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Waitaki Report Out Today

Posted on: Tuesday, 4 October 2005, 15:00 CDT

By STEEMAN, Marta

The controversial plan for allocating water use on the South Island's Waitaki River will be released today and will have an impact on the energy industry and farmers.

It will also have an impact on electricity consumers if state power company Meridian Energy has to cut back electricity production to comply with the plan. Electricity production will have to come from elsewhere and that is likely to be from more expensive coal- fired and gas- fired plants.

The plan has to juggle the interests of environmentalists, energy players, irrigators, farmers and recreational users on the key South Island water system.

Earlier this year the draft water allocation plan met criticism from farmers and irrigators and Meridian Energy, which has eight hydro stations on the Waitaki River producing about 20 per cent of New Zealand's electricity.

The Government appointed the Waitaki Catchment Allocation Board to sort out the vexed question of who can use the water and how much after Meridian proposed the $1.2 billion Project Aqua hydro scheme in the lower Waitaki Valley.

Meridian later abandoned the project because of the uncertain economics from the water allocation plan and increasing costs related to geotechnical issues.

The draft water allocation plan was not to the Government's liking and its submission to the board in July sought substantial changes because it was also concerned about less water being available for farmers and irrigators and the big electricity company.

The draft plan required Meridian to maintain higher river flows all year round -- 200 cumecs in winter and 230 cumecs in winter, compared to a minimum flow of 120 cumecs under its current resource consents.

The draft allocation plan also effectively closed off the possibility of further hydro power development on the Lower Waitaki. Meridian is waiting to see if the final plan will confirm that.

The board, chaired by Judge David Sheppard, considered 1197 submissions on the draft plan and heard several hundred in July and August at hearings held in Oamaru and Omarama.

The final plan is completed, the board and Ministry of Environment said on Friday, and would be released today.

The plan sets out objectives and policies for water use and takes effect in three weeks unless there is an appeal to the High Court. Appeals can only be made on points of law.

The plan is to be implemented by Environment Canterbury.

Generally that will happen as applications for resource consent are processed.

Existing consents are generally not affected until they expire.

But the Resource Management Act allows for the regional council to review existing conditions to give effect to environmental river flow and levels set in the plan.

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Source: Press, The; Christchurch, New Zealand

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