The first protesters arrive outside the regional council ahead of Wednesday's meeting on unpaid CHB water-storage scheme fees. Photo / Paul Taylor
The first protesters arrive outside the regional council ahead of Wednesday's meeting on unpaid CHB water-storage scheme fees. Photo / Paul Taylor
Hawke's Bay Regional Council has voted to defer charges for Water Holdings Hawke's Bay's Ruataniwha water storage consents.
Water Holdings is required to pay Section 36 freshwater science charges on the consents annually.
However, it hasn't paid for the past two years, and owes the council $259,805, with another chargeof more than $150,000 due by March 2023.
In a meeting on Wednesday afternoon councillors narrowly agreed to defer the collection of the existing charges, with five voting for and four against.
The councillors in favour were Charles Lambert, Will Foley, Jeff van Beek, Craig Foss and Jacqueline Taylor.
"Essentially what they've done is kick the can down the road more or less for 12 months," he said.
Le Lievre agreed with a point made by council chair Rick Barker, that the decision to defer the charges and break policy could do the council a significant amount of reputational damage.
"I thought that was a poor decision by council."
Wise Water Use Hawke's Bay protesters gathered outside the Hawke's Bay Regional Council building before the meeting, holding signage accusing Water Holdings Hawke's Bay of being "water barons".
Bruce Worsnop, a Water Holdings Hawke's Bay director, said the decision to consider amending the policy was important as consents should not be required to pay charges until they are operating.
"A concession like that would ensure that good projects just work," he said.
If an application to extend the consents' lapse dates to 2030 is granted next month, the total amount owed could continue to accrue up to $1.48 million over eight years.
The Ruataniwha Dam, which the regional council first began investigations into in 2008, was originally intended as a long-term, sustainable water supply solution for Central Hawke's Bay.
An over capacity meeting room for discussion about whether to pursue payment or defer collection of charges for Water Holdings Hawke's Bay's Ruataniwha water storage consents. Photo / Paul Taylor
The Supreme Court found in 2017 that the Minister of Conservation acted illegally by trying to make 22 hectares of Ruahine Forest Park available for exchange to Hawke's Bay Regional Investment Company Ltd (HBRIC) for the $330 million project.
As a result, the regional council voted unanimously in 2017 to move on from the Ruataniwha Water Storage Scheme and focus its efforts on other priorities, after about $20 million of ratepayers' money had already been invested into the project.
Water Holdings Hawke's Bay is pushing for a similar project under a new name, the Makaroro Storage Scheme, using the same consents it purchased from the council.
Freshwater science charges are intended to recoup 35 per cent of the cost of the council's monitoring and management of effects, or potential effects, of consents on the region's freshwater resources.
The way the charges were calculated by the council changed in June 2021 and the new methodology has led to significantly higher costs for Water Holdings' consents.
Tim Gilbertson, Water Holdings Hawke's Bay's largest shareholder, sitting in on the Hawke's Bay Regional council decision on Wednesday. Photo / Paul Taylor
A council spokeswoman confirmed earlier there will be no extra cost for ratepayers, no matter what option is chosen.
However, if the consents lapse, some or all the funds owed cannot be recovered, or remission of future charges is proposed, then other consent holders across the region could expect up to 17 per cent increases to their fees in the future as the council spreads the large cost of science charges.
