Government moves to allay fear over seabed bill

By KEVIN TAYLOR political reporter

The Government is making conciliatory noises over fears that the Foreshore and Seabed Bill threatens major investment on reclaimed land.

New Zealand First, which supports the Government on the bill, has given assurances that the interests of those worried about the bill's impact on reclamations will be protected.

The Weekend Herald reported concerns that the bill threatens more than $200 million of investments at the Viaduct Harbour, Ports of Auckland's Fergusson container terminal expansion and an already-completed reclamation at Auckland Airport.

The bill's clause 100 prohibits the Conservation Minister vesting ownership of reclaimed land in any individual, and limits leases to 50 years. The measures apply from when the Resource Management Act was passed in 1991.

Auckland bodies such as the port, airport and America's Cup Village Ltd (ACVL) have complained in submissions to the select committee considering the bill that the clause cuts across reclamation deals.

But Acting Prime Minister Michael Cullen said yesterday that he was sympathetic to the concerns raised and indicated that the retrospective nature of the clause may be removed.

"We've got to make sure we get the right solutions consistent with the general framework of the legislation, but there is a stronger case where we are dealing with past actions where there have been past commitments entered into by Governments legitimately."

New Zealand First leader Winston Peters assured groups with concerns that their interests would be protected in the final legislation.

He said existing contracts should continue and he was confident the select committee would ensure that happened. Mr Peters said he would raise the issue with the Government.

National MP Nick Smith has said the bill shows that the Government is about to break a 1997 deal he signed when Conservation Minister granting ACVL a 99-year lease on 1.27ha of reclaimed land at the Viaduct, with freehold title to be granted following settlement of iwi claims.

ACVL's submission agrees, saying the $66 million it and the Auckland Regional Services Trust invested in America's Cup facilities would never have been allocated without the deal.

Auckland City invested another $45 million in the Viaduct.

Mayor John Banks has said the clause halves the ratepayer investment in the area and is a "constitutional outrage".

Ports of Auckland's submission said it had a binding deal with the Crown whereby it gave Pollen Island in the upper Waitemata Harbour to the Department of Conservation in exchange for ownership of 10ha being reclaimed for the $100 million expansion of the Fergusson container terminal.

Dr Smith said seven reclamations at New Zealand ports - including Fergusson - were at risk from the clause.

A submission from 13 port company chief executives to the committee has also opposed clause 100, warning it would hit future reclamation plans.

CONTROVERSIAL CLAUSE

Clause 100 of the Foreshore and Seabed Bill:

Stops the Minister of Conservation vesting ownership of reclaimed land in anyone.

Limits leases to 50 years.

Applies retrospectively from 1991.