Dr Smith said in Wellington yesterday the environmental impacts of the proposal by Milford Dart Ltd (MDL) to construct a $180 million, 11.3km bus-only tunnel through the Fiordland and Mt Aspiring Nationals Parks were ''significant and beyond what is appropriate in two of New Zealand's most spectacular national parks and a World Heritage area''.
''I appreciate my decision will be a disappointment to the applicants and their supporters.
''I do not in any way criticise them for their entrepreneurial spirit or ambition to ease access for the hundreds of thousands of people who visit Milford Sound.
''This is a conservative decision in which I have decided that nature deserves the benefit of any doubt.''
MDL director Michael Sleigh said, when contacted last night, he had no comment on the decision.
''We've only just received it, so we've got nothing to say at this stage.''
But the developer of a monorail proposal in the area hopes the decision could open the door for his scheme. The minister has still to release a decision on Riverstone Holdings Ltd's Fiordland Link Experience proposal, which seeks to establish a $150 million, 43km monorail, 29km of which would be through conservation land, from Kiwi Burn, near the Mavora Lakes, through the Snowden Forest to Te Anau Downs.
Riverstone Holdings director Bob Robertson told the Otago Daily Times yesterday he expected a decision on the monorail proposal within the next couple of months.
Yesterday's decision provided some confidence with regard to the monorail proposal, given if [the tunnel] had been approved, it would make the viability [of the monorail] ''quite a bit different and more difficult''.
''The same numbers would have been diluted in some form.'' he said.
''Even if the tunnel never got built ... analysts would look at that and go 'we've still got to cut the numbers because it's still a possibility'.''
Dr Smith's decision on the tunnel comes eight years after MDL first mooted the commercial bus tunnel, and 18 months after former conservation minister Kate Wilkinson announced her intention to grant the concession, which would have halved the travel time for the 420,000 visitors a year to Milford Sound.
Ms Cardno, who last year warned if the concession application was granted a judicial review would be sought, told the Otago Daily Times yesterday she was ''absolutely delighted'' with the minister's decision and was feeling ''emotional''.
''I've got tears in my eyes.
''I love that Hollyford Valley and our World Heritage Park.
''I'm pleased with the reasons why he [Dr Smith] declined it.''
The three major reasons for Dr Smith's decision were the depositing of half a million tonnes of tunnel spoil would permanently damage the natural landscape values in the Hollyford; the impact of new roads and portals at each end and the impact on visitors at the entrance to the Routeburn Track; and engineering works and a tunnel were inconsistent with the Fiordland and Mt Aspiring National Park management plans.
He said he also had concerns about the tunnel's safety and he was not satisfied it could be safely built for a price which made it economically viable.
''The risk for the Government ... is that corners are cut or the project is left half-completed with a clean-up liability for the public.''
Late last week, the company outlined an alternative tunnel, about 2km longer, which would relocate the eastern portal. However, it was a ''significantly different proposal'' on which Dr Smith had not received any technical advice.
Further, neither the public nor the hearings commissioner had the opportunity to consider the alternative and Dr Smith considered he had insufficient information to make a decision on it.
Ms Cardno said one of the things that ''disappointed us the most'' was the proposal had ''got so far''.
''We were not adhering to those [national park] management plans.''
While MDL would be within its rights to seek a judicial review on the decision, Dr Smith had been through a rigorous process, she said.
