Ruataniwha's merits outlined

Napier Port company chief executive Garth Cowie backs the Ruataniwha project. Photo/File

Napier Port says investing in the Ruataniwha water storage scheme would probably be the largest "step-change decision" for Hawke's Bay since construction of a breakwater port was given the green light in the early 1900s.

"That's the magnitude of the scale of the decision-making responsibility you have today and it shouldn't be taken lightly," port company chief executive Garth Cowie told regional councillors yesterday.

He was speaking on the second and final day of hearings into the Hawke's Bay Regional Council's proposal to invest up to $80 million in the Ruataniwha project.

"It will be a positive legacy for future generations, just as the port decision was many, many years ago," Mr Cowie said.

The region needed the Central Hawke's Bay irrigation scheme to give a boost to local GDP, which was well below the national average and growing at a rate slower than any other New Zealand province except Northland.

The port's growth over recent years had been due to it handling more out-of-region cargo, but that could not keep going on.

"We need the region to start growing itself," Mr Cowie said.

The regional council, as owner of the port, would benefit from a "multiplier effect" if it invested in the Ruataniwha project.

It would not only get a return on its investment in the water storage scheme but would see increased dividends as business through the port increased, Mr Cowie said.

Irrigation New Zealand chief executive Andrew Curtis told the hearing he agreed with Mr Cowie's view that Hawke's Bay needed the Ruataniwha scheme to address the economic growth issues the region faced.

"Irrigation is in Hawke's Bay already and it's here to stay, and it's going to be a bigger part of your life with climate change," Mr Curtis said.

"From our perspective of what we see around the country it's a bit of a no-brainer what you've got on your hands here but it is going to require you guys to be quite bold and put your neck out and say this is a good thing for the community, we should invest in this."

Mr Curtis said while some submitters to the proposal had argued Hawke's Bay should embrace the opportunities of dryland farming, that ignored the significance to the regional economy of major crop processors such as Heinz Wattie's and McCain Foods.

"They [Heinz Wattie's and McCain] only give contracts out to irrigated agriculture nowadays so if you're going to go down that route you might be dreaming a little bit and you might create some further problems for your economy."

He was backed by Richard Dakins, speaking on behalf of the Ruataniwha Water Users Group.

"I would argue that the alternative, if irrigation supply reliability is not increased, may be the risk of these plants [Wattie's and McCain] moving to other regions," Mr Dakins said.

But he was challenged by councillor Tom Belford who said a written submission to the council from Heinz Wattie's indicated the company supported the Ruataniwha scheme but saw little direct benefit for its business.

Heinz Wattie's submissions said: "Whilst the Ruataniwha Plains offer minimal opportunities for Heinz Wattie's to expand their current operations, it does substantially expand the potential primary production section, and could allow some relief for other 'over allocated' catchments in the Heretaunga Plains."

Mr Dakins said his group was in discussions with Heinz Wattie's in a bid to encourage them to grow additional crops in the region.

"There's still room for expansion," he said.

The regional council will meet next week to vote on whether to invest in the scheme, subject to a number of conditions being met, including a workable resource consent, sufficient up-take by water users and confirmed funding from other funders.