Port challenges council

A council-owned port has appealed parts of its council’s new environmental ‘‘masterplan’’, which could see the two in court with ratepayers footing half the bill.

The Marlborough District Council has seen parts of its Proposed Marlborough Environment

Plan contested by Port Marlborough, which it directly owned through its company MDC Holdings, and earned it $3.7 million last year.

Port Marlborough lodged an appeal to the Environment Court, saying the proposed plan did not allow it to develop or safely operate port and marine facilities.

It was one of 51 appeals to the plan before the May 8 deadline. Only those who submitted on the plan during its three-month-long consultation in 2016 could make an appeal.

A council spokesman said Port Marlborough was treated like ‘‘any other applicant’’ when submitting on council projects: ‘‘Port Marlborough has an independent board, operates under its own legislation and can make decisions about RMA [Resource Management Act] matters independently of the council.’’

He said it was inappropriate for the council to comment on a specific appeal because it could prejudice proceedings, but appeals could be resolved through mediation and the court.

The council’s $2.77 million budget for the plan was ratepayer funded and included provision for appeals.

Port Marlborough chief executive Rhys Welbourn said the company’s appeal costs would come from its operational budget, not ratepayers. ‘‘We don’t see there being any conflicts with our shareholder, in fact it shows that Port Marlborough is subject to the same rules as all other interested parties,’’ he said.

The council was Port Marlborough’s only shareholder, so it owned the port, but could not control it under the Port Companies