Hunter Downs Water, after investigating the feasibility of and completing extensive work around optimum scheme design and funding solutions, together with Waimate-based Rooney Holdings, had reached the stage where there was a technically and economically viable scheme for all stakeholders.
In August it released an updated product disclosure statement to issue up to 7000 new water shares to raise $18.55 million to fund the construction and all prospective investors were asked to reconfirm their commitment to the project by September 10.
But despite the years of work and planning to finally reach a financially viable stage the required support was not forthcoming.
“It is with great disappointment that I advise that as a result of a significant drop-off in support from those farmers previously committed this project no longer has sufficient numbers to warrant proceeding with this scheme,” Fraseer said.
Project manager Stacey Scott said the board and many supporters had worked incredibly hard over the past 10 years and while there were many hurdles the team and community had remained committed to deliver the scheme.
The decision to can it is gutting for everyone involved, she said.
“We had the farmer support to get the start but we just can’t load the level of risk on those day-one adopters to make the start.
“There just became too much change and it became too hard. It’s 10 years, we have given it every shot.
“Since Christmas we lost Government support and had to find an option. While the BNZ did a wonderful job of getting together a term sheet it just came down to farmers.
“You can’t expect 50 farmers with 7000 hectares to safeguard reliable water for generations – and some of those farmers dropped off in the end,” she said.
There were various reasons why farmers failed to support the scheme.
“This current environment we are working in really worries people and they just got cold feet on their investment.
“A the end of the day they weren’t willing to take that commitment to construction.”
Cropping farmer Gary Johnston was an early adopter and is now “bloody disappointed”.
Next year his family will have farmed the property at St Andrews, south of Timaru, for 100 years.
“I’m a third generation farmer. We have two sons and some grandsons so we are looking at fifth generation.
“We were future proofing for generations to come. This is an opportunity lost for this district.”
While fully irrigated there are limits coming on their surface water take that will affect Johnston’s farm.
“Getting water from the Waitaki to our farmgate was our future.”
Johnston doesn’t hold farmers solely responsible for the lack of support for the scheme that also factored in ability to assist in future proofing both Waimate’s and Timaru’s town water.
“You had to see the vision. While enough farmers didn’t, neither did councils. There was too much negativity – doomsayers creating knock-backs.
“Government nailing their part to the door and the short-sightedness and lack of vision from the district councils hasn’t helped the surety of the project and those people that were teetering and tottering pushed themselves out.
“In farming we look 20 years out, they (councils) look five years out.
“You can’t just put it on farmers to say this has not happened now. It’s a community project with huge benefit to the towns.
“This is going to limit what we can achieve and do in the future,” Johnston said.
Fraser stressed the scheme was not all about intensifying land use and conversion to dairy but focused on relieving the pressure on existing water takes, decreasing reliance on surface water, drawing from the reliable and plentiful Waitaki River.
“There is a need to protect and enhance our natural environments, many of which are under serious pressure,” he said.
HDW will now work to secure the water take consent owned in a 50-50 partnership between Hunter Downs Irrigation Scheme Trust and Meridian Energy that invested in and supported the project to secure the consent.
It will continue to exist and continue to administer and protect the consent for future environmental enhancement.
