That, too, was on the brink of being scrapped because of a lack of share sales, but was rescued in December by an offer from South Canterbury businessman and landowner Gary Rooney.
Hunter Downs Water Ltd chairman Andrew Fraser said in January the company was working with Crown Irrigation, Rooney Group, Morven Glenavy Irrigation, shareholders and other stakeholders and interested parties to develop the project.
Hunter Downs Water, which already holds a resource consent to take the Waitaki River water, received a $1.37 million government development grant last year. CIIL had agreed to provide $70 million term debt funding, as long as 9500 shares were sold and a total of 7000 water shares (equal to 7000ha) were issued.
Mr Fraser said Hunter Downs Water was preparing a statement on its response to the announcement. It had not been released by the time Central Rural Life was printed.
Hurunui Water Project chief executive Chris Pile said while the Government's decision might force an infrastructure rethink, the board and farmer-shareholders were determined to go ahead.
The company planned to proceed with shareholder fundraising for the $200 million scheme in about eight weeks.
The funding cut would not only impact on today's farmers but could also affect ''the next generation and beyond''.
The CIIL debt funding was anticipated to be about $30 million - a loan facility to be repaid over 10 years, with interest. It would have allowed the company to ''overbuild'' infrastructure capacity, so more farmers could join the scheme in the future.
''Without this line of funding, our ability to do this is severely compromised.
''As recent extended droughts have painfully shown, our livelihoods are tied to climate and the reliability of water supply.
''This scheme is about drought-proofing and long-term resilience, not wide-scale dairy development as some commentators suggest.''
The project had already faced ''a long line of hurdles'' and this was another.
''But our scheme must continue for the good of our community.
''This project will use on-plains storage, will not take low-flow river water, and will ensure farmers manage their water supply efficiently and sustainably through the latest monitoring technology.
''By collaborating with Ngai Tahu and the Amuri Irrigation Scheme nearby, we are locating our on-plains storage pond on farmland, instead of building dams and flooding native bush and ecosystems, meaning less impact on the natural environment.''
There would be reduced water over-allocation, fertiliser and energy use, and nutrient-leaching, he said.
The day after the funding announcement, Minister of Agriculture, Biosecurity, Rural Safety and Rural Communities Damien O'Connor hailed the benefits of irrigation schemes at the official opening of the Ashburton Lyndhurst Irrigation Ltd Pipe Scheme.
The announcement was not the end of irrigation and its development in rural New Zealand, he said.
The Government was taking time to check the efficiency of inputs being funded, including machinery and labour.
It was important the Government looked at ''more effective outputs with better returns for what we do'' that delivered benefits to the whole community.
Mr O'Connor talked about extending traditional thinking and of alternative proteins such as oat meat or soy milk being developed around the world and funded through research.
There were also social licence issues to consider.
''We've got to get more for what we do, pay people more to attract them to our industry. Over time it has been good and it's got to get better.''
In his address, Mr O'Connor said he was asked, that same morning, if the Government would support irrigation schemes on the West Coast.
''Absolutely,'' was his reply.
KUROW-DUNTROON
One of three irrigation developments that would still receive CIIL funding was the Kurow-Duntroon Irrigation Company's upgrade and expansion, using Lake Waitaki water on land south of the Waitaki River, he said.
Chairman Geoff Keeling, said the scheme's directors, staff, and shareholders had already committed a good deal of time and effort to a robust and environmentally sustainable project.
''Our scheme brings significant benefits to the local community through job creation and providing resilience to the local economy - beyond the farmers receiving the water from the scheme. This investment recognises that.
''The funding will be repaid, with interest, just as a private loan would be, so the taxpayer benefits from this investment as well as the local community.''
Existing irrigators would use water more efficiently and take less from river tributaries, Mr Keeling said.
Construction was expected to start later this year.
-Additionally reported by David Hill and Toni Williams
