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Lake Taupo Water Quality - Nitrogen Leaching Case – July 2008

Simon Berry and Craig Malone have been representing the Waikato Regional Council in relation to an important variation to the Waikato Regional Plan. The variation is intended to regulate land uses in the Lake Taupo catchment to restore and maintain the long term water quality of the Lake, in the face of diffuse nitrogen discharges affecting the Lake’s water quality.

The Waikato Regional Council notified the Variation to the Waikato Regional Plan In 2005, to control land uses (in particular farming) in the Lake Taupo catchment in order to maintain the long term water quality of New Zealand’s largest lake. Studies over recent years have revealed a slow but steady decline in the water quality of the Lake and that this decline is the result of nitrogen leaching into the Lake due to farming activities over the last 30 or 40 years. It is important to address potential nitrogen inputs to the Lake at their source, as once the Lake has been polluted it cannot be treated.

The variation is an innovative measure by the Regional Council to achieve a cap on nitrogen discharges, by restricting nitrogen leaching from farming activities to the same levels as the 2001 – 2005 period. This is referred to as “grandparenting” of rights to discharge nitrogen. Farmers can then intensify farming activities by trading “nitrogen discharge allowances”. Reductions in nitrogen leaching are to be achieved by the application of an $81 million fund contributed by Central Government, Waikato Regional Council and Taupo District Council. The fund is administered by the Lake Taupo Protection Trust, which is tasked with achieving a 20 per cent reduction in nitrogen leaching over the ten year life of the plan.

Appeals against the Regional Council’s decision on the variation by farming organisations (including Federated Farmers and Fonterra), forestry companies (including Carter Holt Harvey) and Ngati Tuwharetoa were heard by the Environment Court over May and June, and the Court has indicated that a decision might be expected in September.

Simon's comments: It is very exciting to be involved in innovative and forward-thinking policy development such as this one as a number of novel concepts are being dealt with in this case. Fundamental issues of equity and fairness arose, as there is a real risk that social and economic disruption would become an issue if an inappropriate form of allocation was imposed. Many of the major issues between the parties were resolved prior to or during the hearing but the Court is still undecided on a number of planning and legal issues.


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