Native landowners will now receive rental based at 10% of the Undeveloped Capital Value of the land for current agricultural leases instead of the current 6%, says the Interim Administration.
In far-reaching reforms to the current landlord/tenant agreement Government says it will subsidise rental for the tenant farmer.
The proposal was outlined in a full page advertisement in the newspapers today by Interim Prime Minister Voreqe Bainimarama.
He said the Fijians will receive 10% for their land but tenants will continue to pay the current 6% of the UCV. The balance of 4% will be paid by the government in the form of a subsidy.
Lease tenure will increase to 50 years from the current 30 years term. And government will also now pay the lease premium to NLTB. The premium was previously paid by tenants.
At the same time, the NLTB will look at reducing its poundage on rent so that landowners could get a greater share of the benefits accruing from land rentals.
The proposals are part of the recommendations of the IA’s land committee in a bid to resolve the long standing problem over ALTA and native leases.
Indigenous landowners have long been unhappy with the rental based at 6% of UCV but tenant representatives have argued that anything higher would spell financial disaster to them.
Although the new proposals are contained in advertisements placed in the newspapers today, none of the papers bothered to highlight the important announcement as news stories today.
It makes one wonder what kind of agenda they are motivated by.