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By corporate seizure, on 1 May 2010 Environment Canterbury ECan became 'regulatory' developers' agent ECon

Contributing factors
Demand-driven groundwater depletion, drought risk and tertiary institute adaptation in Selwyn District
Selwyn Plantation Board Limited "producer of forestry and agricultural products from company-owned land located in Canterbury.. Land converted from forest plantations on the plains to farmland is being farmed by SPBL ..set up in 1989 as a LATE (Local Authority Trading Enterprise) and was determined to build on the success of its predecessor board. Local Body amalgamation in November 1989 resulted in the new Christchurch City Council acquiring a 39.32% share and the Selwyn District Council a 60.68% share. Inadequacies in the Local Government Reform process caused some unforeseen difficulties and necessitated the passing of enabling legislation, the SPB Empowering Act 1992, to ensure equitable corporatisation. The Local Government Bill (2002), converted LATEs to CCTO (Council Controlled Trading Organistions). Most recently the shares in SPBL have been transferred by the two councils to their respective investment companies Christchurch City Holdings Ltd and Selwyn Investment Holdings Ltd (formerly known as Selwyn Council Trading Enterprises Ltd). In 1993, following the passing of this Empowering legislation, the assets of SPB were sold to SPBL at a price determined by the then Board and following the advice of independent consultants Price Waterhouse and Groome Poyry Ltd" - Policies "to operate a financially successful forestry, farming, and land utilisation business on the plains and foothills of Canterbury in an environmentally and socially responsible manner, and to promote the provision of shelter on the Canterbury plains. The primary objective of the company shall be to operate a profitable, sustainable and innovative business consistent with shareholders' expectations, and we will increase the net worth of shareholder value by prudently managing assets, for long term gain an d capital growth" + Forest & Farm land Map 2,874 / 10,576 ha farmed area = 27% from 14,058 ha in 2005 (& 13,448 ha in 2003)* with farming record started in 2007 "FARMING As with all other farming businesses throughout the country, the last twelve months has been a challenge for the farms. Collectively the down-turn in the world economy and the market uncertainty this brings, the ever increasing internal costs, and lengthy dry spells at critical times of the year, impact on the overall business performance. However, in spite of these influences performance has been satisfactory over all properties. Some exceptional gains have been achieved under the newly irrigated areas of the Plains farm operation in terms of pasture establishment and production, and the rapid decomposition of the remaining residual woody material remnant from the land conversion process. These areas now provide production certainty in times of drought, and the resultant livestock performance gains from the irrigated pasture enable SPBL to consistently meet forward livestock processing supply obligations. The farm land valuations increased overall. This is a combination of three main factors. Firstly a general decline in the value of irrigated land following on from reduced dairy payouts, secondly the valuation increased to recognise the value of 880 ha of irrigation consents confirmed on the Plains farm land, and thirdly it includes the revaluation of the Te Oka property to its sale value. The sale process of the Te Oka farm property (which has been pending over the last six months) was successfully concluded in August 2009. LAND CONVERSION A small area of 100 ha remaining to be completed in the land conversion programme was affected by the dry summer conditions, and therefore a decision was made in December 2008 to suspend the work until soil moisture levels improved. The programme commenced again in late autumn, with the objective of fully completing all land conversion operations in time for spring sowing. Ongoing work with regard to new plantings and maintenance of strategic shelter continues on the converted land which is now being farmed. IRRIGATION Additional resource consents were granted to abstract ground water for irrigation on a further 880 ha of the Plains farm area. Some conditions relating to these consents have been appealed through mediation, with a positive outcome on all but one condition which is still under consideration. With these consents now operative (albeit within the conditions applied) there is now some urgency to drill and test pump the required wells in order to gain maximum benefit from this water over the term of the consent. As part of the initial irrigation consents the commissioning of a third production well (in May 2009) and the associated pivot irrigator will provide even more certainty and production opportunity for the Plains farm operations." Annual Report Jun09
*Forest Management Public Summary for Selwyn Plantation Board Ltd. "The Canterbury Plains are also a unique area with plantation forestry having a long established land use for provision of firewood and shelter dating back to 1879. Across the Plains many small communities have experienced rapid social change in recent years due to the relaxation of controls on rural subdivision and subsequent extension of the urban fringe across the plains. Local villages such as Darfield and Kirwee have grown rapidly with the increase in small farming and lifestyle blocks. Land use changes have occurred due to the increase use of irrigation technologies resulting in a rapid increase in dairy farming within the last ten years. Forestry is becoming a growing land use in the Canterbury foothills as prospective forestry enterprises seek to reap economies of scale and benefit from improved growth rates from the higher rainfall. The hill country is more likely to contain heritage sites or wahi tapu and native flora and fauna. The people that live in the local communities in the foothills are very aware of their physical environment and have a strong drive to protect their landscape values and preserve treasured landscapes that are important to the visual aspect of their community. The SPBL is currently operating in a socio-economic environment that is continuing to change and impact on the many small communities in the Canterbury area. The number of people living as neighbours to forestry operations has grown over time as well as their purposes for choosing to live there. From this perspective the social impact of future forestry operations could potentially become more complex as each phase of forestry operations effects localities of people in different ways. The challenge facing SPBL is to understand and manage community relations in a changing environment." p14 & "The revenue from land sales has allowed the company to fund the land conversion on the land it still owns between the Selwyn and Waimakariri Rivers (approximately 2,000 ha; northern plains blocks), and provided the company with funds to acquire further hill country properties for afforestation when such areas become available. In the past, funds released from such land use changes and sales have been used to purchase suitable hill country land for forestation. For example SPBL has used such profits to purchase and afforest all of its existing hill forest blocks. The hill blocks now form the largest area of SPBL planted forest." p40 rainforest-alliance.org Jul03
Farms for Sale South Island New Zealand "A trend over the past few years has been the conversion of forestry land into dairy farms. One of the main drivers behind this has been the significant growth that has been experienced in dairy farm sale values. Over the past six years, the average sale price per hectare for dairy farms has increased 157% compared to 68% in the value of forestry land. The value of dairy farms, expressed in terms of $/kg of milk solids produced, has increased approximately 57% since 2000. One of the major conversions of forestry land has taken place in Wairakei on the Central Plateau. Some 25,000ha of former forest land has been purchased by developers with the intention to develop for dairying purposes. The land has been purchased by an Auckland based investment company which will lease the entire property to Landcorp, the country's largest corporate farmer, on a longterm lease. As part of the agreement, Landcorp will be responsible for the conversion of the forestry land to dairy. Within the last five years, there have been other significant dairy conversions in the North Island, with 5000ha of Carter Holt Harvey's Kinleith property sold down, with the majority of it converted to dairy. The South Island has also begun to experience the same trend. The Selwyn Plantation Board in the Canterbury region is converting 2000ha of its 14000ha of forestry land to pasture at present. South Island dairy farms have been a real growth feature in the area with many sheep operations now being converted to dairy use also. This growth has meant the South Island milk solids production share has increased from 18% to 30% over the last six years" bayleys.co.nz estate agents ~04
Dairy farming can't be whipped: Pye "South Canterbury's Alan Pye says nothing beats dairying for profit.. Potatoes and other crops are still a way of life for the Pyes, who have steadily gathered farming interests throughout New Zealand and Australia, including a stake in Tasman Farms through Dairy Holdings Ltd. But on both sides of the Tasman Sea, the asset-laden family has come to see cows as the best way ahead. In New Zealand they have a share in 44 dairy farms in Dairy Holdings Ltd and nine through various other partnerships.. able to 'double production every year' by buying one acre of land and then buying another.. able to buy irrigating land and convert farms to dairy along the way.. while it waited for the court's ruling, Lynton Dairy was able to join the Glenroy scheme which has access to the Rakaia River, so the partnership now has access to substantially more water than it needs (it has won a tender for Selwyn Plantation Board land in the area recently however so that land is likely to be developed under irrigation as well)" NZ Farmers Weekly 10Oct05
Converting Forestry Blocks to Pasture SPBL "2000ha of the lower lying land to pasture to make better use of the land, and replacing this with cheaper hill country, with a higher rainfall, that is more suited to trees.. have had help from Lincoln with fertiliser and pasture species advice. Various trials have been carried out and the results are being used to improve the process as they go along.. Dealing with weeds is one major issue that scientists from Lincoln University have been helping with. Dr Derrick Moot, Associate Professor at Lincoln, says that raising the soil pH has helped establish the pasture species and reduce the competitiveness of woody weeds like broom and gorse. The weeds that do does emerge can be controlled when young and tender by intensity of grazing.. Superphosphate.. Nitrogen is also necessary to break down the woody debris. Normally cultivation releases enough nitrogen to establish pasture grasses but these soils have not been in pasture before and have a nitrogen deficit. About 100kgN/ha is applied on some soils to boost the woody material breakdown and pasture establishment" Rural Delivery 18Mar06
Assoc Prof Jon Harding - Publications biol.canterbury.ac.nz
Harding J.S. & McIntosh A.R. (2006). The occurrence of Canterbury Mudfish in Selwyn Plantation Board Ltd estate in the Waianiwaniwa Valley. Report for Selwyn Plantation Board. (pdf, 707 KB)
Harding J.S. (2006). Assessment of the impact of road culverts on fish passage within Selwyn Plantation Board Estate. Report for Selwyn Plantation Board. (pdf, 645 KB)

The ECon
NewsMakers panel sets "Orwellian" scene "be very afraid" of this "murky Canterbury asset theft" 2Apr10 + some Christchurch city councillor responses 20Apr10
$900 a day for ECan work "The Government yesterday unveiled its new team to run Environment Canterbury - six men who will each earn $900 for every day they work. They will join Dame Margaret Bazley as commissioners of the regional council, replacing the elected councillors.. Bazley, as the chairwoman, will earn $1400 a day.. Smith said again it was 'a scandal' that after 18 years ECan had still not produced a regional water plan. However, in a letter to the sacked councillors Smith took a different tack and admitted that was partly the fault of successive governments. 'I do acknowledge that historically central government could have done more to support the council,' the letter said. The arrival of the commissioners, who will have special powers never available to ECan councillors, came barely two hours after the elected representatives gave their final farewells in an emotional and packed meeting. Commission chairwoman-delegate Bazley will have departing Electricity Commission chairman David Caygill as her deputy after the changeover of power on May 1. They will be joined in the council room by Lincoln University chancellor and pro-chancellor Tom Lambie and Donald Couch respectively, Canterbury University chancellor Rex Williams, former Environment Court judge Peter Skelton and Enterprise North Canterbury chairman David Bedford. Former councillors were paid $52,000 a year for about four days a week over 40 weeks - an indicative daily rate of around $325. It is understood the new commissioners will be working about two days a week.. Commissioners: Dame Margaret Bazley (chairwoman), public service supremo. David Caygill (deputy chairman), former Cabinet minister, Electricity Commission head. David Bedford, former Telecom senior manager, Enterprise North Canterbury chairman. Donald Couch, former Ngai Tahu deputy kaiwhakahaere. Tom Lambie, South Canterbury dairy farmer. Professor Peter Skelton, former Environment Court judge. Rex Williams, West Coast District Health Board chairman, Water Rights Trust trustee" & Officials opposed ECan changes "The country's top legal brains warned the Government that Cantabrians would be stripped of rights enjoyed by other Kiwis if it forced through Environment Canterbury (ECan) changes. Just-released Cabinet papers show the Ministry of Justice vigorously opposed legislation that sacked regional councillors, put off ECan council elections until 2013, gave commissioners extra powers over water and took away the right for communities to appeal to the Environment Court. The Department of Conservation (DOC) also objected to parts of what is now the Environment Canterbury (Temporary Commissioners and Improved Water Management) Act. It said the Wyatt Creech-led review of the council did not justify bringing in commissioners and restricting any appeals on a regional plan and water conservation orders to points of law in the High Court. The opposition from officials comes as political opponents raise fears the legislation puts too much control in the hands of the commissioner.. Ministry of Justice and DOC.. said the ECan changes were not consistent with Government policy requiring a "particularly strong case [to be] made for any regulatory proposals that are likely to override fundamental common law principles. 'These ... principles include `the right of citizens to have access to the courts'. 'The ministry considers that this is a significant proposal, which, combined with the removal of the elected councillors, means that parties with a stake in Canterbury's natural resources have significantly less ability to protect their rights and interests than elsewhere in the country'" The Press 24Apr10
Meeting of Environment Canterbury commissioners "The Commissioners for Environment Canterbury take over the governance role on May 1 2010 and their first public meeting as Commissioners will take place on Wednesday May 5, at 10 am, Council Chamber, 58 Kilmore St, Christchurch. 'The Government has selected Commissioners with a broad base of skills and expertise to match the challenges facing Environment Canterbury,' said Commissioner chairwoman Dame Margaret Bazley. 'A key task for the Commissioners is the completion of an operative plan for water in Canterbury. But we are also committed to ensuring work programmes across the organisation's portfolios proceed as planned'" scoop 30Apr10
Govt officials to help run ECan "Bazley said commissioners were 'committed to ensuring work programmes across the organisation's portfolios proceed as planned'. Smith's Cabinet paper said: 'Aside from the difficult-to-quantify cost savings attributable to a robust and clear regulatory framework and effective institutional decision-making, this [intervention] option will save ECan ratepayers the cost of the 2010 local body election of approximately $300,000 to $350,000. 'Additional savings to the Canterbury community will be the approximately $850,000 per annum to pay councillors, although this will be largely offset by remuneration for commissioners, anticipated to be $750,000 per annum.' As well as the $200,000 a year for support, the costs of drafting and passing ECan special legislation were likely to be up to $100,000. Smith said in the Cabinet paper the commissioners had a hard job ahead of them. The sacked councillors were members of 12 standing committees, seven portfolio committees, three area committees, 10 pest management liaison committees and 63 river rating committees, as well as sitting on numerous external working parties and groups. "The commissioners will be required to carry out a broad and complex workload," Smith said. 'There is a significant risk that it will not be possible for the commissioners to effectively manage this workload, including sitting on numerous committees and making the large number of decisions necessary to allow ECan to continue to operate and carry out the functions required through the various relevant acts alongside providing advice to Government and resolving freshwater management issues in the region. I propose to direct officials to work closely with ECan officers to minimise these risks once Cabinet approval has been granted'" The Press 3May10
Council Commissioners' meeting #1 act 1 "Tom Lambie declared the potential for a conflict of interest as an irrigator" 5May10 minutes on 14May10 agenda p5
Caution on water role "Enterprise North Canterbury chairman and Waipara grape-grower [Commissioner] David Bedford will today be recommended as the regional council's representative on the Hurunui-Waiau zone committee established by the Canterbury Water Management Strategy. Bedford has previously told The Press that he was aware there could be accusations of a conflict of interest as his work has links with the controversial Hurunui irrigation project" The Press 14May10
The National extinguisher of Canterbury elected representative colleagial debate gets his lucre payback bonus - "The Regulation Hearing Committee is delegated to decide resource consent applications that have been publicly notified, and where there are no parties to be heard, including the applicant. For the next three months, the committee agreed to appoint Alec Neill to decide these cases. Staff recommended Mr Neill as the former chair of the committee as a regional councillor and as a lawyer, experienced in Resource Management Act cases" - Regulation hearing committee summary, update on consents processing - "Environment Canterbury's statutory timeframe compliance averaging 80 percent of all consents for the first four months of 2010" shows Smith lied
Q&A: The Environment Canterbury saga "Mr Creech dismissed accusations of dysfunction at councillor level" etc Chris Hutching nbr.co.nz 17May10
Attorney-general makes pecuniary interest breach "A repeated breach of parliamentary rules by.. Chris Finlayson in not declaring a pecuniary interest raises serious concerns.. Registrar of Pecuniary Interests Dame Margaret Bazley.. pointed out today that Parliament's Standing Orders stated that all company directorships needed to be declared and there were no exemptions.. said there was an 'if in doubt declare it' line often passed on to MPs by the Privileges Committee, and she encouraged members to follow that advice.. recommended Mr Finlayson make an amendment to his declaration for the Register of Pecuniary Interest" 3news 23Jun10

Papers disclose concern over ECan water rules "Government wanted to dilute water-conservation orders and boost irrigation in Canterbury months before the Creech investigation recommended sacking Environment Canterbury (ECan) councillors, newly released documents show" Press 21/04/2010
More cows, fewer sheep "New Zealand now has more than six million dairy cattle, an increase partly driven by higher milk payouts, Statistics New Zealand said today.. Dairy cattle increased by 259,000 in the year ended 30 June 2011, according to the annual agriculture production survey, with most of the increase in the South Island.. North Island land capable of dairying was mostly taken up and so had small annual increases. In the South Island the biggest increase was in Canterbury" stuff.co.nz/business/farming 11/05/2012
ECan not playing fair, says judge "over urban land boundaries" Press 11/10/2012
Money talks in tight rein on ECan "The Government suspended democracy and restricted legal action in Canterbury to protect an agriculture boom potentially worth more than $5 billion to the national economy, documents reveal. It feared the economic boom promised by Canterbury irrigation could be in jeopardy unless Environment Canterbury (ECan) was 'stable, effective and efficient', says a Government report on August 27. The economic impact was one of five key reasons given for axing regional elections in favour of extending the terms of commissioners" Press 29/10/2012
Fonterra fund surges on NZX listing pic "Philip van der Bijl rings bell at Fonterra's Darfield plant to announce the start of trading for the newly-listed Fonterra Shareholder Fund" Press 30/11/2012 & Ngai Tahu boss wins leadership award "But while commercial success is critical, from Solomon and the iwi authority's perspective that success is simply the means to secure financial, cultural, physical and spiritual well-being for future generations" + $700,000 for ECan-iwi link "An ECan staff member, who did not wish to be named for fear of repercussions, contacted the Herald citing concerns over the cost to ratepayers financially and in staff time, especially as ECan was making cuts elsewhere" Timaru Herald 05/12/2012

New Environment Canterbury councillors urged to work together as equals Press 18Oct16

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Global warming 'toppled Mt Cook' The Press 19Apr10
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