Plans for sawmill alarm developers of 'unspoiled' resort

By ANNE GIBSON

The prospect of a $30 million sawmill near one of the Coromandel's beachfront tourism refuges is worrying developers.

Executives at Eric Watson's and Mark Hotchin's Hanover Group are concerned about the effects on the area's future of the controversial sawmill proposed by Blue Mountain Lumber.

Hanover owns Matarangi Beach Estates, a waterfront domain where many developers have left their footprint since it was opened for housing in the 1970s.

Undeveloped sections at the estate are held by Hanover Asset Management's Axis Property Group, which keenly markets the attractions of its unspoiled landscape.

"Set in the golden heart of the Coromandel, it's hard to believe that such breathtaking natural beauty is an easy 2 1/2-hour drive from Auckland on sealed roads or a 20-minute flight from Auckland, Hamilton or Tauranga," says the advertisement on the resort's website.

The proposed mill site at Te Rerenga is 8km from Matarangi.

Kerry Finnigan of the $1 billion Hanover Group said his company made its fears known at the time the mill was proposed.

"We objected because of uncertainty over the impact the mill would have on Matarangi given the location of the mill in relation to the coastline," Mr Finnigan said.

"Those concerns would be consistent with [the concerns of] Matarangi residents and the Thames District Council."

Hanover has undertaken an extensive marketing campaign to sell sections and plans for houses, kickstarting a wave of further building work at Matarangi.

Now, Mr Finnigan says his firm has no option but to place its faith in the territorial authorities.

A Hanover spokesman said the company wanted to be assured that there would be no contamination and that responsibility for ensuring that needed to be recognised by the local authorities.

It was content to allow the local council to ensure the mill complied with the law. Barry Jones, who owns and operates Matarangi Lodge, said his main concern was an increase in logging trucks on the roads.

Most guests came from Europe and the United States in the summer and autumn and would not like to meet a large logging truck on their way to the resort, he said.

Matarangi Ratepayers Association secretary Jim Scott said the community was divided about the mill.

Expert reports commissioned by his group and the Whangapoua ratepayer organisation showed the overall effects from the mill would be minimal if the operation was monitored by authorities, he said.

Mr Scott said Matarangi residents were mainly concerned about the increase in the number of logging trucks.