The conditions the council put on its possible $3.5 million investment in Tarras Water's irrigation scheme minimised the risk, he said at the Tarras water hearing yesterday. The investment was considered high-risk by many but ''if you follow all of those through, there is minimal risk.''
Mr Curtis was speaking on day one of the regional council's hearing on its proposal to amend its long-term plan to allow investment in the scheme.
Investing in ''dry shares'' (those not immediately taken up by affected landowners) was a new approach for local government investment in such schemes, he said.
''You've got a good package together. It's a template other councils could use.''
Other regional councils had taken, or planned to take, part in irrigation schemes in a variety of ways.
Panel member and ORC chairman Stephen Woodhead asked, given Irrigation New Zealand's experience and knowledge in the sector, whether it knew of any schemes which had ''gone broke''.
Mr Curtis said there had not been any in recent times and there was plenty of evidence of the social and economic benefits of such schemes. In other places throughout the world central and local government invested in irrigation schemes, so any investment market for the take-up of such dry shares was still ''immature''.
''Councils are perfectly set up to and it's a fairly low-risk venture.''
Fish and Game Council chief executive Niall Watson said the organisation was concerned the council investing in the project would not provide sufficient environmental gains.
The Lindis River was expected to benefit from the scheme as less water would be taken from it but Mr Watson said proposed low flows were not high enough to provide for the restoration of the lower reaches of the river.
It was also concerned the council would put itself in a position of conflict of interest having to police low flows while also protecting the ratepayers' investment.
Federated Farmers Otago chairman Stephen Korteweg said it did not dispute the benefits of the scheme but believed the council ought to stick to its core business. Investing in commercial enterprise was not, and could set a precedent, he said.
The hearing continues today in Cromwell.
Tarras irrigation hearing
(Day 1, Dunedin)
To consider whether the Otago Regional Council should invest $3.5 million in the scheme's dry shares.
• Panel: Chairman Sam Neill and councillors Stephen Woodhead, Gerry Eckhoff and Louise Croot.
• Supply to: About 40 families in the Tarras district.
• Estimated cost: $39.2 million.
• Land irrigated: 6232ha.
• Water take: 4500 litres a second from Clutha River.
• Maximum take: 73.6 million cu m.
• Dates: Water can only be taken between September and April.
ORC proposed contribution
• $3.5 million in redeemable preference shares.
• Requested to pay fixed charges for five years.
• Investment would be funded from reserves.
• Small increase in general rates needed to cover shortfall in investment income.
• Council could receive 6% a year on its initial investment when shares are sold; amounts to additional income of $619,000.
