Land owners upset by water plan

Otekaieke's Fay Willis (left) and Andrea Chambers are concerned people may have to leave their properties if a proposed irrigation upgrade gets the go-ahead. Photo / Shannon Gillies

A group of land owners feels "railroaded" into funding an irrigation scheme upgrade by the vested interest of a select few, a Kurow-Duntroon Irrigation Company Ltd (KDIC) shareholder says.

Shareholder Fay Willis runs a small farm fed by the company's water race at Otekaieke.

She said KDIC put up four upgrade options for the existing water race that feeds her farm and others, yet she and fellow small shareholder Andrea Chambers said there was a strong feeling the KDIC directors had already chosen option four, the most expensive one, with a cost of $35.3million.

Ms Willis said KDIC had called for tenders to replace its open race gravity irrigation system with a pumped and piped system.

The proposal sought to increase the irrigated area from 1983ha to 6000ha.

"The existing gravity-fed open race scheme sources water from the Waitaki Dam, and has served the area for 50-odd years," she said.

Many small rural properties receive irrigation water from the scheme, which has a low annual operating cost.

"Company directors are now promoting the expansion of the network via a piped and pumped system, which would require the installation of at least six pump stations and substantial investment in on and off-farm infrastructure."

The system would expand the scheme to triple the irrigated area.

However, Ms Willis saidthe up-front costs and ongoing operational costs of the proposal would meanshareholders would be unable to afford to remain with the scheme.

KDIC spokesman Geoff Keeling confirmed tenders were called for, but he added it was to get accurate costing before KDIC presented its information to current and potential shareholders.

Mrs Chambers said shareholders were not ready for any vote on the scheme and KDIC's communication with shareholders was poor.

She said the cost of the four options open to shareholders were not the finalised costs and contingency was not included in any of the quotes.

Shareholders, small and large, would have to carry any cost, she said.

"I think it will push shareholders off their land."

Ms Willis agreed.

"It will mean that we will be forced to sell our shares as the annual operating costs and debt servicing will be beyond our means.

"Mr Keeling said several meetings had been held already about the options for improving the irrigation network and a vote on which option would go ahead would go to all shareholders of the company, either in February or March.

"If the shareholders vote for it, that's what happens."

He said it was cheaper for shareholders to go for an expanded scheme because it would help dilute costs.