Lake Tarawera residents seek fairer funding for reticulation scheme

Former Fonterra chairman Sir Henry van der Heyden is calling for 50-50 cost split between residents and the Government to pay for a controversial Rotorua sewerage scheme.

The Tarawera Reticulation Scheme was discussed at Rotorua Lakes Council‘s first full meeting of the year on Wednesday.

It came amid ongoing protests at Lake Rotokākahi against the under-construction pipeline.

The scheme would connect about 450 Tarawera households, and about 100 future households, to the town sewerage system. It aimed to improve the lake’s water quality.

There was standing-room only in the meeting’s public gallery, and four people asked to address councillors about the scheme.

Funding was the main subject, with calls for the lakeside community to be included in a 17-year-old agreement, like other lakes.

Connected households do not yet know what they will each pay, with further discussions to come in this year’s annual plan development.

The most recent indication was $38,000 to $41,700 (GST exclusive) if paid off in one go.

The $31-32 million scheme is partially funded by the Ministry for the Environment, Rotorua Lakes Council, and Bay of Plenty Regional Council - together about $10.7 million - and the rest by Tarawera ratepayers.

Lake Tarawera near Rotorua. Photo / Laura Smith

Van der Heyden, a Tarawera resident, spoke as chairman of the Lake Tarawera Sewerage Working Group.

Describing Lake Tarawera as a taonga and jewel in the crown, he said it was used by thousands of locals and visitors a week.

He said the community wanted fairness and equity in how the scheme was paid off in contrast to other schemes.

The group asked for a 50-50 funding model between the community and government/councils.

Van der Heyden said this would work out to about $36,600 (GST inclusive) for homeowners, and wanted this capped to give certainty and to allow for budgeting.

“We totally reject the existing approach … where from a community perspective it feels like an open cheque book.”

He said others in the community would rather pay less than $36,600.

Sir Henry van der Heyden was chairman of Fonterra from 2002 to 2012. Photo / Richard Robinson

Van der Heyden referred to a regional council proposal that reflected the group’s request.

Bay of Plenty Regional Council chief executive Fiona McTavish clarified to Local Democracy Reporting that it was lowering its Rotorua targeted rate and had suggested the district council lift its Lakes Enhancement Rate.

“This would limit the net effect to Rotorua ratepayers.”

The councils had “informally discussed” this rates swap option and it would welcome discussing this at a future district council meeting.

Tarawera resident Fred Stevens spoke about a 2008 government commitment of $72.1m over 10 years to clean up the most seriously degraded Rotorua lakes, matched by district and regional councils at 25% each.

Lake Tarawera was excluded.

Stevens told councillors then-Prime Minister Helen Clark made it clear the restoration project was beyond the council’s ability by itself without an “excessive burden” to ratepayers.

Tarawera resident Fred Stevens at the Rotorua Lakes Council. Photo / Laura Smith

He also criticised the lack of consistency over how local reticulation schemes were funded, as did resident Tracey McLeod.

She told councillors “confusion reigns” over the scheme, causing “stress and sleep deprivation while raising questions”.

She listed various funding she believed should have been used for the scheme and outlined funding model changes over the years.

Lake Tarawera Ratepayers Association chairman Mike Allen said he understood it was the highest cost per-site wastewater solution in the country.

This was later reiterated by councillor Robert Lee, who said he used ChatGPT to find the answer. He called the cost “quite anomalous”.

Allen suggested the council borrow more or utilise the Local Government Funding Agency and add to general ratepayers’ bills.

Councillors previously heard that changing the funding model would require community consultation.

Contributing $1m more to the scheme would cost 27,312 ratepayers $2.80 a year each for 25 years, or $11.20 to up the contribution by $4m and take Tarawera homeowner costs to about $36,000 each.

New bid to make Tarawera a priority lake

Councillor Conan O’Brien successfully called for the council to explore making Lake Tarawera a priority lake under the Clark-era deed agreement.

Council chief executive Andrew Moraes would work with the Rotorua Te Arawa Lakes Strategy Group to ask the Government to consider a deed variation.

Rotorua Lakes Councillor Conan O'Brien. Photo / Laura Smith

It included requesting additional money via a subsidised contribution with a combined matching fund evenly split between the district and regional councils, with the total to be negotiated.

The council discussed that this option had been previously raised by the group seven years ago.

Laura Smith is a Local Democracy Reporting journalist based at the Rotorua Daily Post. She previously reported general news for the Otago Daily Times and Southland Express, and has been a journalist since 2019.

- LDR is local body journalism co-funded by RNZ and NZ On Air.

Clarification

This story has been updated to clarify BOP Regional Council is lowering its targeted rate, rather than this being a suggestion. Henry van der Hayden’s $36,600 figure is gst inclusive, not exclusive.