One of Central Otago's biggest stonefruit operations, employing up to 200 seasonal workers, has applied to build workers' housing.
An acute shortage of suitable accommodation for seasonal workers during the fruit and grape harvests was highlighted in a recent report into Central Otago seasonal labour needs.
The scarcity of workers' housing would halt growth in those industries in the next five years, the Central Otago Labour Market survey found.
There would be strong growth in the horticulture industry, with cherry plantings set to increase by 34% and pipfruit plantings by 12 % over the next five years.
That would create more demand for seasonal worker accommodation, especially in Alexandra and Cromwell, and an additional 600 beds would be needed by 2018-19, the report said.
Le Fresh Stonefruit Ltd, formerly Summerfruit Orchards, has applied to the Central Otago District Council to build workers' accommodation on its Earnscleugh property, on a site subject to a flood-prone hazard notation.
A fire in January destroyed a building on the orchard that had been used for the storage of machinery, a workshop and accommodation for four seasonal staff, the application said.
The orchard was a large operation, growing cherries and apricots for export and peaches and nectarines for domestic sales.
It had been producing fruit for more than 25 years and the company planned to expand production over the next three to five years, but sourcing seasonal labour was a stumbling block.
''The company employs close to 200 seasonal staff and we see provision of more suitable accommodation as essential to ensuring we can compete in a very tight labour market.''
The building would provide beds for about 40 people but the facilities would cater for up to 50.
The extra people would camp next to the building and have access to the facilities.
The accommodation would have a full-time manager and all those using it y would agree to the ''house rules'', the company said.
Central Otago's horticulture industry employed 4081 workers in the 2014-15 year and 65% were backpackers, mostly from Europe, the labour market survey said.
Of the remainder, 16% were locals and students, 11% were workers from the Recognised Seasonal Employment scheme, which allows Pacific Islanders to carry out seasonal work, 7% were permanent workers and 1% were referred by Work and Income.
In his report on the consent application, council planning consultant David Whitney recommended it be granted, subject to 24 conditions.
The council hearings panel will consider the matter on Tuesday.
The effects on the environment would be only minor, he said.
The building would be screened by existing orchard plantings and other buildings.
An assessment of the flood risk, prepared by Opus, said the building site was clear of previously flooded land and the site was outside the extent of a one-in-100-year flood.
