Conflicting opinions on dam aired

A public meeting on the proposed Ruataniwha dam was held at EIT Marae, Matoro in Taradale last night.

A strong supporter of the Ruataniwha dam says he is putting his money where his mouth is - signing up for a million cubic metres of water from the Central Hawke's Bay irrigation scheme - while a staunch opponent maintains the project is not viable.

The conflicting views emerged at a meeting at EIT Marae Matoro in Taradale last night, organised by lobby group Transparent Hawke's Bay.

Hugh Ritchie, a Central Hawke's Bay farmer and existing irrigator in the district, opened the meeting by outlining the benefits of the $275 million project for farmers.

He said farmers could no longer endure "roller coaster" seasons and needed consistency to yield high-value crops.

"There is always potential for more crops," Mr Ritchie said.

He had already agreed to purchase 1 million cu m of water a year from the proposed scheme, equivalent to about 1 per cent of its total capacity.

"Yes, there is a cost involved, but the current system is not cheap either," he said.

"It's a no-brainer that we needed to invest in water. We need to utilise technology and stabilise our business."

Farmers needed to be fully aware of the environmental conditions and rules they would operate under, he said.

Those conditions, now being finalised by a board of inquiry, have been the subject of a long-running legal battle between the dam's promoter, Hawke's Bay Regional Investment Company and environmental groups.

The meeting last night, held to discuss the pros and cons of the Ruataniwha water storage scheme, highlighted the strong views held by opposing parties in the ongoing debate over whether the project is viable.

Corina Jordon, environmental manager for Fish & Game, one of the groups involved in the legal action, told the meeting she had been involved in the project for the past five years.

Environmental concerns around the project have centred on how phosphorus and nitrogen levels will affect the health of the Tukituki catchment, where the irrigation will take place.

"Farmers will need to manage their nutrients on land effectively to help keep our water clean," she said.

"We need to reduce the environmental impact with the intensification of mitigation.

"Large areas of the catchment are over-allocated with already existing levels of pollution."

Economist Peter Fraser, who published a paper last year claiming the Ruataniwha project would never be viable, repeated that claim last night.

He said the proposal had been presented as a mystery and comparisons to the Clyde Dam built in Dunedin, which was "an unmitigated disaster."

"For investors to get a commercial return, will that not result in water being too expensive for farmers?" Mr Fraser said.

The maximum gross return from the dam would be $24 million and that was being generous, he said. His economic assessment of the project has previously been rejected by HBRIC.

"The reality will be much worse," he said.

"The risk is not looking good. It's time to take the off-ramp. The dam doesn't stack up commercially, due to poor returns and a huge downside risk," Mr Fraser said.

About 60 people attended last night's meeting.