Whitianga devastated by veto on waterways

By ANNE GIBSON and KEVIN TAYLOR

A $100 million canal development for Whitianga has been knocked back by Conservation Minister Sandra Lee.

Locals reacted angrily yesterday to her decision to reject a coastal permit for the project, and residents may take the fight to Wellington.

Leigh Hopper, managing director of Hopper Developments, said Ms Lee had given the project the thumbs-down because of a law which was passed after hearings on the plan had been held.

Only the granting of a permit stood in the way of the 250ha Whitianga Waterways project going ahead. The 1500-section project would have doubled Whitianga's size.

Destination Mercury Bay spokesman Duff Oliver said locals were in "absolute disbelief" at the decision, as was the local iwi Ngati Hei.

In February the project seemed on track after an appeal by a Paeroa-based iwi was dismissed by the Environment Court. That appeal delayed the project 18 months.

Mr Oliver said the latest setback was an example of the "Resource Management Act gone mad."

"People are shaking their heads in horror and wondering how to explain to the minister the devastation of the community."

The project would have given huge impetus to the Mercury Bay region.

"We are a small community striving to make progress," he said. "People are talking about marching in Wellington. We are going to be doing something to show the Government and the minister this is totally unfair."

Ms Lee wrote to Hopper Developments' lawyer, Mark Cooper, saying she could not grant the application for a restricted coastal activity permit.

The reason was because a new law - the Hauraki Gulf Marine Park Act 2000 - had been passed between Hopper's application for the development and work starting.

But Hopper says it cannot comply with the act because it was not the law in 1998 when it first applied to carry out the development.

The situation has left the company that developed the seaside resort of Pauanui hopping mad. It has been battling to get the Whitianga project under way for five years at a cost of $2 million. It says the Resource Management Act is making a mockery of such projects.

"We are absolutely disappointed and will review our options," said Hopper's Evans Young.

Ms Lee has referred Hopper back to Environment Waikato and its restricted coastal activity hearing committee.

Thames-Coromandel Mayor Chris Lux said Ms Lee's decision was based on a technicality and the minister, who said she supported community boards, was now trampling all over the Mercury Bay board's wishes.

"It's another slap in the face for local democracy, the RMA, and the Environment Court. The RMA is now the province of barristers and solicitors."

Mr Lux said the council opposed the marine park act because it thought the legislation was another law interfering with the right of communities to go about their business with the RMA.

Mercury Bay community board chairwoman Joan Gaskell said the town was angry.

"It's devastating. I think it's bureaucracy gone mad. All the hearings have been held and, really, it puts so many community initiatives at risk now."