Prime Minister John Key with Tukituki MP Craig Foss and Steve White of WineWorks. The company's bottling factory was one of the stops on his Hawke's Bay tour. Photo / Warren Buckland
Prime Minister John Key thinks "it's great" when ACC and the NZ Super Fund invest in local industry.
In Hawke's Bay yesterday for a visit, Key was responding to a question concerning speculation that the corporation may invest in the Ruataniwha dam, saying that ultimately such a move would be a matter for ACC as it makes its own investment decisions.
He said if agriculture and horticulture were to be used to lift the country's gross domestic product, one of the fastest ways to do that is through irrigation.
"And that is why the Government's invested so heavily in irrigation," he said.
"We don't want to stay there forever but we can provide bridging finance - in not too dissimilar a way, actually, to the $1 billion infrastructure fund we announced on the weekend."
When asked about the controversy that has surrounded the scheme, he said it was not unusual.
"These things are controversial, there are always strongly held views," he said.
Key said, however, that a step back needed to be taken and the question asked: "What will Ruataniwha, on the basis it goes ahead, deliver?".
"The answer is certainty when it comes to production in the agricultural sector, because this is a part of the world that has been very badly affected by significant droughts that puts at risk investment, jobs and opportunities," he said.
"And I think from things that I have seen with Ruataniwha, on the basis that it goes ahead and it is successful, then it will underpin a much stronger economy here.
"It's great for investment, it is actually good for the river flow itself and for those who recreationally want to use the river."
Key said as such in his view it was an important next step because unfortunately the East Coast of New Zealand in particular had significant drought issues.
"Unless we have appropriate irrigation it is going to be very difficult to sustain a lot of those businesses and that has a big impact on the region," he said.
Meanwhile, speaking of the proposed Te Kura Kaupapa Mori o Te Wananga o Whare Tapere o Takitimu for Havelock North, Key said the Ministry of Education was "going through a process" to see if there were alternative sites for the school.
He said this process was on the back of the potential hold-ups from the mushroom farm that sits near the Arataki site.
"I don't think they have made a decision yet [on what] they'll do," he said.
"But obviously they don't want the kura's development to be held up for years on the basis of an uncertain position where the current site is proposed. So it makes sense for them to look around for alternatives."
The Prime Minister did not agree that the issues surrounding the kura kaupapa would dampen National's chances of retaining the seat in next year's central government election.
"We already hold the seat, we have an outstanding MP [in Craig Foss], so yes I think we have got more than a good chance of retaining the seat."
Labour's Tukituki candidate, Anna Lorck, said that "this time around" families, parents and their wider community were consulted about where the kura kaupapa would go.
"I have every confidence that with their input this will deliver a positive solution," she said.