Dodgy Socialist Dam to be paid for by ACC?

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via DOC

ACC has declined an Official Information Act request from RNZ News that sought information it held regarding its possible investment in the Hawke’s Bay dam.

It is understood ACC may invest in the dam, after cornerstone investors Trustpower and Ngai Tahu pulled out, saying the risks were too high and the rewards too low.

However, ACC said its position would be prejudiced if it disclosed whether the information asked for even existed, and said therefore “ACC neither confirms nor denies the existence or non-existence of the information”.

ACC minister Nikki Kaye cannot comment as she is not privy to ACC’s investment decisions.

It’s one thing for ACC to make prudent investment decisions, but surely this is a dam with an extremely high risk profile? It’s embroiled in the courts, the environmental impact is clearly severe, and ACC would be getting their investment back how exactly?

Green Party’s water spokesperson Catherine Delahunty said it was obvious ACC was looking to invest in the dam given its refusal, and said the public deserved better.

“So why does the ACC not want to answer the question, why don’t they just admit they’re considering doing this?” Ms Delahunty asked.

“I think that possibly they don’t want to admit it because this scheme is a scheme in trouble – I heard only today that they’re still having trouble getting farmers to invest in it.”

Ms Delahunty said the last thing ACC should be doing with public money is investing in the dam.

By the time Delahunty and I are on the same side of an issue, all sorts of warning flags go up. ACC should not be putting our money into high risk investments.

 

– RNZ

 


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  • Seriously?

    If there is a deal afoot, it would be interesting to know the terms of the proposed investment. I’d hate to think that the Council were offering to underwrite risk to ACC, or to guarantee a certain return.

  • D.Dave

    I think ACC are barking mad for even considering putting OUR money into a scheme like this.

  • Peter

    Good call, good use of money by ACC – long term investment for long term public good in economic growth of the region.

  • AndyG

    So now there is only public money being invested in this project. The original HBRIC consultants feasibility reports suggested private investment was vital to prove to ratepayers & other stakeholders that the project was financially viable! Investors like Trust Power, with expertise in such infrastructure projects, were touted by HBRIC as essential to ensure the financial robustness of the original investment proposal. Looks like that has gone out the window, along with any pretence that this thing would stack up in the real world. Let taxpayers & ratepayers pick up the tab, she’ll be right mate!

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