Irrigation New Zealand chief executive Andrew Curtis said the decision to wind up Crown Irrigation Investments has potentially compromised the future of at least five schemes, prompting some to look at the Government’s $1 billion regional growth fund.
It had cast doubt over the viability of Hunter Downs in South Canterbury, Hurunui in North Canterbury, Flaxbourne in Marlborough, Manuherikia in Central Otago and Wairarapa Water.
“Take that (funding) away and they are in pretty serious strife.”
However, if they meet the criteria of enhancing the environment and regional communities they might qualify for the Provincial Growth Fund and Curtis believes some, including the Manuherikia River Company, do.
“They can apply to the regional growth fund because they tick all the boxes.”
Curtis was speaking at the Irrigation NZ conference in Alexandra and said ironically the end of the CII would prevent environmental improvements, such as higher minimum river flows and enhancing the quality of Wainono Lagoon.
Water from the Hunter Downs scheme was to have been diverted into the lagoon to improve water quality.
“There are wider issues such as aquifer recharge, water storage as we face climate change, resolving over-allocated resources and water quality.
“These schemes were all part of the solution.”
Manuherikia River Company chairman Allan Kane said they would look at the Provincial Growth Fund for less than $10 million to pay for a feasibility study, design and planning of the Central Otago scheme.
“Construction capital is not such a concern.
“We believe the economics of the scheme is sufficient that it will not be a major obstacle for farmers. But the feasibility funding is a major obstacle.”
CII contributed to initial stages of the project designed to upgrade and improve the efficiency of the ageing infrastructure and address the ending in 2021 of historic water rights linked to mining permits.
They grant about 200 permits for irrigation water dating back to the goldmining era of the 1880s.
Kane said the upgraded scheme would provide water to 12,500ha in the valley east of Alexandra, a similar area to that already irrigated but with some future-proofing.
The height of the storage dam would be increased, it would provide insurance against climate change, improve the flow and rehabilitation of the Manuherikia River and the efficiency of irrigators as they shift from flood irrigation to spray.
“It would also future-proof the economies of the community and Alexandra,” he said.
The company will approach the Provincial Growth Fund.
“We tend to feel that while we are disappointed at losing prospective matching funding from CII, we are hopeful we will fit in to the current Government thinking around small water storage schemes, environmental outcomes and future-proofing of the community.”
Irrigation NZ chairwoman Nicky Heslop did not think the closure of CII signalled an end to new schemes but it did mean the irrigation sector needed to do better at telling its story about the efficient use of water and the impact on water quality.
“A big chunk of that is about water efficiency, how, when and why we apply water.”
It is acceptable the Government requires irrigators meet expected standards but she said it did not preclude the need to investigate the role of water storage not just for irrigation but to soften the impacts of climate change, to service communities and protect food production.
Heslop believed this is a turning point for the sector.
“We have got to get better at the message we send to the public, accept that irrigation has had an impact and that we are taking action to address that.
“We have got to get a whole lot better at communicating that.”
