Mitchell MarkLAND TRANSFER BILLThird ReadingHon MARK MITCHELL (Minister for Land Information): I move That the Land Transfer Bill be now read a third time. This is a huge milestone in land transfer law reform. For over 60 years New Zealand's land transfer system has been underpinned by the Land Transfer Act 1952 a piece of legislation containing many archaic provisions some dating back more than 100 years. But things have moved on. New Zealand boasts a modern state-of-the-art electronic land transfer system in which people can buy and sell properties with very little red tape or complication. It is also world renowned consistently rating highly in World Bank reports on ease of doing business and in the latest report New Zealand was ranked first in the world for ease of registering property. The bill will align the legislation with modern practice by simplifying and modernising the language. It also shifts the emphasis from paper-based to electronic transactions. But be assured that we are not throwing the baby out with the bathwater. The bill carries over much of the substance of the current law. It retains the core principles of the Torrens system of land registration and sets these out clearly in the purpose statement. These principles include indefeasibility of title. This is a fundamental aspect of the Torrens system which provides that in general once registered a transaction cannot be set aside. However the bill also recognises that in some circumstances indefeasibility of title can result in unfair outcomes. To address this problem and improve security of property rights the bill gives the High Court discretion in certain circumstances to order the alteration of the land titles register to avoid manifest injustice.I welcome the changes made by the Government Administration Committee which clarify that the threshold for manifest injustice is very high. They also make it clear that court orders can be made under these provisions only in exceptional circumstances when compensation cannot properly address the injustice. The bill also improves the Crown compensation scheme for those who lose land or an interest in land through the operation of the land transfer system. These changes will make the scheme fairer for landowners and the Crown.Currently compensation is based on land value at the date of loss. This can be unfair. Loss can take some time to discover and the compensation in that case would not cover an increase in property value or improvements made to the property in the interim. The bill addresses this problem by providing for compensation to be based on the value of the land at the date when the claimant discovers or should reasonably have discovered the loss. In most cases the new compensation formula will result in claimants receiving more compensation from the Crown. The court will however have discretion to change the valuation date to avoid an unfair outcome. For example the discretion could be used to value the property at the date of judgment when the claim is made in a rising market. It allows the valuation at the date of discovery to be used where the claimant unreasonably delays making the claim or where the claim is made in a falling market.The bill shifts some certification requirements from the Act to regulations making it easier to automate more transactions and update requirements to keep pace with changing technology. Another efficiency measure in the bill is a new simplified process for claiming landownership on a limited title on the basis of adverse possession. The reforms enable greater efficiency and flexibility for land developments through mechanisms such as land covenants.Finally the bill extends the statutory powers of the Registrar-General of Land to withhold an individual's personal information for the protection of the personal safety of landowners and their families. I would like to thank again the members of the Government Administration Committee and its chair the Hon Ruth Dyson for their work and thorough consideration of the bill. I also want to thank all of those people and organisations that contributed to the development of the bill through various consultation processes at the select committee stage. In particular I want to thank the New Zealand Law Society and the Auckland District Law Society. I also want to take this opportunity to thank my officials at Land Information New Zealand. Their hard work and commitment to this bill have been greatly appreciated. I wish to thank the Law Commission and particularly acknowledge the contribution of George Tanner QC the commissioner responsible for the review of the Land Transfer Act. I also want to acknowledge the contribution made by Warren Moyes former Wellington District Land Registrar and Land Information New Zealand official. Sadly both George and Warren have since passed away.As the previous Minister for Land Information said in her first reading speech land underpins everything. The ability for people to buy and sell land easily and have confidence in the security of property rights is vital for economic and social well-being. I am confident that the Land Transfer Bill will enable those transacting in land to do so with greater confidence and certainty and I commend the bill to the House.