Water users on the Waimea Plains who buy into the proposed Waimea dam may face targeted rates demands to pay back a multimillion-dollar loan to build the Lee Valley structure.

Crown Irrigation Investments Ltd, which acts on behalf of the Government as a bridging investor for regional water infrastructure development, has indicated it could provide up to $25 million as a 15-year loan to dam proponent Waimea Irrigators Ltd (WIL) to make up WIL’s proposed $40m contribution to the estimated $82.5m project.

The remainder of the $40m is tipped to come from water users buying shares in the project at $5000 per hectare/share along with an annual operating charge in the range of $500 to $550 per hectare for the initial year of operations.

WIL’s proposed joint venture partner, Tasman District Council, has earmarked $25m in its Long Term Plan 2015-25 for the project. In November, councillors turned down a request to underwrite the $25m loan from Crown Irrigation.

(The Nelson Mail, Wednesday 1 March 2017)

Nelson house values continued to climb in February, reaching an average of $513,933.

The latest QV House Price Index, released yesterday, showed Nelson home values have increased 16.9 per cent year on year and five per cent in the past three months.

It continues a sustained surge in prices, fuelled by strong demand.

In the Tasman district, home values have topped half a million dollars, currently sitting at $501,153.

(The Nelson Mail, Wednesday 1 March 2017)

After a seven year court battle, the Supreme Court has ruled the Government must honour a deal dating back to 1841 over Maori land settlements in Nelson.

The majority 4-1 decision in favour of Wakatu descendants found the Crown failed in its duty to preserve a proportion of settlement land for Maori owners.

It dates back to the early settlements known as the Nelson Tenths, in which the New Zealand Company purchased land from Maori landowners.
The purchase was made with the promise that one tenth of the land in the settlement would be set aside in a trust for Maori landowners and their descendants.

The New Zealand Company purchased 151,000 acres in the settlement, but only set aside 5100, which was diminished further. By the time the Nelson Tenths Reverses were vested in the Wakatu Incorporation in 1977, just 1626 acres were left.

Since 2010, the Wakatu Incorporation has argued the Crown had failed to act as a trustee, and breached its legal duties by reducing the land set aside, and failing to allocate a further 10,000 acres.

On Tuesday, the Supreme Court upheld Wakatu’s appeal, ruling there was essentially a breach of trust.

(The Nelson Mail, Thursday 2 March 2017)

The late arrival of summer brings in its wake the first planned water restrictions of the season.

Tasman District Council Dry Weather Task Force convener Dennis Bush-King said rationing for water users on the Waimea Plains would come into force from Monday.

A conserve water notice for some urban areas takes effect immediately.

The restrictions are much later than usual and were announced yesterday after the taskforce met for the first time this season on Tuesday evening.
However, the Waimea River had dropped to trigger levels so stage one rationing had been introduced for urban users and most other water users on the Waimea Plains.

A conserve water notice in the urban areas of Richmond, MapuaRuby Bay, Brightwater, Hope, and their rural extensions had also been introduced. This also applies to the rural water supply schemes of Redwood Valley and 88 Valley.

Environmental information manager Rob Smith said the conserve water notice would take effect immediately in the urban areas.

(The Nelson Mail, Thursday 2 March 2017)

RELEASED 2 MARCH 2017

Risks around future Official Cash Rate movements are equally weighted, reflecting balanced risks around inflation, Reserve Bank Governor Graeme Wheeler said today in a speech.

Speaking to Craigs Investment Partners’ Investor Day in Auckland, Mr Wheeler noted that the Bank’s February Monetary Policy Statement included a neutral bias with an unchanged OCR track until late 2019.

Expanding on the main risks around the interest rate projections, Mr Wheeler said:  “In effect, there is an equal probability that the next OCR adjustment could be up or down.  We consider the balance of risks for the global outlook to be downside.  For the domestic economy, there is some potential upside for output growth if migration and commodity prices turn out to be stronger than forecast, but the risks around inflation look balanced.

“This means that if the economy were to develop in line with the Bank’s economic projections, which are based on several assumptions, then the OCR would remain at its current level over the next two years.  

Click here to view full Media Release

(RBNZ Media Release, 2 March 2017)

Tasman district ratepayers face a likely total rates rise in 2017-18 of 0.63 per cent.

It’s the second year in a row Tasman District Council’s total rates revenue increase is much lower than forecast in its Long Term Plan 2015-25.

The tipped 0.63 per cent rise for 2017-18 is well below the forecast hike of 2.16 per cent in the Long Term Plan. In 2016-17, the rates increase was 1 per cent compared with a predicted rise of 2.96 per cent.

The proposed rise of 0.63 per cent is contained in the draft financials for the 2017-18 annual plan, which is due to go out for public engagement this month.

Primary drivers indicated for the lower-than-forecast rates income rise are low interest rates, lower starting debt levels and population growth.
The net debt for 2017-18 is expected to be at $158.7 million – $35.1 million lower than forecast in the Long Term Plan.

The public engagement process on the 2017-18 Annual Plan is due to run from March 13 to April 18.

It will also be a time for the council to gather feedback on what it should be considering when it plans for the Long Term Plan 2018-28.

(The Nelson Mail, Friday 3 March 2017)

It’s crunch time for the proposed Waimea dam as irrigator interest in buying into the Lee Valley project falls short.

Dam proponent Waimea Irrigators Ltd (WIL) sought expressions of interest by February 24 from water users on the Waimea Plains and its surrounds for the purchase of at least 3000 shares in the project at $5000 per hectare/share.

However, WIL strategic adviser John Palmer said while expressions of interest had been received for more than 80 per cent of the minimum number of shares required, WIL was not across the line and there was now ‘‘real urgency’’ to fill the gap. Survey forms now needed to be returned by March 10, at the latest.

‘‘We’ve got ... to get to 3000ha,’’ Palmer said. ‘‘In the absence of getting there, this project is dead.’’  He added that he believed there were enough potential shareholders who had not responded yet to reach the 3000-share requirement.

(The Nelson Mail, Saturday 4 March 2017)

It started as a discussion about a potential carpark, and escalated into a slinging match between Nelson City Councillors.

At Thursday’s full council meeting Councillor Mel Courtney brought a notice of motion which sought to demolish the former Four Season’s building at 250 Haven Rd.

The council-owned building has been untenanted for seven years and is used for storing gear for council festivals.

Included in the motion were initial indications from council officers that asbestos was in the building and had limited interest from lessees since Four Seasons vacated it.

In a motion seconded by Cr Stuart Walker, Cr Courtney wanted to demolish it to provide what he said was much-needed public parking for the Haven Precinct.

Council staff said 20 carparks could be created at and around the site if the building were demolished.

The council voted a close 7-6 against the motion, with a number of councillors stating it was a case of premature timing and other plans for the Haven Precinct need to be in place before a decision about parking could be made.

(The Nelson Mail, Saturday 4 March 2017)

Thought for the Week

"I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel."

(Maya Angelou)