Smith Nick: Overseas Investment (Queen’s Chain Extension) Amendment Bill — First Reading 
Smith Nick: Overseas Investment (Queen’s Chain Extension) Amendment Bill — First Reading 
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Hon Dr NICK SMITH (National—Nelson) 
: 
 I move  
That the Overseas Investment (Queen’s Chain Extension) Amendment Bill be now read a first time. 
 This bill tackles the difficult issue of public access to our coast rivers and lakes in the context of increased foreign ownership of land in New Zealand. The bill enables the area of land immediately adjacent to a river a lake or the sea to become an esplanade reserve and therefore guarantees public access to those public resources when a property is sold to an overseas person. This bill reinforces a unique part of New Zealand’s heritage and culture—the right of all citizens to have access to our magnificent coast and beaches our stunning lakes and our bountiful rivers. This bill is about ensuring that these resources are public assets for the enjoyment of all New Zealanders and that they are not to be monopolised by a privileged few. 
The history of our land laws is unique and it is worth reciting that background and the foundation of this bill. In 1840 Queen Victoria’s instructions to Governor Hobson included a quite specific direction to set aside reserves along the coast and navigable streams for the recreation and enjoyment of inhabitants and as sites for quays and landing places. The direction was not popular and it was greatly resisted by settlers and land speculators in the 1840s. An attempt to overturn the ordinance was made in 1842 with a new ordinance that excluded the need for such reserves but Queen Victoria declined to give her assent so the foundation of a unique part of our land law was established. 
The principle on which those land laws were based was that rivers lakes and the sea were public assets and that for the public to use them practically they needed to have access. The principle is as valid today as it was then. District surveyors were under enormous local pressure to resist the requirement and the application of what became known as the Queen’s Chain was quite inconsistent. The practice varied from one province to another and today we find that 70 percent of the margins of our coast rivers and lakes have the so-called Queen’s Chain and about 30 percent or 6000 kilometres do not. 
In 1892 Minister of Lands Sir John McKenzie gave full legal effect to the Queen's Chain and subsequent Governments through strips esplanade reserves and road reserves and even other general public reserves have reinforced that tradition. The Resource Management Act requires that when land is subdivided an esplanade reserve or strip be relinquished if it does not already exist so gradually further areas are being added—but I think if we are honest it is at a pretty glacial pace. 
This bill needs to be considered in the context of New Zealand today. Our population has grown and has topped 4 million and our tourism industry brings another 2 million visitors to our country annually. More people add to the pressure on our natural resources and inevitably that puts pressures particularly commercial pressures on concepts like the Queen's Chain. The New Zealand Fish and Game Council has become quite concerned about a number of exclusive lodges offering exclusive use of particular rivers. The problem is that the lodge owners do not own the rivers nor do they own the fish but by controlling access they are able to derive an income from something that is not theirs. 
One of the impacts of globalisation is that people are able to own property all over the world. That is not something I am inherently opposed to; it is a fact of life. Just as many New Zealanders own holiday homes on the Gold Coast many citizens of other countries have chosen to purchase properties in New Zealand for both holidays and investment. This bill is about responding to those pressures. It is about ensuring that although foreign persons can come here and can own property they have to respect our unique way of life. Many of these people come from Europe or America where private beaches rivers and lakes are the norm and we need to make it plain that it is our law we want to have followed and not their tradition. Quite simply this bill is about saying: when in Rome do as the Romans do. 
As Nelson’s MP I have had several personal experiences that have reinforced my desire for this law change. The first was at Pepin Island which was purchased in 1996 by a Mrs Hallman a very wealthy German and owner of steel mills. 
The island has no Queen's Chain around its perimeter despite it being a very popular area for public recreation and being only a few kilometres north of Nelson. At the time I discussed the issue with the then Minister Bill Birch and expressed concern about the lack of the Queen's Chain. I was advised there was no legislative mechanism for providing it. Interestingly though by putting a condition on the consent that a particular development was to occur that would require resource consent I was satisfied that providing the Overseas Investment Commission’s approval process involved a requirement for that subdivision to go ahead the Queen's Chain would indeed be taken and public access would be secured. As it turned out that did not occur and the lack of enforcement by the commission meant effectively that that word was broken. 
A more recent example is Waitai Station on D’Urville Island which has been subject to considerable controversy and public media coverage after it was purchased by the Powell family a very wealthy American family. This property has no Queen's Chain and a riparian right down to the high-tide mark. 
The Powells have erected signs on the beach prohibiting any person from setting foot on that area. These signs are an affront to New Zealanders’ way of life and will become more common if this bill is not advanced. 
Some puritans will argue that whether or not the land is foreign owned makes no difference. The fact is if the title includes a riparian right the holder has rights under the Trespass Act to exclude people. But I think that is too simplistic. New Zealanders and particularly New Zealand farmers have long taken a very cooperative approach to public access. Providing their farming operations are not disturbed farmers have taken a very New Zealand view of public access to our lakes rivers and seas. Foreign owners come from a very different culture. Private beaches rivers and lakes are the norm overseas so they see nothing wrong with excluding people. The key issue here is that it is a privilege not a right to be able to sell one’s land to a foreigner. That principle is already reflected in the law in that one requires the approval of the Overseas Investment Commission for such a purchase to go ahead. This bill simply extends that principle and provides public access by way of a Queen’s Chain being set aside. 
I want to summarise briefly the key mechanisms that are provided for in this bill. The bill does not extend those land sales that already need to go to the Overseas Investment Commission. They include coastal properties properties over 10 hectares or properties adjacent to lakes of over 0.4 hectares. It simply requires that if the property includes riparian rights then the commission would notify the local territorial authority which shall within 20 days consider whether a new esplanade reserve or strip should be created having regard to the potential recreational use the benefits the public access the impact on water quality and the cost of compensation. 
The process for setting aside the reserve is set down as identical to the process for subdivision in the Resource Management Act but no fee for subdivision may be charged. This is because the esplanade reserve is required for public purpose. The Crown Law Office has said that this bill is consistent with the New Zealand Bill of Rights Act and has provided the appropriate certification. I also indicate to the House my intention to move that the bill be referred to the Local Government and Environment Committee. I note that after this bill was drawn in the ballot the Government announced changes that would see responsibilities transferred from the Overseas Investment Commission to Land Information New Zealand. I do not have a strong view about which is the more appropriate agency but the bill would still be relevant. It is a very sensible and practical bill. It carefully balances the rights of landowners wishing to sell to foreign people with the wider public good of extending the Queen’s Chain and protecting the New Zealand ethos of rivers lakes and the coast being public property. I urge members to support the bill so our children and grandchildren may inherit and enjoy all the benefits of access that are part of this wonderful country of New Zealand.