The Waitaki District Council has admitted it made an error when it issued resource consents and certificates of compliance for three companies to develop 16 dairy farms in the Omarama and Ohau areas.
Acting chief executive Thunes Cloete yesterday said a High Court defence of the council's decision in September and October last year would have been "lengthy, costly with a low chance of success".
The Environmental Defence Society (EDS) took the council to court after it issued land use consents and building certificates of compliance to Southdown Holdings Ltd, Williamson Holdings Ltd and Five Rivers Ltd for the dairy farms without public notification, which would have allowed public submissions.
It was then discovered those consents and certificates had been signed off by a council officer who did not have the delegated authority to do that, effectively making them invalid.
Dr Cloete said the council, as a responsible public authority, decided the most appropriate course of action was to indicate it would not defend its decisions.
The High Court was notified of the council's position on June 18, leading to a court decision this week.
"An internal review by council revealed a technical error in delegations to officers," he said.
The council was "likely to have serious difficulties" in upholding the decisions being challenged by EDS.
"To have continued to defend the litigation would have led to significant costs, delays and stress," he said.
The issue was discussed fully with the applicants as soon as the council became aware of the issue in late February and early March.
EDS was made aware of the issue more recently.
Council's delegations had since been corrected.
Dr Cloete said previous resource consent decisions were valid.
"Decisions on resource consents are always subject to challenge and in this case we did not have the correct administrative procedures in place," he said.
Councillor Struan Munro, chairman of the council's hearings committee, noted decisions on landscape protection for areas of the Omarama and Ohau basins were due soon.
They would show significant areas needing protection, while allowing development of less sensitive parts.
