Developer angry at delay costs

By FRANCESCA MOLD political reporter

Delays to a multimillion-dollar canal development in the coastal resort of Whitianga are costing Hopper Developments $15,000 a week, says the project's manager.

Conservation Minister Sandra Lee stalled the 1500-section, 250ha real estate development in the eastern Coromandel town nearly two weeks ago, just as work was about to start.

She sent the matter back to Environment Waikato, which granted a resource consent for the canal last December, saying it had not taken the Hauraki Gulf Marine Park Act into account in making its decision.

The Whitianga community lashed out angrily at Ms Lee's decision, prompting the Government to announce it would fast-track an amendment to the act to resolve the problem.

A delegation representing Whitianga residents and the project's developer met Leader of the House Michael Cullen and acting Prime Minister Jim Anderton at Parliament yesterday.

It was understood the group was assured by Dr Cullen that changes to the legislation would be made by June 13.

But the project's manager, Michael Harper, said the delay would cost the company about $60,000.

"We've been kicked in the guts every step of the way. The whole process has been quite protracted and cost us a lot of money. We would like to start work tomorrow."

Mercury Bay community board chairwoman Joan Gaskell said residents were disappointed the Government had decided to send the amendment to a select committee for two weeks instead of pushing changes through urgently.

"There are so many initiatives being started and people are getting very restless. Now we are going to have to go back and say, just be patient for a little longer."

Dr Cullen has said the legislation could have gone through all its stages this week, but there was a risk of getting it wrong if that had been done.

"It's important to get it right. It's important, therefore, to have a very brief select committee procedure that allows the key people to come along and make submissions and make sure we get it right."

One of the issues that had to be considered was other cases which were potentially affected, he said.

"There's also a question of process here - of making sure that people who might object to the change also have a chance to be heard."

Dr Cullen yesterday denied that a new Treaty of Waitangi claim lodged by the Marutuahu Confederation opposing the amendment of legislation had prompted the Government to extend the process to a select committee.

The claim, prepared by law firm Russell McVeagh, said the Crown had not consulted Marutuahu about the changes, and proceeding under urgency would deny it the right to participate in the law reform process.

The letter said the proposed amendment would lead to the destruction of taonga and cause permanent and irreversible occupation of foreshore and seabed owned by Marutuahu.

National's conservation and environment spokesman, Nick Smith, said the Government had buckled to the Waitangi Tribunal threat. It had reneged on the acting Prime Minister's commitment to resolve the matter urgently.

"This is a contempt of Parliament and democratic government. The Waitangi Tribunal has no business attempting to usurp the right of Parliament to pass laws," Dr Smith said.

He lodged a complaint last night alleging contempt of Parliament.