‘Irrigating more land’

Press, 30 October 1981, Page 12

‘Irrigating more land’

Sir,—l appreciate your balanced approach to discussions on irrigation in the Rakaia area. I would correct one point in an article on October 23 where a contributor quoted economic returns of 5.2 per cent and 3.2 per cent on the Waiau Plains irrigation scheme. These figures were from a Ministry of Agriculture and Fisheries report, giving a preliminary assessment of alternative proposals within the Waiau Plains scheme. The

selected option was given a more detailed analysis and in 1977 before final approval a return of 10.6 per cent was predicted. Construction is now well advanced and the agricultural benefits are starting to be realised. Having reviewed its progress I expect a return significantly higher than 10.6 per cent. The value of irrigation is emphasised when you consider that these returns are not like a bank interest rate — an economic return of, say 12 per cent, means the annual return above the current inflation rate. These figures are based on a narrow direct cost/ direct benefit approach and neglect the wider community spin-offs. — Yours, etc., R. D. GRANT, District Commissioner of Works. October 28, 1981.