Troubled Waters

The Matakitaki River rises in the Spenser Mountains,north of the Lewis Pass, and flows for about 65km until it joins the BullerRiver just west of Murchison. If local power company Network Tasman has itsway, that journey will soon be interrupted by a series of hydroelectric dams.

The township of Murchison sits snugly in theconfluence of the Buller and the Matakitaki. Its economy is intrinsically tied tothe rivers flowing past its back door, with a tourism industry based on recreationaluse of the rivers for white-water rafting, trout fishing and kayaking.

In 2008, local lines company Network Tasman purchasedabout 300ha of land in the Matakitaki Valley 30km south of Murchison. Thecompany announced its intention to research the feasibility of a power-generationscheme capable of generating up to 30MW, making the Matakitaki one of about 50rivers nationwide currently under consideration for a hydroelectric scheme.

The proposal was met with dismay by river users suchas the Nelson Canoe Club, Fish & Game, Forest & Bird and local tourismoperators. The Nelson Economic Development Agency and Nelson Pine Industriesboth welcomed the initiative.

In June 2009, Network Tasman held consultationmeetings with landowners, fishermen, kayakers and the Murchison CommunityCouncil, and released a document outlining the scope of the pre-feasibilitystudy. Four power-generation opportunities were identified, involving dams atBlue Rock, Horse Terrace Bridge, Wheeler’s Creek and Mammoth Gorge.

In August 2009, the company announced at its AGM thatit was still yet to decide whether or not to conduct a full-scale feasibilitystudy into the scheme.

“We have some dated historical river-flow data butthere is a perception that flows have reduced since this information wascollected, so we need that information updated before we go any further. We arealso looking into historical, heritage and environmental issues that may have abearing on the project,” says Network Tasman chairman Ian Kearney.

The Buller River Water Conservation Order wasestablished in 2001 to protect the outstanding features of the Buller River andits tributaries. It includes the Upper Matakitaki River upstream from Mount EllaStation but does not protect the stretch of the Matakitaki under considerationby Network Tasman.

Ian Kearney says that this was to specifically allowinvestigation into power generation on the river, and that there are no otherhydroelectric options in the region. However, the Ministry of EconomicDevelopment’s website lists rivers that have been identified for hydroelectricdevelopment and the Waimea River is listed as having 16MW potential.

Murchison lodge owner Steve Wood is one of theMatakitaki scheme’s most fervent opponents. He speculates as to why the companyis not pursuing the Waimea option.

“It’s because they know the people of Richmond andNelson wouldn’t stand for it. It’ll be easier for them to devastate the economyof a small rural community without the resources to resist. This certainlyechoes the sentiments of Ted Anderson (chair of Network Tasman Trust) at one oflast year’s trust meetings where he agreed that he was prepared to sacrificeMurchison’s economy for the greater good,” says Steve.

Environmental concerns have been raised by DebsMartin, Regional Field Officer (Top of the South) for Forest & Bird.

“Endangered black-fronted terns and black-billed gullshave healthy populations on the Matakitaki River. In addition, the steep-sidedbanks in many of the gorges contain important vegetation that is a criticalfood supply for native birds. The braided river habitat above Mammoth Gorge isthe best example in the region,” says Debs.

Lawson Davey, Nelson Field Officer for Fish & Game,said that the biggest concern for the Buller Catchment trout fishery would bethe impact on fish travelling upstream.

“We suspect that the big trophy fish that attractanglers to the Upper Matakitaki River are able to grow that big because theytravel downstream for food supplies before heading back upstream as matureadults. A dam is a major impediment to fish travelling upstream, and theprotected spawning grounds in the Upper Matakitaki are vital to the health ofthe fishery in the Buller Catchment. The middle Matakitaki is integral to thehealth of the Upper Matakitaki and Buller Rivers, and should be protected bydefault by the Buller River Water Conservation Order,” says Lawson.

Tasman District Council Resource Scientist TrevorJames said that controlled flows downstream from a dam at Horse Terrace Bridgecould impact on migration of longfin eel (tuna) and koaro, and on localpopulations of northern galaxias.

The 1923-built Horse Terrace Bridge would bedemolished to make way for the dam. Its unique construction makes it one ofonly two such bridges in the southern hemisphere. The bridge is 19m above thewater level at normal flow; the dam proposed for the site is 43m high.

Network Tasman announced in October 2009 that thefocus of its investigations at that stage were the Upper Matakitaki MammothGorge and Horse Terrace Bridge proposals, but did not rule out the possibilityof a future scheme in the Middle Matakitaki.

Wendy Wood, chair of the Murchison Visitor Centreuntil 2008, has calculated through a local survey that last season’s tourismspend for Murchison was around $23m. She said that the Matakitaki River is thejewel in Murchison’s ecotourism crown, being world renowned for its troutfishing and kayaking. Fish & Game recorded 1,037 angler days in the 2008-09season on the river.

“Kayakers come from overseas as well as all over NewZealand to paddle the Matakitaki. The grade 2 Middle Matakitaki run is the mostkayaked stretch of water in the southern hemisphere, with 1,351 descentsrecorded in the 2008-09 season,” says Wendy.

A dam at Horse Terrace Bridge would mean that flowsdownstream would be controlled. Ian Kearney says that the flow would becontrolled “appropriately” to consider the needs of downstream river users.

Mick Hopkinson, kayaking legend and co-owner of theNew Zealand Kayak School, says the effect of controlled flows downstream from adam at Horse Terrace Bridge would inevitably impact on kayakers’ use of theriver.

“The level of water in the river would be dictated bythe spot market for power generation, not by the needs of river usersdownstream. If it takes two or three days to fill the dam, flow will be lowduring that period. Water will be let out when they need to make power – notwhen kayakers or fishermen want to use the river.”

Mick is adamant that the Matakitaki River should notbe dammed. “The Matakitaki is unique for many reasons, but for kayakers itoffers a superb wilderness kayaking experience at different grades in an easilyaccessible location. It offers some of the best intermediate kayaking in theworld, and Murchison is the kayaking capital of New Zealand. The Matakitaki isnot a renewable resource – once it’s gone, it’s gone. We won’t be able toreplace it.”

Ian Kearney says that there would be benefits for thetown if the scheme were to go ahead. He describes the current security ofsupply to the region as tenuous due to the fact that the supply line runsacross several earthquake-prone fault lines, although he agrees that there havebeen no problems with the line to date. “In the event of an earthquake damagingthe line, the hydroelectric scheme would mean that Murchison’s power would besecure.”

However, Murchison has already as good as lost one ofits rivers to New Zealand Energy Ltd with the recent decision by TasmanDistrict Council to grant resource consent for a hydroelectric scheme on theMatiri River. An inducement to placate Murchison residents was the promise topower the town in the event of “grid failure”, so Murchison’s continuity-of-supplyneeds may already be met.

Network Tasman is owned by its 36,000 consumers. “Wehave to do what’s best for them. The savings generated by this scheme could amountto $50-60 per year, based on the average household bill. That’s a significantmotivation for the company,” says Ian Kearney.

It is notable that Nelson Pine Industries, NetworkTasman’s largest customer, would be the biggest winner from this proposal as itcurrently uses around 10% of Network Tasman’s peak supply. Its general manager,Christopher Turner, is also a director of Network Tasman. Nelson PineIndustries is owned by the Sumitomo Forestry Company, so the biggest financialwinners from the Matakitaki scheme would be overseas investors.

Steve Wood comments that a saving of $50 per year forNetwork Tasman consumers on household electricity – which equates to around$1.8m – is a paltry sum in comparison to the $23m tourism spend currently beinggenerated by the region.

“There is enough generation capacity already consentedor under construction to meet New Zealand’s needs. The Matakitaki scheme wouldunnecessarily destroy a wild river,” says Steve.

The threat to the Matakitaki River has galvanisedenvironmental lobbyists already campaigning against similar plans for theMokihinui River north of Westport.

In October 2009, ‘A Day on a Wild River’ was held on11 rivers around the country by the Wild Rivers organisation to highlight theintrinsic values of the rivers. A weekend of river-based activities on theMatakitaki saw around 120 people ranging in age from five to 70 taking part in river-relatedactivities.

West Coast National MP Chris Auchinvole went along forthe rafting trip. When asked about his opinion on the Matakitaki proposal, hesaid that Network Tasman had given assurances that they would consult with thecommunity on any plans. “I believe that it pays to consult earlier rather thanlater. There are good examples of successful use of natural water resources forhydroelectric power generation, and I don’t see these schemes as the end ofrecreational river use.”

Mr Auchinvole said that the government doesn’t have adecisive policy on power-generation schemes and that each project should beconsidered on its own merits. “The Ministry of Economic Development is keen onhydroelectric schemes because they are clean and cheap compared to otheralternatives.”

He stated his intention to call together river usersto discuss the impact of power schemes. He also asked for information on theestimated value of tourism in Murchison, as opposed to the income generated bythe Network Tasman scheme.

“I can talk about the intrinsic values of the river,but the people I work with will want to know ‘how much?’” he said.

Debs Martin says that she would like to see the governmentinvest more time and energy into achieving real gains in energy efficiency andconservation.

“This will, because of the market-driven nature of ourenergy sector, require government leadership. There is a perception that allgrowth is good, but for wild rivers such as the Matakitaki, growth is notequivalent to good. In just over a decade, we could see the demise of all ofour remaining wild rivers in New Zealand if current projections prove true.”

From a legislative point of view, the 2007 New ZealandEnergy Strategy published by the Ministry of Economic Development states that: “Weneed to balance the climate change benefits of increasing renewable electricityagainst the potential impact on the local environment. We will support thisbalancing act by giving consent authorities guidance on the various trade-offsinvolved.”

But a policy statement dated April 2009, available onthe Ministry for the Environment’s website, states that the Ministry of EconomicDevelopment “does not have a view on what indicators or criteria could be usedto give consent authorities guidance.”

So schemes such as the Matakitaki are being proposed,fought over and could well go ahead across New Zealand with no central governmentguidelines to evaluate their worth to the country against the cost to thecommunity.

The Matakitaki River is, undeniably, a valuableresource not to be squandered. The people who live in Murchison, and run theirlives and businesses around the river, recognise its value as a source ofincome and the platform for a thriving tourist-based economy. They also cherishits intrinsic value as a natural feature of great beauty and ecological value.These values are hard to measure against the reality of growing demand forpower in an increasingly unfettered free market. It would be easy to accuse thelocal community who are against the scheme of ‘nimbyism’, but the threat to theMatakitaki has produced angry responses worldwide.

Network Tasman will be gathering information over thenext two years on river flows before deciding whether to proceed any furtherwith the project, but its ownership of land in the Upper Matakitaki Valleymeans it has its interests protected. In the meantime, there will no doubt beongoing lobbying and data gathering by its opponents.

The passion of New Zealand’s environmental lobby isnot to be underestimated, but neither is the power of the free market. Without centralgovernment recognition of the intrinsic values of New Zealand’s wild rivers inthe race towards ‘clean’ energy generation, this is a battle that will befought over and over throughout the country… with potentially devastating results.