With rent renewals still disputed for Crown land forming part of his South Island high country Glenthorne Station, investment banker John Shrimpton claims his offer to buy out the leasehold interest using legal rules still on the books since the late 1800s must be honoured. His ingenious legal move was thwarted in the High Court; whilst the rules still exist, his offer comes 130 years too late. Operation of ‘first come, first served’ land sales lapsed in 1892.
The High Court was taken through a detailed survey of South Island land acquisitions made by early colonial governments.
Through what are now recognised as a series of grossly unfair purchases compounded by subsequent government failures to honour promises made, Ngai Tahu were systematically dispossessed of nearly all their land.
Prior to 1876, New Zealand operated with a quasi-federal system of government, having nine provincial legislatures.
Canterbury Province decided to parcel out huge swathes of pristine land now under its control by what became known as ‘open selection.’ Purchasing settlers need only write their name in a book next to section of land, pay the better of forty shillings or two pounds per acre, and the land was theirs: first come, first served.
High country land did not sell; pastoral farming is always marginally economic in rough mountainous country.
In 1873, Canterbury’s Provincial Council transferred on trust more than 300,000 acres of unsold high country land (121,000 hectares in today’s measurement) to Canterbury University.
Terms of trust require the University to hold this land available for ‘open selection,’ leasing it out in the interim, with rental income forming part of the University’s endowment.
With Glenthorne Station, near Lake Coleridge, unable to reach agreement in its currently disputed rent review for that 36 per cent of its farm currently leased from Canterbury University, Mr Shrimpton set about making an ‘open selection’ offer to buy the freehold.
In the High Court, he conceded two pounds an acre is not an appropriate price; he is willing to pay market price.
The High Court ruled ‘open selection’ is no longer available.
Dissolution of provincial governments meant control over sale of pastoral leasehold land now lies with central government, specifically with the Commissioner of Crown Lands.
Sale to Glenthorne Station requires agreement of University of Canterbury, the Secretary of Education and the Commissioner of Crown Lands, Justice Boldt ruled.
Further complication is that the Ngai Tahu Claims Settlement Act gives Ngai Tahu right of first refusal should the freehold be offered for sale.
Glenthorne Station’s lease has been running on with lease payments disputed since 2009.
Glenthorne Station Ltd v. Commissioner of Crown Lands – High Court (27.01.26)
26.066