Scenarios used for One Plan costs 'extreme'

Last updated 12:00 20/11/2012

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The Primary Industries Ministry was using "extreme scenarios" when working out the cost to farmers of the One Plan court ruling, according to emails obtained by Fairfax NZ.

The emails revealed concerns raised by Horizons regional council after Federated Farmers spoke publicly about leaked memos showing that farmers' costs could rise by 22 per cent to 43 per cent if the ruling was implemented.

The figures were said to have come from a Landcare Research report commissioned by the ministry.

Horizons chairman Bruce Gordon raised his concerns with Landcare Research chief executive Richard Gordon this month. Richard Gordon sent an email to the ministry's deputy director-general of policy, Paul Stocks, to advise him that none of eight scenarios considered were the same as the court ruling's.

The scenarios resulting in 22 per cent to 43 per cent cuts to profit were "extreme" and "bear little similarity to the One Plan", Richard Gordon said. The scenario most similar to the plan would have an impact on profitability of less than 1 per cent.

He received a response from the ministry's director of resource policy, Mike Jebsen, saying the scenario mentioned in the memos "in our view most closely matched the Environment Court direction". Fairfax NZ

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- Manawatu Standard

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