KEY POINTS:
Transpower chief executive Dr Ralph Craven is playing down the possibility of compensation for landowners affected by its proposed new pylons, despite telling MPs yesterday that the idea could be up for further discussion.
Transpower told Parliament's commerce select committee that legislation would first be needed for it to be able to pay out additional sums of money to Waikato landowners.
The issue arose when National's Richard Worth said in some countries - he mentioned France as one - there was an added "super element" of compensation for compulsory acquisition.
"Is there merit in that, in your view?" he asked Transpower chairman David Gascoigne and Dr Craven.
Mr Gascoigne said in France compulsory acquisition was considered to be "a kind of violation of your rights for which you should get something more than the mathematical value of what you've lost".
He said that was a policy issue.
"It's not for us. If that were required to be done that would require, I think, a change to the Public Works Act."
Committee chairman Gerry Brownlee agreed it would need a legislative change.
Dr Craven said that enhanced compensation was "something that may be put on the table for further discussion".
He told the committee Transpower was in an unprecedented situation.
"A lot of the angst that comes with this project is because purchasing a greenfield easement is something new for this country," he said.
But last night Dr Craven played the conversation down.
"Apart from this question . . . from the select committee there has been no indication that the Government is looking or even considering this. It doesn't mean the Government has it on its radar at all, it's not been communicated to us."
Nothing had changed and Transpower would continue down its path of negotiating with affected parties in an open and transparent manner, he said.
However, he added that if such legislation were enacted "it would not worry us" because the company would accept that it would have to work within such a framework.
He was not aware of how much more compensation countries such as France paid affected land owners but comparing overseas examples would not give accurate indications of how compensation may be applied here.
This was because Transpower was set up as a state-owned enterprise, meaning it operated in New Zealand under a "totally different regulatory model".
For the proposed 400kV upgrade, Transpower currently has about $100 million set aside for compensation to cover 297 landowners.
Including capital costs, the entire project in 2006 dollar terms is projected at $683 million.
