Greenpeace is demanding an end to public subsidies for large-scale irrigation projects, after a report revealed the Government has thrown millions of dollar at a proposed irrigation project in the Wairarapa that doesn\u2019t stack up financially.<\/p>\n
An economic review of the Wairarapa application for irrigation funding was prepared by R\u014dpere Consulting for Fish and Game, and released today.<\/p>\n
It finds serious fault with both the credibility of the economic analysis of the project, and the way MPI assessed the scheme\u2019s viability.<\/p>\n
\u201cMPI is rubber stamping these Think-Big irrigation projects despite shaky economics. It\u2019s literally throwing taxpayers\u2019 money away,\u201d said Greenpeace Agriculture spokesperson Genevieve Toop.<\/p>\n
The Wairarapa dams project is one of several industrial irrigation schemes planned around the country. It has so far received a total of $2.5m from Government, and over $3m from the Wellington\u2019s regional and district councils.<\/p>\n
MPI approved the project promoters\u2019 application for Stage 2 (Feasibility) funding and granted it $804,000. It did so on the basis the scheme would usher in more intensive dairy farming, at a farm gate milk price of $7.07 per kilogram of milk solids. This assumption was made in 2014. As the report concludes: \u201cthis is a completely unrealistic basis for decision-making in 2016\u201d.<\/p>\n
The predicted price per kilo of milk solids for 2016-17 is sitting at around $4.75.\u00a0 The report says it\u2019s likely recent record low milk prices are not cyclical, but a long term structural change in international prices.<\/p>\n
The report concludes that at current and prospective farm gate milk prices irrigated dairying is not viable in the Wairarapa – even if the water is free – meaning the project is unviable.<\/p>\n
\u201cNot only will these proposed irrigation schemes further deplete water quality in New Zealand by driving more industrial agriculture, but they don\u2019t even stack up financially. It\u2019s the same in Hawke\u2019s Bay with the Ruataniwha,\u201d said Ms Toop.<\/p>\n
\u201cThe Government needs to give up its dream for more industrial dairying at any cost, stop taxpayer subsidies for big irrigation,\u00a0 and instead support ecological farming practices that look after our land and water.\u201d said Genevieve Toop.<\/p>\n
\u201cMost New Zealanders would be horrified to know their tax money is being spent on flawed schemes that will drive more water pollution.\u201d<\/p>\n