Southern irrigation scheme interests have applauded the Government's expanded irrigation fund, saying it is a step in the right direction.
Central Otago, North Otago and Waimate scheme leaders together with Central Otago mayor Tony Lepper yesterday welcomed news the Government was expanding its investment in irrigation and considering investing up to $400 million to ensure regional schemes got off the ground.
Minister of Agriculture David Carter announced plans on Monday to spend $35 million over five years in an irrigation acceleration fund. The fund will support the development of irrigation proposals to get them to an investment-ready prospectus stage.
The new scheme will incorporate the Ministry of Agriculture's community irrigation fund from the 2011-12 financial year and the Government would consider investing up to $400 million of equity in constructing regional irrigation schemes to encourage third-party capital investment.
"Obviously, this is exciting to Central Otago because we are one of the areas that can benefit so much from a guaranteed water supply," Mr Lepper said.
"The idea of equity funding is in itself exciting as it shows other organisations that this is an acceptable use of public funds." Manuherikia Irrigation Co-operative Society chairman Gary Kelliher said any expanded criteria for irrigation funding was great news.
"I think this is definitely a step in the right direction. The Government has made it very clear it is a last-resort funder for irrigation schemes and we can understand that, but this is an improved commitment to what we've had before." The proposed Manuherikia irrigation scheme would draw water from the Clutha River and cover about 3500ha, with the possibility of expanding to cover 8500ha.
Tarras Water chairman Peter Jolly said he needed to study the details of the Government funding before making any comment on how it would affect the proposed Tarras irrigation scheme.
"But anything that gives expanded funding to irrigation has to be a step in the right direction."
Tarras Water was recently successful in getting a subsidy from the community irrigation fund of about $275,000, which it would match dollar for dollar.
The money was for further development of the scheme's project model so it could come up with more information to settle on a guaranteed maximum price.
Then it could look at financing the construction of the scheme, which will irrigate about 8000ha of farmland.
The group launched a share offer earlier this year to pay for the final design stage and raised about $180,000 after about 70% of the shares were taken up. It was in talks with a party interested in the unsubscribed shares, Mr Jolly said.
The Waitaki Irrigators' Collective Ltd, made up of North Otago and Waimate irrigation companies taking water from the Waitaki River, is encouraged by the Government's recognition managing water effectively is the key to ensuring the primary sector continues to contribute significantly to the New Zealand economy.
The company's policy manager Elizabeth Soal said yesterday a substantial body of research showed irrigation schemes brought significant benefits to communities beyond the farm gate.
"The Government investing in irrigation projects means schemes will be in a better position to attract private investment and allow for comprehensive planning and design."
Some schemes within the collective were already implementing comprehensive environmental farm planning, with more to follow, she said.
