Government to finance irrigation

HAMISH RUTHERFORD
Last updated 14:45 23/01/2013

Relevant offers

Farming

Action against animal cruelty Fieldays ranks well, but bigger plans on way Letting go is hard - but necessary to grow Farming's changing times Alliance boss announces resignation Scales upbeat about NZX debut NZ wine favoured by British Pig farmers tighten security for activists Prime ewe prices rise at Canterbury sales Heavy prime lambs sell strongly at Coalgate

Up to $80 million is being earmarked for bridging finance for large-scale irrigation schemes in the next financial year, with the Government expecting its consider its first application within 12 months.

In 2011 the Government signalled it would spend up to $400m to provide finance for "regional-scale" irrigation schemes, in a bid to encourage investment from the private sector.

In its first meeting of 2013 today, the Cabinet directed that $80 million be set aside from 2013 from a company set up to encourage the investment.

"The development of well-designed storage and irrigation infrastructure has the potential to deliver significant economic growth for our primary industries and support new jobs, which will have a flow-on effect for all New Zealanders," Primary Industries Minister David Carter said.

"A number of groups are developing proposals for these larger, regional-level schemes, and the Government expects to consider at least one proposal in the next 12 months."

Carter said that because the type of investment in large irrigation schemes was new for private investors "it is appropriate for the Government to take a bridging investment role to ensure the right projects can get under way".

He said the Government would be a minority shareholder in any such scheme, and planned to make the investment only for a short time.

Ad Feedback

- Stuff

Special offers
Opinion poll

What is the main issue for farmers in the upcoming General Election?

Environmental policies that stigmatise farmers and erode income.

The high exchange rate.

Slow progress in upgrading rural broadband.

Rural communities under-represented in Parliament.

Vote Result

Featured Promotions

Sponsored Content

rural digi editions 4/9

Digital editions

Read our rural publications online