Despite accusations from Labour Party spokesman Grant Robertson an $88,000 consultancy fee paid to Ecologic, run by Dr Smith's friend Guy Salmon, smacked of "cronyism," Dr Smith yesterday said facilitating the agreement had been a good use of public money.
The grant to the Mackenzie Sustainable Futures Trust had helped resolve a contentious dispute that had involved 24 parties, and Ecologic had been paid similar rates to those the firm had received from the previous Labour government, he said.
"The Mackenzie is an iconic area of New Zealand where debate over intensification of agriculture is more contentious than anywhere in the country.
"Millions of dollars were being spent in legal disputes over resource consents, district and regional plan rules, and tenure review. The Government wanted to try and enable broader agreement on a way forward.
"This process was initiated after 5000 submissions were lodged in response to a 16,000-cow cubicle farming operation in the Mackenzie. The Environment Protection Authority had estimated that it would cost $2.63 million to process this one consent application."
APNZ reported Dr Smith approved $180,000 last year for the Sustainable Futures Trust - set up to resolve a dispute between farmers and environmentalists over water allocation issues in the Mackenzie Basin and Waitaki Valley. The trust reportedly ran out of money at the end of last year and asked for a top-up after initially receiving $100,000. Its request was turned down by the Community Environment Fund but later approved by Dr Smith, who granted a further $80,000 from the Ministry for the Environment's funds.
Prime Minister John Key said Guy Salmon had been involved with resolving environmental scuffles in the Mackenzie Basin area before the trust recruited him. Mr Key defended Dr Smith's signing off the payment, saying defending court action on the issue would cost several million dollars.
"It's a small amount of money for the potential resolution of a significant issue," he said.
