Q&A
The Council has received a series of questions from Upper Selwyn Huts owners about the consultation on a future deed of licence, as well as general questions about the Huts and the process for the future.
To ensure hut owners are kept up-to-date with what has been asked and the answers provided, these questions and the Council's answers are shown below. This page will be updated as further questions are asked and answered.
Please note: These questions and answers have been produced using information available at the time of publication. Some responses summarise information in the deed of licence or in reports to the Council. The wording in the deed of licence or Report to the Council takes precedence.
Frequently Asked Questions
What is this consultation about?
This consultation is to gather feedback that will inform the terms of a new Deed of Licence (DOL) for Upper Selwyn Huts that better reflects current needs and responds to potential future challenges.
Why is a new Deed of Licence needed?
The current Deed of Licence has been in place since 2015 and the terms of the licence no longer reflect the current situation. A new DOL will provide clarity and certainty for licence holders and residents, support responsible environmental management, and ensure fair obligations for everyone involved.
What topics are being consulted on?
We are seeking feedback on the details of some terms for the new DOL. These include how long future licences should last, whether serious environmental events should end a licence early, whether a bond should be required to restore the land at the end of a licence term, and how a regular building condition inspection programme should be carried out.
How has the Upper Selwyn Huts community been involved so far?
Between August and December 2024, Council held a series of workshops with Upper Selwyn Huts residents and licence holders. These sessions helped us better understand the community’s priorities and concerns. The insights gained informed the consultation approach and the terms we are now seeking feedback on.
This early engagement was always intended as the first step toward a formal consultation process. Council has decided to run the formal consultation for five weeks in recognition of the significance of the decision for the community and to ensure people have ample time to provide feedback.
Why is this consultation open to the wider public?
While Upper Selwyn Huts licence holders are directly affected by the Deed of Licence, the huts are located on public reserve land owned by the Crown and managed by Selwyn District Council on their behalf. That means decisions about licensing and land use affect not only the local community but also have implications for the wider Selwyn district - including environmental management, infrastructure costs, and fair use of public resources.
This consultation is open to anyone with an interest or connection to the area, to ensure decisions are informed by a broad range of perspectives and that outcomes are fair, transparent, and accountable to all members of the community.
Why is the licence fee and wastewater cost not part of this consultation?
This consultation is focused on the terms of a new Deed of Licence, not the specific costs. While the future licence fee will reflect the full cost of services and infrastructure, including wastewater, those amounts are still being finalised and will come into effect from 1 July 2026.
Council has already confirmed that licence holders will contribute 30% of the cost to install the new wastewater pipeline. That decision has been made and is not changing.
An ongoing wastewater service charge will also apply. Some licence holders have indicated they would like this cost moved from a targeted rate to a district-wide rate. Because that would affect ratepayers outside of the Huts community, Council will consult separately on that through the 2026/27 Annual Plan process.
In short, the current licence fee does not reflect the full cost of managing and servicing the area. Under a new DOL, the licence fee will change to reflect the actual costs of providing these services.
At this stage, the cost has not yet been determined. The outcome of the consultation will guide the direction taken and provide the basis for any future costs.
Is the cost for the licence likely to increase in the year commencing 1 July 2026?
The answer is yes but the exact details of each and all costs are yet to be confirmed and are unlikely to be confirmed until the Council report and decision in September, as it is possible that Panel deliberations and recommendations may impact on final licence fees and charges.
The Council is currently reviewing the actual costs of managing and servicing the Upper Selwyn Huts settlement. This work includes financial modelling and service investigations to ensure that future licence charges more accurately reflect the true cost of providing services, particularly around the wastewater treatment pipeline and related service charges.
The Council plans to consult with the community next year regarding the wastewater service charge and the potential for this to be moved to a district-wide rate. Decisions made during that process may also influence future licence charges.
Financial modelling will be shared for the Council’s consideration and deliberation in September 2025. In the meantime, your licence fee will remain unchanged for the 2025/26 year to allow time for this process.
Licence Term Question
In connection with the Council’s consultation for Upper Selwyn Huts, a number of questions have been received about its general and legal position on the term of a future Deed of Licence.
It's important to note that no decision has been made yet. The Council is currently consulting with the community on the proposed Deed of Licence, which includes options for the licence term. This consultation gives the community the opportunity to share their views before any decisions are made.
Once consultation closes, Councillors will consider all submissions along with other relevant factors before making a recommendation. Some of the key considerations include:
The Council’s responsibilities in managing Crown-owned land
The Council has a responsibility to manage land on behalf of the Crown ensuring it is used and maintained appropriately, in a way that benefits both the local community and the wider district, while also taking long-term sustainability into account.
Being fair to all Selwyn ratepayers
Any decisions made need to be fair for everyone across the district. This means ensuring that the impacts on individuals are appropriately balanced against the interests of the whole district.
Thinking long-term about how things are managed
The Council needs to consider what is realistic and responsible in managing assets over the medium to long-term (noting Council’s long-term plans typically cover 10-year horizons). The Council needs to look at what an appropriate licence term is and think about future Councils, making sure today’s decisions don’t tie them into long-term commitments that may no longer suit changing needs or conditions.
Making good decisions
The Council follows the principles of good decision making in the Local Government Act 2002, which means making decisions that are fair, well-informed, and in the best interests of the district as a whole.
The issue of term will be balanced as an exercise of discretion within the limits of reasonableness under this Act having regard to the factors above.
General questions
- The Council say that the huts were never intended for permanent use. However, SDC allowed this to happen.
This was to accommodate a lack of housing following the earthquakes. - What is the long-term future of the site?
This will be decided by the Council of the day. - Where will I live when the huts are closed?
As part of the work in the transition period to closing the Council will establish a multi-agency reference group. This group will work towards a solution that will support hut owners in the transition period. - Will I be offered compensation when the huts close?
This has not been budgeted for. - Is there a Management Plan of the Upper Selwyn Huts Special Purpose Reserve?
The Council does not have a reserve management plan for the Local Purpose (Hut Settlement) Reserve areas – It is not mandatory to prepare a reserve management plan for Local Purpose Reserves unless directed to do so by the Minister of Conservation. - Can you please confirm under which legislation SDC issues our licence for our lots at Upper Selwyn Huts?
Upper Selwyn Huts is located on reserve land administered by the Council under the Reserves Act 1977. - Are the huts protected by heritage listing?
The Huts are not listed on the Selwyn District Plan as heritage buildings. - Why have the Upper Selwyn Huts not been granted historical significance under the Heritage Pouhere Taonga NZ Act?
The huts do not qualify for the list just because of their age. All nominations for the list are assessed against set criteria and prioritised against other nominations. - Why does Te Taumutu Rūnanga want the huts closed?
This is a question that should be directed to Te Taumutu Rūnanga.
Climate Change
1. What report are you basing your climate change predictions on?
The Aqualinc report which can be found at this link
2. According to your report, climate change will not affect Upper Selwyn Huts in 15 years. Why have you only offered a 15-year deed of licence?
Climate change is only one of the factors considered when making the 15-year decision.
Update – May 2025: The following information is subject to change pending the outcomes of the consultation.
Deed of Licence
- When will the final decision regarding a deed of licence be made?
At a Council meeting intended for 2025 - Does the Council guarantee that owners will be able to get the two deed of licence extensions every five years up to 2039?
The Council anticipates that as long as licensees adhere to their deed of licence and that the circumstances surrounding the huts do not change the rolling extensions to the new deed of licence will be granted. - What is the maximum length of licence that can be offered?
Under the Reserves Act, the maximum length of a single licence is 33 years. - Under the new deed of licence can I still let my hut?
Yes. - The residence code of conduct is unfair and too prescriptive.
This is being reviewed. An amended code of conduct will be included in the new deed of licence.
6. What is the breakdown of the licence fee?
$1,389.00 (inclusive of GST) per annum payable quarterly in advance payable on 1 July, 1 October, 1 January and 1 April in each year. The breakdown is as listed:
| Licence charges for Annual operating/maintenance costs | |
|---|---|
| Water supply | $244 |
| Sewer system | $556 |
| Sewer trucking costs until new system commissioned | $103 |
| Chlorination of water | $34 |
| Opening Account Deficit* | $292 |
| Total Cost | $1,229 |
| GST | $160 |
| Total Cost GST Incl. | $1,389 |
*Note 2: Staff are still in the process of investigating what the ‘opening account deficit’ encompasses, and this will be worked through with Councillors once the final Deed of Licence is confirmed.
Hut inspections
- How will these take place?
We are still working to establish the details. Inspections will take place at a mutually agreeable time by a representative from the Council who has the skills and expertise to conduct the inspection. It is not anticipated that the inspector will enter huts. - What will you be inspecting for?
- What happens if you find something that is non-compliant?
The Council will work with the owner to agree a plan to make good any identified issue. This will be at the cost of the hut owner.
Proposed bond
Under the new deed of licence it is proposed to hold a bond from each Licence.
- What is the bond for?
If a hut owner decides to abandon their hut or does not leave the site in good condition at the end of the licence period the bond will be used to contribute to the cost of reinstating the site. - How much will the bond cost?
The bond is $383 per year over 15 years. - What does a cleared site mean?
A cleared site requires the removal of any structure or item (including foundations and services) that forms part of the site.
Deed of licence transfer
For the first 10 years of the deed of licence, owners will be able to transfer their licence to any person. For the final five years of the 15-year licence period, owners will only be able to transfer their deed of licence to a family member or an identified person.
- Can I still sell my hut to any person in the last five years if they remove it from the site?
Yes, but the buyer must remove it and not occupy it at the Selwyn Huts settlement as the new buyer will not be able to receive a deed of licence. - Who is an identified person?
A family member or a person who has a very close association with the current hut owner. Each application to transfer will be considered on a case-by-case basis. - What do I do if I want to buy a hut?
Prospective buyers/transferees of a deed of licence are strongly advised to take legal advice and contact the Council for more information about the terms and conditions of the current deed of licence and the terms and conditions of the new deed of licence to occupy.
Community support
To support the community through a possible transition period, the Council is in the process of developing a support service that will assist hut owners and residents through the transition period.
- What will this support service do?
This group will manage the transition process from the final decision regarding a deed of licence to the closure of the Upper Selwyn Huts and beyond. The Terms of Reference and the composition of the support service are still being considered. - When will the group form?
The Council is in discussion with organisations that might assist with these support services. It is anticipated that the support services will be available once the final decision regarding a deed of licence is agreed. - Who will be in the Support Services Team?
This is to be confirmed, however members of the Selwyn Huts Community will be invited to be part of the group.
Wastewater
To comply with an Environment Canterbury consenting requirement the Council will connect the Huts community to the wastewater treatment plant in Rolleston with a new wastewater pipeline.
- How much will the pipeline cost and how much will hut owners pay?
The current cost is $4.4 million which will be partially recovered from hut owners at the rate of $1345.00 per annum (including GST and interest) during the balance of the term of their licences. - What happens to the pipe when we leave?
The pipe will stay in place and support any future use of the area. - What is the life expectancy of the pipeline?
50 years. - When will we start paying for the new pipeline?
When the pipeline is operational which will be towards the end of 2025. - Does the licensee contribution include the costs of connecting each house to the new pipeline?
The connection from your hut will not change. The new pipeline will connect to the existing reticulation via a new wastewater pump station. - If hut owners leave, who will pay their share of the pipeline costs over the remaining licence term?
This will be absorbed by Council. - It is understood that the existing wastewater reticulation will require complete replacement: what is the cost of this and who will pay?
The existing reticulation should last for 15 years without major investment. It is estimated that the cost to replace the existing reticulation at Upper Selwyn Huts is $1.5 million. This will be paid for from the sewage component of the licence fee. - Can I disconnect myself from the reticulation and install my own incineration toilet and not pay towards the new pipeline?
No. The deed of licence will require hut owners to contribute to the community solution. It is noted that grey water (from sinks, showers etc.) needs to be managed, which an incineration toilet would not do. - Will Ngāi Tahu, who own the farmhouse at the site, contribute towards the new pipeline?
It is anticipated that any users of the new pipeline will contribute to its cost. - Can I install a vaulted wastewater system like Lower Selwyn Huts use?
No. Your deed of licence will require you to contribute to the community solution. Depending on the occupancy of the hut, a vaulted system will require regular emptying (at the hut owner's expense) and would also be monitored and inspected by the Council at an additional cost. - Why are the huts not on the District Wide Rating scheme for wastewater and sewage?
Councillors have considered this option on several occasions. Due to the unique circumstances of the Huts they have consistently agreed that including sewage and water services as a component of the Licence fee is the most appropriate solution to charge for these services.
Hut owners with questions can email huts@selwyn.govt.nz