News Update July 2007

Dear All,

Councils voted `yes` to approve loan agreement
Both Selwyn District Council and Christchurch City Council voted to  approve loans from Dairy Holdings Ltd, of up to $4.8m to fund the Central Plains Water shortfall.  The SDC vote was unanimous and the CCC vote,  eight to five.  The MHPS made submissions to both Councils and we have subsequently requested the Auditor General and the Ombudsman investigate the decisions, the information and advice given to Councillors by staff.  We do thank those Councillors who voted against the loan.
 
We have not had access to the loan agreements, but this is necessary. The public needs to know what conditions are attached to these loans?  For example, is it a condition of the agreement that, in the event CPW are not able to progress the irrigation scheme and/or are unable to repay any third party loans,  that any  resource consents granted will be transferred to Dairy Holdings Ltd and others?
We certainly hope this is not the case.

What assurance do we have that  Dairy Holdings Ltd and other dairy corporates will  not proceed to construct smaller, privately owned schemes with consents that have been raised by public funding, using public processes, and in the name of a community scheme?

Environment Court Declaration
On 13 June 2007 the MHPS applied for a declaration under section 311, that  Selwyn District Council is restricted to considering the scheme as applied for,  in accordance with the application to the Minister for the Environment. There are two main areas where the scheme differs in a major way from the application for requiring authority and the application for Notice of Requirement i.e. the dam height changed from 38 metres to 55 metres and a 3km tunnel was altered to a 10km tunnel.  
If this challenge is successful, it will not halt the scheme, but will require CPW to re apply to the Minister or to Selwyn District Council.

6 August 2007, 10am is the date set for the Environment Court Hearing and will be heard by Judge JA Smith.  Mark Christensen and Nick Elsmore from AndersonLloyd will prepare and present the case for the MHPSociety.  Three days have been set side for the Hearing.  

The Society also seeks a decision relating to resource consents by the Ashburton Community Water Trust (ACWT) in that they must be heard at the same time as the CPW Notices of Requirement and resource consent applications because they relate to the joint application by the ACWT and CPWT to take up to 40 cumecs from the Rakaia river.

 ACWT`s application was recently notified in the Press, 4 July 2007.
If you are concerned at the amount of water being abstracted from our braided rivers its important you make a submission.
The application relates to activities associated with the construction and operation of a proposed hydro electricity generation scheme, located on the south side of the Rakaia River 5km below the Gorge bridge.
It also  relates to the diversion of surface water at a max. rate of 42cumecs  from the Rakaia river at Happy Valley. The water will be conveyed in a canal up to the top of the river terrace at Barrhill before being delivered to a power station and discharged back to the river.
 
Submissions close  5pm Wednesday,  1st August 2007.  

Rosalie Snoyink
Liz Weir
For MHPS