The Ruataniwha dam proposal might be dead, but now another dam is touted on the same river, with ratepayer funding sought

Wednesday, 27 February 2019

The Waipawa River at SH50. The future security of water in Central Hawke's Bay is becoming a critical issue.

A scaled down version of the failed Ruataniwha dam is back on the cards, with a Hawke's Bay council asking ratepayers to put $250,000 toward looking into building another dam on the same river.

The controversial proposed $330million Ruataniwha dam and irrigation scheme was canned last year after years of debate and some $20m expenditure by Hawke's Bay Regional Council on consents and planning.

Forest & Bird's Lower North Island regional manager Tom Kay said the organisation was 'extremely concerned' about the proposal.

The intellectual property associated with the scheme was sold to six businessmen in July last year for $100,000.

The businessmen formed a limited liability company Water Holdings CHB Ltd with the intention of creating some kind of water storage scheme in the Central Hawke's Bay district.

Central Hawke's Bay District Council chief executive Monique Davidson said 'let's be very clear, this is not about re-hashing the Ruataniwha conversation'.

The Makaroro River in Hawke's Bay, enters the Waipawa River, which enters the Tukituki River.

*** Council sells failed Ruataniwha dam science for $100,000

* Ruataniwha has been dealt a final blow

A proposed before and after look of the failed Ruataniwha dam project.

* Council writes off $14m investment in failed project

* Ruataniwha dam project 'dead' after court decision

A screenshot from an animated video of the Ruataniwha dam proposal.

* The lawyer who fought for nature and won**

Now the Central Hawke's Bay District Council is proposing to put $250,000 in the form of a 'non-repayable loan' toward the company so it could find a feasible water storage option for the district.

In 2016 Greenpeace protested against the proposed Ruataniwha dam outside the Hawke's Bay Regional Council chambers.

The company wants to look at two options: developing a full scale dam on the Makororo river (the river that the Ruataniwha dam would have been on), or developing a smaller dam that would provide no environmental benefit at times of low flow.

Forest and Bird Lower North Island regional manager Tom Kay said the organisation was 'extremely concerned' about the proposal.

'This is a council handout to a project that has already cost Hawke's Bay Regional Council around $20 million,' he said.

'Dams and large-scale irrigation schemes are not the solution. More water means more intensive farming, and more pollution in our rivers. We need to rethink how we farm. The Ruataniwha plains are not the place for intensive farming – groundwater levels are already depleted and that's hurting the natural environment, and other users,' he said.

Council chief executive Monique Davidson said 'let's be very clear, this is not about re-hashing the Ruataniwha conversation'.

'Should council adopt the draft annual plan they are taking the time to say 'actually we want to have a conversation with our community about this'. We welcome feedback during the annual process,' she said.

One of the six shareholders in the company, Hugh Ritchie, said there was no firm plan and there would likely be six months of gauging what the options were.

'There's no call being made on either option (of large or small dam). Obviously the Ruataniwha assets have consents to build a dam and storage is considered to be part of the solution, but this is not about setting out saying we've already made a decision as to what we want to do. There is a range of what could occur,' Ritchie said.

As well as seeking $250,000 from the council, the company will seek $250,000 from the Provincial Growth Fund and $50,000 from other sources.

In its proposed consultation document going to ratepayers the council said water storage was critical for the future of water security in the district.

This is in light of new proposed environmental standards reducing the amount of water irrigators could take from the Tukituki River in dry periods.

The regional council is voting on whether to delay the implementation of the standards at a meeting in April.

The Makaroro River is a tributary of the Waipawa River, which enters the Tukituki River just east of Waipawa.

The council said rates would not be affected as the $250,000 would be taken from a rural ward fund, set up for the provision or maintenance of recreational, cultural or infrastructural assets within the Aramoana dn Ruahine wards. The fund balance is $811,114 at present.

In a paper going before council on Thursday, it noted that any support for the proposed initiative would 'need to be carefully managed as both a regulator and potential partner and funder of public funds'.

'The proposed investment being sought by Water Holdings CHB is not a unique investment precedent. There are multiple examples whereby private/public investment has been made into large scale infrastructure/social infrastructure projects by the Government and Councils, where there is a direct tangible community benefit and return,' the paper said.

The other five shareholders in the company were Gavin Streeter, Tim Gilbertson, Bruce Stephenson, Bruce Worsnop and Arthur Rowlands.

The consultation will be part of the council's proposed 2019/2020 Annual Plan consultation document. Council will decide on Thursday whether to adopt this or not.