NEWS

TLTB Calls Out Tabuya

It refutes her claims on land lease benefits
14 Jun 2022 15:09
TLTB Calls Out Tabuya

Land development launched by Government are designed to empower as leases are owned by landowners themselves.

The iTaukei Lands Trust Board clarified this yesterday while calling out The People’s Alliance deputy leader Lynda Tabuya.

While speaking at the National Federation Party and The PA campaign rally in Tavua last month, Ms Tabuya claimed that landowners do not receive any benefits when lease holders further subdivide the land.

“While the landowner only receives the original lease money but if a developer decides to lease and sub-divide what is the benefit that is coming to us, to the landowners?” she said.

TLTB refuted Ms Tabuya’s assumptions that tenants could easily subdivide leases at their own volition.

TLTB said landowners were empowered to lease their land in partnership with Government and receive benefits from the equity returns of its sales at market rates.

“In terms of development lease on iTaukei land, the benefits to landowners are not taken away,” TLTB said.

“All consent for sale/transfer of lease, sublease and sublet, building, rezoning and assignment still requires TLTB consent.

“TLTB usually incorporate 10% of sales consideration for any lot sold for individual title.”

 

Benefits to landowners;

  • Unlocking of native land for economic development with value adding services. (access, survey and utilities),
  • 10 per cent of sales consideration (sale price) per lot upon been sold,
  • Additional rental income from each lot sold, and
  • Increase in the value of landowner’s land and good benchmarking to other available land in the vicinity.

They also clarified that any development on State or iTaukei land must comply with all regulatory requirements, including those from the Department of Land, TLTB, Department of Town and Country Planning and relevant town councils/rural local authorities.

“For iTaukei land, the statutory and regulatory framework (iTaukei Land Trust Act and its regulations), as well as the board’s policies and procedures, are robust.

 

TLTB Board Policies on procedural compliances for subdivisions:

n   If the intended number of lots is 10 or less than 10 lots, the tenant must obtain the approval of the town council/rural local authority for the rezoning of the land (if necessary). Consideration must be had for the future use, support and maintenance of the iTaukei landowners as required under section 9 of the iTaukei Land Trust Act.

  • If the intended number of lots is more than 10 lots, a development lease is required. The board is required to carefully consider the application keeping in mind the future land requirements of the landowners (section 9 TLTA).
  • Whether it be a subdivision of 10 lots or less, or a development lease for more than 10 lots, tenants are required to fulfil a number of regulatory requirements.
  • In all cases of subdivisions, once new leases are issued over each newly created lot, premium is required to be paid to the landowners in respect of each lot.
  • This is premium paid directly to the landowners.
  • Once the leases for the individual lots are issued, landowners get a share on the sale of a lease. Should the lease be sold in the first 10 years of the lease term, a levy of 20% is levied on the sale price as landowner’s consideration from the sale. This is to deter speculation or leasing to sell without development.
  • In addition to receiving premium from initial issuance of the lease, and also subsequent transfers of the lease – landowners receive rent from each new lease under the subdivision.

This increase in land value translates to a benefit to the landowners who could receive a higher premium and rent commensurate with the increased value of the said land.

 



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