The Ruataniwha dam, expected to be operative in three years, has generated hot debate throughout Hawke's Bay, and the regional council, who have been under fire for backing the proposal, even felt compelled to hire a 'bouncer' for the evening.
As it turned out, the meeting was all very cordial. The audience listened attentively, especially to presentations done by two South Island farmers, on why irrigation has not only changed their farms, but significantly, their respective communities.
"It's a brilliant location," said Mid-Canterbury sheep and beef farmer Rab McDowell. "I know many Canterbury farmers would be envious of the Ruataniwha site. It's ideal in terms of water storage ..."
Irrigation on the Canterbury Plains has come at the expense of valuable farmland being sacrificed to meet water shortages -- this won't be the case with Ruataniwha, said Mr McDowell, a shareholder and chair of the Barrhill Chertsey Irrigation Scheme.
Choosing to irrigate meant there was no need to worry about wells failing, while pipes make for precision irrigation for more efficient use of water. With assured consistency in yields, an investment was underpinned by returns worth two to three times of what farmers could afford before.
This was not a farmers' appraisal either. Banks increasingly recognised the value of owning water consents, access to water and were evaluating them accordingly.
Nick Webster, a North Otago cropping farmer, involved with The North Otago Irrigation Company (NOIC), explained how irrigation was a definite game changer, but the journey was hardly plain sailing, with some unpredictable outcomes.
Still, the returns were significant with land values increasing two times for every million dollars spent on irrigation. He had some good news for cropping farmers, too. The advance in technology had enabled him to grow crops such as ryegrass, maize and wheat, which had generated plenty of interest among grain merchants.
Mr Webster said Hawke's Bay farmers would benefit from the knowledge and expertise mainland farmers have learned through establishing irrigation innovation. That, in itself, was surely a good reason to embrace the Ruataniwha scheme.
Getting the project established would present challenges, however, Mr McDowell said farmers shouldn't be put off by start-up costs as the Barrhill-Chertsey scheme "died twice" before becoming a reality and now a success.
Particularly compelling was Mr Webster and Mr McDowell's personal insight into how their respective communities had been reinvigorated with industries arising from irrigation. More poignant, the return of family members to where they grew up building hopes for their children and their futures.
Irrigation NZ, who hosted the event with Federated Farmers, believes the mainland farmers' personal experiences are testament to the value and viability of the Ruataniwha scheme.
Chief executive Andrew Curtis said: "The Barrhill Chertsey Irrigation Ltd scheme is recognised as one of the most expensive in the country. Yet the company's latest share offer saw 30 per cent more water being taken up and there is potential for more growth next year.
"North Otago Irrigation Company is going to a prospectus for its stage 2 and there is every indication that they will get the required uptake to get construction underway. South Island farmers are also paying big money for access to water but recognise the value of doing so."
Mr Curtis said Hawke's Bay farmers should have confidence in the scheme as backers would ultimately come on board.
"The Barrhill Chertsey Irrigation scheme is a 50:50 joint venture with Electricity Ashburton, which receives a commercial rate of return on its investment; and the North Otago Irrigation Company scheme is underwritten by a loan from the Waitaki District Council," he said
Hawke's Bay Regional Council chief executive Andrew Newman said the initiative would achieve enough uptake to be viable (40 per cent) but ideally, it would need to be "north of 50 and nearer 60 per cent" to make the venture optimal as planning around infrastructure and distribution would be affected if lower.
Still, the scheme had "momentum" and Ruataniwha would be the economic model for how projects around water sustainability are funded in the future. This was not a co-operative venture like the other irrigation and water storage schemes, he said.
Those interested in the venture could invest without becoming shareholders, as users would essentially be charged on volume takes.
The contracts will last 35 years -- the duration of the dam consent and farmers will be able to sell their "instrument" to another party as long as the buyer had accessibility to the water.
"It is possible that those sellers will acquire extra value from the transfer of consents.
"We chose a volume-based charge as we believe this will create a fairer spread of land use. Ruataniwha will be an energy positive storage and distribution scheme and be capable of generating hydro power, which can be sold onto the grid."
Water would be stored from day one whether it is contracted or used.
"Investors will invest on the back of water being a scarce resource," Mr Newman said.
That confident outlook is shared by one global fast food entity. In Waipukurau, its non-descript site on Herbert St has been vacant for some time. Yet one kilometre away is the Tukituki River, its proximity, perhaps, augurs well for a welcome shift in the economic outlook for Hawke's Bay.
