Relief at endorsement of water permit trading

Media Release
September 4, 2009

Relief at Strategy’s endorsement of water permit trading

New Zealand’s only online water permit trading company is relieved to see the draft Canterbury Water Management Strategy released yesterday legitimatises water permit brokering and transfers.

“We strongly agree with the transfer of water permits for efficiency reasons,” says HydroTrader managing director Dr Tony Davoren.

“The description of a future where water permits are transferred for more efficient use means our company now has a more assured future, and farmers will have more certainty around trading.”

HydroTrader’s online auction system enables landowners to sell or lease water allocations, prior to lodging a transfer application with the regional consenting authority.

HydroTrader co-director Warwick Pascoe today described the draft Strategy document as setting out an achievable and sustainable way ahead for Canterbury to make the most of its precious water resources, without short-changing future generations.

“HydroTrader Ltd is especially pleased to note that the Strategy recognises the importance of mechanisms such as water permit transfers to drive efficiency gains which will play a critical role in delivering the Strategy’s desired outcomes.

“The talk of a brokering system that allows inefficient or unproductive uses of water to be bought out is good news. We have been waiting for Central Government to endorse water permit trading, and it appears with the draft strategy we have their buy-in.

“After some heated debate from many different interest groups during the formation of this strategy, it’s quite a relief to see the ability of farmers to trade water permits to increase efficiency has not been quashed.

“Hopefully this will lay to rest claims from a vocal minority that water permit trading is a prelude to the commercialisation of the water resource,” Pascoe said.

“Nothing could be further from the truth. HydroTrader is a company of Cantabrians who also seek the best outcomes for the whole community from the present and future use of this region’s water resources.”

“In line with the Strategy’s strong endorsement of a collaborative approach, HydroTrader is keen to work with stakeholders and the proposed new Water Executive in the reconfiguration of consents and transfer of water allocations.”

Additional information:

A person may need to buy or lease a permit for a number of reasons, including:

* Where someone has sold the land but the permit wasn't wanted, e.g. sub-divisions with water reticulation

* Where a permit holder is joining an irrigation scheme

* Where a permit has been obtained, sometimes at great expense, and there is no money to install some/all of the irrigation equipment for a few years, or bore installation found no water

* Where further intensification isn't economic given current commodity prices, but may be in the future.

ENDS

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