Prime Minister Launches New Fund For Water Schemes

A proposal being developed by the Government will see the establishment of a $2 million fund for developing irrigation schemes in drought-prone regions, Prime Minister Jenny Shipley announced today.

The scheme would also be available to develop water schemes of many sorts such as new drinking supplies, she said.

Mrs Shipley announced the new contestable water studies fund to the Otago/Southland Division of the National Party.

Under the proposal being developed, the Government would contribute $1 million, alongside another $1 million from the Agriculture and Marketing Research and Development Trust (AGMARDT).

"After visiting drought-stricken areas such as Central Otago, I have been encouraging the Government and local groups to think laterally to find solutions.

"I'm very pleased we've been able to come up with this proposal which will be of real use. Farmers in many areas, and many local communities, are finding water is increasingly scarce.

"This scheme will allow them to investigate the feasibility of developing new water sources for their needs," Mrs Shipley said.

The scheme will fund water feasibility studies which at present are beyond the resources of local groups to explore. To ensure there is local commitment to the projects, local sources will be required to contribute a third to the total cost of each project.

"This scheme will address the issues being raised by our growing understanding of longterm climate change," Mrs Shipley said.

Full details will be announced in the Budget on May 20.