Doc denies secret deal with Pioneer Generation

The Department of Conservation has "categorically" denied it has done a secret deal with Pioneer Generation to smooth the construction of a hydro-electric dam on the Nevis River near Cromwell.

The department's Otago regional conservator, Jeff Connell, yesterday said his department was honouring a 1996 agreement that allowed for hydro-electric development on the river and was included in the Otago Regional Council's water plan.

"All we have been doing is remaining faithful to the original Water Conservation Order which allowed for hydro in the lower valley."

Mr Connell was responding to a story in yesterday's Otago Daily Times in which the Department of Conservation (Doc) was accused by Fish and Game Otago of having "done a deal" with Pioneer Generation which smoothed the way for the electricity generator to freehold part of two pastoral lease stations it owned in the valley.

By freeholding the land, Pioneer would have cleared a major hurdle towards constructing a 45mW hydro-electric dam.

In an interview with the Otago Daily Times on Monday, Fish and Game Otago chief executive Niall Watson used phrases "subvert other arrangements" and "lack of transparency" in relation to claims Doc had done a deal with Pioneer.

Mr Connell was asked on Monday to respond to a Fish and Game Otago press release on the issue, but not the other accusations made by Mr Watson.