Federated Farmers is concerned having two competing
electricity generators operating power stations on the
Waitaki River could affect irrigation in North Otago and
South Canterbury.
The national farmers' organisation does not oppose, but is
cautious about, a plan by the Government to force its
state-owned enterprise, Meridian Energy, to sell the Tekapo A
and B power stations and canal to another SOE, Genesis
Energy.
On Wednesday, Federated Farmers made a submission to
Parliament's finance and expenditure select committee on the
Electricity Industry Bill, which includes the proposal for
Genesis to own the two power stations at the start of the
Waitaki River hydro-electric generation system in a bid to
improve South Island electricity industry competition.
Federated Farmers chief executive Conor English said
irrigation had become particularly important in North Otago
and South Canterbury, both in terms of improving productivity
and as a means of drought insurance.
"A particular concern ... is the implication for downstream
users from having two competing generators operating in the
upper catchment where most of the river's water is stored,"
he said.
Federated Farmers considered it "very important" that the
terms of the Waitaki catchment water allocation regional
plan's minimum flows, prepared by a Government-appointed
board in 2005, formed the basis of any water management
agreement between Meridian and Genesis to ensure reliability
of irrigation supply and it wanted that included in the Bill.
Federated Farmers wanted further work done on the costs and
benefits.
"While we do not necessarily oppose the sale of Meridian's
Tekapo A and B stations to Genesis, it is unclear to us
whether this further work has happened," Mr English said.
Federated Farmers also asked for the Bill to ensure
Transpower took account of landowner issues in relation to
its transmission system.
"Transmission lines can't be built from the sky, so it isn't
helpful if landowner issues are ignored. As we have seen with
Maori treaty issues, sweeping grievances under the carpet
only builds tension.
"Keeping the lights on and power prices competitive are key
objectives . . . but they must not trample over the property
rights of landowners or on industry transparency," he said.
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