PROPOSED CHANGES TO
LINZ STANDARD AND
GUIDELINE FOR ACQUISITON
OF LAND UNDER THE PUBLIC
WORKS ACT
HOW DOES IT AFFECT
LOCAL AUTHORITIES
DEVIL’S IN THE DETAIL
What is changing
• Standard modified by LINZ
to represent when Crown
Agencies, Local Authorities
& Utility Providers are
required to comply with
Standard & Guideline
• LINZ wish to promote the
use of the standard and
guidelines by Local
Authorities as “Best
Practise”
WHY THE CHANGE?
LINZ recognises that once Local Authorities reach the Section 26 stage
of the Public Works Act 1981 (PWA) and seeks a proclamation from
the Governor General, that all past actions carried out back to the
section 18 actions will be reviewed by LINZ and if not found compliant
with the standards will be rejected.
How to Avoid Going Back to Square One
• Getting your Ducks in a row.
How will the changes to the standard &
guideline help?
• Clarification now provided around “Good Faith”
negotiations which are essential from Section 18 “notice
of desire to acquire” through to Section 23 “notice of
intention to take land”.
• WHY? Because this requirement is the one which
both LINZ and objectors to the Environment Court on
Section 23 action are most likely to contest.
• Standard and Guideline will stipulate that ‘good faith’
must actually occur during the whole engagement not
just from Section 18 to Section 23 period.
•
These negotiations must involve actual physical
engagement not just telephone and email
negotiations.
GOOD FAITH DEMONSTRATED
• The LINZ Standard requires that all local authorities must be able to
demonstrate by reference to formal documentation that every
reasonable avenue of negotiation has been pursued continuously.
• Stopping & recommencing negotiations does not constitute
“good faith”.
• LINZ have set out chronology requirements within the guidelines to
clarify their requirements and to assist both Crown Agencies and
Local Authorities to comply and avoid rejections.
Service of Notices
• The Public Works Act provides examples of wording of s18 & s 23
notices and stipulates service however the revised Standard and
Guideline will provide further clarification around service and require
evidence of the notice being recorded against the title of the affected
land.
• Clarification around process and service of notices to enter for survey
or investigation purposes under s 110 & s111PWA has also been
expanded and clarified to assist with obtaining compliant entry onto
land.
What Else is changing or being
added?
What Else is changing or being
added?
• Initial letter to owner – under s66 PWA landowners are entitled to
“reasonable” legal, valuation or costs incurred in respect of the land
taken or acquired.
• The revised Standard proposes to place a $ limit on these costs
which if any amount is higher that the amounts specified in the “Initial
Introduction Letter” they will be subject to a “test of reasonableness”
at a later time.
• The letter is intended to state that amount the Crown will agree to in
advance of to reimburse the landowner on presentation of an invoice.
What Else is changing or being
added?
The amount that will be set in the letter will be based on reasonable
fees estimated for a commercial, residential, industrial property for
similar type and location to ensure exorbitant fees are not charged on
basic actions by landowners agents.
OF NOTE is the landowner must firstly confirm the that the invoice is
correct and that the time and actions carried out are in fact correct
before reimbursement will be considered.
What Else is changing or being
added?
• A valuation instruction template for landowners to
instruct their Valuers to assess compensation payable
has been devised and will be placed on the PINZ
website to ensure Valuers are being given correct
instructions on the methodology required under the
PWA.
• Information around advertising when dealing with service
of notices when owner has deceased and heirs cannot
be located being provided.
Changes/Additions Cont.
• Requirement to notify landowners after Proclamation
vesting land as public work completed of rights under
s78 of the PWA for claiming compensation to be inserted
into Standard & Guideline.
• A compensation agreement to be developed to cover
payment of compensation after s26 action or after s78
action as agreement for sale and purchase cannot be
used due to land already having been vested by
Proclamation.
Changes/Additions Cont.
• There will now be a requirement within the Standard to seek
discharge to the compensation certificate off the titles once the land
is gazetted.
• WHY?
• Often the land may be subdivided and the compensation certificate is
carried over onto all the new titles. Landowner’s are entitled to
request the removal of the compensation certificate which could
become very costly for the Crown or Local Authority to action.
Additions
• A new separate s52 PWA setting apart Crown land or public reserve
for local work now to be inserted as guidance for local authorities.
• The section of the Standard relating to S114 PWA declaring land as
road has been amended to acknowledge Local Authorities use of this
section.
End Result
• Uniformity of practise and standard by both Crown
and Local Authorities on use of the Public Works
Act to acquire land in a statutorily compliant way.
• Local Authorities can claim use of the Standard &
Guideline as “ Best Practise” principle.
OUTCOME
Acknowledgements
• LINZ EXECUTIVE COMMITTEE, TPG, OPUS, NZTA, LAPA, LINZ
Please note the standard and guideline is currently undergoing final
legal review by LINZ and will be subject to final Executive Committee
signoff before it will be available for public notification.
THERE MAY BE MINOR AMENDMENTS TO WHAT HAS BEEN PUT
FORWARD IN THIS PRESENTATION