The Environment Ministry "issues and options paper" outlines an approach to the Government's intention for local authorities to provide discounts for consent processing which fails to meet time frames set out in the Resource Management Act.
It includes a preferred option of offering discounts of up to 80% and was discussed at the regional council's finance and corporate committee meeting yesterday, when councillors agreed to make a submission on the paper to the ministry.
Council corporate services director Wayne Scott reported to the committee those time frames were set for single consents and were not "practicable" for large, contentious multiple-consent situations such as wind farms, hydro-electricity schemes, mining or large industry.
A consent committee report presented yesterday showed Otago Regional Council compliance with time frames for decided consents from October 31 to January 8 was 89% for undecided consents, 100% for limited notification and 0% for publicly notified applications.
Council chief executive Graeme Martin said he agreed with the intent - to process consents as quickly as possible - but did not think the discounting regime proposed "would come within a cooee" of it.
"The practical outcome in my mind is almost mind-boggling."
It could have unintended consequences such as putting pressure on panels to issue decisions, encourage consents to be put on hold, kill the option of pre-hearings and put impossible time constraints on consultation.
"Then there is the major issue of who is expected to pay for the discount?"The council would have to decide whether the general ratepayer or those applying for consents footed the bill, Mr Martin said.
For example, if a large consent with a bill of $1 million ran over time and the discount was set at 50%, that was $500,000 that would have to paid for from somewhere.
"On a $5 million rate take, that is bloody big."
Chairman Stephen Cairns said it was a "fundamentally flawed" approach which could cost ratepayers "hundreds of thousands [of dollars]".
Cr Michael Deaker said it was "grossly unfair" the Government was making local government deal with a central Government problem.
Cr Gerry Eckhoff agreed, saying it was a "gross over-reaction" to a problem observed "in some councils north of Otago".
"It's exactly a problem made in Wellington and should be solved in Wellington.
"It's not our job."
Cr Stephen Woodhead said the approach was "stupidity" and would undermine good decision making and values that underpinned the Resource Management Act.
"It staggers me something like this could come out . . . of the MFE [Environment Ministry].
"This is crap."
Cr Louise Croot said it was a simplistic reaction and contrary to fairness.