Local ag sector worried by Lake Hāwea proposal

Devon Dairy Farms owner Erynne Fildes, of Hāwea Flat, says farmers and growers are affected...
Devon Dairy Farms owner Erynne Fildes, of Hāwea Flat, says farmers and growers are affected parties and wants Contact Energy's proposal to lower the level of Lake Hāwea to be withdrawn. PHOTO: SUPPLIED
A group of Central Otago farmers and growers are uniting to fight against Contact Energy seeking to lower the level of Lake Hāwea. Shawn McAvinue talks to two members of the recently relaunched Upper Clutha Farmers Association, who want the gentailer's application to be removed from the fast-track consenting process so the community is given a voice.

"My business wouldn’t survive without water."

That is the message from Devon Dairy Farms owner Erynne Fildes, who milks up to 4500 cows on more than 3000ha in Hāwea Flat, producing about 2.1 million kg of milksolids a year.

She is among a group of Central Otago farmers and growers uniting to seek a proposal to lower the level of Lake Hāwea to be withdrawn from the fast-track consenting process so their concerns can be heard.

Contact Energy is seeking fast-track approval to drop the lake's minimum operating level from 338m to 336m above sea level, and a further 6m in emergency situations — to 330m above sea level — to boost renewable energy generation and help safeguard electricity supply.

It lodged a referral application with the government in June to enter the proposal into the fast-track consenting process.

Ms Fildes said Contact Energy had not listed farmers and growers as an affected party on the proposal.

More than 50 farmers and growers had permits to take ground water or surface water when the lake’s operating level was higher than 338m, she said.

She feared if the lake level was dropped, it would disconnect the lake from the aquifer, which would lead to the widespread failure of many bores.

Dry bores would reduce the amount of her farm she could irrigate, which would negatively impact milk production.

"The worst case scenario is I lose all of my irrigation, I lose all of my income and 60 people lose their jobs."

She contacted some other water take permit holders and they had no idea Contact was proposing to drop the lake level.

More than 350 people packed out Lake Hāwea Community Centre last month to learn about Contact...
More than 350 people packed out Lake Hāwea Community Centre last month to learn about Contact Energy seeking approval to lower the level of Lake Hāwea. PHOTO: RNZ
Consequently, she organised a meeting to shed some light on the proposal at the Lake Hāwea Community Centre last month.

More than 350 people attended.

There was no way for the community to make its voice heard under the fast-track consenting process.

She believed Contact Energy were using the fast track to avoid the community having a say on the proposal.

The proposal should be done through the Resource Management Act (RMA) process, rather than the Fast-track Approvals Act process, she said.

"Follow the right way, don’t take the shortcut. In the RMA we would all be heard."

She believed the production losses to the affected farmers and growers was greater than any gains to be made for the electricity market.

"There are lots of ways to get extra electricity."

Her family had been producing milk on Devon Dairy farms since 2012.

She was not against Contact Energy generating more green renewable electricity, but would like it to explore other options.

"I have 1000 solar panels so I started doing my bit three years ago."

Glen Dene Station co-owner Richard Burdon said he and two other farmers, Ms Fildes’ late father Jim Cooper and Paul Kane, launched the Upper Clutha Farmers’ Association in 2017.

Glen Dene Station co-owner Richard Burdon is recruiting members for the Upper Clutha Farmers...
Glen Dene Station co-owner Richard Burdon is recruiting members for the Upper Clutha Farmers Association to fight a proposal from Contact Energy to lower the level of Lake Hāwea. PHOTO: ALLIED MEDIA FILES
​​​​​​At the time, farmers with irrigation had been blamed for eight bores drying up on Hāwea Flat, but the farmers believed it was due to the way Contact was operating the lake.

The group asked the Otago Regional Council to do scientific research on the hydrology of the lake, including its impact on aquifers, and to review the consent conditions for how Contact operates the lake.

As a result, the ORC installed two monitoring bores on Hāwea Flat and produced a report showing a link between the lake needing to be at certain levels at certain times of the year to allow the aquifers to recharge.

Now the association had been relaunched and was recruiting new members to fight Contact again.

Contact’s proposal to drop the lake level would provide a short-term gain for the gentailer, but it would have a huge economic impact on the 50 farmers and growers taking water from the lake for their livelihoods.

Mr Burdon irrigated more than 180ha of his farm, a irrigation system which cost him about $600,000 to develop in 2014, excluding fencing and cultivation costs.

If he had to revert to a dryland farming system, his business would become unsustainable and he would no longer be able to employ 50 staff.

"You’re killing the farming industry."

The fast-track system was designed to provide sustainable economic benefits to New Zealand, and it was doing the opposite.

"I think it's crazy that a fast-track process can even consider an application like this, when it doesn't involve infrastructure, it doesn't involve significant national benefit to New Zealand."

A lack of community consultation in the fast-track process and a lack of understanding on the impact to businesses needs to be looked at, he said.

"This fast-track application is going to have a major impact on a wider community and it should be stopped."

Contact Energy hydro generation head Boyd Brinsdon said Contact had a critical role in ensuring New Zealand’s energy supply remains secure, sustainable and affordable.

Photo: RNZ/Katie Todd
Photo: RNZ/Katie Todd
"The more energy we can bring into the system, the sooner prices can come down, which will benefit all New Zealanders."

One of the many ways Contact were doing this was by looking at how it could get more power from its existing hydro schemes, rather than building new ones, which would take decades.

"That’s why we’re considering potential changes to Lake Hāwea’s operating levels."

Contact was committed to open engagement with the community and would continue to seek feedback from those who live in the area, he said.

"We welcome contact from this group of farmers and growers and look forward to engaging with them directly."

The proposal was at the referral stage, he said.

If Infrastructure Minister Chris Bishop found benefit in the project, Contact would be invited to submit a full application including detailed assessments and consultation, Mr Brinsdon said.

Mr Bishop said the Fast-track Approvals Act aimed to make it easier to build the infrastructure and major projects needed to get New Zealand moving.

"The fast-track regime takes into consideration the benefits of a project, along with adverse impacts."

If a project was referred to the fast-track process, it was considered by an expert panel.

The panel was required to seek comments from the parties listed in the Fast-track Approvals Act, including relevant local authorities, relevant portfolio Ministers, administering agencies, Māori groups, owners and occupiers of adjacent land, and any other parties it considers relevant when considering the substantive application, Mr Bishop said.

As the application was before him for consideration, it was not appropriate for him to comment on it directly.

shawn.mcavinue@alliedmedia.co.nz