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An eastern Bay of Plenty dairy factory that dumped more than seven million litres of contaminated wastewater has been slapped with a $49,000 fine, after the regional council took them to court.

But despite the company being backed by public money through the government’s Provincial Growth Fund, it’s likely to suffer no additional consequences as a result of its offending.

Waiū Dairy, which began operating in 2019, pleaded guilty to five counts of unlawfully discharging a contaminant at the Whakatāne District Court last year.

Langford Transport, which transported the wastewater, also pleaded guilty to the same five charges and was fined $31,500.

The charges related to a 49-day period between September and November 2020, where Waiū hired the trucking company to discharge more than seven million litres of the contaminated wastewater across multiple farm paddocks.

The offending took place despite advice from the Bay of Plenty Regional Council that the discharges required resource consent, and any activity without consent would be unlawful.

The wastewater was incredibly high in E. coli and faecal coliform levels, posing a significant risk to the environment if it was to enter a waterway. While there was no evidence of that occurring, the court determined there was potential for environmental harm from the company’s “highly careless” act.

Bay of Plenty Regional Council compliance manager Alex Miller said the penalty sends a strong reminder to businesses about the importance of meeting their obligations when it comes to protecting the environment.

Waiū Dairy is jointly owned by a group of Māori-owned businesses and investment groups as well as Cedenco, the New Zealand-based subsidiary of Imanaka Limited, a Japanese food giant.

Powered by renewable energy, the ethos of the company is rooted in kaitiakitanga, or the guardianship and protection of the land.

Producing a mix of both organic and conventional dairy items, most of the product is exported overseas, trading on the New Zealand brand.

It was the uniqueness of the company’s Māori focus that attracted the Government to loan the company $4.9 million from the Provincial Growth Fund shortly before the period of offending in 2020, so the company could expand its plant.

According to MBIE’s Regional Development Unit, about $4.15m of that loan has already been drawn down.

But the company’s offending won’t see any ramifications to its loan, with the government department saying contractual clauses surrounding unlawful activity won’t be utilised.

“The PGF funding was provided in respect of an upgrade of assets at the Waiū Dairy plant while the prosecution of the Waiū Dairy Company was in respect of the company’s trucking and spreading of wastewater on local farms without the correct resource consents in place.

“We believe the matter has been dealt with appropriately through the courts.”

However, National’s regional development spokesman David Bennett says more due diligence should have been undertaken prior to the award of funds.

“The PGF was a policy the coalition Labour Government pushed through. They should have done their appropriate due diligence and put procedures in place to address any performance concerns.”

Waiū Dairy has since apologised for its conduct, with CEO Samuel Mikaere telling Open Justice that it did not uphold the values of kaitiakitanga.

“Waiū apologises to our community for the events that led to the prosecution and offer that the events that transpired do not represent the values of kaitiakitanga which are very important to the whole team at Waiū Dairy.”

Toi Kai Rākau Iti, the local Bay of Plenty regional councillor representing the Kōhi constituency, has labelled the offending as “disappointing” saying the land must be looked after for future generations.

Langford Transport was contacted for comment.

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