Smith denies dairy case 'meddling'

Nelson MP and Environment Minister Nick Smith has denied stifling the efforts of three companies that wanted to create intensive dairy farms in the MacKenzie Basin, as Federated Farmers claims he has "meddled" in the process.

Five Rivers, Southdown Holdings and Williamson Holdings yesterday withdrew their applications to Environment Canterbury (ECan) for farm developments in the Mackenzie Basin that would have involved up to 17,850 cows and required the disposal of up to 1.78 million litres of dairy effluent a day.

Up to 18,000 cows would have been housed in "cubicle stables" 24 hours a day for eight months of the year, and 12 hours a day for the remainder.

The group was told yesterday it would have to pay Ministry for the Environment expenses of at least $2.6m over resource consent applications called in by Dr Smith under the Resource Management Act and handed to a board of inquiry.

Dr Smith said he made no apologies for his decision. It was an unprecedented proposal, both in size and structure, that would have produced effluent equivalent to that of a city of 250,000 people.

"The signal I want to send to the dairy industry and others looking to grow the economy is that they need to be prepared to meet New Zealand's environment standards. We want growth but not at the expense of key natural resources."

The ministry cost was "absolutely extraordinary", Southdown Holdings and Williamson Holdings director Richard Peacocke told Radio New Zealand (RNZ).

The applicants had already invested $4m in clearing the land, on hearings and scientific analysis and expected to have to invest another $500,000.

Federated Farmers chairman Lachlan McKenzie told RNZ Dr Smith had "meddled" in the Resource Management Act process. "This should be based on good science, good economics and good discussion about the benefits ... to New Zealand. That debate in a constructive and efficient manner has not happened."

Mr McKenzie said he took exception to the farming project being described as "intensive".

"This was only about 2 1/2 cows per hectare, which is about the same as the average stocking rate in New Zealand dairy farms now.

"So it's not about intensive, it's about a different system, and all they were doing was putting the cows in a home for periods of time.

"There are hundreds of these already scattered around New Zealand and operating very efficiently and very effectively."

Dr Smith said the estimated annual turnover of the proposed farms was $30m, and the cost of calling in the applications needed to be viewed in the context of that turnover.

"I make no apologies for, as Environment Minister, wanting to thoroughly test those proposals."

-with NZPA

- © Fairfax NZ News