A plan to build a multi-million-dollar dam, which is among projects increasing Hawke's Bay Regional Council's debt by 530 per cent, is being defended by Napier MP Chris Tremain.
Mr Tremain, in his role as the Minister of Local Government, faced a series of questions from the Green Party's Eugenie Sage in Parliament this week, taking him to task over the regional council's debt, which would rise from $15 million to $99 million by 2022.
She asked whether the debt worried him and why he supported the regional council building a dam when the Government wanted councils to focus on core services to reduce debt.
"Isn't the regional council's role as an independent environmental manager compromised by spending on a dam reservoir, and on the CEO and several staff working on the dam and irrigation project such as the Ruataniwha?"
Mr Tremain said the debt level needed to be assessed against the council's balance sheet. "While the debt is projected to increase by about $80 million, the equity will increase by $154 million and that is good economics in my book."