Whistle-blowers barred from Watson's golf club

Millionaire Eric Watson's Matarangi Beach Estates has been fined more than $100,000 for unauthorised earthworks.

But his company hit back, in what a judge has called "vindictive action", by barring the retired couple who blew the whistle from joining the development's exclusive golf club.

The saga started in 2003 when the home of Jim and Jenny Scott, who retired to the multimillion-dollar development five years ago, was blasted by sand whipped up from the earthworks.

An unhappy Mr Scott contacted the Thames Coromandel District Council, which discovered that Mr Watson's company and contractors were carrying out earthworks in breach of their resource consent and prosecuted them.

Matarangi Beach Estates is owned by Hanover Property Group, which is part of Hanover Group, owned by the high-flying Mr Watson and business partner Mark Hotchin.

Matarangi and its contractors, TSE Group, HEB Contractors and Waiau Pa Bulk Haulage, pleaded guilty to carrying out earthworks for which they had no consent, and together were fined a total $112,000 in a reserved decision given by Judge Jeremy Doogue.

When Matarangi got wind that the Scotts had complained, a letter was sent barring them from joining the private golf club, which is just 40m from the couple's home.

The Herald understands the stoush is going all the way to the Human Rights Commission.

Mrs Scott said Judge Doogue's decision was very pleasing.

She said a letter from Matarangi Beach Estates general manager Patrick Daly after the court action refused her subscription, although she was allowed to play on the course as a green fee-paying visitor.

"Naturally it has been very unpleasant."

But "the community have been extremely supportive", Mrs Scott said.

Mr Daly did not return calls from the Herald yesterday but in a statement said the company was pleased the court process had reached a conclusion and it accepted the fine.

He made no reference to the Scotts.

In his decision, Judge Doogue said the barring of Mrs Scott from the golf club did not reflect favourably on Matarangi and suggested that remorse expressed by the company "may be equivocal".

"It is difficult to square those claims of remorse against apparently vindictive action taken against someone for the reason that they were instrumental in bringing breaches by the company to the notice of the informant in the first place."

Thames Coromandel Mayor Philippa Barriball said the council, which will get 90 per cent of the fine, was pleased with the result.