Kick in the teeth by Government

However, this scheme and two others that have had funding withdrawn will all go ahead, say their spokesmen.

The Government has vetoed loans from Crown Irrigation Investments Ltd (CIIL), for the Hurunui scheme, the Hunter Downs scheme in South Canterbury and the Flaxbourne scheme in southeast Marlborough.

Pile told Rural News the Hurunui project will still go ahead, but may now be limited to only the initial infrastructure without capacity for future expansion. 

Loss of CIIL funding was “just another hurdle in a long line of hurdles”.

“Yes, it’s a bit of a kick in the teeth, the Government signalling that it doesn’t care about the regions despite saying it does.”

Pile says Crown Irrigation was created was to fund overbuild capacity -- beyond what the initial shareholders could finance -- in recognition that irrigation schemes generally attract further demand after they are built.

Pile says the funding veto may change the amount of overbuild, but the scheme remains “full steam ahead” and will go out for a water rights share issue in June. 

“The size and scale may change slightly, and [could] disadvantage future generations,” he said.

Andrew Fraser, chairman of the Hunter Downs Water, said they would comment in more detail after considering what the change would mean.

“All I’m prepared to say is we’re still committed to making this scheme happen,” he said.

Ward farmer Kevin Loe, chairman of the Flaxbourne Community Irrigation Scheme, said the scheme is in its final planning stages, but so far advanced that the funding announcement will have “minimal effect”. 

It has already been downsized to about half its originally proposed coverage area, and will take water from the lower reaches of the Ure River rather than the Awatere and Flaxbourne rivers as originally hoped.

However, Loe says the funding withdrawal means it cannot be built with extra capacity for expansion.