Thank you for all the feedback on the blog yesterday. They confirm that anglers are really environmentalists at heart and not prepared to believe Government big business claims any more. i.e. Following is just one opinion from West Island:
I visit the mighty Tongariro River once or twice per year from across the ditch,
I found your article informative and captivating.
The reason for this email is that the Tasmanian Electricity Commission has, over the years, harvested many rivers in the name of power generation.
This has caused complete devastation of trout stocks over time.
May I put forward a suggestion that would make Kiwis and myself compare the negativity that was done in the name of ELECTRICITY & COMPARE THE COST OF TOURIST/ENVIRONMENTAL LOSS .
Tasmania is much more similar to NZ rivers and perhaps some elements in Tasmania may be prevented from being very COSTLY ERRORS in NZ RIVERS in particular (my favourite river ) THE TONGARIRO
Another fishy inmate, fascinated by TRM’s revealing report, requested we do some more digging to expose the actual cost overruns, the nitty-gritty of this misguided project. Fortunately, the National Business Review published insider information in 1985, revealing the painful truth that Treasury Officials had denied. Following extract from Keith Chapple’s informative report:
THE COST
Finding the Treasury reports was hopeless. They turned out to be – quote: “an elusive document”.
Following (and during) the major “conservation” conflicts of the 1970s and early 1980s, there began a studious, professional probing of many issues.
Despite attempts to obtain it through the Official Information Act, only parts of the report have been
released.
Fortunately, the National Business Review ran a major story in 1985 which filled many gaps.
Questions of values, aesthetics, conservation of resources and protection of New Zealand’s natural
heritage became (and still are) topics of serious public discussion.
The Treasury report raises serious questions about the quality of advice to Ministers, financial management in the public service, the operations of the Ministries of Electricity/Energy and Works & Development, and the control agencies that monitor Government expenditure.
The Tongariro Project was cited in the report as:
“ONE OF NEW ZEALAND’S MOST MISGUIDED ENGINEERING PROJECTS”
Forestry, coasts, land management, offshore fishing, rivers, wetlands, mining, Maui gas, power generation and others, all came under close scrutiny.
The cost of the scheme, in 1984 dollars, was $603 million over budget. The projected ten-year completion date ended up as 20 years, and when the project was approved, it was on the basis that the cost would be 6.9 cents per kWh. Actual costs were 13.7c.
TREASURY REPORT
Treasury conducted an exhaustive research into hydro development over the past 30 years and issued
a report although the complete report proved to be “an elusive document”.
In comparison, power stations built in 1985 cost an estimated 7 cents a unit. And to make matters worse, Treasury reported the misallocation of $42 million to give permanency to Turangi – the “temporary” workers’ camp for the scheme.
… The report continued: “It is clear that the project would not have gone ahead (to build the TPD) if the final costs of its power had been accurately estimated. As it is, even the 13.7c per unit is questionable as the downstream benefits from the scheme have probably been doubly counted.”
… the project would not have gone ahead if the costs of power had been accurately estimated..” (Treasury Report)
Now, in 2026, over fifty years later, they cannot continue to avoid the truth. The long-term aggradation damage is visually evident. As TRM’s Tasmanian correspondent suggests, how can the Government, aka Electricity NZ (aka Genesis), ever provide compensation for losses to the natural river environment? That is the question. Any ideas? Watch this space…
In case you were wondering, Genesis Net Profit After Tax (NPAT): NZ$169.1 million, a 29% increase from the $131.1 million reported in FY24. I am sure there will be a suitable contingency allowance to provide for emergencies. Their avoidance over the last fifty years of accepting any blame for this aggradation issue has now developed into a tragic environmental emergency.
Try to relate the photos below as normal maintenance of one of the best trout fishing rivers in the world. It looks more like a gravel quarry. Compensation is overdue.
