West Coast MP seeks rent relief for Maori land tenants

West Coast-Tasman MP Damien O'Connor has made a plea to colleagues to consider the plight of his constituents who lease Maori-owned land.

The Labour MP told Parliament's Maori affairs committee of about 200 Motueka constituents whose homes were on land leased from Wakatu Incorporation.

Market rentals were introduced on Maori land nationwide in 1997 and a $200 million compensation package paid to leaseholders. However, rising land prices in the Motueka area meant rents had rapidly risen and the average $5000 per property compensation was inadequate.

The latest seven-year review resulted in some huge rent rises. One place went from $1800 a year to $7425, Mr O'Connor said.

Adding to lessees' woes was that they had to pay the rent six months in advance within weeks of being told of the increase.

"That short notice of the increase in rent has been of major concern to many lessees and for elderly it's been quite threatening," Mr O'Connor said.

Wakatu had indicated to lessees when compensation was agreed that they would be able to freehold their land, he said. However, it had since had a change of heart.

"Wakatu, who are active subdividers, are using the excuse they will not freehold land until they can purchase equivalent land to maintain their land portfolio," Mr O'Connor said.

"I think it's entirely inconsistent and, indeed, some might say hypocritical, to be selling land freehold through subdivision on one hand and then trying to use the excuse that you won't freehold homes to individuals until you purchase other, equivalent land."

Te Tai Tonga MP Mahara Okeroa, a shareholder in Wakatu, questioned why Wakatu should not be able to make money.

"Surely it's the business of the organisation to seek a reasonable profit on behalf of shareholders," he said.

Mr O'Connor agreed but said they had to be fair.

"The problem is that we have individuals trapped in a situation that they can't escape from."

Mr O'Connor asked the committee to call both sides to appear before it with a view to reviewing the 1997 legislation.

- NZPA