(1)  If, on the expiration by effluxion of time of a lease of reserved land that is Crown land granted under section 48 for agricultural or grazing purposes, the Minister decides not to renew the lease, the Minister must pay to the lessee compensation for the improvements effected by the lessee for the purposes for which the lease was granted, including any improvements paid for by the lessee and taken over from the previous lessee.

(2)  Compensation is not payable in respect of any improvements unless the improvements were approved by the Minister before being carried out.

(3)  The compensation payable is the amount –

(a) determined by the Director, on the recommendation of the Valuer-General, to be the fair and reasonable value of the improvements; and

(b) approved by the Minister.