NZIER report on compensation for transmission infrastructure
NZIER report on compensation for transmission infrastructure
NZIER report on compensation for transmission infrastructure
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the requirement that landowners are provided full compensati<strong>on</strong> <strong>for</strong> “acquisiti<strong>on</strong>,<br />
taking, injurious affecti<strong>on</strong>, or damage” should <strong>for</strong>m part of compensati<strong>on</strong>.<br />
There are a number of additi<strong>on</strong>al factors, such as freeing stock that get stuck in<br />
towers, that in isolati<strong>on</strong> are largely insignificant. These do, however, impose<br />
additi<strong>on</strong>al costs <strong>on</strong> the farmer and should be accounted <strong>for</strong>. Possibly the easiest way<br />
to cover all costs is to provide compensati<strong>on</strong> somewhat greater than estimated<br />
easement value, as suggested above.<br />
4.2.2 Quantifying operati<strong>on</strong>al costs<br />
Table 2 Operati<strong>on</strong>al costs estimates<br />
Per structure per year <strong>for</strong> different land uses<br />
Forestry Dairy Crops Sheep / cattle<br />
Irrigati<strong>on</strong> 0 3,725 3,725 0<br />
Pests / weeds /<br />
fertiliser<br />
Other working<br />
around<br />
1,196 552 552 552<br />
480 900 940 0<br />
Technology cost 0 103 103 0<br />
Insurance 500 0 0 0<br />
Totals 2,176 5,280 5,320 552<br />
Source: <str<strong>on</strong>g>NZIER</str<strong>on</strong>g><br />
4.3 Disturbance<br />
There seems to be little argument in the internati<strong>on</strong>al literature, or in New Zealand,<br />
around payment <strong>for</strong> disturbance or damages to crops, fences and other property<br />
when easements are built. The current approach of Transpower replacing or<br />
providing full compensati<strong>on</strong> <strong>for</strong> whatever is damaged helps with efficiency and is<br />
equitable.<br />
4.4 Externalities<br />
Evidence suggests that transmissi<strong>on</strong> lines do have aesthetic and health impacts,<br />
lowering the value of affected properties, but the effect is very variable with<br />
circumstances. It appears that these effects diminish the further lines are from<br />
buildings or similar. The appropriate amount of compensati<strong>on</strong> will vary by height of<br />
structures and distance from buildings so should be determined <strong>on</strong> a case by case<br />
basis. Realistic assessment of these costs, including recogniti<strong>on</strong> that they will<br />
increase as towers get taller and closer to buildings, is important <strong>for</strong> efficiency.<br />
<str<strong>on</strong>g>NZIER</str<strong>on</strong>g> – Compensati<strong>on</strong> <strong>for</strong> transmissi<strong>on</strong> <strong>infrastructure</strong> 35