The rule arises from District Plan changes in 2016, but has largely gone unenforced until recently.
It does not apply to lakes in the Lakes A Zone, which includes Lakes Tarawera, Tikitapu (Blue Lake), Rotokākahi (Green Lake), Ōkāreka and Ōkataina.
But for the past 10 years, many businesses have been operating on impacted lakes, unaware they were in breach of this rule.
Rotorua Trout Guide owner Julian Danby is one such operator.
He received a letter from Rotorua Lakes Council in March saying he had 14 days to provide evidence he had either begun the process for, or had submitted an application for, a resource consent.
Danby told Local Democracy Reporting he is a “one-man team” and the cost and time involved in getting a resource consent meant he may have to consider his options.
“I’ll probably have to cease operating on Lake Rotorua and Lake Rotoiti and diversify the business,” he said.
Rotorua Trout Guide’s Julian Danby (right) says he may need to consider abandoning the impacted lakes. Photo / Supplied
He estimated his costs to obtain the consent could reach about $10,000.
Danby said the only other conversation he had with the council regarding the issue was a phone call seven months ago.
He had spoken to other operators likely to be impacted, who all expressed the same concerns.
“It’s bonkers,” he said.
“We’ve got the best lake in New Zealand for trout fishing and essentially, there’s going to be no charters available on it because of this legislation issue.”
In his view, the council was “just clipping the ticket”.
Local Democracy Reporting spoke to several other operators who did not want to be named, concerned speaking out may negatively impact future dealings with the council.
Operators running commercial enterprises on lakes in Rotorua’s Water Zone, including Lake Rotorua and Lake Rotoiti (pictured), must obtain a resource consent. Photo / Supplied
One described the consent cost as an “existential risk” to the business, while others said they were still waiting to hear from the council.
Dustin Halidone operates DustyRyders, a jet ski rental service on Lake Rotoiti.
He said he had heard nothing from the council regarding a resource consent for his operations.
He has already “spent thousands” of dollars getting his Maritime New Zealand certification, which he believed gave him the right to operate.
Maritime NZ certification governs safety, while resource consents relate to water use under council planning rules.
“As far as I know, I’m not doing anything wrong,” Halidone said.
Dustin Halidone operates jet ski rentals and services on Lake Rotoiti. Photo / Supplied
“I’ve never heard of any sort of consent being needed from the council.
“I’ll keep going, and hopefully they don’t come and sting us.”
Council destination and development group manager Jean-Paul Gaston confirmed nine operators were informed of the issue last year, shortly after the Lakeland Queen application revealed the consenting issue.
Since then, a further five have been contacted. All 14 received letters giving them 14 days to provide proof of application or their intention to apply.
The council had “identified all operators” it knew of “at this time”.
“This process is about ensuring operators are meeting all requirements,” Gaston said.
Rotorua Lakes Council destination and development group manager Jean-Paul Gaston. Photo / Laura Smith
“We are happy to meet with operators and give them guidance while they begin the consenting process.”
He could not confirm whether operators were made aware when the District Plan changes were initially reviewed in 2012.
He said it was “not uncommon” for resource management provisions to go unused for long periods.
“Our priority has been to ensure that anyone who may be affected is contacted directly by the council,” he said.
“We will work with anyone affected to address any consenting requirements.”
Operators would not be required to cease operations while they worked through consenting requirements.
Mathew Nash is a Local Democracy Reporting journalist based at the Rotorua Daily Post. He has previously written for SunLive, been a regular contributor to RNZ and was a football reporter in the UK for eight years.
– LDR is local body journalism co-funded by RNZ and NZ On Air.