South Canterbury’s Hunter Downs irrigation scheme was in final-stage talks with farmers and Crown Irrigation Investments for funding linked to a rescue bid for Wainono Lagoon, near Waimate.
Environment Canterbury said using the Waitaki River to add clean, low-nutrient water to the lagoon was a key feature of the proposed 12,000ha Hunter Downs scheme.
ECan classed the coastal lake near Waimate as a nutrient red zone.
Federated Farmers South Canterbury resources chairman Colin Hurst said it was arguable who should pay for augmenting water flows into Wainono, which had deteriorated over decades because of a build-up of phosphate-laden silt.
The brackish and shallow wetland was the second-largest of its kind in the South Island behind central Canterbury’s Lake Ellesmere, which was also polluted.
Hurst said most agreed the only option was to flush Wainono but perhaps the whole country should help pay for it.
Crown Irrigation, set up by the National government, had up to $400m to support privately-initiated projects and had so far spent just over $130m.
Labour had indicated it might not continue the programme.
Hunter Downs project manager Stacey Scott said good progress continued to be made in pulling all the various pieces together to make Hunter Downs a reality.
The farmer-run company was slowly securing the final required hectares to get across the line and it was also seeking Crown funding to make the scheme economically viable.
If Crown Irrigation advanced a concessionary rate of funding the company would be able to build extra capacity for the scheme.
It seemed Crown Irrigation was still supportive, she said.
“Hunter Downs is finalising the principal commercial terms and conditions of a potential financing proposal based on the information provided to the lender to date.”
The environmental enhancement of the Wainono Lagoon was a core part of the scheme, she said.
Hunter Downs was working closely with local iwi and other groups including Rooney Earthmoving and the Morven Glenavy Irrigation Scheme on effective and viable augmentation.
A scheme monitoring programme for the command area was now in place, providing information on the environmental state of the command area.
The monitoring programme would continue for the life of the consent so any effect of new irrigation could be addressed, Scott said.
The scheme’s total nitrogen allocation would be shared among holders of water shares in several catchments.
Farm environment plans for irrigated land use would be part of contracts between Hunter Downs and water users.
Steps would be taken to avoid or minimise adverse impacts of onfarm activities associated with irrigation and implement best-practice farming methods.
The amount of new irrigation under the Hunter Downs scheme in the Wainono/Makikihi catchments was low and the irrigation company believed the farms using the water would not have a direct impact on the lagoon’s health.
