New dairy company Synlait is confident it will have adequate water supplies to run its operation, despite claims it could face losing nearly half its water rights.
The Canterbury dairy company's water rights could be in doubt because its main assets are in the middle of the regional council Environment
Canterbury (ECan) red zone, in which water is deemed to be fully allocated.
However, Synlait said it was not totally reliant on short-term consents and is looking at other more strategic and sustainable water options.
"We don't believe we are at risk," chief operating officer Ben Dingle said.
Robindale, the farm at Te Pirita, near Rakaia, which is Synlait's base, has short-term consents to extract 345 litres of water a second to irrigate pasture for its dairy cows, along with a second block used as a dairy management unit.
The farm also has 35-year consents to pump up to 360 litres a second of water for irrigation.
"The majority of water is under 35-year consents and some of the other consents are short-term," Mr Dingle said.
Robindale's short-term consents expire in August, and the applications to get them renewed are among 100 consents "parked" by ECan staff.
Robindale can continue to exercise its consents while they are being processed, but it appears to be facing a battle to convince ECan staff.
"Our position is that all 100 applications be declined," Leo Fietje, ECan's principal consents investigating officer, said.
"We are not confident that the water that is there is sustainable."
Mr Dingle said his understanding was that these applications were for new water consents, whereas Synlait wanted to change its short-term consents to long-term, and he was "reasonably" unconcerned.
"I'm confident it's a matter of ECan working its way through the process with the resources they have got available," Mr Dingle said.
"We have access to Rakaia River water through another Synlait farm and have other options."
- NZPA
