Tarras Water Ltd chairman Peter Jolly is congratulating the Central Otago District Council after it agreed to act as loan guarantor for part of an almost $36 millon irrigation scheme.
At a council meeting yesterday, councillors agreed to guarantee 20% of the capital cost of the scheme, despite the majority of the 32 submissions received on the issue saying the council should decline the request.
Most of the submissions also said the council should not create a loan guarantee policy under which to consider such requests in the future, something councillors also agreed to.
Mayor Tony Lepper said, though opposition was strong, in his opinion the scheme was important enough to take the risk. Some submissions said the council needed to consider the risk, while others said it was not a council's job to be involved in a private business.
Cr Jeff Hill said he felt obliged to support the proposal because the council supported tourism.
"If we support one, then we have to support the other".
Cr Steve Battrick said concerns raised in the submissions were the same as those councillors initially had before a series of meetings and workshops.
Mr Lepper said public consultation had been hard.
"It has been very hard to get the message out to the public. I don't think they are fully informed."
Many submitters thought all ratepayers would be disadvantaged if there was ever a call on the guarantee, but a clause in the agreement would see money recouped from those benefiting from the scheme through a targeted rate.
Mr Jolly said he realised supporting the company was a test case for the council.
"It bodes well for ongoing development of irrigation in Central Otago."
The next step was to obtain Otago Regional Council support, which the company hoped to hear back about early next year, Mr Jolly said.
