Extra cement production not needed, hearing told

A Waiareka Valley family is funding more than 50% of the costs faced by the Waiareka Valley Preservation Society in its fight against a cement plant being built there.

Economic analyst Rodney Jones and his family live at Windsor Park, near the site where Holcim (NZ) Ltd wants to build the cement plant.

He is treasurer of the society and yesterday, in the Environment Court, gave an economic analysis of the plant which said it was not needed in New Zealand because there was overcapacity in production as demand for cement declined.

Cross-examined by Holcim's counsel, Mark Christensen, Mr Jones was asked how the society was funding its opposition.

Mr Jones said the society had applied to the Ministry for the Environment for funding to assist with its appeal, but had been declined because the ministry judged it was "well funded" and the issue was of local, rather than national, importance.

Funds were raised through annual subscriptions of $20 from about 150 members and donations, including from members.

The cost of the appeal was not revealed, but will be tens of thousands of dollars.

Under further questioning, he said a "remarkable amount" had been raised from members, but a "significant portion" came from his family trust.

The family trust was funding more than 50% of the society's cost of opposing the cement plant, he said.

"To me, that is investing in the future."

Mr Jones would not reveal exactly how much the society had spent, but said it was in the hundreds of thousands of dollars since the process started in 2007.

Mr Jones said that, in discussions with the two Waitaha interested parties to the appeal, he had also undertaken to meet any shortfall in funding for their court case.

As a society member and valley resident who personally opposed the plant, he was very conscious of the need to minimise personal opinion and work in a professional manner to present the evidence yesterday.

Mr Jones said that at the end of last year, construction activity in New Zealand was contracting sharply and projected to decline further.

Cement sales were dropping to below one million tonnes.

At that demand, New Zealand already had excess production capacity.

"This excess capacity is likely to persist for a number of years," he said.

Holcim said current market demand for cement was about 1.4 million tonnes a year and would reach 1.6 million tonnes by 2020.

Mr Jones said last year the economic "boom turned to bust".

Construction activity contracted and cement demand declined to 1.285 million tonnes.

Holcim's projection of a need for 1.6 million tonnes by 2020 was "likely to represent a significant overestimation" and he predicted existing production capacity would still meet demand by 2030.

Existing production capacity was 1.43 million tonnes a year - 930,000 tonnes from Golden Bay's plant in Whangarei and 500,000 tonnes at Holcim's Westport plant.

The Weston plant's peak production would be 880,000 tonnes a year.

Cement plant plan

- A $400 million cement plant 2.5km from Weston, coal mine, limestone and sand quarries in the Waiareka Valley.

- An additional $100 million on storage, transport, shipping facilities and new ships. The Otago Regional Council and Waitaki District Council granted 46 resource consents for the plant in February 2008.

- Consents appealed to the Environment Court by Holcim, the Waiareka Valley Preservation Society and Andrew Renalson, with interested parties Waitaha Taiwhenua O Waitaki Trust Board and Te Runanganui O Waitaha Me Mata Waka Inc and respondents the Otago Regional and Waitaki District Councils.

- Being heard by Judge Gordon Whiting, commissioner Charles Manning and deputy commissioner Dr Bruce Gollop.

- Hearing ran from March 9 to 11, March 30 to April 17, then concludes May 13 to 15.