Case Study 1: A Case Study of the Oroua Catchment Plan

The Ministry for the Environment has published this paper as it may be helpful to those who are either working with or considering the use of economic instruments in resource management. All opinions expressed in this paper are the views of the authors and do not necessarily reflect those of the Ministry. Responses to any of the issues in this paper are welcomed.

Acknowledgements

This paper has been reviewed by staff at Manawatu-Wanganui Regional Council. Their input into this document is much appreciated. The anthors, Gus Roxburgh and Jo Whittle, environmental analysts with the Ministry for the Environment, also wish to thank members of the Oroua Irrigators Group for their valuable input.

1.0 Purpose

The use of economic instruments in resource management has been the focus of considerable academic and media attention over recent years. There has, however, been little practical experience in New Zealand in the use of economic instruments such as transferable permits under the Resource Management Act 1991 (the RMA).

This paper examines the Manawatu-Wanganui Regional Council's Oroua Catchment Water Allocation and River Flows Regional Plan (the Plan) as an example of a regional plan prepared under the RMA which incorporates a transferable water permit system. The aim is to investigate what the barriers are to rutting such systems in place and how these barriers might be overcome. The paper also seeks to identify the Initial problems in implementing a transferable permit system and offers some potential solutions.

It is acknowledged that it is too early to comprehensively evaluate whether this system has resulted in improved resource management outcomes, given that the Plan only became operative in January 1995. It is hoped, however, that the lessons and experiences gained in the Oroua situation might be applicable to other regions where transferable permit systems are being considered.

The paper is designed to be useful for local authority staff, politicians and the public in areas where such Systems are being considered.

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