Ruataniwha: A ‘dam’ good idea

Ruataniwha: A ‘dam’ good idea

Bruce Wills is the President of Federated Farmers and an earlier version of this was published in Hawke’s Bay Today

China is not only our largest lamb market by volume, but in the first three-months of 2013, replaced Britain as our largest single market by value. 

What has happened there seems to be an embarrassing paperwork issue and farmers are truly thankful it has been resolved.  New Zealand’s farmers not only value the Chinese market but the country is vital to our collective future.

In saying that, we must not repeat the same dependency we developed with Britain and the shock its entry into Europe caused.  This notion of avoiding dependencies applies right in our own back yard too. 

To export primary produce, from trees to cheese, we need water and that is the simple truth underpinning the Ruataniwha Dam project in the Hawke’s Bay along with others like it.  Some have raised concerns Ruataniwha will not be financially viable, environmentally sustainable and that it will suffer from lack of demand.  To answer these criticisms, Hawke’s Bay Regional Council has consistently put publicly accessible information onto its website.

The large-scale storage of water isn’t a new concept because towns and cities do that with ‘town water’.  Given we have plentiful, if sometimes uneven rainfall, Federated Farmers strongly supports water storage for farming.  We also support Ruataniwha in principle but our final backing awaits the final business case; then and only then will we know if it is financially viable.  To his credit, that is the same position held by Labour’s Shadow Minister for Primary Industries, Damien O’Connor.

The last big water storage scheme to open for farming was South Canterbury’s Opuha Dam. 

Opuha opened in 1998 but work towards it started back in the 1980’s.  It came about because of the same issues we have here; a lack of reliable water over summer.  Today, Opuha irrigates farmland, supplies town water and generates electricity.  It also provides permanent flow to the formerly ‘summer-dry’ Oipihi River offering recreational, tourism and environmental opportunities.  In drought proofing South Canterbury, Opuha has vindicated every promise made about it.  Yet Opuha only came about due to the perseverance of a small band of believers spanning two decades. 

If everything stacks up with Ruataniwha, financially and environmentally, having Hawke’s Bay Regional Council’s involvement advances its timeline.  From a pure bottom line perspective, the latest report I read says farm revenues could rise by $160 million each year including $25 million for households.  You see Ruataniwha could generate 630 brand new jobs and 500 of those will be on vineyards and orchards.  Many more downstream jobs will also be created in processing, logistics and services; 530 much-needed jobs in fact. 

Ruataniwha potentially frees central Hawke’s Bay from the annual rainfall lottery and enables new types of land use and yes, environmental innovation too.  All things the Opuha Dam has proven.  Ruataniwha will have the capacity irrigate 25,000 hectares while generating 6.5 megawatts of electricity.  Enough to supply over 3,000 households with clean renewable energy.  Where exactly are the downsides? 

Much of the criticism revolves around low take-up due to the cost and that dairying will be the only land use able to afford it.  A council report from November 2010 put the on-farm investment at $7,394 - $9,428 per hectare.  In the latest September 2012 report, the on-farm water distribution cost is between 20c and 30c per cubic metre.  But can farmers like me not afford to irrigate?  Current water takes are prone to summer irrigation bans highlighting the absolute need for reliable water when those bans affect 200 consent holders. 

Macfarlane Rural Business predicts irrigation will be taken up by dairy (37 percent), arable farming (32 percent) and sheep and beef (13 percent).  Other land uses, like horticulture, will likely fill the balance.  Reliable water may see distinct ‘farm types’ blur along with better farming practices to optimise income per hectare.  Doing this boosts the community’s payback in terms of jobs, incomes and the environment.  Irrigation keeps pastures green and green pasture means that soils and valuable nutrients stay on-farm and out of water.

Budget 2013 estimates this year’s drought will shave 0.7 percent off the nation’s economy; upwards of $2 billion.  Having run a calculation on my sheep and beef farm, using the costs above, it seemingly stacks up. Farmers like me would likely irrigate a portion of a farm creating a ‘pasture factory’ if you like.  This means we can keep stock on-farm rather than destocking in dry summers.  This means I can send stock at the optimum time rather than being forced into it by a lack of feed or water. 

Drought is a fact of life in the Hawke’s Bay; it has happened before and it will happen again.  Ruataniwha potentially means we can farm through it and doing that benefits all.

Bruce Wills, Federated Farmers President,

ENDS

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