Plain language law

New Zealand law explained for everyone

Public Works Act 1981

Grants of land, etc, in lieu of compensation

107A: Grant of lease or licence as compensation

You could also call this:

“Getting a new lease or licence instead of money when your land is taken for public use”

When someone’s lease or licence for land is taken for a public work, they might be able to get a new lease or licence as compensation. This is how it works:

If your lease or licence is taken for a public work, and you’re entitled to compensation, the authority taking your land should try to give you a new lease or licence on other land. This is instead of giving you money as compensation.

You can agree to this new lease or licence as full or part payment for what you’re owed. If the new lease or licence is worth more or less than what you’re owed, you might need to pay or receive some money to make it fair.

If you think you should get a new lease or licence, but the authority isn’t offering one, you can ask a special group called the Tribunal to make the authority do so.

The money from these new leases or licences usually goes to the government or the authority that took your original lease or licence.

If the new lease or licence is for Crown land, a special person called the Commissioner of Crown Lands will sort it out.

Remember, the authority doesn’t have to give you a better deal than what you had before. They just need to try to give you something similar.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM46982.

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Part 6 Grants of land, etc, in lieu of compensation

107AGrant of lease or licence as compensation

  1. Notwithstanding anything in section 62, where—

  2. the interest of a lessee or licensee in land is taken or acquired for a public work; and
    1. the lessee or licensee is entitled to compensation under section 105—
        1. the notifying authority (unless the lessee or licensee is to be granted an estate in fee simple), with the agreement of the lessee or licensee, shall take all reasonable steps to grant to him a lease of any land, or a licence to occupy any land, described in paragraph (c), paragraph (d), or paragraph (e) of section 105(1), in payment or satisfaction or part payment or satisfaction of the compensation to which the lessee or licensee may otherwise be entitled, subject to payment by way of equality of exchange where appropriate.

      1. The provisions of subsections (3), (4), and (4A) of section 105, with the necessary modifications, shall apply in respect of any lease or licence granted under this section.

      2. The lessee or licensee of any land that has been notified may apply to the Tribunal for an order requiring the notifying authority to take action in accordance with subsection (1).

      3. If the Tribunal is satisfied that the lessee or licensee is a person to whom subsection (1) applies, and that it would be just and proper to do so, it may order the notifying authority to act in accordance with that subsection.

      4. Subject to subsection (6), all rents and profits derived from any lease or licence granted under this section shall be paid into—

      5. a Crown Bank Account, where the notifying authority is a Minister of the Crown:
        1. the appropriate revenue account of the notifying authority, in any other case.

          1. Any lease or licence granted in accordance with this section in respect of Crown land shall be granted by the Commissioner of Crown Lands appointed under section 12A of the Survey Act 1986, and shall be administered under the Land Act 1948.

          2. Nothing in this section shall oblige the notifying authority to grant a lease or licence on terms more favourable to the lessee or licensee than the lease or licence taken or acquired by the notifying authority.

          Notes
          • Section 107A: inserted, on , by section 5 of the Public Works Amendment Act 1983 (1983 No 150).
          • Section 107A(1)(a): amended, on , by section 2(7) of the Public Works Amendment Act (No 2) 1987 (1987 No 67).
          • Section 107A(5)(a): amended, on , pursuant to section 83(7) of the Public Finance Act 1989 (1989 No 44).
          • Section 107A(6): amended, on , pursuant to section 9(2) of the Survey Amendment Act (No 3) 1989 (1989 No 139).