Maori landowners can buy back shares

Press, 15 August 1984, Page 22

Maori landowners can buy back shares

PA Wellington Maori landowners and their descendants who were forced to sell off "uneconomic” land shares are being offered the chance to buy them back. In a letter to the owners of the 27ha Wellington Tenths block, which includes Athletic Park, the Maori trustee, Mr Bruce Robinson, said he recognised that the compulsory purchase of the shares was repulsive to Maori people and had subsequently been repealed. also recognise that many former owners or their descendants would like to reinstate their links with the land, and for that reason the Maori trustee is prepared for a limited period to offer for sale those interests back to former owners or to the descendants of former owners.” Mr Robinson said he was

required to sell the shares back at present value, but in real terms the cost would be the same as when the shares were sold.

He said he would attempt to keep shares in packages large enough to give people a decent interest in the land, but not so large that it was difficult for them to pay. About $l.B million of shares worth less than $5O were acquired by the Maori trustee until 1975 and held in the much criticised Conversion Fund. Their value has since risen to about $5 million. The fund will be abolished in the Maori Affairs Bill and shares not re-bought by former owners or their descendants will be transferred to remaining owners. At a meeting in Taranaki Mr Robinson encouraged Wellington Tenths owners to

consider setting up a board of trustees to take over control and administration of their land. This would enable about 1000 owners to move into aggressive commercial development with dramatically increased financial returns, he said. At present, owners get minimal returns, but Mr Robinson said feasibility studies showed that $500,000 or $1 million developments on some Newtown properties could increase annual rentals from $lOOO to about $50,000. However, this could not be done until owners set up a board of trustees because his powers to trade on their behalf were limited and cumbersome. He said that an over-all development plan for the Tenths was essential. He suggested owners put aside a sum each year for a development fund and also sell off residential properties with no potential for commercial development. The owners are also owed $33,000 in back rental by the Wellington Rugby Union for the lease of Athletic Park.

The owners will meet again in October to consider setting up a trust.