Hon Nathan Guy
Minister for Primary Industries
16 May 2013
$80m for irrigation - boost to economy, environment
Budget 2013 has confirmed $80 million in funding for regional irrigation projects, Primary Industries Minister Nathan
Guy says.
“After the extreme drought that most of the country has struggled through this year, the need for better water storage
is obvious,” he says.
“There is no shortage of water in New Zealand, but we lack the ability to store and use that water when it’s needed
most. Currently, only 2 per cent of rainfall is used for irrigation. We need to do a better job of using this resource.
“Increasing irrigation could see a further 420,000 hectares of irrigated land becoming available, creating thousands of
new jobs and boosting exports by $4 billion a year.
“More consistent river flows in summer will also have real benefits for the environment, with improved habitats for fish
and birdlife.
“I’m disappointed that Labour and the Greens refuse to support this crucial infrastructure, which is so important to
regional New Zealand. Once again, they are opposed to any positive moves to create jobs and exports,” Mr Guy says.
The $80 million funding was announced in January and comes from the Government’s Future Investment Fund, using proceeds
from the share offer programme. In total, the Government has signalled plans to invest up to $400 million in regional
irrigation schemes to encourage third-party capital investment.
A new Crown company will be established on 1 July to act as a bridging investor for irrigation projects. This will
involve short-term, minority investments to help kick-start these regional projects.