Action plan for land affairs – land is not like any other property
Líneik Anna Sævarsdóttir, Framsókn member of parliament for the Northeast Constituency, is the lead mover of the proposal for a parliamentary resolution on an "action plan in land matters".
The article of the proposal reads as follows:
Althingi resolves to instruct the government to implement an action plan to strengthen the legal framework and rules on the allocation and utilisation of resources on land, along with measures to strengthen the basis for compliance with such rules. The action plan aims to ensure national ownership of lands in Iceland, providing further opportunities for year-round habitation in rural areas and diverse sustainable land use and food production in the country.
This action plan involves the following projects and actions:
1. Laws shall be enacted defining connections with Iceland as a prerequisite for owning lands here, and restrictions on the number of land properties owned by the same entity. 2. Land purchases shall be subject to licensing. 3. The Ministry for the Environment and Natural Resources shall expedite the preparation of guidelines for classifying agricultural land and develop ways to define settlement obligations in rural planning. 4. Legislation in the field of land registration and property boundaries shall be reviewed. 5. Property valuation in rural areas shall be updated. 6. A loan fund shall be established for land purchases. 7. Laws concerning the allocation of land and resources on land shall be revised in light of other actions in this plan and experience from their implementation, such as land laws, tenancy laws, and laws on fishing organizations. The Prime Minister shall present a report to Althingi on the progress of the plan by 1 February 2021.
"The proposal suggests that the government implements an action plan to strengthen the legal framework and rules on the allocation and utilisation of resources on land, along with measures to strengthen the basis for adherence to such rules.
Land is a limited resource, the land itself, the soil, and the vegetation thriving there. In addition, valuable additional resources may be associated with the land.
The treatment and use of land matter now and for the future. Therefore, public benefits are significantly involved in land allocation decisions, and all decision-making about ownership and land use affects public interests for the future. Thus, the same rules cannot apply for buying and selling land as for any other real estate," said Líneik Anna.
"The current legal environment results in over 500 million people being able to purchase land and other properties here under the same conditions as Icelandic citizens. The movers consider it urgent that rules are established that a defined connection to Iceland is a prerequisite for owning lands here, as interest from people not residing in Iceland to own lands has increased in recent years. There are examples where the same individual owns numerous lands and the representation of these lands is unknown and unclear," said Líneik Anna.
"In recent years, various working groups have examined these issues, mainly from the perspective of ownership of farm properties and agricultural land. In September 2018, such a working group delivered a report to the Minister of Fisheries and Agriculture. It set forth eight recommendations on ways to maintain cultivable agricultural land and village habitation with changes to land laws and agricultural laws. Work is currently underway under the auspices of the Prime Minister with these recommendations, seeking ways to clarify the legal framework for land and property transactions, including the status of land rights and water rights, as stated in the Prime Minister's policy speech. In addition, information gathering on land ownership is ongoing.
The proposal we are discussing is worked out to highlight that the project is even broader than the work already in progress, and it is essential to follow the issue in multiple areas," said Líneik Anna.
"When drafting the rules, care must be taken to consider the limitations set by Article 72 of the Constitution on the inviolability of property rights, as well as the commitments Iceland has undertaken by joining the agreement on the European Economic Area, and in this, Article 40 of the agreement on free movement of capital within the area must be considered in particular. However, the movers point out that it seems that permissions to acquire land have been opened wider than Iceland's obligations under the agreement require. The agreement allows for limiting ownership of real estate by law and without compensation based on defined goals built on public interest," said Líneik Anna.
"By making land purchases subject to licensing, the necessary involvement of the state and municipalities in land ownership transfers will also be ensured, enabling compliance with laws, rules, and provisions of general, regional, and local planning. The movers also consider it crucial to especially examine whether it is right to reinstate the municipalities' pre-emptive right to lands that was abolished with the approval of the land act, no. 81/2004, but the licensing and the pre-emptive right could somewhat achieve the same goals."
"It is very important that the first steps in implementing the plan are taken as soon as possible because it is necessary to start piecing together a better framework for land, properties, and resources on land, so that rules, implementation, and compliance improve. Good and thoughtful management of land and properties is a fundamental element in the economic development of societies and sustainable utilization of nature, and thus an unavoidable task for governments. There should not be indifference in this field as has in many respects been the case in recent years," concluded Líneik Anna.
