Job losses and the early closure of Macraes Mine could be the consequence of proposed changes to groundwater allocation in Otago, Oceana Gold representatives told a hearings panel in Dunedin yesterday.
Some of the proposed changes could also hinder further irrigation development, the growing of crops and the future construction of a concrete plant at Weston, organisations told the panel, comprising Otago regional councillors Louise Croot (chairwoman), Sam Neill and David Shepherd. Sixteen organisations made submissions, including five which spoke to their concerns yesterday.
Eight others tabled further comments to the hearing, but did not appear in person.
Oceana Gold consents and environmental project adviser Simone Creedy said of urgent concern to the company was the unclear exceptions to the proposal to prohibit applications for groundwater takes from aquifers which were over-allocated for dewatering to allow for construction or structure maintenance.
Dewatering was used to create a dry environment in the underground mine, to keep down dust and operate the processing plant, she said.
''Dewatering is an essential component of mine operations. Without dewatering permits the mine could not operate and jobs would be lost.''
Oceana also criticised the regional council's proposal that a minimum of five years' water use history should be provided when seeking to renew a consent.
''To demonstrate actual water use, setting a minimum period of five years is onerous and creates additional cost for applicants.''
Lawyer Jackie St John, on behalf of Holcim, said the dewatering and historical information proposals threatened its proposed new concrete plant at Weston.
As the consents for the plant expire in 2016 and construction was on hold, providing historical records would not be possible, she said.
''If Holcim is required to renew its consent prior to exercising it, the policies would direct the decision-maker not to renew that allocation.''
Irrigation New Zealand chief executive Andrew Curtis said the proposals had no consideration of the importance of reliable water supply for efficient water and nutrient use.
''Reliability is the key to maximising the value the community receives from irrigation ... Without it, there is a significant financial risk to production.''
It suggested the water balance method be used to grant irrigators water volume that was fair and reasonable for their situation and took into account climate, crops. reliability, irrigation systems and soil water-holding properties.
Horticulture New Zealand resource management consultant Lynette Wharfe said there were concerns about the methodology used for some of the rules, which were inappropriate for fruit or vegetable growing where there was a rotated crop or shorter irrigation season.
It called for issues to be stated in the policy and not left up to staff discretion.
Not allowing activities based on data that was not tested was ''unreasonable'' and would not allow anyone to apply for a consent, she said.
Contact Energy counsel Rosemary Dixon said the power company supported the intent of the plan change, but opposed proposals by Fonterra and Federated Farmers for partial water returns to be considered as part of the calculation of a landholders' maximum annual take.
As a result of the submissions, council staff had reworded the method, but Contact questioned whether the panel could consider it as it took the plan change further than intended and was unfair to landowners who had not had a chance to make a submission, she said.
''It will necessitate a case-by-case inquiry on each groundwater take application ... and carries with it significant potential additional costs for stakeholders, including the ORC.''
The hearing was adjourned for further deliberations.
Proposed Water Plan Change 4B (groundwater allocation)
What is it?
• Sets rules for avoiding over-allocation of Otago aquifers.
• Simplifies the wording of existing policy.
• Does not change established principles of groundwater allocation.
Submitters' concerns
• Will prevent activity critical to business operation.
• Will mean less reliability for irrigators.
• Will restrict water availability when renewing consents.
• More accurate data needed for some aquifers.
• Cropping as well as pastoral systems need to be taken into account.
