The Department of Conservation's decision to accept $175,000 from Meridian Energy - if the Project Hayes wind farm project goes ahead - is "pragmatic" and saves wasting money in the Environment Court, a rival company says.
It was reported yesterday Meridian had agreed to pay Doc so it could improve public access to the Rock and Pillar Conservation Area and undertake research into the eastern falcon.
In exchange, Doc would have "no outstanding issues with the application and neither supports nor opposes" it.
Conservation Minister Tim Groser called for a "full analysis" of the agreement.
As it had happened under the previous Labour government, he would reserve an opinion until he had full information on the situation.
The Environment Court is hearing an appeal of Meridian Energy's proposed $2 billion Project Hayes wind farm, in Queenstown.
Meridian representatives declined to comment on the payment when approached at the hearing yesterday.
TrustPower yesterday confirmed it had signed a similar agreement with Doc over its Mahinerangi wind farm, and it had also included a confidentiality clause.
TrustPower community relations manager Graeme Purches said it provided for a "small amount" - a "six-figure" sum paid over 10 years - to build and maintain a track and a kiosk at the Papanui Conservation Reserve, neighbouring the wind farm.
"Everyone wins out of it," he said when he contacted the Otago Daily Times.
"Doc should get a slap on the back for being able, in our case, to have serious input into the conditions of the resource consent... [and] get better access to the reserve."
It was better to take the pragmatic approach and minimise the impact on the environment than waste time and money in the Environment Court, he said.
Such agreements needed a confidentiality clause so competitors and others they dealt with did not know how much the company had spent, impacting on later projects, he said.
The Director-general of Conservation, Al Morrison, said suggestions Doc accepted money in a secret deal to remain quiet over the wind farm proposal were inaccurate.
"It is no secret that we have negotiated directly with Meridian Energy to resolve local conservation issues."
The department publicly released details of the agreement in July 2007, although it did not release the amount of money involved.
The Government had decided in 2006 to make a submission in support of Project Hayes, but Doc had the ability to address any local conservation issues, he saidDoc had concerns about water quality, some bird and plant species and access to neighbouring conservation land, so it made submissions and entered into direct negotiations with Meridian, Mr Morrison said.
"If we can get compensation to help settle these issues, we will."
Doc Otago conservator Jeff Connell, who was not available to speak to the ODT, told Radio New Zealand yesterday that he saw it as his duty not to get in the way of what the Government of the day wanted.
Through the agreement, Doc had secured better access for the public, he said.
Long-time Otago conservationist Dave Witherow said Doc was good at looking after endangered species but "no darn use at all" at protecting landscapes from the threat of energy projects.
Signing confidential deals with developers compromised the department's statutory duty, he said.
He believed, if Mr Connell was instructed by his superiors to go against the explicit duties of his job, he should have resigned.
"I think what he should have done was go public."
Meridian had also signed a confidential agreement, released to the ODT last year, with the New Zealand Historic Places Trust.
The energy company agreed to pay up to $175,000 and in return mitigate effects on archaeological and historic heritage sites and the trust withdrew its Environment Court appeal against Project Hayes.
Trust chief executive Bruce Chapman, in a statement, said the negotiation of such agreements was common practice with Environment Court appeals.
"Entering into agreements of this nature requires consideration of the cost of pursuing the appeal, the likely outcomes from the court and the willingness of parties to negotiate."
Prime Minister John Key said it was "totally legitimate" for Meridian to give Doc money to offset environmental impacts, but it would not be acceptable if payments were made to any government department to keep quiet about its concerns.
