Resorts 'possible' with customary title

Maori customary title to the foreshore and seabed could confer similar rights to freehold title, such as negotiating with foreign parties for large-scale coastal developments, the Government says.

But Treaty Negotiations Minister Chris Finlayson made it clear that customary title, which he called a constrained form of property right, would not affect free access to the foreshore or seabed.

Asked on TV3's The Nation whether iwi with customary title could make a deal with foreign investors for developments such as coastal resorts, he said: "Yes, but ...

"It's not proposed that this would be a sort of a self-governing entity once it was established, so any kind of development would be subject to the usual Resource Management Act principles."

Labour MP Shane Jones said the comments were an "extraordinary revelation" and called on the Government to set boundaries and a framework for what customary title would mean.

"It is extraordinary that Club Med developments funded by overseas parties are on the table. Unless some boundaries are put around [customary title], it will become an agenda for further commercialisation of the coastline.

"I come from the area of Ninety Mile Beach. The prospect of part of Ninety Mile Beach being used for Club Med beggars belief. Customary title is the new commercial paper, and on that paper is Club Med."

Under the Government's preferred proposal, iwi or hapu could claim customary title through the courts or negotiate directly with the Government.

"The minister seems to be saying that customary title is not something that has to be legally defined, but is something that can be subject to political negotiations," Mr Jones said.

"Before Mr Finlayson has finished the hui on the marae, he is inviting everyone who has a claim to his office to bake a customary cake - and there are so many recipes up and down the countryside it would be a shambles."

The Government's favoured proposal, now out for public consultation, is to have foreshore and seabed areas in the public domain where no one owns them and everyone has access.

Mr Finlayson said groups which secured customary title could have a veto over development projects or be free to enter commercial projects with local or foreign developers.

Any deal involving foreign developers would also be subject to approval from the Overseas Investment Commission.

Asked whether local iwi with customary title could veto developments on the coast, Mr Finlayson said: "I can't see that that's going to be any different from the person who owns privately owned land - and there are 12,500 properties around the coastline that include foreshore and seabed for various historical reasons - [and] they could do exactly the same."

He added that he would consider what iwi had to say about claims to minerals found in the foreshore and seabed, except those that had been nationalised.

"I can rule out petroleum, uranium, silver and gold. I'm prepared to listen to other people on those other minerals."