Shane Jones Announces $3m Taxpayer Largesse To Develop Ruataniwha Dam Business Case

Taxpayer and ratepayer money sunk into Ruataniwha Dam now tops $30 million with Shane Jones’ announcement today of a further $3 million to breathe life into the zombie Ruataniwha dam.

“Wise Water Use was right on the money in forecasting that the dam promoters had been instructed to place the consents and IP for the Ruataniwha Dam into a community trust in order to receive money from the Regional Investment Fund to develop their business case,” said spokesperson Dr Trevor Le Lievre.

Wise Water Use had argued that the ‘community trust’ was only ever intended as a Trojan Horse to receive public money for the dam, by providing the veneer of community buy-in.

“Now, just five weeks following the establishment of the trust, Jones is showering the dam promoters with taxpayers’ money for the very purpose Wise Water Use predicted,” said Le Lievre, adding: “this latest round of taxpayer largesse from a government preaching fiscal constraint adds insult to injury for Aotearoa/New Zealand taxpayers suffering a cost of living crisis.”

“This project’s appetite for public money is insatiable.”

Central Hawkes Bay Mayor Alex Walker recently admitted on RNZ that she can’t guarantee local ratepayers won’t be on the hook for more costs should the dam proceed. Wise Water Use is now challenging Mayor Walker to make a public announcement.

“Mayor Walker now needs come clean and announce to local ratepayers exactly what costs they are likely to be on the hook for if this environmentally destructive project proceeds,” said Le Lievre.

“Wise Water Use believes that Hawkes Bay ratepayers will likely be lumbered for the cost of water from the dam to supplement the Tukituki River flow, which is depleted only because of over-allocation, an issue Jones won’t acknowledge. We have done the figures and worked out that that Regional Council ratepayers will face a 33%+ rate increase should these costs fall to them.”

Wise Water Use claims that Jones’ backing of the dam is ideologically-driven and will exacerbate, not mitigate, climate change as claimed.

“Jones and the dam promoters are using climate change as a fig leaf to hide the fact that the reason Central Hawkes Bay has a water issue is because of over-allocation for intensive farming. His answer? To bankroll a project with an estimated cost of $1.4 billion, with a resulting water cost that will require further farming intensification in the Ruataniwha catchment, and a spike in greenhouse gas emissions. This zombie project won’t alleviate climate change, it will exacerbate it,” said Le Lievre.

“With ongoing droughts, rising sea levels, and the pressure of climate change, Aotearoa/New Zealand needs be thinking longer-term about sustainable, climate-resilient solutions rather than doubling down on projects that risk locking us into an unsustainable model of intensive, water-hungry agriculture.”

Wise Water Use is also looking for answers from the government and the dam promoters.

“Jones’ announcement of taxpayer largesse right on Christmas when people are preoccupied is an old political trick used to downplay unpopular announcements and to avoid scrutiny, but this won’t work due to the rapidly growing unpopularity amongst the community of this zombie project,” Le Lievre stated.

“Taxpayers deserve to know the terms of this $3 million grant; how exactly will it be used, and what guarantees exist that the study will explore potential negative outcomes from a 100M m3 dam?”

Today’s announcement stated that the dam project is being co-funded by the Tukituki Water Security Project (TWSP).

“What amount will the TWSP co-fund, and where will the money come from – for the last 2 years the holders of the dam consents haven’t even been able to pay their full Regional Council annual science charges?

“What exactly is the TWSP, who are its members, and what accountability to ratepayers and taxpayers does this ‘project’ have? Is the TWSP related to the private company Tukutuki Water Security Limited, which has just one shareholder, Mike Petersen? Does a private company stand to profit from public money?

“What role will the ‘Hawkes Bay Community Water Trust’, established primarily to promote the Ruataniwha dam, play in developing a business case? No public announcement has yet been made about the process for appointment of a ‘community’ trustee, let alone what role trustees will have in promoting the dam, and how they will keep the community informed?”

Wise Water Use claims that local and central politicians are promoting the Ruataniwha dam using public money under a shroud of secrecy.

“The track record of the dam has been of local and national politicians driving this ideologically-driven and environmentally-destructive project with minimum public consultation, and maximum public bankrolling. Taxpayers and ratepayers should fasten their seatbelts because this zombie project is going to cost them big-time, both financially and environmentally,” finished Le Lievre.

© Scoop Media