Environmental group Forest & Bird is challenging a proposed land swap that could lead to 22 hectares of "high value" Department of Conservation (DoC) land flooded as part of the Ruataniwha dam project.
The DoC is running a formal review into the proposal to revoke conservation park status for the land in the Ruahine Forest Park which would be flooded by the proposed Ruataniwha reservoir if the planned Central Hawke's Bay water storage scheme goes ahead.
In its submission to the review, Forest & Bird claims revoking the land's status and swapping it for a block of private land would be illegal. It says flooding the land would result in the destruction of river habitat and mature podocarp and beech forest that is home to several threatened wildlife species, including native bats.
"The Conservation Act does not allow specially protected land such as this to be swapped. This revocation is being proposed to get around the act's restrictions but it is unlawful," Forest & Bird group manager campaigns and advocacy Kevin Hackwell said.
But Hawke's Bay Regional Investment Company (HBRIC), the investment arm of the Hawke's Bay Regional Council that is promoting the Ruataniwha project, said the proposed land swap reflected the company's "commitment to doing the right thing".
HBRIC managing director Andrew Newman said the proposal involved swapping about 130ha immediately next to the planned reservoir and the Ruahine Forest Park, in return for the 22ha block that would be flooded if the dam was built.
Mr Newman said the conservation and biodiversity issues related to the land swap were "traversed extensively" by the board of inquiry that granted consent to build the dam. The board's decision "determined the proposed measure as fair and appropriate" in an environmental context, he said.
"Our offer of approximately 130ha for 22ha is a reflection our commitment to doing the right thing."