(1) On every scheme plan submitted under the foregoing provisions of this Act there shall be set aside as reserved for public purposes a strip of land not less than sixty-six feet in width along the mean high-water mark of the sea and of its bays, inlets, or creeks, and along the margin of every lake with an area in excess of twenty acres, and, unless the Minister considers it unnecessary so to do, along the banks of all rivers and streams which have an average width of not less than ten feet, not being rivers or streams, or parts of rivers or streams, exempted from the provisions of this subsection pursuant to subsection four of this section:

Provided that the Minister may approve the reduction of the width of the strip of land to a width of not less than ten feet if in his opinion the reduced width will be sufficient to give members of the public reasonable access to the sea, lake, river, or stream:

Provided also that nothing in this subsection shall apply with respect to the subdivision of any land which is [Maori] land within the meaning of [the Maori Affairs Act 1953].

(2) In any case where a strip of land is set aside by the last preceding subsection and any land below the mean high-water mark of the sea or of its bays, inlets, or creeks or, as the case may be, any part of the bed of the lake or river or stream is vested in the person in whom the land shown in the scheme plan is vested, the Minister may require as a condition of his approval of the scheme plan that the owner shall execute, or obtain the execution of, and register, a transfer to His Majesty of the whole or a specified part of the land below the mean high-water mark or, as the case may be, of the lake or river or stream which is vested as aforesaid.

(3) No land set aside as a reserve, or transferred to His Majesty, pursuant to this section shall be taken into account for the purposes of the next succeeding section [except to such extent (if any) as the Minister in his discretion allows. The Minister’s decision under this subsection shall be final].

(4) The Governor-General may from time to time by Order in Council declare that subsection one of this section shall not apply with respect to the banks, or any specified bank, of any specified river or stream, or part of any specified river or stream, of an average width of less than thirty-three feet.