Government to finance irrigation

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

Relevant offers

Politics

John Key's most enduring legacy is make the right like Madonna Guess who will lead the country on Monday? Will English and Joyce ring the changes? Smiles, selfies and fitting Christchurch farewell for John Key National party heavy hitters throw their weight behind Paula Bennett for deputy Prime Minister Best of the west: Bridges or Bennett? Gibbston Valley Concert liquor licence approved Ultra-fast broadband rolled out on Waiheke Island A safe pair of hands - but can Bill English fill John Key's shoes? English hires Key's chief of staff Eagleson in sign of 'continuity'

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

Should the speed limit be raised to 110kmh on some roads?

Yes

No

Vote Result

Related story: 110kmh limit moves closer

Featured Promotions

Sponsored Content