One of the major issues facing the Hawke's Bay at the moment is the future of the Ruataniwha Water Storage Scheme (RWSS). As many people are probably aware the RWSS has faced some major hurdles recently and its future is not yet certain. There are currently four challenges to be completed in order for the RWSS to proceed. If they succeed, the RWSS will improve economic and environmental security for the Hawke's Bay.
Firstly a decision on the design and construction must be reached. Negotiations with OHL Hawkins - the preferred contractor - are in their final stages. After the details of the design are confirmed, construction will be scheduled to begin late this year, with the delivery of water expected to be available for the 2018/19 irrigation season. The construction of the RWSS is expected to increase employment in the Hawke's Bay by 3.5 per cent and GDP by 4 per cent.
Secondly, farmers must agree to take up at least 40 million cu m of water by the financial close. The Hawke's Bay regional economy is heavily dependent on agriculture. Productivity of the agriculture industry increases dramatically when there is a reliable water source. Despite the strength of the agriculture industry in the Hawke's Bay, an unfortunate reality is it will always be vulnerable and dependant on the climate. The Hawke's Bay region has experienced four consecutive years of drought, from 2006 to 2009, which has caused major stress on businesses and individuals who are reliant on successful and reliable agricultural production. The estimated benefit would be to irrigate 20 to 30,000ha of farmland. With climate change expected to further dry up the region, the RWSS will mitigate the effects by ensuring future availability of water.
Thirdly, investment in the scheme must be confirmed before construction may proceed. The Hawke's Bay Regional Council has already committed to investing up to $80 million, subject to conditions being met. There are also ongoing discussions between potential private investors about funding options.
The final challenge for the RWSS to overcome is the granting of consents. Already the issue has gone through the Environmental Protection Authority and has been considered by a Board of Inquiry. However, after a challenge in the High Court over one specific rule on nitrogen levels in the Tukituki Plan Change the matter was sent back to the board of inquiry to seek comments from all parties on redrafting the rule. This has unfortunately caused an extra delay in the process. Luckily a decision is expected early this year which will ensure finality on the matter. If the RWSS does not go ahead there will need to be a reduction of farming in the Central Hawke's Bay in order to meet the new environmental parameters in the proposed Tukituki Plan Change. This will have a drastic effect on employment opportunities in the region. The RWSS is a project which will improve water quality and enable increased productivity. The importance of ensuring future jobs and growth, as well as protecting and enhancing the environment, should be recognised. Water is the most important resource on the planet. We must use it, while protecting its quality for future generations.
