Compensation Model for Leasehold Property Rights of Maori Reserve Land

Abstract

"Maori have successfully made several claims to the Waitangi Tribunal in relation to lands taken from them after the Treaty of Waitangi in 1840. One claim relates to the occupation of land which was to be set aside for Maori in terms of the Treaty, namely the Maori Reserved Lands.

"These lands have a checkered history and in the mid 1990s the New Zealand Government set up processes to compensate Maori and European settlers who were disadvantaged by previous government policy.

"Determining compensation for land rights taken from indigenous people is an extremely difficult exercise as the economic benefit approaches traditionally used in property valuation, which stem from the early works of Adam Smith in his 1776 publication of 'The Wealth of Nations', do not apply. In fact they are incapable of determining a 'just terms' compensation amount. Consequently broader thinking on compensation payable is necessary.

"This paper explains the compensation model embodied in the Maori Reserved Land Act which was structured to compensate both Maori and the legal occupiers of the land. The nature and acceptability of the model are discussed and it is hoped that this exercise can provide a useful example for other claims of property rights of indigenous people."