For some councillors, the proposal, as put to them at this week's council meeting, was too risky. The request was for the regional council to invest $3.3 million in "dry equity" shares, picking up the 30% of shares not taken up by farmers in the proposed irrigation area, with the aim of on-selling the shares when those farmers did join the scheme, estimated to be in three to five years' time.
Cr Bryan Scott questioned why the regional council was considering the request, given that if the council approved Tarras Water's application for a $2 million grant from the irrigation fund, the council would be putting $5.3 million into the scheme while farmers involved were putting in $7.8 million.
"The benefit of $5.3 million versus $7.8 million seems out of proportion for a commercial venture," Cr Scott said.
The regional council also needed to know where other stakeholders fitted in, including the Central Otago District Council, the Government and energy companies, he said.
"Why would we carry the risk in a commercial venture?"
Cr Gretchen Robertson said she was also a bit nervous, as there were a lot of unanswered questions and the council would be moving away from the realm of low-risk investing.
"We need the community to have their say," she said.
Cr Michael Deaker said "vexatious" areas like the Lindis were under enormous stress in the summer.
He proposed the council consider going out for public consultation on the request for equity funding, once it had been satisfied by the information provided on the concerns the council had.
Chairman Stephen Woodhead said the request was a "unique" opportunity for the council and it and the irrigation grant were pieces of a large puzzle that all needed to fit together.
The scheme was a "fantastic example which will provide significant benefits to the wider community". However, the risks needed to be understood, eliminated or amended to suit the council.
The council decided to give Tarras Water until August 24 to provide the answers the ORC needed. The council would then reconsider the request.
It would also reconsider the company's request for $2 million from the new irrigation fund.
