Landowners and the Bay of Plenty Regional Council - the fight between David and Goliath

After all the hard work and the generous donations we have SOME progress.

Thanks to all the work from the people from Protect Rotorua and the contributions to Mai Chen and everyone else that contributed to the additional feedback - this is what we have and here is the process from here - Next Steps

Staff will refine the Draft Rules on the basis of the feedback and the Draft Rules and any necessary options will be presented to a November Workshop for discussion.

Following this a decision will be made about the decision-making timeframe towards adoption for notification.

This is good and showing that council is open to changes to the rules after sending it to Mai she replied

"Excellent. I look forward to seeing real changes for the better in the next set of Rules, Kind regards Mai"

Be very careful in reading what they have said here - all the feedback you made and replies you received are summarised here. Be sure that your comments are noted and it is correct.

Results of Lake Rotorua Nutrient Rules Engagements

Executive Summary

Rules are a part of the packages of initiatives to manage the nitrogen entering Lake Rotorua.

The Committee has previously considered a number of elements of the Draft Rules and in August this year recommended that additional feedback be sought from the community. The various consultation initiatives that have been engaged in have, over a lengthy period,

helped to refine the draft rules structure and to test the practicality of the approaches.

This reflects best practice in ensuring that Regional Council is fully appraised of all of the relevant information before it makes any decision to adopt a plan change for the process of public notification. This report provides a brief overview of previous consultation in 2014, an

overview of recent engagement for the project, and provides an initial view of feedback being considered.

1 Recommendations

That the Regional Direction and Delivery Committee under its delegated

authority:

1 Receives the report, Results of Lake Rotorua Nutrient Rules

Engagements.

2 Notes the feedback received during September/October 2015 and the

consideration being given to this feedback by staff.

2 Purpose

The purpose of this report is to summarise the feedback received on the Draft Lake

Rotorua Nutrient Rules and to identify next steps.

3 Introduction

In developing the Draft Nutrient Rules for Lake Rotorua Council has undertaken a range of consultation and engagement exercises. A variety of technical reviews have also been received on the process and content.

3.1 Pre-2015 Consultation

On December 2014 staff reported back on the substantial consultation exercise that was carried out between and December 2014. The themes that were heard from that consultation exercise and responses included:

Theme Response following previous RDD

Committee direction Science (the science is uncertain, why can’t alum continue to be used, are there other combinations of nitrogen and

phosphorus that could be used)

Science is seen as being robust

Science reviews built into the draft rules

Ongoing research into phosphorus

Social and economic impacts (economic impacts are too high, impact on land value is substantial, undermining of the reason community members choose to live rurally

Acknowledgement that there is an economic/financial impact

Further research and modelling undertaken to describe extent of impact

Managing small properties (impacts ability to use land, variety of land uses, uncertainty about meeting nitrogen level, demands for skills to support resource consent process, unfair to not include <2ha size)

Permitted activity status for under 10 ha

2022 timeframe if over permitted levels

Stocking rate table introduced rather than using a nitrogen loss threshold

Results of Lake Rotorua Nutrient Rules Engagements

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Timeframes, managed reduction and the 2022 target (timeframes unrealistic, explore non-rule options, do not use farm nutrient

plans as regulatory tool)

Certainty is needed and therefore a pathway of managed reduction needs to be specified

Specified mitigation actions (within farm nutrient plans) are a key element of achieving the targets Nitrogen allocation (current nitrogen loss

levels important for position adopted by submitters, high loss seen as polluters)

any allocation approach will have relative “winners” and “losers”

There is no right way to allocate – decision should be based on adopted

principles

Regulatory focus (rules are not the answer – explore other solutions, focus on voluntary and collective action, unfair for the rural landowners to pay for a clean lake)

A regulatory-only solution is not proposed.

There is by necessity a regulatory component to the Integrated Framework

Communication of “whole package” important

The feedback, responses and Council decisions have been incorporated into the development process. A number have led to specific discussions at StAG and then into subsequent community feedback processes. For example, the allocation decision was made by Council based on a StAG recommendation. The allocation methodology has consequently been used in the creation and review of the stocking rate table and over 60 individual property owners have sought their provisional

NDAs to help understand the impact on their activities. 39 have also taken

advantage of the Advice and Support process and have requested nutrient management plans.

3.2 August – September 2015 Consultation Period

In relation to small block owners and deer farmers the following activities have occurred during late August and September:

A meeting was held with approximately sixty five Protect Rotorua members (including small block owners and deer farmers) on 1st September. A follow up meeting occurred on 27 October 2015.

Phone calls to sixty five Protect Rotorua, small block owners and deer

farmers have occurred to listen to ideas, issues and explain the rules further.

The provision of detailed project information and responses to questions to Chen Palmer who represents Protect Rotorua including five LGOIMA responses.

Contact has been made with every known deer farming operation in the

catchment.

Analysis on the small block sector was commissioned. This has provided further useful information on the nature of this sector.

Results of Lake Rotorua Nutrient Rules Engagements

4 In relation to wider public involvement the following activities have occurred:

Drop in days were held on 16th September 12-4pm and 17th September 2-

7pm. These drop in days were advertised through a rural letter drop to

1,200 properties, and various advertising through the Daily Post, Eventfinda, Rotorua Review, Lakes and Regional Council website and through an email to 412 key stakeholders.

Website information has also been update and a substantial increase in

traffic has been observed. For example, from 1st July 2015 – 30th September 2015 there were 4,429 visits to the Rotorua Lakes website with 2,383 being unique visitors.

During late August and September ongoing liaison with key stakeholders has

occurred including:

Executive management has met a number of times with the Rotorua Te

Arawa Lakes partner organisations (Rotorua Lakes Council and Te Arawa

Lakes Trust) to discuss the overall framework for addressing water quality

and a sustainable economy. This issue was also discussed at the Rotorua

Te Arawa Lakes Strategy Group on 16 October 2015.

A meeting was held with Te Arawa Lakes Trust (TALT) staff on 21 August 2015.

The Ministry for the Environment has been kept informed of our consultation and project progress.

Staff met with Waikato Regional Council staff on 18 September 2015 to

discuss cross boundary issues.

Response letters were sent to Beef and Lamb NZ, Federated Farmers and the Lake Rotorua Primary Producers Collective.

A meeting with Rotorua Lakes Council planning staff occurred on 21st

August to provide an overview and update on the draft rules. Draft rules

were provided to Rotorua Lakes Council for feedback and responses made to letters. There has been a focus on achieving a joined up approach to economic analysis.

3.3 Ongoing Key Stakeholder Relationship Management

The Rotorua Te Arawa Lakes Strategy Group met in March and May and received updates on the Lake Rotorua Nutrient Rules Project.

Since the end of 2014 the Stakeholder Advisory Group has continued to meet on a regular basis. Subcommittee meetings have also been held to address specific issues or questions.

Within the Rotorua Lakes Programme, Workstream Lead and Programme Steering Group meetings involving staff from the partner organisations continued to occur on a regular basis.

Results of Lake Rotorua Nutrient Rules Engagements 5

3.1 Ongoing Tangata Whenua Engagement

Tangata whenua engagement in the development of the draft Lake Rotorua Nutrient rules is ongoing. During the August/September period the following occurred:

All Te Arawa Iwi authorities received updated project information and were offered the option of meetings if desired.

The project was presented to Regional Council’s Komiti Maori on 1st October 2015.

Offers to engage with iwi/hapu groups were made wherever possible (such as at StAG, Hamurana Reserve open day, and RPSC Project Steering Group (21 October 2015).

There have been meetings and discussions on the topic of the impact of the rules but not initiated by Council. For example, staff attended but did not present to a meeting of Te Arawa Landowners on 18 September 2015.

4 Feedback Themes

The majority of the feedback received came from drystock or deer farmers. In addition, there were a number of dairy farms and horse owners who provided feedback. Over half of the feedback came from lifestyle properties. Appendix 1

contains a report on the feedback received during the latest round of consultation.

The following are the main themes of that feedback:

People who support the overall concept of the draft rules see them as a key part of achieving water quality and recognise it is important that farmers contribute, but generally believe the draft rules as they stand need refining.

Those who are opposed to the draft rules believe they are not equitable and that polluters will be rewarded. In particular, it was felt that the draft rules are detrimental to farming by small block owners and unfair to those who have previously been good environmental stewards of the land.

Much of the feedback centred on the resulting loss of options and value for land. It was clearly felt that ultimately the rules will make farming businesses uneconomic, particularly for the small block owners. There was also concern around the constraints on undeveloped land.

Respondents were concerned with the financial impacts from the cost of

resource consents and the loss of income from reducing stocking rates. Longer term people identified the lack of flexibility to access new avenues for increasing revenue to face rising costs or environmental factors that affect farming. Some feedback stated the draft rules would mean landowners will no longer be able to run their existing business.

Feedback identified that people consider land values have already dropped in the area as a result of the draft rules. In addition, there was concern that future land values will be negatively impacted due to restrictions on stocking.

Results of Lake Rotorua Nutrient Rules Engagements 6

A number of people believe the draft rules threaten current lifestyles for small block owners because it will significantly change how they use their land, which also has major implications for the wider Rotorua community.

People voiced concerns about the confidence they have in the results

OVERSEER® produces and that the programme is not effective for small block owners or non-mainstream uses. Respondents made suggestions about how OVERSEER® could be improved and identified clarifications needed to assist in improving its usability.

The reliability of the science behind decision-making was questioned. It was also suggested that the scheduled science review should be completed now prior to the development of the rules.

A number of small block owners deem that there is a lack of assessment of the economic and social impacts on the small block holders from the draft rules.

Those consulted with commented on the lack of consultation and that the consultation has been confusing because of the inconsistent messages about a number of issues, such as the changing minimum size of land holding affected.

The membership of the StAG group was also a key topic, particularly in regards to minimising conflicts of interest and representation for the small block owners.

There was a range of alternatives suggested during this stage of consultation.

These included aiming for the 2022 target only, using natural capital for

allocation, focusing on phosphorous mitigation, using wetland areas to address nutrients, allowing more subdivision, not allowing any more dairy farms and education. A number of landowners wanted the flexibility and freedom to decide which nutrient management practice best fits their farm context.

4.1 Initial Responses

A number of the themes are common to previous consultation feedback. For example, there is still criticism of the science that underpins the Integrated Framework and the draft rules and some feedback calls for relying on voluntary approaches rather than rules. There is also concern that the draft rules will bring with them an economic impact. There is also a spread of views on issues for example feedback suggests that the farming sector should not have to bear the cost of cleaning up the lakes as well as feedback that they should.

Through the feedback process it was clear that there is a challenge in

communicating the draft rules in a way that allows people to understand the impacts on their lifestyle and business. This challenge was mostly due to the complexity of the framework, changes in the modelling (OVERSEER®) and misinformation that was available in the public arena. This will remain a challenge.

All feedback is being reviewed by staff for what it is saying about the specific rules the process of developing the rules or the general approach (the Integrated Framework). The following table identifies specific feedback and some initial staff comments.

Results of Lake Rotorua Nutrient Rules Engagements 7

Feedback Initial Staff Comments Reliance on education, voluntary

reductions and best practice

The feedback requests that voluntary approaches are used as opposed to regulatory driver supported by incentives to achieve the

sustainable lake load.

Generally where the reductions are challenging, reduce profit/revenue or require significant system change then it would be unlikely to occur under a voluntary framework.

Best practice is another consideration for meeting the required reductions. Best practice would differ between high and low intensity

operations. Use alternative allocation approach

A number of principles have been used to guide the decision-making that has arrived at the position used in the consultation process.

Natural capital, which is supported by the Forestry sector in particular, has a worse economic impact and redistributes a greater impact into the pastoral sector.

Pastoral averaging, sector averaging and equal allocation were also raised. Impact on future land values of small blocks

Staff continue to look at the impact of the Draft Rules on property values.

Work has already been undertaken on this issue. This identifies an impact on land value. Only a very low impact on lifestyle properties

was identified and there is some uncertainty over this.

The lifestyle market is reported as being buoyant at present irrespective of the draft rules being imminent. Lack of assessment of the economic

and social impacts on the small block holders

A small block report has been commissioned to provide a greater understanding of this sector. Including a threshold to apply to

smaller property sizes

Staff are currently considering this idea that has been identified in the feedback and has been specifically raised on a number of

occasions by StAG.

StAG’s recommendation from its 10 November 2015 meeting should be available to the Committee.

As properties increase in size the risk to the catchment increases of un-managed nitrogen. There is a general shift towards commerciality

as size increases – often with more intensive land use.

Having a threshold would reduce administration costs and is likely to be at low risk.

Results of Lake Rotorua Nutrient Rules Engagements 8

Support only the 2022 target to achieve the 70% reductions (known as

the Opt-In approach)

Staff have discussed with StAG the Opt- Out/Opt-In approaches. In particular the Opt-In approach of only specifying rules and targets

to 2022 (as opposed to rules and targets to 2032 and changing if science substantiates this) carries a significant risk to the funding support that underpins the Integrated

Framework.

StAG’s recommendation from its 10 November 2015 meeting should be available to the Committee.

The idea of an accord to support Opt-Out has been raised with stakeholders. Stocking rates too low in stocking rate table

The stocking rate table has been designed in relation to the typical management system on a lifestyle property. It should adequately allow

for pasture management

Staff will consider the level of nitrogen loss/stocking rates further.

Undeveloped land faces an unduly onerous nitrogen constraint

Undeveloped land is spread relatively proportionally to total ownership across the catchment (in both Maori and non-Maori ownership). The current capping of nitrogen loss under Rule 11 creates more of the

constraint then the draft rules.

Under the draft rules low-intensity drystock land if currently below the range will receive an increase in nitrogen allocation.

Staff are working to understand this issue further in conjunction with Te Tumu Paeroa. Stocking rate table penalises horses, pony clubs will be unable to operate

Horses excrete a significant amount of nitrogen and the stocking rate table reflects this. Staff are considering the input data for horses.

The consenting avenue is available to horse owners/operators. This provides access to an increased level of nitrogen discharge.

The above considerations are being included within the development process and will form part of the future advice to Council. There is a further RDD workshop proposed for late November 2015 to consider all feedback and staff and external reviews of the proposed response to this feedback.

4.2 Technical Considerations

A range of technical feedback has been received from staff, experts and

organisations. This has also led to refinement of the draft rules such as clarifying definitions and terms, explaining numbers and correcting minor errors (such as incorrect cross references).

Results of Lake Rotorua Nutrient Rules Engagements 9

Next Steps

Staff will refine the Draft Rules on the basis of the feedback and the Draft Rules and any necessary options will be presented to a November Workshop for discussion.

Following this a decision will be made about the decision-making timeframe towards adoption for notification.

Stephen Lamb

Natural Resources Policy Manager

for General Manager Environmental Delivery

9 November 2015

Its important to feedback any specific points you would like to make and contributions that you think need to be added to the workshop.