Compulsory acquisition
Public Works Act / Compensation
Infrastructure Development
• Hospitals • Prisons
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• Local Government • Roading
• Three waters
• Airports
• Irrigation schemes
• Government
• Private Companies
• Telecommunications • Power
• Irrigationschemes
Legislation
• Resource Management Act 1991
• Public Works Act 1981
• Local Government Act 1974 and 2002
Eminent Domain
• The Doctrine of Eminent Domain establishes the constitutional rights for the Crown’s ability to take land required for a public work
• Government Departments, Local Authorities and Requiring Authorities have access to these rights
Compensation Principles
• Equivalence
• Compensation paid should equal the loss
• The owner should be no worse off, but no better off
• Liberality
• Amount paid should give the owner the benefit of any reasonable, justifiable
or genuinedoubt
• Genuine doubt must be resolved in favour of liberal estimate
Valuer needs to consider
• Highest and best use
• Loss in value to property • Value before and after
• Injurious affection
PWA 1981 Section 62
• No allowance shall be made on account of the taking of land being compulsory – Section 62(1)(a)
• Current market value – willing buyer/willing seller
• Before and after (partial acquisition) – Section 62(1)(b)(ii)
• Prospect of the work to be disregarded – Section 62(1)(c)
• Special suitability to be disregarded – Section 62(1)(d)
• Betterment to offset compensation – Section 62(1)(e)
• Specified date – Section 62(2)
Injurious affection
• Before and after
• Most distinguishing feature of compensation valuation
• Injurious Affect must be permanently reflected in the value of the land
• Consider the affect of the whole works,
• Injurious affect can be seen as having a greater value affect to a particular owner BUT not reflected in the market value; sentimental attachment.
Disturbance
• Recoverable losses not directly based on the value of the land and that are not too remote
• Owners have an obligation to mitigate loss • No compensation for sentimental loss
Betterment
• Before and after valuation
• Deducted from compensations payable
• Landowners are not charged for betterment
Compensation Resolution Process
• Valuation
• Arbitration
• Land Valuation Tribunal
Valuation Standards
• Valuations for Compulsory Acquisition ANZVGP 113 • Resource Pack ANZVGP 113.1
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