Public Bodies Leases Act 1969

1: Short Title and commencement
1: This Act may be cited as the Public Bodies Leases Act 1969.
2: This Act shall come into force on 1 January 1970.
2: Interpretation
In this Act, unless the context otherwise requires,— council Local Government Act 2002 farm land farming purposes leasing authority
a:
b: every
c: every person or body of persons declared by the Minister, pursuant to section 3 lessee Minister the Minister of Local Government public notice 1908 No 240 s 2 Section 2 council replaced 1 July 2003 section 262 Local Government Act 2002 Section 2 leasing authority repealed 1 July 2003 section 262 Local Government Act 2002 Section 2 leasing authority amended 1 July 2003 section 262 Local Government Act 2002 Section 2 Minister amended 1 April 1980 section 10(7)﻿(a) Local Government Amendment Act 1979
3: Leasing authorities
1: The Minister, if he thinks fit, may from time to time, by notice in the Gazette
a: declare that any person or body of persons, whether incorporated or not, having power to lease any land held in trust, reserved, or set apart for religious, charitable, educational, scientific, or public purposes (whether or not the land is vested in that person or body of persons and whether the trust or reservation or setting apart is created or made by statute or in any other manner) is a leasing authority for the purposes of this Act: provided that no person or body of persons may be declared to be a leasing authority under this paragraph except at his or its request:
b: declare that any person or body of persons declared to be a leasing authority under paragraph (a), or by an Order in Council made under section 4 of the Public Bodies' Leases Act 1908 or under the corresponding provisions of any former enactment
2: Any such notice by the Minister may impose such exceptions, restrictions, limitations, or conditions (if any) as the Minister thinks fit on the exercise by the leasing authority of the powers conferred on leasing authorities by this Act.
3: No notice by the Minister purporting to have been issued under this Act shall be questioned or invalidated on the ground of want of jurisdiction to issue it or of any irregularity in the exercise of such jurisdiction. 1908 No 240 s 4 Section 3(1)﻿(b) amended 1 July 2003 section 262 Local Government Act 2002
4: Leasing powers conferred on leasing authorities by other Acts or by trusts
1:
2: 1908 No 240 s 3 Section 4(1) amended 1 April 1978 section 7(3) Local Government Amendment Act (No 3) 1977 Section 4(2) repealed 1 April 1978 section 7(3) Local Government Amendment Act (No 3) 1977
5: Leasing of land to Crown
Notwithstanding anything in this Act or in any other Act, where any local authority or public body, whether or not it is a leasing authority under this Act, has power to lease any land, it may lease the land to Her Majesty the Queen or to any other local authority or public body 1943 No 9 s 20 Section 5 amended 1 April 1978 section 7(3) Local Government Amendment Act (No 3) 1977
1: Leases of land other than farm land
6: Application
This Part shall apply with respect to leases of land other than farm land, and in this Part the term land
7: Powers of leasing authority to grant leases
1: Where a leasing authority has power to let any land, it may let the land under the provisions of this Act on any of the following tenancies or leases:
a: a tenancy at will:
b: a tenancy determinable by the leasing authority at any time by 6 months' notice, or any shorter notice:
c: a tenancy for any term not exceeding 99 years
d: a tenancy with a right of renewal for 1 or more terms, the rent for the renewed terms to be determined by valuation in accordance with the provisions of Schedule 1
e: a tenancy for any term not exceeding 21 years, with a perpetual right of renewal for the same or any shorter period, at a rent to be determined by valuation in accordance with the provisions of Schedule 1
f: a tenancy for any term not exceeding 21 years, with a provision in accordance with Schedule 2
g: a tenancy for any term not exceeding 21 years, with a provision Schedule 1 Schedule 2
h: a tenancy in accordance with paragraph (e) or paragraph (f) or paragraph (g), save that the right of renewal or of having a new lease offered for sale by auction is limited in duration in such manner as the leasing authority thinks fit, instead of being perpetual.
2: 1908 No 240 s 5 Section 7(1)﻿(c) amended 1 April 1978 section 7(3) Local Government Amendment Act (No 3) 1977 Section 7(1)﻿(g) amended 9 December 1976 Public Bodies Leases Amendment Act 1976 Section 7(2) repealed 1 July 2003 section 138(1) Local Government (Rating) Act 2002
8: Leases may be sold by public auction or public tender
1: Except so far as this Act otherwise provides, every lease granted under this Part shall be sold by the leasing authority by public auction or public tender, of which public notice has been given.
2: Every such notice shall be so published not less than 21 days before the day appointed for the auction, or before the last day appointed for making a tender, as the case may be, and twice after that notice and before the day so appointed.
3: Every such notice shall contain particulars as to the material provisions of the lease proposed to be sold, but, in relation to the provisions of Schedule 1 Schedule 2
4: It shall not be necessary in any such sale by auction or tender for the leasing authority to accept the highest or any bid or tender, but no bid or tender other than the highest shall be accepted, except pursuant to subsection (5).
5: Notwithstanding anything in this section, a lease that has been offered for sale as aforesaid and not sold may at any time within 12 months after the day of the auction, or after the last day appointed for making a tender, as the case may be, be sold by private contract at a rent not less than the upset rent at which the lease was so offered.
6: Nothing in this section shall prevent a leasing authority from leasing any land by private contract for a tenancy at will, or for any term not exceeding 5 years, or for a term determinable at any time by the leasing authority by 6 months' notice or any shorter notice. 1908 No 240 s 8; 1914 No 25 s 2
9: Leasing authority may offer land for lease at a rent determined by leasing authority
Notwithstanding anything in section 8 1945 No 40 s 66
10: Payment by incoming lessee of value of improvements
Any lease granted under this Part may contain a provision that the lessee shall pay to the leasing authority or to an outgoing lessee the value of any buildings, fixtures, or other improvements on the land, and in any such case the value of the said buildings, fixtures, or improvements shall be determined in such manner as the leasing authority thinks fit. 1908 No 240 s 11
2: Leases of farm land
11: Powers of leasing authority to grant leases
Where a leasing authority has power to let any farm land, it may let the land under the provisions of this Act on either of the following tenancies:
a: a tenancy for farming purposes for any term not exceeding 5 years, without right of renewal, in accordance with the provisions of section 12
b: a lease for a term of 21 years or 33 years, as the leasing authority decides, with a perpetual right of renewal for the same term as that of the original lease, at a rent to be determined by valuation in accordance with the provisions of Schedule 1
12: Short tenancies for farming purposes
The following provisions shall apply with respect to every tenancy granted under paragraph (a) of section 11
a: the tenancy may be granted either after the calling for public applications or without competition:
b: subject to section 19
c: in the event of a breach of any of the conditions of the tenancy or in the event of the whole or any portion of the land being required by the leasing authority for any authorised purpose other than letting, the tenancy may be determined at any time by the leasing authority in respect of the whole or any part of the land over which it was granted, without the tenant being entitled to any compensation:
d: the tenant under any such tenancy shall not be entitled to compensation for any improvements effected or purchased by him, but on the expiry or sooner determination of the tenancy he may, within such reasonable time as the leasing authority determines, remove any buildings, enclosures, fencing, or other improvements effected or purchased by him: provided that, if the land comprised in the tenancy or any part thereof is again let on any tenancy under section 11
13: Renewable leases
The following provisions shall apply with respect to every lease granted under paragraph (b) of section 11
a: the lease shall be granted after the calling for public applications:
b: the yearly rent payable for the term of the lease, or, in any case where the lease provides for the rent to be reviewed at periodic intervals, for the first such period, shall be such amount as the leasing authority thinks fit:
c: where the lease provides for the rent to be reviewed at periodic intervals, the yearly rent for the second and subsequent periods of the term of the lease and for the second and subsequent periods of each renewal lease shall be determined in respect of each of those periods in the manner provided in section 22
d: the lessee shall be entitled, in accordance with section 14
e: the lease shall be subject to such other conditions, not inconsistent with this Act, as the leasing authority thinks fit.
14: Compensation for improvements
1: Where—
a: the lessee under any lease of farm land granted under paragraph (b) of section 11 paragraph (c) of clause 5 clause 12
b: any such lease is surrendered by the lessee or is determined by the leasing authority by re-entry or forfeiture,— the lessee shall be entitled in accordance with this section to compensation from the incoming lessee or the leasing authority, as the case may be, for improvements on the land effected or purchased by him.
2: In every such case the leasing authority shall cause a valuation of the improvements on the land effected or purchased by the lessee to be made by a person whom the leasing authority reasonably believes to be competent to make the valuation.
3: As soon as possible after that valuation has been made, the leasing authority shall give to the lessee notice in writing informing him of the amount of that valuation and, except where the lease has been determined by re-entry or forfeiture, requiring him to notify the leasing authority in writing within 2 months whether he agrees to the amount of that valuation or requires that valuation to be determined by arbitration in accordance with subsection (4).
4: Within 2 months after the giving of that notice to the lessee, he shall give notice in writing to the leasing authority stating whether he agrees to the valuation specified in the notice given to him or requires that valuation to be determined by arbitration. If he so requires, that valuation shall be determined in accordance with the provisions of clauses 7 to 11 provided that this subsection shall not apply in any case where the lease has been determined by re-entry or forfeiture.
5: If the lessee fails to give to the leasing authority within the time specified in subsection (4) the notice referred in that subsection, he shall be deemed to have agreed to the valuation set out in the notice given to him under subsection (3).
6: Where in any case to which subsection (1) applies the land is to be again leased by the leasing authority under paragraph (b) of section 11
a: it shall be offered for lease weighted with the value of improvements effected or purchased by the former lessee as fixed under the foregoing provisions of this section: provided that, in any case where the lease has been determined by re-entry or forfeiture, if the leasing authority believes on reasonable grounds that the granting of a new lease of the land is being hindered by reason of the value of improvements as determined under subsection (2) being excessive, the leasing authority, in its discretion, may from time to time reduce the value of the improvements and again offer the land for lease by public application:
b: the value of those improvements shall be paid to the leasing authority by the incoming lessee before he is admitted into possession of the land: provided that, with the consent of the former lessee and of every person entitled to receive payment of any amount in respect of the whole or any part of those improvements, the said value or any part thereof may be paid by instalments over a period of years or be secured by way of mortgage to the former lessee or other person entitled. Any payment by instalments over a period of years shall be subject to such conditions as to payment of interest and otherwise, and any mortgage shall contain such provisions, as the leasing authority thinks fit:
c: the value of those improvements when so paid to the leasing authority shall be paid by it to the former lessee or other person entitled to receive payment, less any money due to the leasing authority by the former lessee in respect of the land and improvements and less the amount of any expenses incurred by the leasing authority in recovering possession of the land.
7: Where in any case to which subsection (1) applies the leasing authority decides that the land is not to be again leased under paragraph (b) of section 11
8: Except as provided in subsections (6) and (7) paragraph (b) of section 11
9: In this section the term improvements
10: In this section the term value of improvements valuation
15: Land to be properly farmed
In every renewable lease of farm land granted or renewed after the commencement of this Act by any lessor which is a leasing authority or a public body, whether the lease is granted or renewed under this Act or any other enactment, there shall be implied on the part of the lessee that he will throughout the term of the lease—
a: farm the land diligently and in a husbandlike manner according to the rules of good husbandry, and will not in any way commit waste, except pursuant to an express provision in the lease authorising the lessee to commit waste:
b: keep the land free from wild animals, agricultural pests within the meaning of the Agricultural Pests Destruction Act 1967
c: properly clean and clear farm weeds and keep open all creeks, drains, ditches, and watercourses upon the land, including any drains or ditches which may be constructed by the lessor after the commencement of the term of the lease.
16: Inspection of leased land
1: Any person authorised by the lessor in writing shall, on giving not less than 48 hours' notice in writing to the lessee or his agent, be entitled, at all reasonable times, to enter any farm land held on lease granted or renewed after the commencement of this Act by any lessor that is a leasing authority or a public body, whether the lease is granted or renewed under this Act or any other enactment, for the purpose of inspecting the land in order to ascertain whether the covenants implied on the part of the lessee by section 15
2: Every person who obstructs any person authorised as aforesaid in the making of an inspection, or who refuses to answer any reasonable question put to him in writing by any person so authorised, or who makes to him any wilful mis-statement, commits an offence, and is liable on Section 16(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
3: General provisions
17: Public applications for lease
Where under this Act land is to be leased after calling for public applications, the following provisions shall apply:
a: the leasing authority shall by public notice call for applications to lease the land:
b: the notice shall specify the rent at which the land will be leased, the price at which any improvements thereon to be purchased by the lessee shall be purchased, and the date and time of closing of applications and place for making applications, being not less than 21 days from the date when the land is first notified as open for leasing:
c: if no application to lease the land has been received from a suitable applicant on or before the day specified in the notice, the land shall remain open for leasing on the terms advertised:
d: the leasing authority may at any time withdraw the land from leasing, notwithstanding that application to lease the land may have been made:
e: the leasing authority shall, in such manner as it thinks fit, inquire into all matters affecting an applicant's suitability, and may reject any application where the applicant refuses or fails to answer any such inquiries to the satisfaction of the leasing authority:
f: where more than 1 application is made within the time specified, the leasing authority shall determine which applicant is the most suitable applicant for the land, and shall lease the land to him: provided that nothing in this paragraph shall compel the leasing authority to lease the land where in its opinion there is no suitable applicant:
g: in determining which applicant is the most suitable, the leasing authority shall take into account all relevant matters, including, but without limiting the generality of the foregoing provisions of this paragraph, the following matters:
i: the purpose for which the land is suited or intended to be used:
ii: the ability, having regard to his financial resources and other relevant matters of any kind whatsoever, of each applicant to use the land for the purpose for which it is suited or intended to be used:
iii: in the case of farm land, the farming experience of each applicant:
h: where in the opinion of the leasing authority there are 2 or more applicants equally suitable to take a lease of the land, the applicant entitled to the lease shall be determined by ballot held in such manner as the leasing authority decides:
i: the leasing authority shall give not less than 7 days' public notice of the time and place at which any such ballot is to be held, and any person, whether an applicant or not, shall be entitled to be present at the holding of the ballot:
j: subject to the foregoing provisions of this section, the decision of the leasing authority on any question arising under this section shall be final.
18: Commencement of lease
1: Every lease granted under this Act shall take effect in possession within 6 months after the granting thereof.
2: It shall not be lawful for any leasing authority (except pursuant to the right to grant a renewable lease, or otherwise pursuant to the express provisions of this Act) to enter into any contract to grant a lease under this Act which is not to be executed and to take effect in possession within 6 months after the making of the contract. 1908 No 240 s 9
19: Reservation of rack rent
1: Subject to the provisions of any other enactment, every lease granted under this Act shall reserve a rack rent without fine or premium, but, except as provided in this Act, the rent need not be uniform for the whole term: provided that nothing in this section shall apply with respect to any lease the grant of which under the provisions of any enactment requires the consent of a Minister of the Crown.
2: For the purposes of this section, any amount for a valuation of buildings or improvements paid by an incoming lessee to an outgoing lessee or to the lessor shall be deemed not to be a premium. 1908 No 240 s 10 Section 19(2) inserted 1 April 1978 section 7(3) Local Government Amendment Act (No 3) 1977
20: Covenants and conditions in leases
A lease granted under this Act may contain such powers of re-entry and such covenants and conditions not inconsistent with this Act as the leasing authority thinks fit: provided that, except where this Act otherwise provides, no such lease shall contain a covenant on the part of the leasing authority to pay compensation to the lessee for his improvements. 1908 No 240 s 6
21: Lease may authorise waste
Section 21 repealed 1 October 1991 section 362 Resource Management Act 1991
22: Periodic review of rents
1: Subject to this section, a lease granted under this Act may contain provision for the review of the yearly rent payable thereunder at such periodic intervals during the term of the lease, being not less than 5 years, as the leasing authority thinks fit.
2: Where a lease contains any such provision for the review of rent—
a: not earlier than 9 months and not later than 3 months before the expiry by effluxion of time of any such period (not being the last such period of the term of the lease), or as soon thereafter as may be, the leasing authority shall cause a valuation to be made by a person whom the leasing authority reasonably believes to be competent to make the valuation of the fair annual rent of the land for the next ensuing period of the term of the lease, so that the rent so valued shall be uniform throughout the whole of that ensuing period:
b: as soon as possible after that valuation has been made, the leasing authority shall give to the lessee notice in writing informing him of the amount of that valuation and requiring him to notify the leasing authority in writing within 2 months whether he agrees to the amount of that valuation or requires that valuation to be determined by arbitration in accordance with paragraph (c):
c: within 2 months after the giving of that notice to the lessee, he shall give notice in writing to the leasing authority stating whether he agrees to the valuation specified in the notice given to him or requires that valuation to be determined by arbitration. If he so requires, that valuation shall be determined in accordance with the provisions of clauses 7 to 11
d: if the lessee fails to give to the leasing authority within the time specified in paragraph (c) the notice referred in that paragraph, he shall be deemed to have agreed to the valuation set out in the notice given to him under paragraph (b):
e: the yearly rent agreed to or deemed to have been agreed to by the lessee or determined by arbitration under this subsection shall be the yearly rent payable under the lease for that ensuing period.
23: Powers of leasing authority as to surrender of lease, reduction of rent, etc
1: A leasing authority may—
a: accept, on such terms and conditions as it thinks fit, a surrender of any lease, whether with respect to the whole or to any part of the land comprised in the lease:
b: at any time or times during the currency of a lease, reduce the rent to be paid thereunder during the remainder or any part of the remainder of the term:
c: at any time or times during the currency or after the determination of a lease, compromise with the lessee for any rent due by him:
d: on the surrender of a lease (whether with respect to the whole or to any part of the land comprised therein), grant to the lessee, or to any other person or persons with the consent of the lessee (without offering the same for sale by auction or tender), a new lease or new leases of the whole or any part or parts of the land comprised in the surrendered lease for the remainder or any part of the remainder of the term of the surrendered lease, at such rent as the leasing authority determines, and with such provisions as are authorised by this Act and as the leasing authority thinks fit, including therein, if the leasing authority thinks fit, the same right (if any) to a renewal lease or of having a new lease offered for sale by auction as that to which the lessee under the surrendered lease would have been entitled had it not been surrendered.
1A: Where the same person is the lessee under 2 or more leases of adjoining land, the leasing authority may—
a: accept, on such terms as it thinks fit, a surrender of those leases; and
b: without offering the same for public application and ballot or, as the case may be, for sale by public auction or public tender, grant to the former lessee a new lease of all the land comprised in the surrendered leases for the remainder of the term of the surrendered leases where they all have the same expiry date, or, where they do not all have the same expiry date, for a term expiring on a date fixed by the leasing authority, being not later than the latest expiry date under the surrendered leases, at a rent to be fixed by the leasing authority either before or after the surrender, and on any terms and conditions authorised by this Act.
1B: For the purposes of section 95
2: In this section the term lease lessee
3: This section applies to leases existing at the commencement of this Act as well as to future leases, and applies to all leases granted by a leasing authority whether under this Act or in the exercise of any other power in that behalf.
4: No leasing authority which consists of a body of persons, whether incorporated or not, shall exercise any of the powers conferred by this section except pursuant to a resolution of the leasing authority. 1908 No 240 s 12 Section 23(1A) inserted 8 December 1971 Public Bodies Leases Amendment Act 1971 Section 23(1B) inserted 8 December 1971 Public Bodies Leases Amendment Act 1971 Section 23(1B) amended 12 November 2018 section 250 Land Transfer Act 2017
23A: Leases may be granted to subtenants
1: A council may, with the consent of the lessee, grant to a sublessee from the lessee a lease direct from the council of the whole or any part of the land comprised in the lease to the lessee for the whole of the residue of the term created by the last-mentioned lease.
2: This section shall also apply where only an agreement for the head lease has been entered into. 1954 No 76 s 158; 1956 No 64 s 178 Section 23A inserted 1 April 1978 section 7(3) Local Government Amendment Act (No 3) 1977
23B: Power to lease reserves exercisable only by special order, unless otherwise provided
Section 23B repealed 1 July 2003 section 262 Local Government Act 2002
23C: Leasing of adjoining land when leased land taken or acquired for public work
1: Where for the purposes of any public work the council has taken or otherwise acquired part of the land comprised in any lease granted by the council, the council may
a: offer to the lessee, without calling for public application, a lease of any land vested in the council available for leasing and adjoining the remaining land comprised in the lease; and
b: grant to the lessee a new lease of that remaining land and that adjoining land for the unexpired term of the original lease, at a rent fixed by a valuation made by a person whom the council reasonably believes to be competent to make the valuation, and subject to the same terms and conditions as the original lease, including the same right (if any) to a renewal lease or of having a new lease offered for sale by auction as that to which the lessee is entitled under the original lease.
2: In determining the area of adjoining land to be offered to a lessee for lease pursuant to subsection (1), the council shall have regard to the area and value of the land taken or otherwise acquired and such other matters as it considers relevant.
3: Nothing in section 8 section 9 section 17 1954 No 76 s 157A; 1956 No 64 s 177A; 1971 No 62 s 13; 1971 No 63 s 19 Section 23C inserted 1 April 1978 section 7(3) Local Government Amendment Act (No 3) 1977 Section 23C(1) amended 7 July 2004 section 22(1) Local Government Act 1974 Amendment Act 2004
24: Lease not invalidated by failure of leasing authority to observe provisions of Act
1: No lease granted under this Act or under the Local Government Act 1974
2: Notwithstanding anything in this section, any lease granted in breach of the said requirements of this Act shall be voidable on the part of the leasing authority as against any lessee or other person who has fraudulently been party or privy to the said breach. 1908 No 240 s 13 Section 24(1) amended 7 July 2004 section 22(2) Local Government Act 1974 Amendment Act 2004 Section 24(1) amended 1 April 1978 section 7(3) Local Government Amendment Act (No 3) 1977
25: Service of notices
Any notice required to be given to a lessee under any provision of this Act may be given to him by causing it to be delivered to him personally, or to be left at his usual or last-known place of abode or business, or at the address stated in any application made by him under this Act, or to be sent to him by registered letter addressed to him at that place of abode or business or address, and in the last-mentioned case shall be deemed to have been received by him on the day on which it would have been delivered in the ordinary course of post.
26: Application of Act to renewals of existing leases
1: Notwithstanding anything in the Public Bodies' Leases Act 1908 or any provision expressed or implied in the lease,—
a: this Act shall apply with respect to every lease granted by a leasing authority after the commencement of this Act in renewal of a renewable lease granted under the Public Bodies' Leases Act 1908 or any corresponding former Act and current at the commencement of this Act as if the renewable lease had been granted under this Act: provided that where the lease is a lease of farm land granted under paragraph (d) or paragraph (h) of section 5 of the Public Bodies' Leases Act 1908, nothing in this paragraph shall confer on the lessee a perpetual right of renewal or a right to compensation for improvements:
b: where any such renewable lease is a lease of farm land with a perpetual right of renewal for a term of less than 21 years, every renewal of that lease shall be a lease with a perpetual right of renewal for a term of 21 years or 33 years, as the leasing authority decides.
2: Notwithstanding anything in any other enactment or in any provision expressed or implied in the lease, the lessee under any lease of farm land current at the commencement of this Act and granted under paragraph (f) or paragraph (g) of section 5 of the Public Bodies' Leases Act 1908 or to paragraph (b) of subsection (1) of section 152 of the Municipal Corporations Act 1954 or paragraph (b) of subsection (1) of section 172 of the Counties Act 1956, or the corresponding provisions of any former enactment, shall be entitled at the expiration by effluxion of time of the current term of the lease to a lease with a perpetual right of renewal for terms of 21 years or 33 years, as the leasing authority decides, as if the current lease were a renewable lease granted under paragraph (b) of section 11
3: Section 26(3) repealed 8 December 1971 Public Bodies Leases Amendment Act 1971
27: Grant of renewable leases of farm land to existing lessees without competition
Where any lease of farm land granted by a leasing authority under the provisions of the Public Bodies' Leases Act 1908 or any other enactment for a term of not less than 7 years without right of renewal is current at the commencement of this Act, the leasing authority may, if it thinks fit, at the expiration of the term of the lease grant to the outgoing lessee a renewable lease of the land or any part thereof in accordance with Part 2
28: Repeals and consequential amendments
1: The following enactments are hereby repealed:
a: the Public Bodies' Leases Act 1908:
b: the Public Bodies' Leases Amendment Act 1914:
c: section 20 of the Finance Act (No 2) 1943:
d: section 66
2: The enactments specified in Schedule 3
3: Every reference in any other Act, regulation, rule, order, agreement, deed, instrument, application, notice, or other document whatsoever in force at the commencement of this Act to a lease granted under paragraph (e) or paragraph (f) or paragraph (g) of section 5 of the Public Bodies' Leases Act 1908 shall after the commencement of this Act be read as including a reference to a lease granted under paragraph (b) of section 11