Govt cans funding for Flax pipes
Marlborough farms could be left dry after the Government announced that it would turn off the funding tap for irrigation schemes around New Zealand.
Marlborough’s Flaxbourne Irrigation Scheme was one of the ‘‘losers’’ from Finance Minister Grant Robertson’s announcement last week.
But scheme members remained hopeful it would go ahead, even if levels of supply may be reduced.
The proposed scheme’s chair Kevin Loe said it was ‘‘95 per cent business as usual’’ but future demand for water may not be met.
‘‘[Government funding] would have only been needed to make sure the pipe was big enough to cater for future people that may come on board,’’ Loe said.
‘‘That could be the loser.’’
There was no agreement with the Government to provide that funding, but scheme members hoped some funds could yet be forthcoming, he said.
Grant Robertson announced on Thursday that the Government would stop funding the Hurunui, Hunter Downs and Flaxbourne projects through Crown Irrigation Investments Ltd as part of its Confidence and Supply Agreement with the Green Party.
‘‘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, which may contribute to adverse environmental outcomes,’’ Robertson said.
However, the announcement left a sour taste for scheme members.
‘‘It’s pretty disappointing for 10 years of work, with the whole intention of what we’re doing was to make it available to everybody. That was the crown’s [past] intent but now it has a slightly different view but that’s where the world’s moved to,’’ Loe said.
Current commitments by the Government would be honoured, he said.
National’s Kaiko¯ ura MP Stuart Smith said cancelling the funding was a ‘‘lost opportunity’’.
‘‘That’s always been the problem with irrigation schemes, once you put that first pipe in the ground, you’ve determined the size of the scheme. That’s what Crown Irrigations was set up for.’’
He believed the Labour-led Government may still change its tune and was simply catering to the Green Party in the public.
Irrigation could potentially be funded by the $3 billion Provincial Growth Fund, Smith said.
‘‘A bit of window dressing and a bit of a change, and then over the horizon will ride Shane Jones on his draft horse to save the regions with some funding,’’ Smith said.
Flaxbourne farmer John Hickman called the Government’s move ‘‘incredibly short-sighted’’. ‘‘It will be under-built,’’ he said. ‘‘All you’re creating now is more of a have and have-not situation for those that can’t quite make it now,’’ Hickman said.
Marlborough District Council chief executive Mark Wheeler said the announcement would have ‘‘little or no material impact’’ on the Flaxbourne scheme.
‘‘[The] council has already included in its budgets the scheme’s construction and operating costs without the assumption of Crown Irrigation Investments’ assistance.
‘‘The Government’s existing commitment to fund the scheme’s investigation and preliminary design will be honoured,’’ Wheeler said.
A recent redesign in the scheme also halved the original $30 million cost, to be met by the scheme’s subscribers and not ratepayers, he said.