But despite falling short on its water rights share offer the project will go ahead, Hurunui Water Project chief executive Chris Pile said.
The vital community and economic need for an environmentally sustainable water supply is behind the commitment to continue.
After a meeting with share applicants in North Canterbury last week the irrigation company’s board and management confirmed they will continue to develop the scheme despite having a few more hurdles to jump, Pile said.
It received applications for 5200 of the water rights shares on offer.
Shareholders had earlier indicated demand to irrigate up to 17,500 hectares and on that basis a scheme was designed with construction partner, the Rooney Group.
The scheme was to include 3500ha of future capacity to be funded by Crown Irrigation Investments.
The Labour-led coalition Government has since pulled the plug on the investment scheme, leaving the Project and several other Canterbury water schemes high and dry.
While the water rights share is below the threshold necessary to build the current concept design infrastructure at an affordable cost it demonstrates the understanding of those who’ve chosen to invest of the real need for a reliable, sustainable water supply, Pile said.
“Not only is this a significant commitment to invest in their own businesses but also the desire to future-proof and protect the region against droughts.
“It is wrong to think this is only about agri-business. Water is the lifeblood of our community and the frequency and severity of droughts in our region are only likely to increase.”
Australia is suffering through a six-year drought and the impacts of climate change are factors in the high temperature and dry winds fanning the devastating North American forest fires.
“This is the important bigger picture and such conditions impact harshly not only on agricultural productivity and alternative land uses but the stability and sustainability of our communities,” Pile said.
The Hurunui scheme is designed to use on-plains storage, not take low-flow river water, and ensure farmers manage their water supply efficiently and sustainably through the latest monitoring technology.
“The scheme must and will continue,” Pile said.
Federated Farmers welcomed the news farmer shareholders will press on.
“This is a case of short-sighted politicians being just another hazard for farmers to overcome, like the weather and misguided regulations,” Henderson said.
North Canterbury has been punished severely by droughts, most recently from 2014-2017.
The project is about storing water captured when the Hurunui River is in high flow and using it with close attention to environmental impacts.
“Most of the farmers backing the scheme are traditional sheep and beef farmers who are keen to partially irrigate their properties so they can look after the welfare of their livestock and try and maintain their livelihoods through prolonged periods of no rainfall.
“But don’t make the mistake of thinking the Hurunui project is only about farmers,” he said.
“Water storage is also a vital backstop for ensuring the viability of the rural communities in the district – the schools, the retailers and the many businesses that rely on a viable agricultural sector.”
“General uncertainty around new Government policy has knocked the confidence of the Hurunui shareholders and the take-up of subsequent water right shares has been muted,” Henderson said.
“That’s the short-term problem we have to work on because the long-term need is thoroughly established.
“Not to act now risks the entire district becoming less and less viable into the future, especially as the predicted patterns of climate change start to bite.”
