DAM: The proposed site of the Ruataniwha Dam. PHOTO/FILE.
A company involved in securing land, and executing new water user agreements for the Ruataniwha water storage scheme was given the go ahead yesterday.
At a Hawke's Bay Regional Council hearing committee, approval was given to the Hawke's Bay Regional Investment Company (HBRIC) to establish a council-controlled trading organisation - known as ServiceCo - which would carry out the operational activities of the scheme, should it proceed.
Only 12 submissions were received by the council on the proposal to establish the entity, with all but one in opposition. Submissions cited concerns around the environment, ratepayer funding, and a lack of transparency.
However, a report presented to the committee yesterday stated the majority of opposition was on the construction of the Ruataniwha dam - rather than the proposal.
The company's principal responsibilities would be to provide an operational site for the Ruataniwha Scheme and secure all required land, ensure all resource consent requirements and obligations for the scheme are implemented, including various liaison groups, management plans and mitigation works.
It would also market and execute new water user agreements, establish billing and invoice processes and deliver technical operating and maintenance services.
The only submitter to speak on the proposal was Hastings District Council candidate Chris Perley, on behalf of Transparent Hawke's Bay.
He requested consultation on the proposal be started again, as the lobby group felt there had not been sufficient information on the entity, which would increase the complexity and bureaucracy around the scheme, and reduce the council's accountability to "arms length decision making".
"There are enough issues around what's been going on with the Ruataniwha Dam amongst the public of Hawke's Bay to make you realise there's an integrity and trust issue," he said, adding because of this perception council "should be bending over backwards to show and demonstrate a clear openness of dialogue and questioning and information".
ServiceCo would be a subsidiary of HBRIC and carry out the operational work for the Limited Partnership/ General Partner (RWM Ltd) via a service agreement with Ruataniwha Water Limited Partnership.
During the meeting councillor Dave Pipe asked if the council was satisfied it had sufficient oversight of the new company.
Council interim chief executive Liz Lambert said those involved in ServiceCo would report to RWLP - "a consortium of investors" - one of which would be HBRIC.
"Ultimately they [HBRIC] will be responsible back to us for the activities that that company carries out."
"I am satisfied there will be accountability."
When established, two directors would be appointed to ServiceCo, and report to the board of HBRIC.
Ms Lambert stressed there would be multiple lines of reporting to council from the company.
Speaking on concerns raised by Mr Perley, Mr Pipe said having distance between council and ServiceCo made sense, as there needed to be separation between what the company was doing in regard to the scheme, and "what our legal responsibilities are as the regional council, and the statutory responsibility that we have in the [Resource Management Act], we have in enforcing consents, and making sure there's compliance there."
Chairman Fenton Wilson said he was happy to move to approval on the proposal.
"I do note that this scheme still has a few hurdles of its own to get through but if this gives some certainty on at least part of it, I think it's worthwhile doing now, and I haven't been convinced we shouldn't do it now."