Plain language law

New Zealand law explained for everyone

Public Works Act 1981

Compensation - Entitlement

69: Offer of compensation when entry made

You could also call this:

“Getting paid when the government uses your land for roads or railways”

When the government (the Crown) enters your land to build a road, limited access road, motorway, or railway, you can ask the Minister for compensation. You can do this if you haven’t already made an agreement about payment.

The Minister will offer you an amount of money they think is fair for your land. You’ll need to leave the land (if you’re living there) and give the Minister any information they need before you can get the money.

The Minister must make the offer within one month after you ask for it. You then have three months to accept the offer.

Sometimes, the government might not know exactly how much land they need when they make the offer. In this case, the offer is just a starting point. The Minister can ask for a different amount later, or you can ask for more compensation. If you end up getting less than what you were first offered, you’ll have to pay back the difference.

When you accept the offer, you can choose whether it’s the final amount or if you want to try for more compensation later.

You can still ask for compensation in other ways, even if you don’t use this process.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM46376.

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Part 5 Compensation
Entitlement

69Offer of compensation when entry made

  1. Subject to sections 99 to 101, where entry is made by the Crown on land pursuant to a notice defining the middle line of a road, limited access road, motorway, or railway, and no agreement for the payment or determination of compensation has been made, the owner of any estate or interest in the land entered on shall be entitled on application to the Minister to be made a formal offer of compensation for the taking of his estate or interest in the land entered upon.

  2. Subject to subsection (5), the amount of the offer shall be such as the Minister considers adequate to fairly compensate the owner for his estate or interest.

  3. Unless the Minister and the owner otherwise agree, the offer shall be subject to the owner, before settlement, giving vacant possession of the land (if applicable) and supplying such details as the Minister may reasonably require in order to comply with sections 99 to 101.

  4. The offer shall be made to the owner within 1 month after the date of receipt of the application by the Minister and shall be open for acceptance for a period of 3 months after the date of the offer.

  5. If the extent of land to be taken cannot be accurately defined when the offer is made, the offer shall be deemed to be an offer by way of compensation without prejudice to the right of the Minister to make an application under section 79, or the right of the owner to bring a claim for compensation under this Act upon the issue of a Proclamation or declaration under this Act, and if the compensation so assessed is less than the amount paid to the owner by way of compensation, then the award of the Tribunal shall be for the payment by the claimant to the respondent of the amount of the difference and the costs of the inquiry.

  6. Subject to subsection (5), the acceptance of any offer may at the option of the owner be in full and final settlement of compensation or without prejudice to the owner's right to have compensation determined under this Part.

  7. Nothing in this section shall inhibit or delay the bringing of a claim for compensation under section 80.

Notes
  • Section 69(1): amended, on , by section 20 of the Public Works Amendment Act 1988 (1988 No 43).