Aerial veiw of Opotiki Harbour. Photo/File
The Government has announced it will not support the Ōpōtiki Harbour Redevelopment Project in its current form.
Regional Economic Development Minister Shane Jones visited Ōpōtiki last Friday and made it clear to the Ōpōtiki District Council, local iwi, and other stakeholders that the Government would not be funding the project with a $145million price tag.
Stuff reported that Jones said the Crown would not pay for such a "fiscally gagging" project.
"I acknowledge this is not the news Ōpōtiki wanted to hear, but at the end of the day, as regional development minister, I am on the hook for quality stewardship of the billion dollar fund," he said.
The Ōpōtiki District Council has promoted the project for more than ten years.
The project would see a year-round navigable harbour entrance built to service the booming aquaculture industry just off the coast.
Ōpōtiki deputy mayor, Lyn Riesterer, said it had been a tough and rigorous process and she was pleased that the door hadn't completely shut on the project.
"The costs were higher than expected when the tenders came in but haven't yet been finalised. A number of complex issues had to be addressed in the design including the flooding potential of the rivers, earthquake strengthening and minimising ongoing maintenance costs.
"It needed to be engineered for a long life with a new engineering solution and a new construction method," she said.
Riesterer said they made sure that the new costs were validated along with the solution and its price.
"Since then we have been working with the company and independent engineers to further refine solutions to bring that cost down. That work is continuing and we are pleased with the Minister's offer to provide further expert engineering advice from his advisory panel to find a way forward.
"For us the most important thing is that there is an opportunity to find a solution that will be acceptable to Government to enable Ōpōtiki and the Eastern Bay to benefit from the world-class aquaculture industry on our doorstep," Riesterer said.
Whakatāne district mayor Tony Bonne said the economic opportunity presented by Ōpōtiki's large scale mussel farming development and associated onshore processing remained compelling.
"For the moment, the boats can continue to bring mussels in to our wharf, but we would love to see the processing facilities built and providing crucial jobs in Ōpōtiki.
"Whakatāne, Ōpōtiki and Kawerau Councils are currently working on a proposal to put in front of Ministers, which will clearly define the joined-up nature of the opportunities in the eastern Bay and the benefits that will flow from them.
"I am confident that this work will provide weight to the argument in favour of Ōpōtiki's harbour development," Bonne said.
Whakatōhea Māori Trust Board chairman, Robert Edwards, said Whakatōhea had always been highly supportive of the harbour redevelopment project for many years.
"Whakatōhea's aspirations for the development of the existing mussel farm, and other aquaculture ventures are in the pipeline, is driven by the need to bring employment and other benefits to the rohe.
"While the current mussel farm is going from strength to strength, we have long supported the project to grow the benefits for Ōpōtiki . When the harbour is built and we can build our processing facilities here in town, that is when the real benefits come on line.
"Not just in the factory, but associated industries like science and technology, servicing the boats and providing office functions for the business, innovation and education. The growth opportunities are incredible," Edwards said.