Farmers warm to dam scheme

Construction work at the dam site will not start before next year. Photo / Glenn Taylor

The company behind the Ruataniwha dam proposal says it has begun signing farmers up to take water from the irrigation scheme, but won't say how many have made the commitment so far.

The chief executive of Hawke's Bay Regional Investment Company (HBRIC), Andrew Newman, told a regional council meeting yesterday farmer sentiment around the future of the scheme had improved following the release of a final board of inquiry decision granting consent for the scheme and relaxing environmental conditions imposed under an earlier draft decision from the board.

There had been "a fair degree of ambiguity in the farming community" following the release of the draft decision but "we're in a substantially better position than we were," he said.

"That means the water-user agreement process is really starting to gear up now."

However, Mr Newman said HBRIC, the Hawke's Bay Regional Council's investment company, was keeping mum on exactly how much water from the scheme farmers in Central Hawke's Bay had so far signed up to take.

"When we are in a position with sufficient volumes to give a general course of the direction, I'll be having that discussion with the [HBRIC] board ... "

Construction work at the dam site, on the upper Makaroro River north-west of Waipawa and Waipukurau, would now not start before next year as HBRIC and the council await the outcome of a High Court challenge to the board of inquiry decision from environmental groups Fish & Game and Forest & Bird.

The timeframe for the appeal was unclear but HBRIC had a "tentative indication" the hearing may be in October, Mr Newman said. The legal action meant a delay in reaching "financial close" and this meant HBRIC would require additional funding from the council.

HBRIC company manager Heath Caldwell told the meeting the company would come back to the council this year with a request for more funding but the amount sought was likely to top $1 million. The council has agreed to invest up to $80 million in the scheme provided conditions are met, including sufficient water-take contracts being signed and other investors agreeing to come on board.