New environmental rules: ‘Rates increases of 100pc will be unavoidable’

A West Coast regional councillor is calling on Development West Coast (DWC) to stump up and cover costs that are about to land on ratepayers because of the government’s new environmental policies.

The regional council warns it may have to recruit more than a dozen new staff to handle the work involved in managing the freshwater and biodiversity (SNA) rules.

Councillor Peter Ewen said horrendous rate increases were looming, unless DWC helps out.

“Due to this government’s decree and mindset, rate increases in the order of 100 percent will be unavoidable if it does not cut the region some slack.”

The cost of carrying out what Wellington was demanding of the West Coast was “astronomical” given the region’s low rating base, Ewen said.

The regional council held a closed workshop this week to take a hard look at the mountain of work it must tackle in the next few years.

It must rewrite its plans to include the freshwater and biodiversity rules by 2024 – not 2030, as expected – and set up systems to monitor and report on them.

It must manage and report on the four flood protection projects from Westport to Franz Josef Glacier, funded by the government as part of its Covid economic stimulus package.

At the same time it must take care of business-as-usual – revision of the long-term plan and production of the new Te Tai o Poutini combined district plan for the whole West Coast.

Chairman Alan Birchfield said the workload was a daunting prospect and somehow the council had to fund it.

“They’re talking about needing 15 more staff … and we’re trying to work out what to do. We can’t go back to the ratepayers; we need another income stream.”

Government funding would cover the cost of project managers for the flood protection work, but there was no support available for the rest of the work, Birchfield said.

“Those costs will be ongoing. Once the rules are in place and the plans updated, we have to manage the new regime … all the regional councils are facing this and one of them is talking about an 80 percent rate rise.

“We can’t do that to our people.”

The council was discussing the problem with others in the same boat, and looking at the potential to cut costs by forming an alliance, Birchfield said.

“If we pool our resources with other South Island regional councils we might get more value for money with some of these tasks.”

West Coast Regional Council chief executive Vin Smith said it was too soon to put a figure on extra staff that might be needed, or the potential impact on rates.

“We will certainly be taking on new responsibilities, and there will be additional costs, and it will put pressure on the council.”

The council would have to monitor freshwater quality, audit the trends and report on these to the government, Smith said.

“But we will step up and deliver; it has to be done and every other council is in the same boat. Collaborating may throw up different ways to work through this.”

Ewen was less optimistic and said it was time Development West Coast came to the party.

DWC was set up as a charitable trust in 2001 with funds of $92 million from the government to compensate for the loss of the indigenous forestry industry.

Its objects, according to the trust deed, are to promote sustainable employment opportunities; and generate sustainable economic benefits for the West Coast.

The regional council had never had a lump sum grant from DWC although district councils had received several for community well-being purposes, he said.

“DWC should step up and give a one-off significant contribution to the regional council to ensure all West Coasters do not suffer … through ridiculous rate increases.”

However, DWC chief executive Heath Milne said it was not possible.

“No approach has been received from the regional council regarding the environmental regulations, however the deed of trust specifically excludes funding normal activities of councils.”

DWC was focusing on supporting businesses across the region to grow and sustain jobs and GDP, Milne said.

“Regarding the regional council costs, central government has imposed this through legislation. They now need to provide support to regional councils affected industries to implement the regulations across all regions.”

Local Democracy Reporting is a public interest news service supported by RNZ, the News Publishers’ Association and NZ On Air.