Waimea dam funding and governance issues debated

October 30th, 2014
[by David Armstrong]

About 35 local people attended the public meeting held by Council last night to hear opinions about its proposed funding and governance policies related to the highly controversial Waimea Dam. (See our earlier story.)

Such meetings involving potential increases in Council rates are usually loud and angry, but at the end of this one David Ogilvie was moved to thank the audience for the "respectful manner" in which they heard and responded to the Council's presentation and answers.

Nevertheless, many speakers strongly questioned key aspects of the proposed project, including costs, who should pay, whether the resultant debt would be sustainable, and benefits to Motueka.

One issue on which both Council staff and the audience agreed is that Nelson City Council must be pressured to pay a decent contribution, given that they would benefit more from the scheme than outlying areas like Motueka.

The meeting, held in the Memorial Hall supper room, was attended by four elected Council members and six Council staff. After an introduction by Mayor Richard Kempthorne, Council's CEO Lindsay McKenzie gave a lengthy presentation outlining the options being considered by Council and the reasons for the project to proceed.

Several times during the two-hour meeting it was emphasised that the only issues being debated right now were (1) how the $60m - $80m project would be funded (what proportions by which water users and other more distant ratepayers), and (2) whether the dam should be owned purely by TDC or run as a Council-Controlled Organisation (CCO) with TDC as the majority shareholder.

We were told that debate over whether or not the dam project should proceed was a matter for the Council's long-term plan hearings next autumn, when costs would be better known through the tendering process. The mayor insisted that if the final cost was too high for Council and ratepayers to stomach, the plug would be pulled.

Nevertheless, the "dam / no dam" issue dominated the question and answer session after Lindsay's presentation.

Lindsay said lots of pieces of the "jigsaw" are falling into place now, including the dam design, consents, appeals and land purchases. The challenge now is to "find an equitable way to allocate costs to the ratepayers who will pay". It is intended that the project would be funded by debt, repaid over 25 years via rates.

Lindsay acknowledged that the resultant debt was unsustainable, but "it's the reality". If the dam does not go ahead, there will be other consequences which may be worse.

As far as the governance issue is concerned, Council's preference is for a CCO because that makes it much easier to raise money from central government and Nelson.

As well as the Nelson contribution issue, the main question raised on the funding model, as expected, was why places that have no direct benefit from the dam, such as Motueka, should pay so much toward its environmental benefit.

Based on current estimates, most Motueka residences would pay approximately $90 to $130 more per year in their rates as a contribution. Debate bounced back and forth about whether the irrigators who will use the water should pay a greater percentage, or in fact whether this would force some of them off their land.

As the meeting drew to a close, the Mayor repeated: "Despite what you may think, this is not a done deal."

Submissions on the funding and governance models close on November 14th, then hearings will be heard between November 24th and 28th. Council will release its final decision on funding and governance on December 11th.

Comment by Martine Bouillir:
[Posted 1 November 2014]

It's important people are aware of the full implications of possible costs for individual ratepayers. Along with the approx $100-$130 a year increase in rates across the board for the dam, bear in mind that anyone who is part of a council reticulated water scheme will pay significantly more on top of this amount - there are no clear figures as to exactly how much as it depends on uptakes and percentages of increase across the regional club water scheme. Suffice to say, these figures are based on the current predicted cost of dam - which could increase markedly the closer we come to knowing the actual real cost of building.

Comment by Phil Grimmett:
[Posted 10 November 2014]

The Waimea Community Dam nee (the Lee Valley Dam) has far too many risks and unknowns to be seriously considered. Farmers on the Waimeas say its too costly, Irrigation NZ says it doesn't stack up and locals are puzzled that the cost of $80 million plus should be subsidised by them! To be considered it has to be funded by Nelson ratepayers and the country as a whole. It it uneconomic for the ratepayers to fund the major beneficiaries, the farmers of the Waimeas. The process has to be slowed down and given proper analysis if it is to be seriously considered.

Comment by John Lee:
[Posted 11 November 2014]

Is it not now time that we all take a step backwards and start thinking and talking right from the start; like :

1. how much water is available now, and in the likely future, for ALL who NEED it ?
2. will aquifers replenish themselves ?
3. what are the critical water needs for what may be limited resources ?
4. Is / should be drinking water a priority ?
5. is it reasonable to consider rationing such supplies by requiring more sustainable uses ? how much water is 'wasted' flushing toilets ?
6. within broad agricultural needs, are there more effective end uses for a limited resource than orchards, or dairy farms, or manufacturing industries?
7. does the world need more apples or more grains to feed its people ?

Perhaps TDC might now - for the sake of all its ratepayers and possible end users - 'have a cup of tea' , [like David Lange once called for] so that we all can sit down and talk through all the issues calmly, apolitically, hopefully to achieve consensus

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