Royal Forest and Bird Protection

Society of New Zealand Inc.

National Office:
Level One, 90 Ghuznee St
PO Box 631, Wellington 6140
New Zealand
P: +64 4 385 7374
F: +64 4 385 7373
www.forestandbird.org.nz
16 August 2010

Al Morrison
Director – General of Conservation
Department of Conservation
PO Box 10420
Wellington

Dear Al

Proposed Land Exchange by Blackfish Limited

Forest and Bird is very concerned at the proposal by Blackfish Limited to exchange land under s16A
of the Conservation Act to allow the development of a new ski field.

The Society believes that if the proposal was approved the Department would be giving away
publicly owned land of high conservation value in return for land already publicly owned which is
under no particular conservation threat. This, in the opinion of our legal advisor, is likely to be ultra
vires.

The land exchange and s16A of the Conservation Act

Our advice is that a transfer of leasehold interest in a stewardship area from a private party to the
Department in return for the freehold title in another stewardship area does not come within
section 16A of the Act. We believe that even if this was the case the Minister is required to take
into account matters set out in section 16A(2). They are, whether the exchange will (i) enhance the
conservation values of land managed by the department; and (ii) promote the purposes of the
Conservation Act.

In our view such an exchange will not meet these tests. In the first instance the land that Blackfish
are offering to exchange is, because of its terrain, under no real conservation threat. Blackfish have
said in their press release dated 10 August 2010 that they do not need the over 300 hectares their ski
lease area they are proposing to surrender. Furthermore their current lease requires them to carry
out pest and weed control along with controls around the planting of non-native species etc. It is
difficult to understand how the relinquishment of this parcel of land can be seen to be enhancing
the conservation values of that particular land particularly when it is considered what will be lost if
Crystal Valley is given away.
We note in various media comments and in Blackfish Limited’s own press release, much is being
made of the potential economic benefit that would arise if the proposal was to go ahead, for both
the local economy and New Zealand. Although economic benefit may well be a legitimate
consideration for decision-makers when considering this proposal in any RMA forum it is not a
consideration for the Minister of Conservation under the Conservation Act.

As you know the Society is concerned by the Government’s apparent willingness to view our
publicly owned conservation land as an economic commodity. For instance you will be well aware
of our opposition to the Government’s proposal to remove Conservation Lands from Schedule Four
of the Crown Minerals Act to enable mining activities. We are well aware that the ‘balancing’ of
economic benefit and conservation is a part of this Government’s policy and this has been
incorporated into the department’s Statement of Intent 2010-2013. Forest and Bird would be
alarmed if the economic benefit promoted by the company is the reason the Minister agreed to
consider the Blackfish proposal in the first instance under s16A of the Act, given that any such
benefit will only occur as a result of the giving away of publicly owned Conservation Land to a
private developer.

We also understand that the Company is trying to claim that proposal is completely dependent on
the company being able to gain freehold title to Crystal Valley. Many successful ski areas in New
Zealand operate under concessions from the Department and therefore, in principle, the
development of the area could be considered as a concession. It should be noted however, that
given the high natural values of the Crystal Valley the Society has serious doubts it should be
developed in this way.

Crystal Valley is an area that was purchased by the department and a private buyer in 2004 with the
financial support of the Nature Heritage Fund (NHF) and was formerly part of the Castle Hill
Station Pastoral lease. This purchase was part of an effort over a considerable period by the NHF to
protect rare high country basin and dryland ecosystems which are under considerable threat from
development. As a result of several purchases by NHF and with the support of the Minister of
Conservation there is now a continuous corridor of protected land from the Main Divide of the
Southern Alps to the Canterbury Plains.

We note, with some concern, that the only link between the Cragieburn and Korowai-Torless
Tussockland Park is the area to which Blackfish is seeking freehold title. This would, in our opinion,
significantly undermine the considerable effort of NHF, the department, conservation groups such
as Forest and Bird - and successive Ministers - to advocate for, and create this natural corridor.

It is also of concern to read the extensive development of Crystal Valley proposed by Blackfish
Limited. Extensive earthworks to re-contour areas of the valley for ski trails, built infrastructure and
snowmaking reservoirs will result in the destruction of the significant inherent values of what we
understand to be a pristine valley.

In our view this proposal cannot possibly meet the tests set out in s16A of the Act.

When NHF agrees to support the purchase of land for conservation purposes the applicant commits
to permanently and legally protects that land in perpetuity,
The stated objective of the Fund is:
“To enable, facilitate, and support activities directed at the protection of indigenous ecosystems through:
helping to permanently protect representative, sustainable, landscape and amenity values of indigenous
ecosystems, by purchase of interest, or, while leaving the land in private ownership, through covenanting,
leasing, accords, and management agreements".
The NHF application form states the any funding should not be used for commercially-oriented
projects. It is apparent that the whole point of the NHF is to assist in the permanent protection of
natural ecosystems. It cannot be the case that NHF would be willing to provide funding to purchase
land that could ultimately be sold off. The freeholding of Crystal Valley in our view would
represent a serious breach of the NHF purchase agreement in this instance.

We urge that the Minister decline the proposal by Blackfish Limited and for any proposal to be
considered in a thoughtful and strategic manner. If it is indeed the case that there is a real need for
further ski field development in the area this could be considered as part of the review of the
Canterbury Conservation Management Strategy, taking into account a long-term vision for the best
use of the land managed by the department in the Waimakariri Basin and allowing for the New
Zealand public to have a say in the process. It should not be something that is considered in such an
ad hoc and ‘closed doors’ manner as seems to be occurring in this instance.

I would welcome an opportunity to discuss this with you further.

Yours sincerely

Mike Britton
General Manager

cc Minister of Conservation, Hon Kate Wilkinson.