15 Aug 2011

Contact Energy to meet costs of relocating marae

6:37 am on 15 August 2011

Contact Energy is preparing to pick up the tab for relocating a marae that's sinking into the ground, north of Taupo.

Ngati Tahu say Ohaaki marae has dropped 3.7 metres since 1992, with the extraction of underground geothermal fluid by Contact's neighbouring power station.

The marae's now at risk of flooding by the Waikato River.

Contact Energy bought the Ohaaki geothermal power plant, just outside Taupo, from the Crown in the 1990s.

As part of the deal the company agreed to mitigate further subsidence and move the marae if necessary.

It says the cost is unknown as yet, and discussions are continuing with the iwi.