High land price, high risk sees Whakapapa sewerage scheme on hold

Ruapehu Bulletin, Volume 14, Issue 686, 13 May 1997, Page 10 (Supplement)

High land price, high risk sees Whakapapa sewerage scheme on hold

Very high financial risks to Ruapehu raffcpayers as well as a high priee'tag for the landare the reasons given by the Ruapehu District* Council for shelving the Whakapapa1 Ivvikau Sewerage Scheme. /^Copncillors have accepted advice from acting chief executive Chris Ryan tq shelve the project while investigations intQ the long-term liability on Ruapehu ratepayers for the scheme, as well as into other options for funding. Hfewever, council engineer Bruce Dobson told them also that long-term pressure would come from the regional council to stop |he dpcharge of untreated sewage. Asked whafe woul^happen long-term if the scheme "falls over". Mr Dobson said "the bottom lmeisifwe-ca&'t dispose of the sewage, the huts woiildhaveto cfose". 5 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 todateare $280;txf) out of an estimate to the stage of full design of $.750.000. "Based on the unpredictability of the yqlcanic acfivity on |hemountain and the financial condition of the comrnu-:, nity SSrved by the c6uncil, flannot recommend the purchase of tjje land concerned at tBis stage," wrote Mr Ryan in his report on the matter. "In theory, DoC is the landowner of the land on the mountain, which will be rated to pay lor the scheme and in theory, \tfbuld be responsible for the repayment of the rates in the event of a volcanic eruptiongdestroying the infrastructure on the mountain. I would like to see a more positive assurance from the Minisier ofConservation that he shares this view," he added. 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 earmarked for the treatment plant. "Land Corporation have agreed to the sale of 40 hectare

of land to the council, but have valued the land at $150,000 plus GST or $3750per hectare. 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 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 consider the matter in this way," stated Mr Ryan.