Land swap for Ruataniwha Dam dominates HBRIC AGM

HBRIC chairman Andy Pearce was yesterday questioned about the Ruataniwha Dam land swap. Photo / Warren Buckland

A controversial land swap needed for the Ruataniwha Dam to go ahead was the main talking point at the Hawke's Bay Regional Investment Company's annual general meeting - despite the suspension of it, and other HBRIC activity on the cards.

Held yesterday afternoon at the Crown Hotel in Napier, the HBRIC board and management updated a crowd of Hawke's Bay regional councillors, stakeholders, and members of the public at their fifth AGM.

Despite updates on the company's finances, and the Napier Port also being on the agenda, the Ruataniwha Water Storage Scheme and its needed land swap was the dominating topic.

In his update on the financial year, chairman Andy Pearce stated although there had been progress with the dam, there had been some delay because ofthe court process under way regarding a land swap.

HBRIC and the Department of Conservation have sought leave to appeal a Court of Appeal decision which upheld that a land swap involving 22ha of the Ruahine Forest Park, for 170ha of land which would potentially be bought by HBRIC from Smedley Station, was unlawful.

As well as this delay, this month councillors agreed to consult a review on the dam, and to confer with HBRIC directors on the implications that would arise should their activities cease during this review.

Councillor Peter Beaven - who yesterday acted as a proxy for the regional council - pointed out that the summary of the recent Mana Ahuriri settlement mentioned an offer apparently made to that iwi, and other treaty claimants, for a block of Ruahine Forest Park "which appears to sit either in or beside the 22ha of land".

"What's not clear from this document is whether it includes the 22ha of land that's under discussion or not," he said, asking Mr Pearce if HBRIC had had any conversation with Government about this land, or were aware it was being offered to the iwi.

Mr Pearce said his understanding was there was a "substantial area" of state forest land adjacent to the reservoir, the park, and the 22ha. When pressed, he stated: "We have had some general discussions with a couple of ministers about a range of options."

During the meeting resident June Graham asked whether HBRIC had taken into account the precedent the land swap could set if successful.

"I feel the conservation estate is at risk if you get your land swap through, it could possibly affect all of the rest of New Zealand's conservation," she said.

Mr Pearce said a large number of similar land exchanges had been undertaken by DoC under the same process.

They had not been challenged, but now the Court of Appeal had decided the interpretation of the conservation act applied to them was not correct - although the 170ha had "significantly greater conservation value", it had been determined assessing the two values was not the correct legal test.

Following other statements on the land and its value from the floor - including from a former board member of Smedley Station - Mr Pearce said the matter of the land swap should not be litigated as it was before the courts.

Earlier in the meeting he reiterated HBRIC would support the review, and that investors, and the contractor were ready to proceed with the project, "but they are on hold for the period of time that it takes to consult with the land access matter".

He also provided an update on HBRIC's annual report and accounts - discussing their "healthy" balance sheet, substantial total assets and total equity, and modest borrowing and advances to shareholders from the council.

Napier Port had "another successful year with some ups and downs", Mr Pearce said.

Although their overall tonnage was down slightly, the port was continuing to grow in container and bulk trade.

Revenue was about $72 million, with net profit after tax being about $12.25 million.

Napier port would provide its full report at their AGM in December.