High land price, high risk sees mtn sewerage scheme shelved

Ruapehu Bulletin, Volume 14, Issue 684, 29 April 1997, Page 1

High land price, high risk sees mtn sewerage scheme shelved

Very high financial risks to Ruapehu ratepayers as well as a high price tag for the land are the reasons given by the Ruapehu District Gouncil for shelving the Whakapapa Iwikau Sewerage Scheme. Councillors have accepted advice from acting chief executjve Chris Ryan to shelve the project while investigations into the long-term liability on Ruapehu ratepayers for the scheme, as well as into other options for funding, are carried out. However, council engineer Bruce Dobson told them also that longterm pressure would come from the regional council to stop the discharge • of untreated sewage. Asked what would happen long-term if the scheme "falls over", Mr Dobson said "the bottom line is if we can' t dispose of the sewage, the huts would have to close". Following the 1 995-96 eruptions the Whakapapa Iwikau Management Committee decided to postpone the start of full design and physical work

on the scheme and reassess the situation in February 1998. Since then, some work has continued on the preliminary design of the scheme and on negotiations for land acquisition. In addition, the application for resource consents and land purchase negotiations have been proceeding slowly. The costs to date are $280,000 out of an estimate to the stage of full design of$750;000. "Based on the unpredictability of the volcanic activity on the mountain and the financial condition of the community served by the council, I cannot recommend the purchase of the land concerned at this stage," wrote Mr Ryan in his report on the matter. "DoC is the landowner (and) will be rated to pay for the scheme and in theory, would be responsible for the repayment of the rates in the event of a volcanic eruption destroying the infrastructure on the mountain. I would like to see a more positive assurance from the Minister of Conservation that he shares this view," he added.

Mtn sewerage scheme shelved

FROM PAGE 1 While the users of the scheme would pay for the system, if the mountain erupted and wiped out the Whakapapa ski lodges the council, and therefore its ratepayers, could be left to

pay for the scheme. Also of concern is the high price put on the land - for the treatment plant. "Land Corporation have agreed to the sale of 40 hectares of land to the council, but have valued theJand at

$150,000 plus GST or $3750perhectare. The 1996 revaluation of the 2700 ha is $6 million or $2070/ha, while the previous valuation, on which the scheme' s estimates were based, was $650/ha. "The Management Committee were of the view that

Land Corporation should make the land available to the scheme at a discounted rate because of the potential of the scheme to service the balance of the Land Corporation land, and so enhance its value. However, it appears that Land Corporation are unwilling to con-

siderthematterinthis way," stated Mr Ryan. "Somehow Landcorp needs to be brought into line (and pressure brought to bear at a political level)," said Cr Joe Murphy. "Do they want to go along with the scheme or do they want to kill it."