Nelson asked for $5mdamgrant
Nelson ratepayers will soon get their say on a proposed $5 million grant to the Waimea Dam project.
The Nelson City Council voted on Wednesday to release its statement of proposal to the community, with a preferred option of granting $5m to Tasman District Council (TDC) for the controversial dam project.
The dam has been designed to address an over-allocation of water in the Waimea Plains.
The total cost of the dam is an estimated $82.5m, proposed to be funded by a mix of ratepayer, irrigator and Crown funding.
City council staff told councillors the dam would serve residential and industrial users in the Nelson South area. This includes the Alliance and ENZA businesses, which have individual contracts with TDC.
A report to the council said if the dam does not go ahead, TDC would give three years’ notice to stop water supply to Nelson South.
A TDC consultation document said it would likely to take out a loan to fund the $5m if the city council decides not to invest in the project, or TDC could aim to recoup costs through the fees and charges for water supply to NCC.
Another option for the Nelson council was supplying from other areas - the Maitai Dam has been mentioned but it has issues with organic matter and would need pre-treatment costing $15m - $20m.
If Nelson City Council weren’t to connect to the dam, it would need to spend an estimated $3.2m to build pipes and infrastructure to connect Nelson South to the Nelson water supply.
The NCC needs access to around 1000 cubic metres per day for Nelson South and if it ever needed more it would pay some- where between $15m and $20m in ’’capital investment’’ for increased access to the dam.
The $5m grant to the dam is proposed to be paid over a two year period, between 2018 and 2020. What councillors discussed Some councillors were concerned about the cost to Nelson ratepayers. TDC water rates and charges are expected to increase by around 10 per cent, according to its own statement of proposal, and water from the TDC is already more expensive than in Nelson.
Councillor Luke Acland said commercial users in the Nelson South area might suggest the coun- cil spend $3.2m on pipes to Nelson’s supply, rather than be billed ‘‘post-dam water prices’’.
Commercial users would pay increased water rates directly, while the difference for residential users in Nelson South, supplied by TDC, are absorbed by the city council and distributed across Nelson ratepayers.
Some councillors, including Mel Courtney and Mayor Rachel Reese, said it was important Nelson supported its ‘‘neighbour’’; Reese emphasised the need for regions to ‘‘co-operate’’.
Cr Matt Lawrey was urged to step back from decision-making by councillors concerned he had a conflict of interest because of a predetermined view.
Cr Mike Rutledge produced a copy of an ad Lawrey released during his Green Party campaign which said ‘‘Stop the Dam’’.
After being questioned by the mayor, Lawrey said he was open to evidence that might change his view.
Councillors Kate Fulton, Rutledge, Gaile Noonan, Stuart Walker, Brian McGurk, Ian Barker, Courtney, Acland, Reese and Lawrey voted to release the statement of proposal, Cr Tim Skinner opposed.