Asbestos-contaminated material found on a former school site has led to increased costs for Kawerau District Council's Central Cove housing development, which may end up being passed on to ratepayers.

The 31-section residential development is being developed on land that previously belonged to the Ministry of Education.

It was the site of Kawerau Central School, built in the 1950s, which closed in 2011 when it was merged with two other schools.

The council purchased the site in 2017 and is developing the site in partnership with Generation Homes.

The matter of asbestos contamination of eight of the lots on the site was raised during the council's regulatory and services committee meeting on Tuesday.

A report to the council by finance and corporate services manager Peter Christophers said the final cost of the removal was not yet known, however, there would be less funds available to smooth rates in subsequent years.

Council communications manager Tania Humberstone told the Beacon the council had not been aware the asbestos-contaminated material was there when it purchased the site. It was discovered near the former school's pool area during the routine pre-build geotech examinations.

'All excavation was halted, and a proper inspection carried out. The council obtained resource consent to remove the asbestos material and the removal has since been carried out on one house site which has been sold and awaiting building to start as soon as possible.

'The removal took place without incident by suitably qualified contractors. Work will continue on other sites to remove any asbestos material.”

The main cost involved in the removal would be disposing of the asbestos-contaminated material and the council hoped to reduce this cost by sealing it into its own transfer station.

At Tuesday's meeting councillor Berice Julian suggested that if the asbestos had been left behind by the demolition of the school, the Ministry of Education or contractors should bear some of the cost.

Chief executive Russell George said this was something they would discuss with the education ministry.

Mayor Malcolm Campbell agreed. He said Kawerau was one town that had found contamination but there would be a lot of schools in the same situation. 'I would hate to have this happen to somebody else and for the ministry to walk away scot-free.”

Seventeen Central Cove sections have been sold, with commitments for a further five sections.

The council has increased the prices of the remaining nine sections in accordance with the conditions of the option agreement.

Another four sections the council is developing at Te Ariki Place remain unsold.