent Waitangi Tribunal hearing in Auckland this week, Hauraki claim negotiator John McEnteer questioned the true worth of a proposed Ngati Whatua o Orakei settlement, which the Government valued at $10 million.
In its proposal signed last June, Ngati Whatua said it should get $80 million of naval housing land in Devonport and first right of refusal on a further $90 million of naval land elsewhere on the North Shore.
The hapu should also get first right of refusal on all crown properties that came up for sale on the Auckland isthmus and guardianship of all the mountains there.
Mr McEnteer said the first right of refusal option carried a huge value to the hapu, estimating it to be at least 15 per cent of the value of the land on offer.
The Crown has identified 125 properties, including schools, courthouses and reserves within the Ngati Whatua boundary, which the hapu has first option on if the Crown sells.
Mr McEnteer said commercial agents acting to transfer property to a third party would attract a fee of between 25 and 30 per cent.
Speaking after his submission, Mr McEnteer said the first right of refusal option had potential to add tens of millions to the settlement value.
However, Office of Treaty Settlements policy and negotiations manager Rachel Houlbrooke said there was no way to determine the value of the option, as there was no guarantee the land would become excess to Government requirements, and that the land value could be determined only at the time of sale.
Ngati Whatua has first right of refusal on all Crown-owned land within a determined tribal boundary for 100 years from when their claim is settled.
Questions were also raised during the four-day hearing into the ability of the Government to transfer $80 million of naval housing land, and yet not apportion a value to the transaction.
Ms Houlbrooke said the transaction was "fiscally neutral".
Under the proposal the land is returned to Ngati Whatua o Orakei under the proviso that the Navy is given a 35-year rent-free term of occupation.
At the conclusion of the 35 years Ngati Whatua pays for any outstanding balance owing on the property not covered by a yet-to-be determined rental.
Paul Majurey, lawyer for Marutuahu, said the crown position made no sense. He pointed out that the Navy would effectively move from freehold to tenancy, and land now worth $80 million would move from public to private ownership.
"How can that not have a value."
