Extra $25m in Budget for irrigation welcomed

Many parts of New Zealand have been affected by drought over the past three years. Photo / NZME.

IrrigationNZ said the $25 million in extra funding for irrigation projects announced in the Budget would help boost development of water storage and infrastructure, particularly in drought-prone east coast regions.

Primary Industries Minister Nathan Guy said last week irrigation projects would receive a funding kick-start for five years from 2016/17 through the Irrigation Acceleration Fund (IAF).

Nicky Hyslop, IrrigationNZ chairman and a director of South Canterbury's Opuha Water Partnership, said the money would boost the development stages of water storage and irrigation distribution infrastructure.

"The need for more water storage projects is obvious given that nearly every part of the country has suffered through drought at some stage over the past three years," Hyslop said.

About 100,000ha of new irrigated areas are expected from IAF-funded projects to date, with about 36,000ha of that commissioned or currently being built.

The IAF helps support the development of irrigation infrastructure proposals to the stage where they are investment ready.

The Government also supports the projects through Crown Irrigation Investments, which acts as a bridging investor for regional water infrastructure development.

A total of $120 million has been allocated to CIIL over the past two years with the potential to provide a further 125,000ha of new irrigation.