Water Marks New Zealand as the Real ‘Lucky Country’
Federated Farmers is hailing the significant announcement today on both water storage and on policy as moves that will
cement New Zealand as the real ‘lucky country’.
“This Government is serious about playing to New Zealand’s natural competitive advantage and that’s agriculture,” says
Lachlan McKenzie, Federated Farmers co-spokesperson on water.
“While Australia digs themselves up, we’re hard at work to convert our rainfall into renewable and sustainable food and
fibre exports. Water is behind everything we export and these exports directly pay for policing, doctors, nurses and
teachers.
“The $35 million investment in the Irrigation Acceleration Fund over five years shows how a modest investment in
agriculture will yield long term results.
“The Opuha Study showed that for every dollar invested in water storage, eight dollars was generated through the
economy. If you take that and add it to today’s announcement and future plans, you are talking about a multi-billion
dollar uplift.
“The $35 million for the Irrigation Acceleration Fund is easily as significant for New Zealand’s economic development as
the Government’s $40 million underwrite of the New Zealand Venture Investment Fund last August. Except every dollar
invested in agriculture goes a long, long way.
“It’s also a major vindication for Federated Farmers pushing water storage well before the Prime Minister’s 2009 jobs
summit. What we are talking about is a boost for jobs and a boost for the regional and national economy.
“The 2007/08 El Nino influenced drought cost the economy $2.8 billion and is now seen as the probable cause of the last
recession. Water storage provides a way to smooth out periods of low rainfall because what we are talking about, is
storing from what naturally falls from the sky.
“But we are excited to see the Government openly talking about a potential $400 million worth of equity for the
construction of regional-scale schemes that will encourage third-party capital investment.
“This is the first time in years we have seen Government grasp the enormous opportunity to future proof not just our
agricultural industries but our towns and cities as well.
“It’s significant because Government is willing to get off the side-lines given it’s an ideal form of a private-public
partnership,” Mr McKenzie concluded.
ENDS