Irrigation becomes top priority for 2010

01-01-2010 | Terry Brosnahan

The Government's focus will be on lifting primary productivity in 2010 and irrigation will be a key driver, agriculture minister David Carter says.

"New Zealand is gifted with water which doesn't always fall in the right place at the right time."

Carter said the Government would be looking at what support was required to get better water storage and better irrigation to existing areas.

It is unlikely the support would be direct financial aid for schemes.

"We will not go back to the days of subsidy-funded schemes, but we are not saying there is no money to help with the establishment of schemes."

He said the plan was to encourage substantial investment from "other parties".

This year will also see the review of crown research institutes completed. Past governments have been criticised for the lack of spending on agriculture research even though it is a good return on investment.

Several years ago Treasury had put the return on investment in research and development (R&D) in agriculture over the past 75 years at 17%. Government contribution to agricultural research was about $130 million before the science reforms in 1990 and is now at about $70m/year.

Carter said that through the Primary Growth Partnership fund, the sector would receive $190m in taxpayer money over four years, then $70m/year from there on. An equal amount is expected to be matched by industry.

Carter said his focus would also be on the Dairy Restructuring Act, the wool industry taskforce, biosecurity, livestock traceability and animal welfare. Based on the letters coming into the prime minister's office, animal welfare is the No 2 issue.

He said the Government could change the meat quota regulations if it were seen to improve co-operation in the industry.

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