Settlement not in Landcorp plans

Press, 26 February 1987, Page 3

Settlement not in Landcorp plans

By

HUGH STRINGLEMAN

farm editor

The new Land Corporation does not as a matter of course plan to develop its rural holdings for settlement, said the chairman, Mr David Chalmers, yesterday.

“But it is possible this may occur if it is a commercially attractive option or if a Government direction is received,” he said.

Since the announcement of the formation of a Land Corporation to take over farm blocks now administered by the Lands and Survey Department, farmers have been waiting to see what the corporation’s policy will be on farmer settlement

A remit was discussed yesterday by North Canterbury Federated Farmers’ provincial executive which called on the Lands Corporation to recommence the settlement of its farm lands. The remit was amended to invite board members of the corporation to Christchurch to discuss the settlement policy.

The North Canterbury president, Mr Michael Murchison, said farmers wanted to have an input to the policy-setting process within the new Land Corporation, which will begin operation on April 1. But Mr Chalmers seems

to have pre-empted that discussion somewhat by coincidentally releasing his thoughts on the matter. He said in response to questions about likely future policy that “the corporation would not automatically make its land available for settlement by people wishing to own their own farms." Unlike the Land Settlement Board which held most of its blocks to place landless farmers on the land, the Land Corporation would wish to be satisfied that development for settlement under some type of formal scheme was a satisfactory commercial option for it, Mr Chalmers said. But the Government might direct the corporation — although this was unknown at present —- and if it did the corporation would look to the Government to subsidise

the social costs incurred or the opportunity costs forgone. Referring to existing settlers taken over from the Land Settlement Board, Mr Chalmers said the Land Corporation understood the difficulties faced for the farming sector and would seek to act as a responsible and sympathetic mortgagee. Where necessary, every assistance would be given to keep settlers on their properties, he said. The corporation would have 142 farm development blocks with an area of 536,000 ha and manage another 40 blocks as an agency. It would manage about 22,600 leases and licences with an area of five million hectares, the great majority of which wpuld be leased for farming. New Zealand had 21 million hectares ■'••of farmed land.