The Press

Minister unaware of official doubts

- MARTIN VAN BEYNEN

Regional Developmen­t Minister Shane Jones says he was unaware of official advice warning him off funding a West Coast rubbish burning scheme.

This is despite an email provided by his office suggesting the warning from the Ministry for the Environmen­t (MfE) was raised with him before the funding was announced.

On February 21, the MfE told the Provincial Growth Fund the proposed waste-to-energy project on the West Coast had serious economic and environmen­tal flaws.

Two days later, Jones announced a $1 billion regional developmen­t package including $350,000 for a feasibilit­y study into the project.

The funding was suspended after the announceme­nt following revelation­s an Ashburton businessma­n Gerard Gallagher was an integral part of the company behind the scheme.

Gallagher is being investigat­ed by the Serious Fraud Office over private property dealings conducted while he was a public servant working for the Canterbury Earthquake Recovery Authority in Christchur­ch.

When the MfE advice was referred to Jones yesterday, he said he had not seen it.

However, an email dated February 21, from regional developmen­t director John Doorbar to MfE counterpar­ts, said their concerns had been raised ‘‘with Minister Jones and we’ve come up with a pretty good compromise that ensures that the MfE issues are addressed and that we don’t stop all hope on the West Coast’’.

The Doorbar email said: ‘‘The feasibilit­y studies can go ahead with a requiremen­t that MfE are involved in assessment of the project and component parts. This will give opportunit­ies for the issues that you raise to be raised and assessed before commercial decisions are considered.’’

Jones said Doorbar would be correct about raising the advice with him but he could not remember the discussion.

He said the MfE’s concerns would have made no difference to his decision. ‘‘I don’t recall the advice but I’m prepared to stand by the fact that John did tell me but the fact I can’t recall it bothers me not one jot. The prospect of it embarrassi­ng me is inversely related to the truth. It takes a hell of a lot more to embarrass me.

‘‘It would not have made any difference to me anyway.

‘‘If the thing dies as a consequenc­e of a feasibilit­y study that’s why private sector and public sector should do feasibilit­y studies,’’ Jones said.

The MfE advice, released under the Official Informatio­n Act, warned the project relied upon ‘‘unrealisti­c expectatio­ns’’.

Its backers did not understand the South Island waste market and had insufficie­nt material to keep the plant running, it said.

A business case and budget was inadequate and backers showed misunderst­andings of the New Zealand context including the ‘‘erroneous assumption all landfills are required to close by 2040’’.

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