Fish and Game announced earlier this year it hoped to reflood 60ha of drained, rush-covered farmland near Henley, south of Dunedin, in about 40cm of water by constructing a low bund across the valley to create 30ha of shallow, open water wetland.
The area, 75% owned by Fish and Game, could then be used by a diverse range of fish and game bird species, and as a duck-shooting area, especially for junior shooters.
Regional council resource management director Selva Selvarajah said the council had assessed the proposal and judged it would affect the values of the swamp, so the application would most likely need to be publicly notified and the council would recommend it be declined.
Once values had been identified they were required, under the council's wetland plans, to be preserved, as each wetland was unique - even a swamp, he said.
As Fish and Game's proposal was to flood the area, it would change the hydrological status, which would have a significant effect and result in the loss of values associated with the swamp-like wetland.
Fish and Game environmental officer Peter Wilson called the ORC decision a "shoddy policy interpretation" at his organisation's council meeting yesterday.
"The Otago Regional Council is taking a very narrow line." Fish and Game operations manager Ian Hadland said he visited the wetland this week and it was holding just about the amount of water Fish and Game wanted to retain.
"It's [the application water level] within its own natural flood range ... most frustrating."
The organisation, which believed the project would enhance the swamp, had spent nearly $10,000, plus staff time, to get to this point, he said.
The delays in securing resource consent were putting at risk funding applications, but it already had approval for the project from the Department of Conservation, City Forests and Ngai Tahu, he said.
At the meeting, councillors were asked to consider four options to move the project ahead - proceed to notification and hearing, with the likely outcome an Environment Court appeal; going straight to the Environment Court; withdraw the application and reapply once the wetland plan change appeal was heard; or withdraw it entirely.
The Fish and Game council decided to apply to have the consent application notified but only after voicing concerns about Fish and Game's entering into more legal action, as it is already appealing the regional council's wetland plan change as well as taking part in ongoing efforts to preserve the Nevis River.
Council member Dave Witherow said given the regional council was treating Fish and Game with "complete contempt", it should go ahead.
It was decided that once the council had issued a decision on the consent, Fish and Game would decide whether to take it to the Environment Court.
Cr Vicky Whyte had her disagreement with the decision recorded, as she believed there should be another way to handle the situation than going to court.
