Supreme Court rules Pascoe Mt. Messenger land acquisition negotiations were improperly outsourced

The Supreme Court has upheld an appeal by Taranaki farmers Tony and Debbie Pascoe, finding that land acquisition negotiations for the Mt Messenger bypass were improperly delegated, undermining the process used to move toward compulsory acquisition of their property.

The case centred on whether the Minister for Land Information met obligations under the Public Works Act 1981 to “make every endeavour” to negotiate in good faith before taking private land. The Pascoes refused to negotiate with The Property Group Ltd (TPG), a private contractor appointed by the New Zealand Transport Agency, insisting instead on dealing directly with the Minister or officials from Land Information New Zealand (LINZ).

While the Court unanimously agreed that negotiation functions may be carried out by accredited contractors if properly authorised, a majority ruled that, in this case, LINZ officials effectively delegated those negotiations outside the public service without following required statutory processes. As a result, the Pascoes’ refusal to deal with TPG did not amount to a refusal to negotiate with the Minister.

The Court emphasised that negotiation under the Act is a core statutory duty, not a peripheral task, given the serious implications of compulsory land acquisition. The proceeding has been sent back to the High Court to determine what relief is appropriate, leaving open whether the notice of intention to take the land will ultimately stand.

Lawyer and leader of the NZ Outdoors & Freedom Party Sue Grey hailed the decision as a win for “people power, courage and commitment to justice”. The party has been a vocal critic of the government’s treatment of the Pascoes. She paid tribute to Poutama Mary Gibbs, a friend of the Pascoes, who helped in the process as they were self-represented. Land Information New Zealand would have to “go back to square one” and start good faith negotiations with the Pascoes, Grey said.