Irrigation should be Canty 'think big' project

Press, 8 May 1982, Page 19

Irrigation should be Canty 'think big' project

Canterbury's “think big" project should be irrigation, Mr Brian Easton, director of the Institute of Economic Research, and two other economists told a seminar on regional growth. Development prospects for Canterbury’s hinterland centred on irrigation of the plains, resulting in more intensive farming and a “major development of horticulture output,” plus perhaps associated freshwater farming and forestry on farms, said Mr Easton at the seminar, held by the Canterbury Chamber of Commerce. Mr Easton suggested the following growth possibilites for Christchurch: © Downstream processing and servicing of the hinterland’s agriculture production (assuming that new irrigation programmes were pursued more quickly than in the past). © As a major technology, education. and research centre, particularly in agriculture and engineering. © Manufacturing related to the technology and research. Products such as carpets, irrigation equipment, farm and processing machinery had export potential, he said. © As a supplier to Australian markets. © Tourism, as an entry point. No major energy-based industries were proposed for the Christchurch hinterland, although ethanol farming might be an alternative to other crops near Ashburton. Some construction- work in the upper Waitaki, to be completed in the mid-1980s, would have little influence on Christchurch, and some of the engineering subcontracts for construction of the en-ergy-intensive industries were likely to come to Christchurch, said Mr Easton. “The . irrigation programme is likely to be a more important source of construction and possibly engineering work for the region. Indeed, irrigation is

probably Christchurch’s ‘think big’ project, although there has not been, the same Government commitment to it as to other projects despite irrigation appearing to have a greater return in terms of both output and employment." f Mr Easton emphasised the importance of community initiative in regional development. Government policy on the regions appeared to be to respond positively to local initiatives, rather than imposing its own initiatives. Christchurch’s success would depend on some major Government schemes, which ■ he said ought to be a part of its new industrial strategy, plus local initiatives seizing the opportunities. The potential of the irrigation proposals for the Lower Rakaia and the Central Plains was outlined by Dr K. L. Leathers, of the Agricultural Economics Research Unit at Lincoln College. The North Rakaia scheme would provide water for an area from North Rakaia to West Melton and Rolleston and the Lower Rakaia scheme would service an area from about Bkm west of the main road to. the outlet. Giving preliminary figures as an idea of the magnitude of the project, Dr Leathers said: © The total cost of both schemes would be about $165 million. © They would affect about 400 farms. ©They would irrigate, with the surface system primarily, 85,000 hectares, little of it now irrigated by any method. © If the type of farming were unchanged, additional farm output would be worth about $3O million a year. ©About 200 jobs would be created during construction, and about 230 jobs on farms. ©The total number of jobs created, on and off-farm would be about 570. ©The secondary output (the

benefit to the whole community, rather than just farmers) would be about $6O million a. year. ® The additional household income created in Christchurch and the surrounding communities would be about $ll million a year. Dr Leathers gave warning that the schemes might have a "negative effect” on the tourist potential of the region and on the potential for salmon farming and angling. There might also be inefficiencies if the scheme caused the non-development of available ground-water resources. He emphasised that it might be possible to modify the schemes to meet other desired uses. Particularly in the Central Plains scheme it might be feasible to combine the irrigation scheme with power generation. The Southern Energy Group in 1975 had proposed a diversion near the proposed irrigation diversion. The group had estimated (in 1982 dollars) the hydroelectric potential would be of the order of $BO million a year. In 1979, a second investigation of the Central Plains irrigation requirement produced a plan that would supply water to farmers and

generate about $8 million worth of electricity a year. Dr Leathers also suggested that staged releases from Lake Coleridge, the river’s reservoir, could allow adjustments to irrigation and power outflow to preserve recreation benefits downstream. The reticulation system could be modified to provide a rearing habitat for fish: this would generate millions of dollars in salmon for either recreation or ranching. Professor J. B. Ross, of Lincoln College, told the seminar that Auckland had become New Zealand’s biggest city because of its hinterland. With the advent of refrigeration, New Zealand soon began exporting frozen dairy products. “Dairy farming, associated with land-tenure changes in New Zealand led to the development of many small dairy farms. The towns and cities which served dairying areas had the most densely populated hinterlands. Auckland was the major service centre for the Waikato and Northland. “Auckland had the most densely populated hinterland so that from 1900 onwards its growth was faster than that of the other metropolitan centres. By the 1930 s it was the biggest centre, and when import licensing was imposed and there was a great pressure to produce more manufactured goods the natural place to establish manufacturing was in that metropolitan centre. “We want to think very carefully about the hinterland and its importance in the development of any urban areas,” said Professor Ross. Mr N. S. Bidwell, vicepresident of the Canterbury Chamber of Commerce, in thanking the speakers, said the chamber should get behind the Canterbury United Council in promoting development.