Wellington, Feb 11 NZPA - Waikato's regional council says a $65,000 fine on a Crafar family farm, Hillside Ltd, is appropriate for its illegal effluent discharges.

The company -- which is in receivership -- was fined today in Hamilton District Court on four charges involving three of improper disposal of effluent and one charge of breaching an abatement notice directing the company to cease the unlawful discharges at its property at Kuratau, near Turangi.

"The uncontrolled overflows of effluent at the property had strong potential to contribute to the cumulative impacts of agricultural nutrients on water quality," said Rob Dragten, Environment Waikato's (EW) compliance and education manager.

"Discharges on this farm were completely contrary to the efforts that the majority of farmers in the Lake Taupo catchment are making to protect the water quality of the iconic lake."

Mr Dragten said the council hoped the company would be able to pay the fine, despite being in receivership.

Late last year, the council withdrew charges against the Crafar brothers, Allan and Frank, and Allan's wife Elizabeth, as well as Hillside's sharemilker at the property, Ronald Haket and his company Haket Farming Ltd, when Hillside pleaded guilty to the four charges.

"Given Hillside's guilty plea, plus the fact the Crafars had recently been convicted of similar charges and were in strained financial circumstances, EW decided to spare the ratepayer the costs of an expensive court process against the individuals that would provide little additional community benefit," Mr Dragten said.

The Crafars -- who had previously entered not guilty pleas along with Mr Haket -- had said they would need legal aid to defend themselves, raising the prospect of a long and expensive defended hearing.

Crafar family companies comprising the nation's biggest family-owned group of dairy farms were placed in receivership on October 5.

The Crafar family, based in the Bay of Plenty at Reporoa, built a dairying empire of 22 farms with 20,000 milking cows, 10,000 other stock, 200 staff and around $200 million of debt with Westpac, Rabobank and PGG Wrightson Finance.

Shortly before the receivership government inspectors were ordered to make urgent checks on the welfare of livestock at the family's farms.

Allan Crafar has said at the time that he, his wife Elizabeth, and his brother Frank were being unfairly targeted over issues such as dirty dairying and animal welfare.