Dam and irrigators

We Tasman district ratepayers were aware that the irrigators are at the limit of their ability to contribute to the dam, because Tasman District Council told us so when agreeing to limit the irrigators’ maximum liability on cost overruns to half of $3 million (we’re already there). These are, of course, the same irrigators who quickly found another $11.5m when their ‘‘secret investor’’ – whose sudden appearance was TDC’s justification for the reversal of the ‘‘no’’ vote – equally mysteriously disappeared.

We were also aware that TDC is underwriting the $22m Crown Irrigation loan to Waimea Irrigators (WIL). Those with longer memories will recall that this was to be secured by attachments to WIL shareholders’ properties, but this condition was quietly dropped, leaving TDC with all the risk and absolutely no collateral in the event of defaults.

What we did not know, until Councillor Dean McNamara fell across it in the financial Term Sheets which TDC has gone to extraordinary lengths to keep secret, is that it has agreed with WIL that should any future council (hopefully starting next October) take any action which WIL regards as disadvantageous to those arrangements, WIL will be entitled to claim up to $50m compensation.