WAIMATE DISTRICT COUNCIL

Email communication obtained under the Official Information Act (OIA) revealed the first recorded meeting on June 16, 2020, between the Waimate District Council (WDC) and representatives of the W-t-E incinerator proposal, later known as Project Kea. The meeting at Waimate District Council chambers occurred 15 months before the public announcement of ‘Project Kea’. This well-choreographed announcement took the form of a Stuff article titled ‘Waimate in the running for $350m energy plant’

The September 15, 2021, Stuff article included this statement by Waimate Mayor Craig Rowley: “It was an exciting proposal that could create many benefits for the district. This would include new employment opportunities and is yet another example of the district’s appeal to commercial operators. This initiative has yet to go through the required consenting process, but we know the growth these major enterprises can create, and that’s a big positive for the Waimate District.”

 

WDC CE Stuart Duncan formally invited Kevin Stratful from South Island Resource Recovery Limited (SIRRL) to provide a pitch to a full “in committee” but publicly excluded, council meeting on July 28, 2021. This pitch was presented the day after a modern waste-to-energy plant in Germany exploded. The explosion and ensuing fire took the lives of 7 workers. A similar pitch by Mr Stratful to North Island Councils almost two years later included a PowerPoint presentation claiming that detractors of WtE base their objections and concerns on out-of-date information and that modern incinerators are safe.

One councillor described Stratful’s Powerpoint presentation to WDC as that of a used car salesman, even stating she felt embarrassed for Mr Stratful; it was that bad. However, this didn’t deter senior council management. The WDC CE went on to appoint his support manager, Michelle Jones, as the point of contact for the Project Kea proposal.

Before the public rollout of Project Kea, SIRRL employed the services of public relations firm Convergence to put together the Project Kea website and liaise with WDC staff in coordinating public relations. OIA material showed that Convergence representatives asked Jones to acquire a “statement of support” from Mayor Rowley.

Further requests from Convergence to Jones included a request for a “list of the town’s key influencers,” which Jones provided. 

A Zoom meeting between Rowley, Jones, and Waitaki National MP Jacqui Dean also followed. This meeting was to brief Miss Dean about Project Kea. It included promotional material provided by Convergence to be used by WDC to promote the so-called opportunities this ‘exciting proposal’ could bring to the region.

 

Information sessions 

On September 22nd and 23rd, SIRRL hosted promotional information sessions at the Waimate Event Centre. At Jones’s advice, the September 23rd date coincided with an organised meeting between SIRRL reps and senior members of the Waimate Rotary Group. While these promotional sessions provided the community with a W-t-E concept that included the intention to lodge a resource consent by the end of the year, very little detail was provided about the Project Kea proposal.

Jones emailed WDC staff an invitation to attend the SIRRL-hosted information sessions. Jone’s email included the following: “Mayor Craig (Rowley) is the spokesperson for Project Kea, so all media requests should be directed to him.”

Mayor Rowley has been questioned several times about his involvement with the company behind this venture and his perceived public support of Project Kea. Rowley has continued to argue that he has not publicly supported this proposal; however, being asked to provide a “statement of support” and then doing so makes it hard to justify his position.

A check of WDC meeting minutes reports confirms that the Mayor, CE and WDC councillors did not attend the Project Kea public information sessions held on 22/23 September 2021. Why is that? The company said publicly they intended to apply for resource consent within a couple of months. Shouldn’t WDC councillors have taken every opportunity available to familiarise themselves with SIRRL’s plans? 

Following the Powerpoint presentation on July 28, 2021, by Kevin Stratful, Councillor Fabia Fox emailed her fellow councillors with the following, ” Before we accept one presentation on the benefits and shiny employment and economic development figures on this matter, I think its important as a council (and a community) we develop a broader understanding of the implications of such a development, and the waste to energy concept.” This email accompanied a link to the Berl report on incineration

Councillor O’Connor’s email response to Councillor Fox included the following  “I do however agree that we should not be captured by the soft-sell PR of the company. It looked and sounded good and, while I had a few questions, there are many more we need to ask. At this point I remain optimistic but cautious.” 

Suppose Councilor O’Connor had further questions, as suggested, why did he and the remaining councillors not take the opportunity to attend the company hosted information sessions to learn more about the proposal, and put any questions they had directly to the company?

CLOSED DOOR MEETINGS

On two separate occasions, Why Waste Waimate questioned Mayor Rowley about attending private meetings with SIRRL reps. On both occasions, he vehemently denied having such meetings.

The material sourced from OIA requests revealed that Stuart Duncan organised a meeting on June 16, 2020, between Kevin Stratful (REL/SIRRL), Paul Duder (Babbage Consulting), Mayor Rowley, Stuart Duncan, Michelle Jones, and a local Farmlands real estate agent. The meeting was held in council chambers and had the subject heading’ catch-up meeting re: waste recovery proposal.’ 

OIA sourced material also showed a further meeting between Duncan, Rowley, Stratful, and Duder, organised by Stuart Duncan’s support manager, Michelle Jones, on May 19, 2021, at the Waimate Event Centre. 

Neither W-t-E meeting was recorded in the Mayor or CEO’s reported meetings, which accompany council minutes. Without OIA-sourced material, no record of these meetings would be publicly available. 

 

WWW requested the notes or minutes from these meetings; WDC’s Chief Executive, Stuart Duncan, emailed a reply stating that no notes or minutes were recorded.

WWW also asked about the nature of these meetings. Duncan stated that the first was to “make introductions”. However, the subject heading of the email said ‘catch-up meeting’, which would suggest a meeting of some description had already taken place. 

Duncan described the May 19, 2021 meeting as “a catch-up of where the proposal was currently.”

 

Social media allegations.

In the run-up to the local council elections in October 2022, a candidate made an allegation on social media that meetings had taken place between the mayor and SIRRL/REL representatives that involved discussions about WDC leveraging 20% of the electricity generated by the plant to on-sell back to the community. The candidate also claimed to be present at several meetings between WDC reps, the mayor, and SIRRL (these claims would later be confirmed by Michelle Jones), he also contended that WDC “scribed” these meetings.

WWW has asked Mayor Rowley if these meetings took place and whether the allegations of WDC leveraging electricity from the company were true. Rowley denied both. Deputy Mayor Sharyn Cain commented on the above-mentioned social media post, stating she asked the mayor and CEO if these alledged meetings had occurred, which she said, they both denied.

At a meeting between Rowley, Jones and WWW members held at the Council on August 14, 2023, Jones accepted that several meetings had taken place and that the individual who made the allegations about leveraging electricity was present at these meetings; however, both Jones and Rowley denied discussions regarding leveraging electricity had taken place.

Land subdivision

The land at Glenavy, chosen as the proposed location, was listed for sale by way of a deadline treaty sale, concluding in February 2022. Soon after, the Waimate District Council received a resource consent application to subdivide 15 hectares from a much larger parcel of farmland. The consent application provided a document by Environmental Canterbury regarding a query about the flood zone by the WDC. This document stated that the area was within a low-risk flood zone, but there was very little documentation to accompany that. ECan’s response also said that locals in the area may be able to provide more information about flooding in the area.

WDC stated the following in their decision to accept the application: The resource consent should be considered on a non-notified basis as Council was satisfied that the adverse effects of the activity on the environment would be no more than minor and, in terms of Section 95E of the RMA, no persons have been identified as being directly affected by the activity. Also, it is considered that there are no special circumstances requiring notification of the application.” 

The subdivision application was granted by WDC on April 5, 2022. No consultation was sought between Council and the landowner downstream of the proposed site regarding flooding history, despite communication from ECan advising that locals may hold further flooding information.

The proposed site has an open water channel that carries excess surface water from west to east across the site. SIRRL’s resource consent application states that this channel will be realigned, changing the effect of the natural watercourse. The resource consent also states that the ground level of the site will be raised to meet regulations for building within a flood zone. 

Any changes made to the existing water course and elevation of the site to meet building regulations, could impact neighbouring properties. WDC knew that the subdivision was regarding a forthcoming incinerator proposal that senior Council staff had discussed on numerous occasions. They should also have been aware that a pending resource consent application lodgement for a W-t-E plant would likely affect neighbouring properties. Still, they granted the application without public notification.

Economic Development Steering Group - Industrial Park Investigations

In 2019, the Waimate District Council initiated the Economic Development Steering Group (EDSG). Mayor Rowley initially mooted the group, which was proposed to include three elected council representatives and three community representatives. Mayor Rowley was delegated the role of hand picking the representatives of the EDSG by Council in February 2019. Local businessman Ian Moore was appointed chairperson, and WDC CE support manager Michelle Jones was appointed manager. The remaining members were:

  • Councillors Peter Collins, Jackie Guilford, and Miriam Morton.
  • Local businesswoman Mandy Tagney.
  • And Chris Paul. A local dairy farmer and husband of WDC councillor Sheila Paul.

A sub-committee was formed to concentrate on the industrial park investigations. This included Cnr. Peter Collins, Michelle Jones, and Chris Paul.

Official Information Act requests show that the EDSG explored locations for an industrial park around Waimate; these included land owned by WDC adjacent to the cemetery, land near Knottingley Park in Waimate, council land on Gorge Road, Waimate, and reserve land at St Andrew’s. These locations were later dismissed in favour of pursuing talks with Fonterra about the viability of partnering with WDC to establish an industrial park on Fonterra’s land at Studholme, adjacent to the Studholme Dairy factory.

These Studholme discussions included Waimate Rotary Club member and EDSG member Chris Paul and Fonterra operations manager for Studholme dairy factory, Alan Maitland, also a Waimate Rotary Club member.

Discussions between Paul and Maitland took place at a local Waimate Rotary meeting, not the council chambers. 

Further EDSG discussions with Maitland followed at EDSG chairperson Ian Moore’s Farmlands Real Estate Waimate business premises. The meeting included WDC councillor Tom O’Connor, who, as Michelle Jones would later state, attended several of these meetings but did not have an official role in the group. It is not clear why Councilor O’Connor took part in these discussions.

Notes from these meetings state that Alan Maitland requested a proposal from WDC to take to Fonterra’s Head Office.

Meeting with Craig Rowley and Michelle Jones.

Members of Why Waste Waimate met with Craig Rowley and Michelle Jones at the Waimate District Council on August 14, 2023. Jones and Rowley were asked if there was any connection between SIRRL’s waste-to-energy proposal and the EDSG industrial park investigations. SIRRL had been in discussions with WDC representatives, including Jones, in June 2020, perhaps even earlier, as already suggested. At the time, the EDSG group were exploring industrial park locations around the Waimate district. 
Jones was asked if the EDSG had discussed SIRRL’s intention to build a WtE plant and subsequent business park.
Jones replied, “The EDSG hadn’t discussed it, as what SIRRL was proposing was heavy industry and what WDC was exploring was light industry.” However, EDSG group minutes suggest otherwise. The ‘possibility of heavy industry development’ adjacent to the Fonterra dairy factory and Studholme being a ‘good location for a heavy industrial park’ was mentioned several times. 
The EDSG July 2019 minutes also mention the possibility of WDC partnering with Fonterra on an industrial park development.

SIRRL and WDC independantly exploring industrial parks at the same time?

Both SIRRL and WDC’s EDSG were exploring industrial park developments at the same time, in the same district, and yet WDC’s EDSG manager Michelle Jones (who was later instrumental in helping SIRRL with its public roll out of Project Kea) states SIRRL’s proposal was never discussed by the EDSG.
As the EDSG chairman, Ian Moore played a part in industrial park explorations which involved discussions with Fonterra’s Alan Maitland. Some of these discussions took place at Moore’s Farmlands real estate premises and also at Rotary where Moore is a member. His Farmlands real estate work colleague was present at the initial talks between SIRRL and WDC in June 2020. However, once again, the SIRRL proposal was not discussed by the EDSG.

Did SIRRL's plans initially involve Fonterra's Studholme factory?

When SIRRL publicly released Project Kea, they disclosed their intention to provide neighbouring industries with energy and wanted to hear from businesses interested in relocating near the facility to utilise the energy generated by the plant, thus creating what they termed a “business cluster”. 

When the land was purchased in Glenavy, near Oceania Dairy, SIRRL again said the location was chosen to provide neighbouring industries with energy to offset coal boilers and stated the intention to create a business cluster.
Previous proposals by the same proponents on the West Coast intended to locate the plant near the Westland Dairy factory to provide them with energy.
So, it’s fair to presume Fonterra’s land adjacent to the Studholme Dairy Factory was explored by SIRRL as a possible location; after all, WDC’s EDSG industrial park group had. SIRRL has yet to state whether Studholme was examined as a potential location for Project Kea, but it probably made more sense than the chosen site in Glenavy, as the Fonterra owned land at Studholme is already zoned industrial, is not within a flood zone and is more accessible for development of a rail siding.
In a Timaru Herald letter to the editor, WDC councillor Tom O’Connor mentioned the SIRRL proposal as located at Studholme. However, in a Stuff article, SIRRL had previously stated that SIRRL had purchased land at Glenavy. Was this a Freudian slip? As Mr O’Connor was involved in the WDC’s industrial park discussions with Fonterra’s Alan Maitland, maybe O’Connor was morphing the two proposals together?

EDSG Industrial park group: Timeline

Waimate District councillors approve 25-page draft plan – “Our District, Our Future” Waimate District Economic Development Strategy – and also approve the establishment of an economic development steering group made up of three elected officials and three community members. 

Rowley said the steering group will form project teams to implement the action plans. “It’s critical that this has been and is a partnership with council and the community. I want this to be a 50/50 partnership between council and the community, I’m just proud of the way it has been done.”

High on the EDSG list; was to explore the establishment of an industrial park in the Waimate District.

 

 

Economic Development Steering Group have its inaugural meeting. Members include: Chairman Ian Moore, Chris Paul, Mandy Tangney, Cr Peter Collins, Cr Jackie Guilford, Cr Miriam Morton and Council’s Executive Support Manager Michelle Jones.

Industrial park project sub committee formed. Members include: Cr Peter Collins, Chris Paul and Michelle Jones.

July 11: Industrial park group meeting: Location: WDC chambers. 

Attendees; Chris Paul, Cr Peter Collins, Michelle Jones. Visitor; Kevin Tiffen.

Notes from proposed industrial park Stage 2 options;

  • Adjacent to Fonterrra
  • Suitable for heavy industrial
  • Chris to speak informally with Alan Maitland with a view to forming a partnership to develop an industrial park alongside Fonterra.
  • State Highway access.
  • Short distance to rail.
  • Easy access to markets
  • Fibre along SH1
  • Business exposure
  • NZTA approval
  • Significant exposure for businesses 

July 22: Industrial Park group meeting. Location: WDC chambers. 

Attendees; Chris Paul, Cr Tom O’Connor, Michelle Jones. Apologies Cr Peter Collins.

Actions:

Chris to meet informally with Alan Maitland from Fonterra to discuss possible partnership.

Comments include:

  • Need to make the industrial park more attractive to businesses/investors than what is currently available in Timaru and Oamaru. If the cost is cheaper, people are more likely to take a risk.
  • Consider peppercorn rental, rates remission or other incentives for 5 years if a business signs up for a 25 year lease.
July 29: EDSG meeting.
Notes in relation to industrial park:
Chris will contact Alan Maitland to discuss a potential partnership with Fonterra.

August 5: Industrial park group meeting: Location WDC chambers.

Attendees; Chris Paul, Cr Tom O’Connor, Cr Peter Collins, Michelle Jones, Kevin Tiffen and Dan Mitchell.

Notes include;

  • Ian and Chris spoke with Alan Maitland from Fonterra at Rotary last night. Alan is keen to discuss further when he returns to the Studholme site after 26 August.
  • Alan would like to discuss ideas that he could submit to Fonterra Head Office.
August 12: EDSG meeting;
Notes in relation to industrial park.
The project team met with Dan Mitchell and Kevin Tiffen to discuss the council owned Gorge road land as a potential site for light industry, and heavy industry on SH1 adjacent to Fonterra.
Chris to arrange a meeting with Alan Maitland from Fonterra.

October 7:

  • Email from Chris Paul to Michelle Jones: “Hi I have arranged meeting with Alan Maitland, Fonterra. Meeting at 2:30pm Monday 7/10/2019.”
  • Email from Karlyn Reid to Tom O’Connor: “Hi Tom, I phoned Chris Paul, the meeting is at Ian Moore’s Farmlands Real Estate office at 1:30pm.”
October 14: EDSG meeting.
Notes in relation to  industrial park:
Chris Paul and Tom O’Connor met with Alan Maitland from Fonterra. Fonterra has 26ha north of the factory on SH1 and lease part of the railway corridor. The present factory is located on 14ha. Their expansion consent is valid until 2026. A heavy industrial park located nearby could be considered.

Michelle Jones initiates feasibility study for industrial park. Talks commence with Rationale to establish the viability of an industrial park in Waimate.

Rationale return with a quote of $30,000 plus GST and disbursements to complete the study.

July 11: EDSG meeting.

Notes relating to industrial park:

  • The group agreed not to proceed with the Business park feasibility study on the basis that zoning for commercial and industrial land will be considered as part of the District Plan review; the proximity to large industrial parks in Timaru and Oamaru; and the availability of land if a business did want to expand or set up in the district.