"We're talking 90 people [in the settlement, formerly the Roxburgh hydro village] and a scheme that will cost probably $400,000 or $500,000 by the time it's under way," board member John Lane said yesterday.
The board was considering a report on the reopening of Ministry of Health subsidies to upgrade small communities' drinking water supplies. The report, by Central Otago District Council water services manager Russell Bond, said the board was obliged to meet the drinking water standards in the Health Amendment Act 2007.
"If we say we are going to achieve the drinking water standards for Lake Roxburgh, we're just tying a noose around our neck," Mr Lane said.
Board chairman Stephen Jeffery agreed.
"We may never be able to afford to meet the standards, so it would be hard to pass a recommendation that says we will. Is it achievable?"
To be eligible for the drinking water subsidy, communities must have a "deprivation index" of seven or greater. The index is calculated using census data and other information on the make-up of a community, including school decile numbers, information from Housing New Zealand and the Ministry of Social Development.
Within the Central Otago district, nine water supplies need to be upgraded, but only two - Roxburgh township and Lake Roxburgh village - meet the deprivation index criteria.
Upgrading the Roxburgh water supply has started, using a 70% subsidy from the Ministry of Health, which leaves a shortfall of about $100,000.
The council has applied for a subsidy for the Lake Roxburgh scheme, but has yet to hear whether its application has been successful. The subsidy is based on population, and capped at $1000 per resident, so the Lake Roxburgh scheme would attract a maximum subsidy of $90,000, Mr Bond said.
The original estimate was $368,900.
Under the health legislation, the board has to "take all reasonably practicable steps" to attain drinking water standards.
"They want you to do the best you can, but I don't believe any politician will bankrupt a community to achieve these standards," Mr Bond said.
The board agreed to comply with the drinking water standards for Roxburgh but to "endeavour to take all practicable steps" to comply at Lake Roxburgh.
