After section 159--
insert--
'(1) In deciding, under section 159(1)(m), whether a new lease is the most appropriate form of tenure for the lease land the subject of a renewal application, section 16 applies--
(a) as if a reference in the section to an allocation were a reference to the decision; and
(b) with other necessary changes.
'(2) If the lease is over a reserve, the chief executive must, before making the decision, consult with the trustee for the reserve.
'(3) If the decision is that another form of tenure is a more appropriate form of tenure than a new lease, the chief executive may elect to treat the application as a conversion application for the other form of tenure.
'(4) On the making of the election--
(a) the renewal is taken to be a conversion application for the other form of tenure; and
(b) division 3 applies to the conversion application.'.