Preface
This Paper is one of a series of jointly funded reports commissioned investigate impediments and opportunities for the development of large scale water enhancement projects in New Zealand, with a primary focus of providing water for community irrigation schemes. Other reports cover the areas of: equity investment options, the role of central government, the role of local government, and economic and social assessment parameters. An overview and commentary document summarises the key issues raised in the reports.
The future use of water, in the South Island especially, is a critical issue for regional and central government and private investors. As water is a finite resource that has multiple uses and development requires significant, long-term, investment flows.
These reports, which consider the use of water for irrigation, arose from feasibility studies by a number of farmer groups (many of whom have contributed to funding of these reports) into large community-wide irrigation projects. The feasibility studies highlighted the need for information to assist co-operative action for the financing, building and running of irrigation schemes.
This paper reports on the possible contribution by local government to large-scale irrigation scheme development. The author questions whether there are extra benefits to society that would be achieved if local government made such a contribution. The researcher concludes that, because there are a variety of responses that a particular local government can afford, there are varying degrees to which central government might contribute.
The report concludes that it is particularly in the planning and initial development stages of proposed schemes that local government might be able to facilitate proposals. The author suggests that facilitation might take the form of: (a) the provision of funding for initial feasibility studies; (b) general project facilitation, including provision of information, education/training; (c) underwriting scheme revenue capacity; (d) partial funding provider: or (e) providing financial guarantees for secondary security.
The researcher suggests that if local government were to assist with the flow of information to potential users and investors particularly in the areas of feasibility and resource consent, this will enhance the participation of the private sector through the lowering of start up risk. The researcher further suggests that a second reason for assistance arises from early difficulties with financing a long-term irrigation project. To meet this need, the researcher outlines a form of government equity in schemes at early stages, which could later be withdrawn when the schemes are established.
I would like to acknowledge the experts who wrote these reports, the reviewers who made their contribution, and the many people in the farming community and local government who have made their views known. This report reflects their views and will be a useful contribution to government policy analysis.
Alan Walker
Director, Policy Information and Regions MAF Policy
Acknowledgements
The Ministry of Agriculture and Forestry would like to acknowledge the assistance of:
Dr Terry Heiler for helping to shape the original concept of this project and for his comments throughout the project;
The principal authors of the five reports: Dr Terry Heiler; Brett Gamble, Bruce Irvine, Geoff Butcher, Stuart Ford and Wayne McClintock;
Dr Nick Brown for peer review of the draft reports for the studies and preparation of the overview report;
Buddle Findlay for providing advice in Appendix 3 of this report;
Eddie Thomas, Central Plains Water, for his administrative support.
The following organisations for grants for the research of the study briefs and the preparation of the reports and the final commentary:
Agricultural and Marketing Research and Development Trust (AGMARDT)*
Ashburton Water Trust
Central Plains Water Enhancement Committee
Clutha Development Board Farmers Irrigation Group, South Canterbury
Hawkes Bay Regional Council
Marlborough District Council
Masterton Business Enterprise Board
Tasman District Council Waimate District Council
Ministry of Economic Development
Ministry of Agriculture and Forestry
* The Agricultural and Marketing Research and Development Trust (AGMARDT), earns income from funds invested from a share of the monies arising from the winding up of the Phosphate Commission in 1987. This income is used for promoting and encouraging excellence in New Zealand's land-based industries. Grants are made for farmer projects involving grass-roots problem solving and opportunity development, industry support, conference sponsorship, doctoral scholarships and postdoctoral fellowships. Farmer groups are encouraged to seek details on AGMARDT's applications process by accessing the website on www.agmardt.org.nz or contacting the Secretary Manager, P.O. Box 399, Shortland St, Auckland, Tel. (09) 373 3370, Fax (09) 373 3488.
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