Expensive harbour project canned

Plans for a $145 million harbour development in the eastern Bay of Plenty have been written off by the Government as too expensive.

Regional Development Minister Shane Jones told Opotiki District Council and local iwi on Friday that the Crown would not pay for such a ‘‘fiscally gagging’’ project.

‘‘I acknowledge this is not the news Opotoki wanted to hear but, at the end of the day, as regional development minister, I am on the hook for quality stewardship of the billion-dollar fund.’’

The regional development fund was negotiated as part of Labour’s coalition agreement with NZ First.

Opotiki Mayor John Forbes said the decision was not unexpected, and it wouldn’t put an end to the region’s mussel farming expansion aspirations.

The project would have helped to expand deep-sea mussel farming off the coast of Opotiki by making the harbour usable by larger vessels year-round, boosting employment in the povertystricken region.

Forbes explained the development as a ‘‘river channel giving access to the ocean’’ using a groyne a low wall or barrier – and said it would have been owned by the region’s 4000-odd ratepayers.

The proposal’s hefty cost was due to it being earthquake-proof and ‘‘very low maintenance’’.

‘‘We’re mindful of protecting our ratepayers, and they cannot afford something that will require millions of dollars to maintain every few years,’’ Forbes said.

Different ownership – one willing and able to foot maintenance bills – would allow for a more affordable project. ‘‘It’s just a matter of reconfiguring.’’

Jones said an independent board of advisers had warned him that the project was too risky to go ahead with its $145m bill.

‘‘It’s often the case in infrastructure projects that when stakeholders realise the Crown is paying, they mistakenly think the sky is the limit,’’ he said. ‘‘I naturally am suspicious whether the engineers and other supporters explored alternative options.’’

He said the council was welcome to liaise with engineers from his advisory board to find alternatives ‘‘at a far more digestible fiscal level’’.

‘‘We do remain willing to continue engaging in related projects, to expedite development of deep-sea mussel farming off the coast of Opotiki.’’