Payout decision against CPW upheld

Central Plains Water has lost its bid to avoid paying $46,000 to a Canterbury farming couple left out of pocket by "premature" restrictions placed on their land.

In the High Court late last month, Justice Denis Clifford upheld an earlier Environment Court decision ordering CPW to pay Brian Thompson and Helen Daveys $46,000, and awarded additional costs for the High Court appeal. The couple had complained that by designating 17 hectares of their sheep farm as part of its irrigation scheme, CPW was obliged to buy the land, which had decreased substantially in value.

Last year, the dispute almost went to the Environment Court but three days before the hearing CPW dropped the land designation, removing its obligation to buy the land, but leaving the couple with a large legal bill.

In May, the Environment Court supported their petition to recover these costs, saying CPW may have the power to take people's land forcibly but should pay the price if it ordered restrictions without substance.

CPW chief executive Derek Crombie said yesterday the decision would not be appealed further although he still did not agree with the court's findings.

"But we don't want to prolong this situation ... it's just gone on for too long."

Hundreds of central Canterbury landowners were told their land had been compulsorily designated for use in CPW's irrigation scheme, but most of those designations were withdrawn after commissioners indicated last year that consent for a 55-metre dam in the Waianiwaniwa Valley would probably be rejected.

About 60 landowners still have designations over their property for building irrigation canals and some have spoken out against CPW's power to forcibly acquire their land. Five recently lodged Environment Court appeals.

Crombie said he did not expect CPW would be hit with further compensation claims, describing the disagreement as "unique".

When contacted by BusinessDay, Thompson did not want to comment but said the actual legal costs far outweighed the sum awarded by the court.

- © Fairfax NZ News