Young Nick's Head sale shows up foreign ownership tensions

By Chris Hutching

Friday 5th July 2002

The purchasing consultant who acted for Wall Street billionaire John Griffin in the $3.2 million purchase of Young Nick's Head says the property might be a New Zealand icon but it has been owned by an absentee Australian resident for the past 23 years.

Finance Minister Michael Cullen has asked for a delay in settlement of the deal for six weeks while Gisborne solicitor John Egan, on behalf of Mr Griffin, negotiates with a Gisborne iwi, which 15 months ago turned down an opportunity to buy the property because it lacked the finances to do so.

The iwi wants to buy or control parts of the property it considers of historical significance including a pa site and the cliffs that were spotted by Young Nick, a crew member on Captain Cook's discovery voyage to New Zealand in 1769.

"The news reports have talked about a New Zealand icon being lost to local ownership but it hasn't been in local ownership for decades. And no locals have come up with any kind of conservation plan of the typed proposed by Mr Griffin," the consultant said.

He requested anonymity because of the controversy surrounding the purchase but, on behalf of Mr Griffin, a conservation plan has been drawn up that will cost $300,000 and visitors would be allowed access on the same terms as previously - if they telephone the farm manager first to ensure there will be no problems with stock. Mr Griffin is also keen for a QE11 covenant to be put in place over the most sensitive parts of the property.

The purchasing consultant said he was also involved in the sale of Brooksdale Station in the South Island to another US billionaire, Julian Robertson.

He said the government was never a bidder for the property but it would have an opportunity for input because the new owner said he was prepared to re-enter negotiations over a tenure review of some of the pastoral lease land.

Meanwhile, the secretary of the Overseas Investment Commission, Stephen Dawe, says foreigners own about 8.8% of South Island high-country pastoral lands.

Mr Dawe said there were many significant blocks of land like Young Nick's Head in private ownership.

The OIC legislation charges the OIC with considering the implications of any sale of strategic parcels of land adjoining a foreshore or to a significant natural feature.

Another part of the legislation says the OIC or government ministers have discretion to consider other aspects they deem significant.

Mr Dawe said the South Island has 15,043,700ha of land.

About 2.5 million ha is pastoral lease and about 220,000ha is owned by overseas residents.

The numbers are approximate because the OIC deals with sales but does not always keep track of subsequent re-sales or shareholding adjustments.

The Young Nick's Head sale has provided plenty of ammunition for groups opposed to selling land to overseas buyers.

The Forest and Bird Protection Society is calling for changes to the Overseas Investment Act for stronger controls on overseas ownership.

Field officer Eugenie Sage said the Department of Conservation and the Nature Heritage Fund were unable to compete with high prices being offered by wealthy overseas buyers.

In Canterbury, the Department of Conservation was recently outbid by Mr Robertson and was unsuccessful in its efforts to buy part of the 4538ha Brooksdale pastoral lease to make important additions to the Korowai/Torlesse Conservation Park near Porters Pass.

Mr Robertson now controls access to the Kowhai Valley at the base of Porters Pass. This is the major tramping route into the park and to Mt Torlesse.

Another American businessman, Tom Sturgess, owns several strategically important pastoral leases, including Rainbow Station close to Nelson Lakes National Park, Lake Tekapo's Godley Peaks Station at the foot of Aoraki/Mt Cook National Park and Mt Albert Station surrounded by Mt Aspiring National Park.

Mr Sturgess also owns other key natural areas such as part of D'Urville Is and the lease for Puponga Farm Park at the base of Farewell Spit.

Ms Sage said the 220,000ha now owned by foreign interests was the equivalent of more than seven Paparoa National Parks.

"The government should direct the Overseas Investment Commission that as a matter of government policy, the sale to any overseas person of any interest in or control over pastoral lease lands is not in the national interest and amend the Overseas Investment Act," Ms Sage said.

"Alienating some of New Zealand's icon landscapes and key natural areas to wealthy overseas financiers and corporates is not in New Zealand's interest."

Forest and Bird is calling on political parties to clarify their position on the sale to offshore interests of important landscapes and potential conservation areas.

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