EDS has responded to an announcement from Southdown Holdings Limited, Williamson Holdings Ltd and Five Rivers Ltd that they are withdrawing their applications for effluent discharge consents for large-scale cubicle farming proposals in the Mackenzie Basin.

"The applicants confirmed on Friday that they intend to continue with the proposals," said EDS Chairman Gary Taylor.

"All that has happened is that they have abandoned their effluent discharge consents which apparently they will revisit sometime over the next couple of years.

"There is no indication that they intend to surrender the land use consents which they obtained from Waitaki District Council. Those consents and the related Certificates of Compliance cover the land use change and buildings required for intensive cubicle dairy farming.

"EDS is of the view that these approvals were granted unlawfully.

"Accordingly EDS will continue with its High Court challenge of those approvals.

"We are still awaiting a formal response from the district council and from the applicants to our statement of claim.

"Contrary to some media reports, the cubicle farming proposals are continuing albeit on a slower track," Mr Taylor concluded.

A proposed meeting between lawyers for the applicants and for EDS last Friday was cancelled meantime.