Lakes clean-up to cost farmers $30m says report

1.00pm

Farmers in the Lake Rotorua catchment face big losses if tough restrictions are put on land use to reduce nutrients seeping into the lake, a report commissioned by the regional council from an economics group says.

In its report to Environment Bay of Plenty, Nimmo Bell said the loss to farmers would be at least $30 million if nutrient run-off was held to current levels.

The loss could be as high as $90 million over a 15-year period if a policy was put in place requiring a 250 tonne a year reduction in the nutrient run-off from farms.

The total cost would come from lost production and income, the loss of future productivity gains and the loss of the chance to upgrade to more intensive farming, such as a switch from sheep and beef to dairy farming, the report said.

The report is part of the regional council's research into ways to improve the water quality of Lake Rotorua and Lake Rotoiti.

Scientists say Lake Rotorua catchment farms have a run-off now of about 533 tonnes a year. Reductions to this figure would require farm land to be planted in forestry.

Nimmo Bell spokesman Brian Bell said studies showed that the economic effect on Rotorua if all dairy land was converted to forestry, would be similar to a 10 per cent decline in the number of tourists that worsening lake conditions could cause.

Rotorua / Taupo Dairy Farmers of New Zealand chairman Lachlan McKenzie said such a policy would prevent productivity gains and would force many farmers living in catchment areas out of business .

"There will be huge implications on individuals if they are told suddenly 'no sorry we won't allow you to carry on farming economically' and that isn't fair.

"If farmers are forced to give up their businesses and plant pine trees then effectively you are taking their livelihood away from them."

Rotorua farmers were taking environmental concerns seriously, fencing off paddocks and races near lakes and waterways, and should be compensated under the Public Works Act for the loss of their businesses if the policy were passed, said Mr McKenzie.

Farmers should not be targeted when 50 per cent of the nutrients going into the lake was from community effluent, not farming issues.

"That is completely unfair," he said. "Dredging the mud sitting at the bottom of the lake is really the only way to free the lake of this build up of nutrients."

"Agriculture is responsible for 60 per cent of Rotorua's income and we can't afford to shut down farmers. The social implications could mean 60 or 70 business owners and their workers out of work. "

- NZPA