A $150 million, 11.3km bus-only tunnel linking the existing Routeburn Rd and Hollyford Rd took a significant step forward yesterday, with the Department of Conservation agreeing in principle to grant consent.
However, Southland District Council Mayor Frana Cardno said yesterday the Milford Dart Tunnel project "must not be allowed to proceed".
The company has applied to build the single-lane commercial coach tunnel under sections of the two national parks, linking the existing public roads in the Routeburn and Hollyford Valleys, which would require about 150m of road to be built in the Mt Aspiring National Park and the tunnel under the Humboldt and Ailsa Ranges.
Doc Southland conservator Barry Hanson said before the company could proceed with the plan, it required a concession agreement from Doc, along with the appropriate resource consents from the Southland District and Queenstown Lakes District Councils.
Mr Hanson said Doc had "carefully examined" the environmental effect of the proposal on the land it manages.
"Doc's initial view is that, with appropriate conditions, the impacts of the proposal are acceptable, but the department will take the outcome of public consultation into account before taking a final decision on whether to approve the concession."
Milford Dart Ltd managing director Tom Elworthy said the proposal had the potential to contribute "tens of millions more into the New Zealand economy", with the 500,000 visitors to Milford annually able to spend an extra half-day doing other activities around the region, instead of being "locked up in a bus for half a day".
If consent was granted, the tunnel could be operational by late 2015.
"If we receive final approval, then the construction of the tunnel would be one of the largest single investments in New Zealand tourism in generations.
"It will revitalise both the iconic Milford Sound and the New Zealand tourism offering as a whole in the same way that the original Homer Tunnel did when it was opened in 1952.
"It will make the trip to Milford Sound far more enjoyable and reduce the current feeling of overcrowding during the middle of the day by spreading visitor arrival times."
The proposal also had a "strong fit" with New Zealand's environmental reputation by having a minimal above-ground footprint and would reduce carbon emissions of people visiting Milford Sound by 60% because of the shorter travel distance.
The public has 40 working days to make submissions on the proposal.
Doc would then hold public hearings to consider the submissions before reaching a final decision.
Mr Hanson said Doc could only consider the effect of the proposal on land it managed - wider issues raised would be dealt with by resource consents required from the other two councils.
Ms Cardno said yesterday she was "very disappointed" with Doc's decision, which was inconsistent with the Conservation Act, the national park plans and the general policy for national parks.
"In my view, this is as big as Saving Manapouri. This is just so important. We must fight this.
"There are so many things wrong with this proposal - the tunnel is inconsistent with the New Zealand Tourism Strategy objectives as it will reduce the duration of stay within New Zealand as well as the daily spend and will limit visitor flows into the southern region.
"The existing Milford road is recognised as one of the world's most picturesque tourist routes and there is no evidence that there is a demand for underground travel, in what can only be described as a seismically active area.
"This project must not be allowed to proceed, as the tunnel does nothing to enhance access to and enjoyment of the Fiordland or Aspiring National Parks and, if constructed, [the tunnel] would allow an enduring private right over one of the world's most pristine national parks.
"These parks are set aside for the enjoyment of future generations and should not be carved up for big business."
Mr Elworthy told the Otago Daily Times yesterday the company was "pretty confident on merit it [the project] would stack up" when it came to the submissions and hearing process.
"We acknowledge that there will be some people that will have differing views, but it's the biggest tourism project in New Zealand for a long time and it has the potential to be a game-changer," Mr Elworthy said.
Doc spokesman Reuben Williams said the 40-day submission period would open once the proposal had been formally notified, which was expected to happen this weekend.
Queenstown Lakes Mayor Vanessa van Uden said yesterday she had a "remarkably neutral position".
"For me, it's open for public submissions. We will be watching that with interest."
