Cost of new Korean mud festival agreement not yet known

Boryeong Mud Festival. Photo/File

Rotorua Lakes Council says it's unable to say what will happen to the budgeted $90,000 for mud powder that is no longer being imported for the city's mud festival, as details of a new arrangement have not yet been finalised.

The council announced on Monday it would no longer import treated mud powder from South Korea as a result of a public backlash and biosecurity concerns.

It had previously come under fire for its controversial decision to import five tonnes of cosmetic grade mud from South Korea at a cost of $90,000 spread over five years.

The council had previously said the Boryeong mud powder acknowledged a commitment to share information and expertise in the development of Mudtopia.

The Rotorua Daily Post asked again what happened now to the $90,000 the council had intended to spend on the mud power.

Council acting group manager operations Henry Weston issued a statement in response that stated the cosmetic mud powder purchase was part of a reciprocal arrangement with the Boryeong festival in exchange for their intellectual property, advice and promotion of Rotorua's Mudtopia festival.

The statement said "the concept of paying for events is not new" and the council would now work with Boryeong on a new agreement reflective of the importance of the partnership.

"Their expertise and advice has been crucial to enabling us to establish the Rotorua festival. We cannot speculate on what the details of the new agreement will be."

Mud saga

July 27: Rotorua Daily Post reveals details of a mud powder supply agreement with the Boryeong Mud Festival Foundation, signed by Rotorua mayor Steve Chadwick and Boryeong mayor Kim Dong-il in South Korea the previous week. The council confirmed it had purchased five tonnes valued at $90,000.

July 28: Councillor Trevor Maxwell publicly defends the deal.

July 31: The Taxpayers' Union presents the council with a certificate for "extravagant and foolish spending".

August 2: Councillor Charles Sturt says the saga has been a "PR nightmare".

August 3: Report to council committee meeting says new "pessimistic" financial forecast shows Mudtopia could lose $575,871 in its first year. It blames negative publicity over the mud deal. Biosecurity concerns are raised. Committee rejects motion to cancel the purchase.

August 6: MPI releases statement saying it would "ensure that there are no biosecurity risks" with importation of mud.

August 7: Council announces Mudtopia will proceed without the South Korean mud, given the "ongoing public concern".