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Hot Topic Local Govt
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Coalition turns off irrigation funding tap

But smaller "sustainable" water storage projects may be considered by the Provincial Growth Fund as a sop to rural New Zealand.

Nick Grant
Thu, 05 Apr 2018

Finance Minister Grant Robertson has announced the start of the government winding down taxpayer funding of large-scale irrigation projects.

The decision is in line with the government’s coalition and confidence and supply agreements with New Zealand First and the Greens, he said, as is the intention to honour existing commitments.

“This represents a shift in priorities from the previous government,” Mr Robertson said in a statement.

“Large-scale private irrigation schemes should be economically viable on their own, without requiring significant public financing. We must also be mindful of the potential for large-scale irrigation to lead to intensive farming practices that may contribute to adverse environmental outcomes.”

 All existing development contracts Crown Irrigation Investments Limited (CIIL) has already entered into will be honoured to the current phase of each contract.

Three further schemes will be funded through construction because of their advanced status, “subject to meeting the normal requirements of the fund”:

• Completion of Central Plains Water Stage 2 on the Canterbury Plains;

• Construction of the Kurow-Duntroon scheme in Kurow, South Canterbury; and

• Construction of the Waimea Community Dam in Nelson/Tasman.

"We recognise that year-round water availability is important for drier areas of New Zealand,” Mr Robertson also noted.

“Smaller-scale, locally run and environmentally sustainable water storage projects could be considered on a case-by-case basis through the Provincial Growth Fund, due to the importance water plays in growing our provinces.

“Smaller local schemes will help more of our vital regions better prepare for increasingly recurring climatic events such as drought.”

Such projects would be expected to demonstrate “strong alignment with the objectives of the Provincial Growth Fund, and in particular must be environmentally sustainable and deliver benefits across a community,” Mr Robertson said.

Nick Grant
Thu, 05 Apr 2018
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Coalition turns off irrigation funding tap
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