Group to put case to minister today

New irrigation schemes in Central Otago and upgrades of existing schemes will create 500 jobs and add $40 million to the district's gross domestic product, district leaders will tell the Minister of Agriculture today.

Central Otago Mayor Malcolm Macpherson, Central Otago District Council business development manager Jonathan Gadd and representatives of three irrigation schemes will meet David Carter in Christchurch to put the case for some form of Government support for a cluster of Central Otago irrigation schemes.

"Our argument is that a bit of investment in irrigation results in a good deal of public good. Irrigation is not a conventional asset and it's difficult to fund and requires a long-term commitment," Dr Macpherson said.

"We're not asking for hand-outs from the Government but we'd like to work together, in some form of joint venture, to make sure these projects go ahead."

There were several projects planned, some new and some expansion or enhancement of existing schemes, he said. These included the proposed Tarras irrigation scheme, two proposals involving the lower Manuherikia, the proposed Idaburn scheme, and the raising of Falls Dam.

"We're talking about significantly improving productivity in Central Otago but farmers will struggle, one by one, to individually fund their share of the schemes. Collectively, it may be a more attractive investment option. The Government has signalled it wants productivity to increase, well, that's what we're talking about, too."

Irrigation leaders and the council had been discussing a combined "package deal" approach to Government since the middle of last year, Dr Macpherson said.

Mr Gadd said the proposed new and expanded schemes would create 500 full-time jobs and boost GDP by $40 million.

"Investing in water creates the opportunity to grow our economy, so increasing the opportunity for exports and increasing the wealth of our community," he said.

"I'm not expecting to see walls of dairy cows resulting from increased spending on irrigation, but it will allow flexibility and innovation and will contribute to the public good. More than half the jobs created will be upstream and downstream of the irrigation scheme, spread around the district."

The boost in productivity would also result in an increased tax take from landowners, so that would be a payback for any Government investment.