A proposed mid-Canterbury irrigation scheme south of the Rakaia River has issued a $30 million prospectus but looks unlikely to receive much support.

The Barrhill-Chertsey scheme that would irrigate 17,500ha for 200 farmers received resource consent in 2001 and has obtained two extensions to the five-year consent as it has sought investment funding from lukewarm farmers.

Only about $1 million worth of shares have been subscribed for so far and the offer closes at the end of next week.

The chairman of the scheme, John Wright told NZ Property Investor that farmers and their bank funders were cautious about the six-figure sums required from each property holder. But directors had also been talking to institutional investors (Timaru-based Allan Hubbard is a shareholder).

“We have a figure in mind that will determine if it’s sensible to go ahead. If we had a 50% uptake we’d go ahead.”

Mr Wright did not hold out much hope for government subsidies to pay for the scheme as some farming leaders have been seeking.

The offer comes against a background of easing commodity prices and warnings from credit agencies about high debt in the dairy industry, particularly from large recently converted dairy farms (ironically, Barrhill-Chertsey farms are mainly arable but that sector has also suffered price declines).

Meanwhile, hearings for the proposed $600 million Central Plains scheme covering about 60,000ha between the Rakaia and Waimakariri Rivers resume on October 5.

Resource consent commissioners rejected part of the plan to compulsorily acquire properties and flood a valley but will continue to hear submissions for a truncated scheme.

The commissioners have told Central Plains to focus on health risks from effluent, effects on groundwater recharge, lowland water tables, and flows of the Waimakariri River.

Meanwhile, a Hurunui (north Canterbury) “water optimisation project” has lodged a resource consent application.

The Hurunui Water Project is battling opponents who are seeking a conservation order. The hearing finished last week and the result is due out any day.

However, the Hurunui irrigators will appeal to the Environment Court if the conservation order is awarded.

The Hurunui Water Project promoters claim to have consulted widely but they have restricted meetings and newspaper advertising to rural north Canterbury areas rather than the main population area of Christchurch.

Project manager Amanda Loeffen told NZPI she believed the Hurunui project had carried out sufficient consultation. Public consultation was high in the mind of a Ministry of Agriculture and Fisheries official when delaying the approval of a grant last year.

The project proposes to develop upper catchment water storage in the South Branch of the Hurunui River and to manage the lake level of Lake Sumner, a highly controversial move. The plan is to irrigate 42,000ha. Eskhead Station owner David Teece is understood to be one of the main enthusiasts.

The Hurunui project is one of the most controversial because of high amenity values, with the upper reaches river running clear out of Lake Sumner most of the time, unlike other large rivers that are quickly affected by rainfall. It is popular with kayakers, anglers and other recreationists.

Like the Central Plains venture, the Hurunui group is seeking water rights before finalising details of the project.

The Central Plains hearings commissioners have sought more evidence on whether granting the water rights in the absence of a business proposal merely locks up the resource that may be used by other applicants seeking smaller takes.