sign up log in
Want to go ad-free? Find out how, here.

Successful capital raising an endorsement for irrigation scheme

Rural News
Successful capital raising an endorsement for irrigation scheme

The Central Plains irrigation scheme has had a long and often controversial road to its fulfilment, but shareholders have hung tough and continued to invest in its development.

The use of stored water for irrigation is a "no brainer' in a country blessed with plenty of water. By utilising only a small percentage of the surplus water that goes out to sea we can have a sustainable agricultural system to generate income for all New Zealanders.

The existing system of pumping water out of the ground is unsustainable and we need to go to a "harvest and store" regime, which will mean we only use what water nature allows us.

This consent process has been an expensive exercise for CPWL shareholders, but the latest investment shows they are committed for the long term, to gain economic security for their farms.

·Central Plains Water Limited shareholders have supported the company’s rights issue, which closed last week, providing over $3 million to progress CPWL’s plans to build a 60,000 hectare irrigation scheme in Central Canterbury.  CPWL chairman Pat Morrison said the shareholders’ support was a strong endorsement for the scheme reports Scoop.

“Our shareholders, who farm in the Selwyn district and will benefit from CPWL’s irrigation scheme, have subscribed in full to the shares issued by CPWL. This is very encouraging in what was effectively a referendum on the future of the scheme.“While the vast majority of shares were taken by entitlement, a small number of shareholders elected to trade their right to subscribe for further shares. Trades made indicate a share price considerably higher than the offer price and were, by and large, made between existing shareholders. It also appears that almost all of the small number of new shareholders own land in the scheme area,” he said.

According to Pat Morrison, the success of the rights issue further demonstrates farmers’ confidence in the project.“It is clear that our shareholders are motivated to secure the future for agriculture in the district and are willing to overcome major challenges to ensure the benefits of irrigating Central Canterbury are achieved for the wider New Zealand economy.

“For the past six years local farmers have funded this scheme. In the future the wider community will also benefit. On that basis there is a strong argument for additional support from other sources, including local and central government, to progress the scheme,” he said.


 

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

7 Comments

In the future the wider community will also benefit. On that basis there is a strong argument for additional support from other sources, including local and central government, to progress the scheme. 

I am sick, sick, sick of farmers (and movie producers) continually trotting out this line.

And why do they always refer to support from "local and central government" as opposed to "taxpayers"?

Hypocrits - as they're the first to scream b!00dy murder about local government taxes ... given they can't avoid them!

 

 

Up
0

"The use of stored water for irrigation is a "no brainer' in a country blessed with plenty of water."

"The existing system of pumping water out of the ground is unsustainable and we need to go to a "harvest and store" regime, which will mean we only use what water nature allows us."

Good  thinking - Applaud now.

Up
0

This scheme is set to be the best thing to happen to not just the Canterbury economy, but the wider New Zealand economy for the next 10 years and beyond. Fantastic that farmers have got in behind this scheme. In a time when land prices are fairly stagnant, this has potential to get the ball rolling again by offering additional land use options above dry land cropping and S&B. Well done to CPWL and shareholders for sticking by this.

To Kate and the other nay sayers, time you either got on the bus or head off to Australia. This will be a massive boost to the country and well deserved of local and central government support.

Up
0

Didn't you mean to say:

To Kate and other taxpayers who don't want to pay for this, time you either got on the bus or head off to Australia."

Calling me a "nay sayer" just because I don't want to fund your economic development is exactly the typical sort of line from folks who reckon other taxpayers in general owe them a living.

 

Up
0

Are farmers not tax payers kate? Do they not pay rates? And does the farming dollar not what keeps this country running. Look at the current situation we find ourselves in. As many of the economists and politicians are pointing out, without agriculture going strongly as it is at the moment relative to the rest of the economy then we as a country would be in a deep pile of crap.

Next time you open you wallet ask yourself how much of that $10 note was funded by farmers? We need to invest in these things for the national good if we are to get anywhere as a nation.

Up
0

Are farmers not tax payers kate? Do they not pay rates?

Good question mate. Most of us would like to know the truth about that!

And does the farming dollar not what keeps this country running.

Actually I don't think it does. Agriculture really doesn't earn NZ a lot of money. Other industries would make far more, if only we would invest in them.

As many of the economists and politicians are pointing out, without agriculture going strongly as it is at the moment relative to the rest of the economy then we as a country would be in a deep pile of crap.

What these people are saying -- people who are bought and paid for by the Ag lobby btw -- is that NZ fails to invest in anything better than farming so we've become dependent upon farming so we have to keep propping up farming instead of investing in much better industries and businesses. And of course the farmers who own those people will agree with every word they spew, so long as it and they supports farming and farmers.

Next time you open you wallet ask yourself how much of that $10 note was funded by farmers?

I ask myself how much am I funding farmers every time I open my wallet.

We need to invest in these things for the national good if we are to get anywhere as a nation.

No mate we need to start investing in things which benefit the country, instead of just farmers, and invest in things which are far more beneficial to the nation as a whole.

Up
0

Sorry Magnum, but like Kate you are trying to argue against the facts using poorly informed opinions. You appear to be contradicting yourself as well.

http://tvnz.co.nz/business-news/cows-boost-every-kiwi-s-income-100s-3953992

Proves my point and may put an end to your denial.

"Dairying's influence extends well beyond its direct impacts in dairying areas..... its links to supply firms, the effects of rural economic growth on urban centres and the tax revenue it provides to fund public services."

Up
0