Plans by Chinese investors to double the output of the Synlait Milk dairy plant near Dunsandel in mid-Canterbury have raised new concerns about the pollution of streams and aquifers in the surrounding catchment, a local MP says.
"There is now a real worry that Canterbury corporate dairy farmer Synlait will significantly expand production before effective new environmental controls are put in place to protect endangered water quality in the region," said Labour water spokesman Brendon Burns.
Canterbury is the fastest-growing dairying region and produces about 15 percent of New Zealand's milk for export.
The province's milk production is growing at 5 to 7 percent a year, compared with 3 percent nationally.
Environmental lobbyists have complained dairying in the region is getting dirtier and the Government should set easily-enforced standards to fight contamination of waterways and groundwater.
The Dairying and Clean Streams Accord between Fonterra, the Government and regional councils -- set up after a bitter row between environmentalists and farmers over "dirty dairying" -- reported in its latest annual snapshot that compliance in Canterbury declined to 43 percent from 46 percent.
Last year household water supplies at Dunsandel were having to be treated because they were being contaminated with e-coli bacteria.
Mr Burns said new jobs generated by the $82 million Chinese investment in Synlait were welcome, but it was also crucial to provide effective protection of waterways.
"Canterbury's water quality is such that it is no longer safe to swim in most of our streams and some of our rivers," he said.
"The danger is that Synlait's plans to have its milk powder output doubled by 2011-2012 lines up with the Government's announced agenda to see new water allocations flowing in Canterbury next year, long before any tough new environmental controls can be put in place.
"Dunsandel township, just up the road from the existing plant, has had e-coli in its water supply for the past year," he said.
"Now Synlait wants to double production and later double it again"
"The issue is not about foreign investment, it is about investors getting the benefit of water provided for next to nothing and facing little by way of penalties when the effluent or nitrates from their dairy farms enter our waterways."