Described as the lifeblood of Mid Canterbury, the Rangitata Diversion Race supports $612 million in the Canterbury economy each year, a new study shows.
A regional economic study has detailed the RDR's impact on the region.
The canal snakes 67km across the Ashburton District, delivering water to support three irrigation schemes in the Mid Canterbury, two hydropower stations (Montalto and Highbank), supply stockwater, and environmental enhancement.
“We talk about it being the lifeblood of Mid Canterbury, but what are the numbers?”
McCormick fronted the Ashburton District Council meeting on April 2 to present the economic report.
The council owns 20% of the ordinary shares of RDR Ltd and appoints a director to the board – a role filled by Mayor Neil Brown this term.
McCormick said seeking the economic report was not an exercise in showing the value of irrigation but “just saying we are part of this whole business and how much do we contribute”.
The report, compiled by Business and Economic Research Ltd (BERL), details “some pretty impressive numbers”, McCormick said.
The report said the RDR supports $612m of value-add (GDP) to the Canterbury regional economy, predominantly in Mid Canterbury.
There is a $563m combined direct expenditure created from the about 108,000 hectares of farmland supported by the three irrigation schemes, plus the estimated expenditure from the Highbank Power Scheme.
The report states that expenditure has a flow on effect to the wider economy, leading to an estimated total expenditure of $1.1 billion.
The expenditure and contribution to GDP support 3,414 full-time equivalent jobs across the region.
The report also had a “limited evaluation” of the economic activity from the Highbank power scheme, treating it as a local business with a $10m contribution to Canterbury’s GDP.
RDRML board member and Manawa Energy representative Richard Spearman said the power station is currently offline as it undergoes an approximately $30m refurbishment.
The project will boost the power generation of the facility by around 8% when it is completed around May 2026.
“It doesn’t sound that much, but that’s another 1000 households worth of electricity,’ Spearman said.
Next to the Highbank power station is a pumping facility, used to deliver water to the Barrhill Chertsey Irrigation scheme, and it is now capable of generating electricity McCormick said.
“[Manawa Energy] converted the pumps to enable them to operate as generators.
“They can either pump the water up [the hill], or the water can run the other way, and they turn into turbines,” McCormick said.
- LDR is local body journalism co-funded by RNZ and NZ On Air.
