Turner seeks to tap into SC's huge potential

One of New Zealand's most influential businessmen is looking at developing wind farms to tap the huge industrial potential in South Canterbury.

Keith Turner, former chief executive of energy giant Meridian, has set up a company called Waitaki Wind to investigate the Waitaki Valley's potential for renewable energy production.

Dr Turner told The Timaru Herald that large-scale agricultural and industrial developments proposed for the region "could turn South Canterbury and North Otago into the envy of the country".

With several significant projects set to pump millions of dollars into the community in the next five years, Dr Turner has taken a personal interest in the Waitaki Valley.

Last week Dr Turner confirmed the wind farm idea was being examined, but would not reveal whether a specific area was the focus of investigation.

"It's just an idea at this stage," Dr Turner said. "It's just too soon to give you [any indication of location or a project timeline]."

While the Waitaki River's hydro power generating capabilities have been known for a long time, the area's wind power producing capabilities are less well known.

Dr Turner is chairman of Oceania Milk, which is in the process of applying for consents to set up a $100 million dairy factory near Glenavy.

The proposed dairy factory joins growing list of multimillion dollar projects on the drawing board for the area: Meridian Energy's $993m hydro tunnel; Holcim New Zealand's $300m cement plant at Weston; as well as several large-scale irrigation schemes, one of which could irrigate up to 40,000 hectares of South Canterbury farmland.

Dr Turner, a 40-year veteran of the electrical industry, and Meridian chief from 1999 until last year, said North Otago and South Canterbury could become the growth bowl of New Zealand.

His optimism is shared within the community but it is tempered by the more immediate effects of economic recession.

Waimate farmers Aad and Wilma van Leeuwen also see potential in the region but have warned that the next six to 12 months would be tough in the region's dairy industry.

The van Leeuwens, who employ 85 people and operate 11 dairy farms, six dry stock farms and a contracting company have had to lay off 14 staff since February.

Mr van Leeuwen believed jobs on other farms in the area had disappeared this year but said the scale of downturn was yet to be fully recognised.

Farmers would need to survive this year before they would see any benefits.

"Of course, any injection from cash money is most welcome," Mr van Leeuwen said.

Secured irrigation would mean "secured growth of grass" a boon for farmers in sheep, beef, dairy and vegetable markets.

"It's obviously got to place us a bit at the forefront."

The large-scale North Bank Tunnel hydro scheme and the cement plant have both faced opposition.

An Environment Court decision on the cement plant is due in August, while a court hearing to decide the legitimacy of water-rights consents granted to Meridian will continue in Oamaru this week.

If both projects are approved, the cement plant could be operational by 2012, the same year construction work on the tunnel could start.

Dr Turner was ranked 14th most influential New Zealander in 2007. His business interests are varied. As well as being chairman of Oceania Milk, he is deputy chairman of Auckland International Airport and chairman of Flight Experience Group in Christchurch, part-owned by Mike Pero.

Dr Turner said he was optimistic that, if successful, consents for the dairy factory could be granted before the end of the year.

The company, which would operate in competition with Russian-owned Nutritek at Studholme, will be in a prime location to benefit from existing and proposed irrigation developments in North Otago and South Canterbury.

PROPOSALS: North Bank Tunnel hydro schemeCost: $900 millionProjected to inject up to $350m over seven-year building period.Holcim cement worksCost: $300mProjected to inject up $18m a year directly and indirectly into community. Oceania Milk factoryCost: $100m Hunter Downs irrigationCosts depend on development plans.Projected to inject up to $117m a year into community. As well as the Hunter Downs scheme, irrigators in the upper and lower Waitaki Valley are applying for consents to operate large-scale irrigation schemes.

- © Fairfax NZ News