$3m subsidy for wastewater schemes in resorts

Ratepayers in three tourist towns are getting Government help to pay for multimillion-dollar wastewater treatment and water supply projects.

Paihia, in the Bay of Islands, will get $872,224 from the Tourism Demand Subsidy Scheme for a $3 million wastewater system that will also serve Waitangi, Haruru Falls and Opua.

The upgrade will allow the plant to meet tight environmental conditions on its resource consent and to serve a population that swells from 3400 in winter to 10,200 in summer.

The ski village of Ohakune below Mt Ruapehu will get $516,915 towards a $1.6 million upgrade of its wastewater system.

The third subsidy of $771,013 is awarded for water supply and waste water systems in the South Island glacier resort town of Franz Josef.

The awards are the first to come from an $11 million fund set up in 2004 to help qualifying communities cope with growing tourist numbers.

The scheme is part of the Government's commitment to sustainable tourism development, said Tourism Minister Damien O'Connor.

New Zealand is expected to get an extra 19 million international and domestic visitor nights by 2011 and Mr O'Connor said regardless of the added demand, visitors still expected hot showers, clean drinking water and functional toilets.

The minister said 32 communities from 16 districts in New Zealand applied to the scheme and a thorough assessment of the remaining applications was continuing and further awards would be made in March.

But Local Government New Zealand President Basil Morrison said the $11 million was not enough to help all the popular tourist towns that had small numbers of ratepayers to support visitor facilities.

"The number and value of applications indicates a need for support beyond that which is able to be funded through the current subsidy scheme," said Mr Morrison.

He said local government would keep pressing the Government about alternative funding so that visitors and tourists contributed more directly to council-maintained infrastructure and facilities.

Tourism Ministry general manager Ray Salter said the 2004 budget enabled funding of $11 million over three years.

Applications received had claimed a total of $60 million.

Mr Salter said awards would not be reduced in order to be spread around more communities.

"We would rather schemes got built in those communities of greatest need of them."

All applicants had to show that tourist loads were above 30 per cent and that the communities could not afford to support projects through rates.

On average, just over half the load on water and wastewater systems at peak times was due to visitor demand.

The subsidy award for Paihia was welcomed yesterday by Far North District Council deputy mayor Laurie Byers.

The council had applications in for 12 other Far North communities.

But a water supply scheme proposed for the settlement of Hihi, near Mangonui, where Mr Byers has a holiday home, was knocked out of contention for the subsidy, along with schemes for Whatuwhiwhi/Tokerau Beach, and Ahipara.

"Many people are retired and have low incomes so it should not have been turned down," said Mr Byers.

On the Coromandel Peninsula, the Thames Coromandel District Council is awaiting word on its applications for $15 million towards nine projects.

Council spokesman Peter Hazel said there was a pressing need for water supply and wastewater schemes for Hahei, Pauanui, Tairua, Whangamata and Whitianga.

"We have a low base of ratepayers of 25,000 homes and in summer the population rises to 150,000 and you need the facilities to cope with that."

Ohakune residents Cynthia Dowsett and Deryck Brown said they were delighted their town had been awarded the subsidy.

Rates in the town were already high at $1600 for a chalet.