Preface
This Paper is the final commentary on a series of reports commissioned by Government to assist with the development of a policy position in respect to the facilitation of large-scale water enhancement projects in New Zealand, with a primary focus of providing water for extensive community irrigation purposes. The reports cover the areas of: international models and experiences, equity investment options, the role of central government, the role of local government, and economic and social assessment parameters.
These reports are confined to the use of water for irrigation and arose in response to issues raised in investigations by a number of farmer groups into large community-wide irrigation projects. These investigations highlighted the need for information to assist co-operative action for the financing, building and running of the new irrigation schemes.
The dominant view from these reports is that the development process for large-scale water enhancement projects is complex and time consuming and cost-prohibitive. It involves a large number of stakeholders and encompasses important considerations in resource management including economic, social and environmental outcomes.
These reports highlight deficiencies in a number of areas including: an inadequate framework to encourage either regional or national water allocations; weak mechanisms to encourage water to move to uses which give the greatest returns; and limited incentives for efficient water use.
The reports confirm that policy deficiencies and institutional inefficiencies are impeding the potential economic, social, and environmental use of some water resource. This is frustrating the development of new large scale community irrigation schemes; particularly those dependent upon water storage. Such developments require investigation to determine and secure favourable storage sights for future irrigation development.
Unlike many other business opportunities that can evolve and expand with time as markets develop, comprehensive staged development of the supply systems for community irrigation schemes is rarely possible (except within sections of the system). Irrigation investments require funding many years ahead of the supply of water. It is difficult for landowners, and difficult to arrange for collective action, to fund this from their present business, as revenue to fund development is largely dependent on new productivity. The writer of this commentary observes that the benefits from well-formulated, sustainable developments can be considerable, but these will only be achieved with good understanding of the roles and functions of each of the parties involved.
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 & Regions MAF Policy
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