The business case for the proposed dam, which asks Hawke’s Bay Regional Council to invest $80 million, is being considered tomorrow.
The report shows Hawke’s Bay ratepayers will face the risk if fewer investors subscribe or if anything goes wrong with the scheme’s financing, Green Party water spokeswoman Eugenie Sage said.
“The report identifies that Hawke’s Bay Regional Council ratepayers carry the most risk if the scheme fails to sign up enough users.
“It’s also clear that the ultimate backstop will be the regional council.
“The council will have to recapitalise the dam company if there are massive overruns in construction costs, estimated at $270m, or if the scheme doesn’t meet Hawke’s Bay Regional Investment Company’s targets for farmer uptake and investment.
“Private investors won’t want a bar of further spending,” Sage said.
“While the report summary claims the construction will be fixed-time, fixed-cost and low risk, the report later identifies that variations above total cost would be met by the council and investors.
“Regional councils should not be subsidising big irrigation projects.
“The Parliamentary Commissioner for the Environment (Dr Jan Wright) has clearly identified the impacts on water quality of increased intensive dairy farming.
“Regional councils are supposed to be looking after the environment and our waterways, not subsidising pollution,” Sage said.
