Simon Hartley's excellent article about Otago's gross domestic product (ODT, 11.3.16) identified just how poorly the province is performing.
Otago is No10 out of 15 provinces.
The Otago Chamber of Commerce's CEO is quoted as acknowledging our ‘‘below average performance'' and ‘‘we're just not moving as fast as we would like.''
The article and comments by the Otago Chamber of Commerce unequivocally support Methodist Mission chief executive Laura Black's position when she calls for more leadership and growth in our economy.
As a province with more potential than any other in New Zealand, now is not too late to push for irrigation development.
Historically Otago has been a huge driver of progress and development within the New Zealand economy.
Today we suffer the indignity of losing funding for our health services, rural roading and agricultural science support.
The Government has identified the goal of doubling the size of the export sector by 2025.
This will not happen unless the producers of this increased production are adequately rewarded.
The issue is: the Government is the largest beneficiary through the collection of GST and taxation.
The local authorities are an equal beneficiary along with landowners.
The Government's Treasury office accepts the benefit from irrigation is 50% to the Government, 25% to the local community (as represented by district councils) and 25% benefit to landowners/irrigators (these figures are an endorsement from Irrigation New Zealand).
Sheep and beef farmers are not known as people who would choose to go dairying - it's just not in our genes.
However, farming dryland without water in Central Otago is not highly profitable and in many instances not sustainable.
With water these farmers have real options, real opportunities.
For example, water/irrigation produces a 350% increase in production (CODC report about 2007).
Affordable water may result in more lucerne growing, lamb and cattle fattening.
It may allow for more vineyards, cherries, black currants, vegetable development.
It will result in subdivisions of farms, more jobs, more servicing personnel, builders, plumbers, etc.
More rateable properties, more processing facilities and most importantly more people paying tax and enjoying a province with a hugely larger GDP.
The vast majority of New Zealanders value their ‘‘right'' to superannuation at 66% of the average wage from age 65 years.
For this to be sustainable our province needs a huge injection of capital to facilitate what could be the largest boost to Otago's economy since the gold mining era.
The question remains, ‘‘how are we to meet this challenge and double Otago's GDP by 2025?''
Personally I believe our province has been leaderless since Sir Clifford Skeggs was mayor of Dunedin, when he took a huge interest in the hinterland.
The Otago Regional Council, the Otago mayoral forum and the respective district councils are perceived as being too laid-back in their dialogue with the Government and lacking real drive to promote growth aggressively in our provincial economy.
Irrigation is the key, but only if the beneficiaries fund their share with equity - capital for the off-farm development.
● John Rowley is a Teviot Valley farmer and Otago Federated Farmers past president.
