El Nino gives $2.8 billion reasons to store water

Federated Farmers is challenging the Government and Dr. Don Brash's productivity taskforce to back water storage.  With the economic effect of the 2007/08 El Nino influenced drought being revised from $1.2 billion to $2.8 billion, the economic case is indisputable. The negative impact of drought cost billions but the current response is the Community Irrigation Fund's $5.7 million (excluding GST) in grants over eight years," says Don Nicolson, President of Federated Farmers. "It seems ridiculous that when water storage can generate around $8.00 in payback for every dollar invested, it's not being pushed harder to create jobs and wealth. "The prospect of permanent jobs is greater with water storage than say it is with the national cycle way. It headlined Federated Farmers recommendations at the Prime Minister's Jobs Summit and remains so today. "With the MetService warning El Nino may be back this summer, the policy response hasn't moved far from 2007/08.  Unlike 2007/08, the world is now in recession so the affect of another drought will be amplified. "The simple fact is that New Zealand, unlike Australia, doesn't want for rainfall on an annualised basis, just the means to store it. "With around 30 projects in the pipeline, Federated Farmers is pushing these within Government.  Yet it isn't climate variation but a lack of concrete and the Resource Management Act, which remains a blockage. "Federated Farmers will be meeting with Dr Don Brash's productivity taskforce and water is an easy win.  Water storage, unlike other forms of economic development, doesn't need a lot of central Government support, just a wee bit more than the current $700,000 a year. "While commodity prices are down, export volumes are up.  The world needs more food and water is the key.  "In the meantime our Rural Support Trusts on the North Island's East Coast and in North Canterbury are still managing the Green Drought caused when La Nina petered out over summer.