Hunter Downs Water Ltd announced yesterday it did not have enough buy-in from landowners in its command area between the Waitaki River and Timaru.
The company owns resource consent to use up to 20.5 cumecs of Waitaki River water.
The irrigation proposition was launched in 2006.
In March last year, shares were offered in a $195million scheme to irrigate 21,000 ha and a government development funding grant of $1.37million had been made. By June 2017, the design was shrunk to 12,000 ha.
At the end of last year, South Canterbury rich-lister Gary Rooney’s offer to buy “dry shares” saved the project from being scrapped then.
In April, Finance Minister Grant Robertson announced Crown Irrigation Investments Ltd’s $70million term debt funding would no longer be available to the scheme. So the company released a new funding proposal in August, asking all prospective investors to reconfirm their commitment.
Not enough did.
Chairman Andrew Fraser said yesterday “a significant drop-off in support” meant the scheme could not proceed.
It was not all about intensifying land use and converting to dairying, but rather relieving pressure on existing water takes, decreasing reliance on surface water extractions, and using the plentiful Waitaki River resource, he said. . .
These schemes have to have the support of farmers. But without debt funding from Crown Irrigation, the cost would have been too high for too many.
IrrigationNZ rightly calls it a lost opportunity for South Canterbury.
The scheme had the potential to significantly boost the Waimate economy, create jobs, improve people’s standard of living and help resolve water quality problems,” says Andrew Curtis, Chief Executive of IrrigationNZ.
“It’s disappointing that a scheme with wide reaching community benefits won’t proceed.”
“Much of Environment Canterbury’s plans for improving water quality in the South Canterbury coastal area rely on the development of the irrigation scheme to reduce pressure on groundwater and augment the Lake Wainono Lagoon. Hunter Downs still wants to use its consent to augment the Lake Wainono Lagoon, but the other environmental impacts of the scheme not proceeding will need to be worked through.”
The scheme wouldn’t just have drought-proofed farms, it would have had environmental benefits in improved water quality and lagoon enhancement.
“While farmers benefit from irrigation development, so do local communities. Irrigation projects are difficult to get off the ground if farmers are the sole funders of major infrastructure projects. There have now been numerous studies completed of New Zealand irrigation schemes and all demonstrate that irrigation have significant benefits for local communities and create substantial new tax income for the government,” says Mr Curtis.
“Other countries are increasing their investment in water storage to recognise that their communities and economies need access to a secure water supply in a changing climate. New Zealand needs to keep making similar investments to future-proof our water resources and food production, and secure our export income.”
On the south of the Waitaki River the economic, environmental and social benefits of irrigation are obvious. Those on the other side of the river will miss out on all of that without the scheme.