Govt cash may spur irrigation rethink

The Central Otago District Council might have to rethink its decision not to invest in irrigation schemes following a government announcement allowing local authorities to apply for funding.

The council's district development committee agreed this month to back off investing in irrigation despite spending $10,000 on a study into the multimillion-dollar water industry. It decided to offer no more council funding until the Government announced its infrastructure spending.

However, the Government has announced it is giving the green light to local governments to apply for grants from the $5.7 million Community Irrigation Fund.

Central Otago District Mayor Malcolm Macpherson said the funding announcement was "potentially very good news" for the district. "... if it allows us access to funds previously not available ...we've got to make a decision about possible investment," Mr Macpherson said.

The council had been talking to people behind three schemes the Dairy Creek Irrigation Scheme, Mount Ida Dam and the Tarras Community Water Scheme about possible investment, he said.

"This (the fund) may be an avenue for us to be significant players in irrigation. It's potentially very good news," he said.

Council business development manager Jonathan Gadd said the council would need to understand the criteria before it could decide whether it would apply for funding.

"It is good news. If this is an appropriate mechanism for us we are very interested in it," he said.

Agriculture Minister David Carter said the fund helped agricultural producers and rural communities fund new community water storage and irrigation schemes. However, local governments had previously been excluded.

"The message came through loud and clear at the Water Infrastructure Forum held in Christchurch in December that this had to change, and I made a commitment to act on it," Mr Carter said

A co-ordinated approach involving central government, local government and communities working together was the best way to achieve sustainable water management, he said.

"Expanding the eligibility and assessment criteria of the fund, and increasing the allocated funding available in the early years, means local government-led water strategies can be part of this process," he said.

Gary Kelliher, of Dairy Creek and Manuherikia Irrigation Society, welcomed the announcement. "Local authorities need to be more involved in irrigation for their communities and if this opens a few more avenues for them then it has to be a good thing," he said.

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