Councillor Welcomes Report on Reviewing Controversial Water Scheme Loan

City Councillor Yani Johanson has welcomed the Christchurch City Council’s decision to seek a report on options for an independent review of the issues surrounding the controversial Central Plains Water Limited loan from Dairy Holdings Limited. Cr Johanson who voted in favour of such a report, has expressed concern that there are a number of key questions which still need to be answered.

The call for a report follows the Council’s vote on December 13th 2007 to not accept the Central Plains Water Trust Annual Report or the City Council’s staff report written to address concerns of the Malvern Hills Protection Society deputation on November 7th 2007.

Council resolution from Meeting (December 20th, 2007)

That staff report to the February 2008 Council meeting on the options available to the Council, to conduct an independent review including a second legal opinion on the matters raised by the Malvern Hills Protection Society, addressing specifically the cost, timing, scope and implications of conducting such a review.

Yani Johanson, City Councillor, said today:

“The Central Plains Water Scheme is a hugely controversial project. Since my election to Council there have been numerous deputations made regarding concern at details of the DHL loan. I believe there are valid questions which need to be addressed. The biggest question is the potential for a private dairy company (Dairy Holdings Limited) to gain the rights to resource consents (if granted) for a scheme that was initially set up for the public good. I would be very concerned if the loan agreement in any way enabled the loss of resource consents from public ownership.”

ENDS

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