Controversial plans to move a live-in facility for prison parolees to an isolated Waikite Valley site near Rotorua have been scrapped.
Local Democracy Reporting can today reveal that Tikanga Aroro Charitable Trust, which operates the Pūwhakamua rehabilitation service, has dropped its plans.
The reasons are unclear, but there had been pressure from unhappy residents and the Department of Corrections.
The service for paroled offenders was founded by former drug dealer Billy Macfarlane, who is its general manager, and has operated in Ōwhata since 2018.
However, last year it announced plans to shift to Puaiti Rd in the Waikite Valley.
A resource consent application for a live-in facility for up to 10 parolees, purpose-built and prefabricated buildings, earthworks for site preparation, service installation, car parking and landscaping, with 24/7 on-site staffing was filed with the Rotorua Lakes Council in October 2024.
That application was withdrawn last Tuesday.
The proposal had Waikite Valley residents up in arms over the site’s suitability considering its isolated location, distance from emergency services and lack of phone coverage.

The consent application, after being made public in May, received more than 300 public submissions, most of which opposed it.
A Waikite Valley Community Collective spokesperson said the news was a “positive outcome” for residents.
“Since the start of this process a year ago, we have been very clear that the proposed location is not appropriate given the significant safety concerns and risks associated with the proposed activity.”
They are pleased “common sense has prevailed” and called on Corrections to provide the necessary “oversight” to ensure future site selection meets the needs of “both the community and those undergoing reintegration”.
In early June, according to information released under the Official Information Act, Corrections “strongly” encouraged the trust to “reconsider and withdraw” its consent application.
Corrections contracts the trust to operate the Pūwhakamua service. It has provided funding since November 2022, contributing an ongoing $2.6 million with an agreement to fund $800,000 per year until 2027.
In 2023, it also provided the trust with a $2.7 million conditional grant for infrastructure upgrades, of which $1.8 million remains.
Corrections’ acting deputy chief executive of communities, partnerships and pathways, Luke McMahon, confirmed Corrections did not support the Waikite Valley move.
It remains “committed to ensuring the men have safe, suitable accommodation”.
“Supporting people with their reintegration to the community after they’ve been in prison is important in helping reduce the risk of reoffending, and Corrections works with a number of providers to support this.”

The trust told the council on September 9 that it was withdrawing its application.
Local Democracy asked the trust why it withdrew its application, where the programme will operate in the meantime and whether any other locations were being looked at.
The Tikanga Aroro board of trustees said it “will work alongside the Department of Corrections to discuss alternative options for the reintegration service moving forward”.
It did not say in its written response the reason for the withdrawal or the status of the programme in Te Ngae Rd, Ōwhata.
The Te Ngae Rd site remains under council investigation after an inspection in February discovered 14 parolees housed on the site despite rules limiting community housing to eight residents.
An abatement notice, served on March 5, was later withdrawn after the trust responded on March 14 through its lawyers, claiming Pūwhakamua was permitted at the site under “Papakāinga” provisions.
It argued this rendered the abatement notice “invalid”. Papakāinga facilities of 10 or fewer residential units are permitted in rural zoning areas.
Local Democracy Reporting previously reported on the abatement notice withdrawal in May.
At the time, trust chairman Doug Macredie labelled it a “non-event based on incorrect information”.
A council spokesperson could not provide further comment because an “active investigation” was ongoing.
- LDR is local body journalism co-funded by RNZ and NZ On Air.
