National says it will pump $400 million into boosting on farm-water storage and irrigation if re-elected.
Not surprisingly – especially in the midst of an election campaign – the idea has been shot down by political opponents.
But the rationale for this opposition seems more based on ideology than sound policy reasons.
Much of this opposition from both Labour and the Greens stems from the idea of the money to fund these schemes will come from the Future Investment Fund – which will use the proceeds from the part asset sales that National is proposing should it get re-elected.
While Labour and the Greens may have problems with where the funding is coming from; surely they cannot argue with the concept of creating a more reliable source of water for farmers that will in turn mean higher productivity and income for the nation – in turn leading to more tax and jobs!
“Water is one of New Zealand’s greatest competitive advantages, but we are not making the most of it,” says Agriculture Minister David Carter.
“Developing water storage and irrigation has huge potential to unlock economic growth and prosperity for the primary sectors and for all New Zealanders.”
Who could argue with these sentiments? Well… the Greens and Labour!
I thought the Greens want to create a billion – or some other fanciful number they quote – ‘green jobs’, while Labour is constantly bleating on about creating more jobs.
Wouldn’t more reliable water on-farm via such irrigation programmes mean more produce from farms and therefore more jobs for all those potential workers at dairy factories, freezing works, cartage firms etc, etc all over the country?
Prime Minister John Key says irrigation increases the productivity of our farm land, protects against droughts and takes the uncertainty out of water flows for farmers and recreational users.
And he is right!
“More reliable access to water will lead to more efficient use of water, and provide for the replenishment of aquifers and the restoration of stream and river flows.”
Another claim against the idea by the Greens and Labour is that it is a Government subsidy or handout to farmers. Ironic coming from political parties who want to hand out an extra $70 a week or beneficiaries or subsidise rail commuters in central Auckland. I don’t see these subsidy policies creating too many ongoing exports or jobs.
But Key says it is not a grant, as the Government, through the proposed Crown Water Investment Company, will be a minority partner. It will invest with the expectation of a commercial return on that investment. The intention is for the Government’s stake to be sold off over time.
Oh no – sales of more Government assets – the proposal must therefore be evil!
Federated Farmers RMA and environment spokesperson Ian Mackenzie says a Crown Water Investment Company will help transform New Zealand agriculture and the economy.
“It will help to reduce an annual economic and environmental rainfall lottery. This is about economic infrastructure that will grow productivity, it is no hand out.
“The Crown Company will invest commercially in schemes before selling that stake on. The company will effectively be an underwriter before realising value from its stake. Farmers will have to buy into these schemes so water won’t be given away. This needs to be understood.”
As lobby Irrigation NZ says reliable irrigation enables the added-value aspects of primary production.
It will also allow investment in processing factories as it guarantees consistent volume and quality supply of product, says chairman John Donkers. Reliability will give existing food producers and processors the confidence to further develop and diversify.
Reliable water means growth – both for our economy and the environment. All political parties – no matter if they are left, right or just plain bonkers – should be supporting such a plan.
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