Former Fonterra chairman Sir Henry van der Heyden is calling for 50-50 cost split between residents and the Government to pay for a controversial Rotorua sewerage scheme.
The Tarawera Reticulation Scheme was discussed at Rotorua Lakes Council‘s first full meeting of the year yesterday.
There have been ongoing protests at Lake Rotokākahi against the under-construction pipeline.
The scheme would connect about 450 Tarawera households, and about 100 future households, to the town sewerage system. It aimed to improve the lake’s water quality.
There was standing-room only in the meeting’s public gallery, and four people asked to address councillors about the scheme.
Funding was the main subject, with calls for the lakeside community to be included in a 17-year-old agreement, as with other lakes.
Connected households did not yet know what they would each pay, with further discussions to come in this year’s annual plan development.
The most recent indication was $38,000 to $41,700 (GST exclusive) if paid off in one go.
The $31-32 million scheme was partially funded by the Ministry for the Environment, Rotorua Lakes Council, and Bay of Plenty Regional Council – together about $10.7 million – and the rest by Tarawera ratepayers.
Sir Henry, a Tarawera resident, spoke as chairman of the Lake Tarawera Sewerage Working Group.
Describing Lake Tarawera as a taonga and jewel in the crown, he said it was used by thousands of locals and visitors a week.
He said the community wanted fairness and equity in how the scheme was paid off in contrast to other schemes.
The group asked for a 50-50 funding model between the community and government/councils.
Sir Henry said this would work out to about $36,600 (GST inclusive) for homeowners, and he wanted this capped to give certainty and to allow for budgeting.
“We totally reject the existing approach … where from a community perspective it feels like an open cheque book.”
He said others in the community would rather pay less than $36,600.
Sir Henry referred to a regional council proposal that reflected the group’s request.
Rates swap option floated
Bay of Plenty Regional Council chief executive Fiona McTavish clarified to Local Democracy Reporting that it was lowering its Rotorua targeted rate and had suggested the district council lift its Lakes Enhancement Rate.
“This would limit the net effect to Rotorua ratepayers.”
The councils had “informally discussed” this rates swap option and it would welcome discussing this at a future district council meeting.
Tarawera resident Fred Stevens spoke about a 2008 government commitment of $72.1m over 10 years to clean up the most seriously degraded Rotorua lakes, matched by district and regional councils at 25% each.
Lake Tarawera was excluded.
Stevens told councillors then-Prime Minister Helen Clark made it clear the restoration project was beyond the council’s ability by itself without an “excessive burden” to ratepayers.
He also criticised the lack of consistency over how local reticulation schemes were funded, as did resident Tracey McLeod.
She told councillors “confusion reigns” over the scheme, causing “stress and sleep deprivation while raising questions”.
She listed various funding she believed should have been used for the scheme and outlined funding model changes over the years.
Lake Tarawera Ratepayers Association chairman Mike Allen said he understood it was the highest cost per-site wastewater solution in the country.
This was later reiterated by councillor Robert Lee, who said he used ChatGPT to find the answer. He called the cost “quite anomalous”.
Allen suggested the council borrow more or utilise the Local Government Funding Agency and add to general ratepayers’ bills.
Councillors previously heard that changing the funding model would require community consultation.
Contributing $1m more to the scheme would cost 27,312 ratepayers $2.80 a year each for 25 years, or $11.20 to up the contribution by $4m and take Tarawera homeowner costs to about $36,000 each.
New bid to make Tarawera a priority lake
Councillor Conan O’Brien successfully called for the council to explore making Lake Tarawera a priority lake under the Clark-era deed agreement.
Council chief executive Andrew Moraes would work with the Rotorua Te Arawa Lakes Strategy Group to ask the Government to consider a deed variation.
It included requesting additional money via a subsidised contribution with a combined matching fund evenly split between the district and regional councils, with the total to be negotiated.
The council discussed that this option had been previously raised by the group seven years ago.
LDR is local body journalism co-funded by RNZ and NZ On Air.
