Govt alters funding for irrigation

Press, 27 October 1982, Page 3

Govt alters funding for irrigation

PA Wellington The Government is switching all its irrigation funding to the Rural Banking and Finance Corporation, which will provide the loans from November 1.

At present the Ministry of Works and Development vote pays for some farm irrigation.

The Minister of Works and Development. Mr Friedlander, and the Minister of Agriculture, Mr Maclntyre, said yesterday that money would be transferred from the Ministry to the corporation to cover the transferred roles.

They said there would be provision for the interest and principal payments to be deferred for three years, the deferred amount being capitalised and the loan then repayble on normal corporation terms and conditions.

Existing provisions for a 50 per cent suspensory loan for irrigation works within approved community schemes have been dropped. . The new policies change irrigation schemes running since 1974.

Any schemes approved be-

fore November 1 will still be funded for as long as the schemes last. The Ministers said the changes followed up representations from farming interests. In 1979, the Cabinet established a committee to look into the matter.

In other changes, the Government will pay 70 per cent of the cost of headworks for taking, storing, and distributing water to the boundaries of each property. At present it pays all such costs. The 30 per cent the farmer must now pay will bear interest and will be recovered by way of water charges. Irrigation loans will now apply equally to properties within community schemes and to “appropriate” single farms.

The loans will be applied to all forms or irrigation and not necessarily ’ confined to fixed assets and land-shaping as. at present. The Ministers said this would encourage spray or trickle irrigation systems. ’ The Ministers also said the Government had 'indicated its willingness to provide extra funding for irrigation.