As part of the CNI Forests Collective Settlement, the Collective was granted certain rights to buy Crown properties. The purpose of this was to provide redress that may not be available to iwi via their future comprehensive settlements. For example, Crown properties that are valued above a certain amount, or that are subject to overlapping interests by multiple iwi, would be unlikely to be offered as redress to a single iwi as part of its comprehensive settlement. The Collective’s rights create the possibility of securing such properties, which might not otherwise be available to Collective iwi.
There are two types of rights. Both types give the Collective preferential ways to secure core Crown properties over time.
The first type of right is known as a Deferred Selection Procedure or DSP. The DSP gives the Collective a relatively short-lived opportunity to buy certain Crown properties at values struck in June 2008, whether or not the owners want to sell them.
This creates the possibility of buying Crown properties at a profit (i.e. if the Collective can see that their market values have risen since June 2008). In effect, the Collective can use the DSP to “pick its horses after the race has run”.
The second type of right is known as a Right of First Refusal or RFR. The RFR gives the Collective a relatively long-lived opportunity to be the first to be offered certain Crown properties, if and when the owners decide to sell them.
Having the right of first refusal creates the possibility of buying Crown properties at a profit, if the property is being sold at a good price, or if it can be profitably added to an existing portfolio of properties. Note that any DSP assets that the Collective decides not to buy will still be available through the RFR.
For more information about the two types of rights, please click here