Opponents unhappy with controversial $18 million Hawke’s Bay dam project

Source: Radio New Zealand

A government funding loan of 18 million dollars for a controversial dam in Central Hawke’s Bay has its opponents vowing to halt the project yet again.

The Tukituiki Water Security Project, formerly known as the Ruataniwha Dam, was scuppered in 2017 by the Supreme Court, when it deemed a land swap unlawful.

But under the government’s fast track legislation it could go ahead, which would make it the largest dam built since the Clyde was constructed over 30 years ago.

The Associate Minister for Regional Development, Mark Patterson, visited a Central Hawke’s Bay orchard on Tuesday to announce new funding for the project.

“Giving you the fiscal firepower, giving you the tools with the fast-track legislation to blow through the barriers we’ve seen in the past with this project.

“Hawke’s Bay – the ball is now in your court,” he told the crowd of local leaders, farmers and growers.

Tukituki Water Security Project chair Mike Petersen is thrilled. He said by 2040 the region could be 25 million cubic metres short of water.

“This is a region that is running out of water and we shouldn’t sugarcoat it. It’s desperately needed – we know we have to our water efficiency measures.. recycling.. and all the other tools at our disposal to make sure we do have wise water use.

“But we also need to make sure we capture some of that water that is flowing out to sea in peak flow periods and utilise it smartly,” he said.

That’s what Craigmore Sustainables is planning to do; it’s invested in the dam’s feasibility study.

Viticulture business manager Emma Taylor told RNZ its large apple and grape growing operation needs water security because its water consent expires in nine years with no certainty of it being renewed.

“So this development here cost $19 million to put in place. The land was purchased in 1999 and the development finished last year. That’s a lot of investment and with no security past 2035 that’s actually quite a lot of risk,” she said.

However, not everyone is welcoming the dam funding. Opponents Wise Water Use have been campaigning against it for years.

Spokesperson Trevor Le Lievre is gobsmacked.

“We down in Central Hawke’s Bay haven’t even got bridges repaired from Cyclone Gabrielle and yet this government are prepared to pour another $18 million into this zombie project – they’ve really misread the room on this,” said Le Lievre.

But the minister disagrees, and isn’t expecting any criticism over the spending.

“Hawke’s Bay is prone to dry… there’s huge potential here with 22,000 hectares potentially being brought into much higher value land uses.

“This is a wise investment. This is not spending, this is investment,” said Patterson.

“We’ll stop it again”

Greenpeace is also outraged, saying it is ‘Government-subsidised environmental destruction’.

“Luxon has just given millions of dollars in taxpayer money to an illegal dirty dairy dam which will flood precious conservation land.

“The Government is funding this ‘zombie project’ before it’s even got permission to proceed under the fast-track. But we’ve stopped this dam before, and we’ll stop it again,” said freshwater campaigner Will Appelbe.

Although none of this is deterring Mike Petersen.

“We understand everyone has a view, and everyone should have a view. We are perfectly happy to sit down and have a discussion about that,” he said.

Petersen said he’e been talking to young people in the region who are planning for their futures.

“They’re all saying to me – ‘this thing needs to happen’.

“We need to make sure this region is future proofed, and water security has to be at the heart of that,” said Petersen.

Local mayor Will Foley told RNZ it is good news for the regional economy – especially with high fuel prices and the closure of McCain’s vegetable processing plant.

“I see it as giving us some certainty – that’s what we’ve been lacking particularly in the past month. We’ve obviously had some things go against us, and I think as a district and region we just need some certainty going forward,” he said.

Until the feasibility study is completed at the end of the year, there is no detail on what the dam will cost and how it will be funded. If it does proceed then water could be available from 2037.

Wise Water Use is worried the build cost of the dam will blow out, and hit taxpayers and ratepayers in the pocket.

“Just look at the Waimea dam, which blew its budget by almost threefold from a budgeted $78 million to $211 million.

“The company wanting to build Ruataniwha has hired the same CE, Mike Scott, to oversee their project. It now looks like Waimea was a dress rehearsal for Ruataniwha,” said Le Lievre.

With the new $18m loan from the Government’s Regional Infrastructure Fund, the next phase of work will include detailed engineering and design, financing and commercial work, with a final investment decision expected in 2028.

Petersen said he is under no illusion about the significance of the project proposal, and while water storage is not new to New Zealand, it is new to Hawke’s Bay.

“This will be a game changer for our region, improving water security and the environment, supporting livelihoods, creating jobs and acting as a catalyst for long-term prosperity in Hawke’s Bay.

“With that much at stake, we are committed to doing this work carefully, honestly, and in partnership,” he said.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand