‘Telecom entitled to compensation’

Press, 9 December 1988, Page 9

‘Telecom entitled to compensation’

By

JANE ENGLAND

The Telecom Corporation of New Zealand would be entitled to compensation for the transfer of any of more than $360 million worth in land assets to Ngai Tahu, the corporation submitted yesterday.

The Crown was ultimately financially responsible for remedies made in the claim, said the legal counsel for the corporation, Dr William Young. But Telecom land assets came under the umbrella of the corporation. "Many of the Telecom land assets have a value to Telecom which they simply would not have to any other person.”

Some land assets transferred by the Crown to the corporation had always been owned by the Crown.

Other tracts of land transferred through the Post Office had originally been privately owned.

“The land was taken voluntarily usually with the shadow of the Public Works Act in the background.” Dr Young said it would be difficult for the land to be individually identified. The assistant to the chief executive of the corporation, Mr John Crook, reinforced the corporation’s “neutral” stance on the Ngai Tahu claim. “The position of Telecom is that it does not wish to become involved in any way in

relation to either challenging or supporting the claim.

“Given that any resumption of the land by the Crown will require compensation to be paid to Telecom equivalent to its loss.”

There would be practical requirements relating to a large number of sites Telecom would need to continue occupying. “Unless substantial sums of money are to be in effect thrown away on relocating.”

A more appropriate solution could be a direct payment of compensation by the Crown to the tribe.

The disruption to consumer services and possible higher prices for services could never be adequately compensated.

Mr Crook outlined the “special nature” of Telecom assets. They included a telephone exchange in Christchurch, the South Island’s only satellite earth station at Loburn, the Awarua radio station in Southland which served ships, and a network of microwave radio stations and land mobile stations.

He cited depots, yards, pole sites and workshops, rural carrier stations, sub-

scriber multi-access radio stations and telepaging facilities.

A study had been made of freehold and properties leased from the Crown or other State-owned Enterprises.

“Those appear to be the land-based assets which are potentially subject to the claim by the Ngai Tahu.” The list did not include residential properties or leased office properties. Some properties could be relocated at a "very considerable” expense.

They included exchanges in suburban or provincial areas. An example of the cost was provided with the recent relocation of the New Brighton exchange which was moved 400 metres at a cost of $4 million. “But the real inconvenience to subscribers and possible disruption to the network is the principle consideration.” The relocation of small exchanges, yards and rural carrier stations would also cause “considerable disruption to subscribers.”

Depots and unused property could be exchanged without that level of difficulty, Mr Crook said.