Synlait gives water rights to CPW scheme

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Dairy company Synlait and Canterbury irrigation company Central Plains Water have buried their differences over water consents from the Rakaia River to clear the way for an irrigation scheme at Te Pirita in central Canterbury.

That scheme is expected to be part of the wider $200 million CPW irrigation proposal.

The companies said it was too early to say what the Te Pirita scheme would cost. It is intended to irrigate 6000 hectares (14,825 acres). CPW aims to irrigate about 65,000ha.

Yesterday, the companies agreed that Synlait would transfer its resource consents to take water from the Rakaia River to CPW and it would increase its stake in CPW to be one of the larger shareholders.

CPW would drive the Te Pirita irrigation proposal and it would be part of the larger CPW proposal. It meant the smaller proposal could get under way sooner.

Synlait chief executive John Penno said the firm thought it better for the community, through CPW, to be in the driving seat for Canterbury irrigation.

The larger CPW scheme proposal received resource consents three weeks ago.

- © Fairfax NZ News