SUBMISSION – Proposed Canterbury Land & Water Regional Plan [email protected] Date: September 2012 Name of Submitter: Central Plains Water Ltd Postal Address: 6 Sonter Road, Wigram, Christchurch 8042 Telephone: 03 9824267 Email: [email protected] (Susan Goodfellow, Project Manager) Overview: Central Plains Water Limited (CPWL) is a shareholder owned Community Irrigation Scheme that has recently obtained consents to take and use water from the Waimakariri River and Rakaia River to irrigate 60,000ha within the Selwyn District, 30,000ha of which will be new irrigation. CPWL are currently securing funding to build the first 20,000ha of the Scheme. Part of the construction funding will involve a shareholder/farmer contribution in addition to external investors. In the long term, the farmer/shareholders will own this scheme. Once the scheme is fully operational, annual direct and indirect regional agricultural output is expected to increase by $264m per annum. A proportion of this agricultural output is expected to be processed, which will generate an additional $328m per annum, a combined increase of $592m per annum. The impact on wider economic activity is assessed at approximately $1b to $1.4b per annum. Export income from Canterbury’s rural sector already accounts directly and indirectly for 60-70% of Christchurch’s economic activity. In addition, Canterbury farmers spend around $750 million every year on goods and services provided by Christchurch businesses. Direct plus indirect employment is estimated to increase by about 1130 jobs. 416 of these will come from the expansion in farm output. A further 714 jobs will come from processing, transport and related off farm activity. A key factor to ensuring that the farmers invest in building this scheme is that they have certainty around the future of farmer in the Selwyn Waihora Zone. The nutrient limit setting process that CPWL management team have been actively involved in during 2012 has raised a wide range of issues many of which adversely impact on the certainty of farming. The solution that Environment Canterbury have developed to date as a result of this process relies on CPWL’s 30,000ha of new irrigation (plus 30,000ha of existing irrigation) to deliver the environmental outcomes for the Zone, including the following: Transfer from use of groundwater to surface water for irrigation; Increase flows in aquifers; Increase flows in lowland streams; and Improved farm management practices, Farm management plan implementation and auditing requirements. Farmer investment in the scheme is therefore very important to ensuring that the solution to the nutrient problem within the Zone is achieved. Farmer investment can only occur if certainty around the economic viability of a range of farm operations is well understood; and that any land use consents obtained to undertake any farming activity is of a duration that allows farmers to invest and see a return. Submission - Key Points: Importance of Agriculture and Irrigation to the Canterbury Economy 1. As per overview discussion Change of Land-Use 1. The current definition of ‘changed’ is problematic. Applying a volume of water threshold will result in detrimental outcomes inconsistent with CWMS target (Water Use Efficiency and Water Quality). Often the extra volume will be to improve reliability of supply and so will improve environmental performance – enable a change to an ‘as and when’ irrigation strategy as opposed to a ‘just in case’. Improved reliability results in decreased water use and drainage (nutrient losses). The irrigation component should therefore be removed. If an irrigation component is to be included within the ‘changed ‘definition it should only relate to additional irrigated area. 2. The 10% change in N loss is arbitrary. The percentage approach greater benefits those with higher existing N losses, which is illogical. The measurement timeframe given is also problematic and needs clarification. If input based thresholds are introduced this will avoid the capture of scenarios like ‘a lifestyle block that has a record lambing year‘, alleviating some issues. However, legitimate mixed cropping land use activities, with long-term crop rotations (eight to ten years is common), that span multiple properties through lease hold arrangement, must be better accounted for. 3. The time frame over which ‘changed’ is applied needs to be flexible to allow for a range of land use activities. The error and uncertainty associated with the use of OVERSEER (stated as +/-20%) also needs to be accounted for in the application of the definition. A combination approach which combines a percentage threshold with a threshold number is therefore recommended. Specific Submission Section 1 1. 1.2.6 – Managing new and existing activities - The Proposed Plan requires that any holders of existing resource consents that expire and reapply be considered subject to Part 2 of the RMA. CPWL would like to see explicit reference made to Part 104(2A) of the RMA which states that “the consent authority must have regard to the value of the investment of the existing consent holder”. 2. First paragraph, page 1-4 – The first paragraph states that “intensification of farming, particularly with irrigation, has the potential to increase nutrient losses to water bodies”. This statement is untrue as Good Management Practice irrigation enables the better management of water and nutrients. Reliable ‘just in time’ irrigation allows optimal vegetative growth, maximising the uptake of nutrients from the root zone whilst minimising drainage (nutrient loss). This allows an irrigated farming system to better perform to a higher environmental standard than a similarly intensive rain-fed system. Relief Sought: Amend ........intensification of farming has the potential to increase....... Objectives: 1. Objective 3.22 – It needs to be recognised that a range of methods, including regulatory, non-regulatory, collective and individual based approaches will be used to achieve community freshwater objectives through managing within limits. Relief Sought: Amend “Community outcomes for water quality and quantity are met through managing within limits and by utilising a range of different methods so optimal outcomes are achieved”. Policies: 1. Policy 4.50 (c) and (d) – These points are redundant. If required they should instead be replaced with a reference to the resource consent being made consistent with the corresponding flow regime, as set out in the catchment plan. Relief Sought: Oppose and Delete 2. Policy 4.76 – CPWL opposes this policy. Farmers need certainty to operate. A consent period of only 5 years is too short to provide the level of certainty that will allow farmers to invest in on-farm infrastructure, or in regional infrastructure such as a community irrigation scheme. It is well proven short-term consents do not enable the level of investment required in farm infrastructure to achieve the upper quartile of environmental performance. They are therefore inconsistent with the CWMS targets – water use efficiency and water quality objectives. Short duration consents will effectively create a block to any further development in the red zone– debt financing will not be able to be sourced to fund the mitigations required due to the increased level of risk. Relief Sought: Oppose and Delete Rules 1. Rule 5.46, 5.47, 5.48 and 5.49 – CPWL agrees with the approach of these policies however, we question the logistics of achieving these, unless a greater number of input rules are added to exclude the more extensive land use activities. Logistically it will take approximately 1 year from the plans notification to provide a robust and consistent Farm Plan template that can be rolled out. This then leaves 4 years to develop and implement 10,000-12,000 farm plans in Canterbury, when there is presently very limited capability and capacity. It should also be noted Canterbury is not an island and this approach is now commonly being adopted nationally which will lead to further capability and capacity issues. A 7 – 10 year timeframe would be more realistic for the implementation of this policy. Relief Sought: Amend From 1st July 2020,....... In Summary: CPWL recognise, and support that improvements in farm practices around nutrient and water management are required to ensure that the NPS objectives for Fresh Water are achieved. The Proposed Land and Water Plan provides a pathway to achieving the NPS Objectives for Fresh water. However, the policies and rules highlighted above have the potential to adversely impact on the economic sustainability of the Selwyn Waihora Zone. CPWL would like to see that any Nutrient Discharge Allowances established for farming activities by the relative industries has sound economic analysis behind the numbers so that impacts are thoroughly understood and verified prior to being adopted into the LWRP. Section 11 of the Proposed LWRP lists the priority outcomes the Selwyn Waihora Zone Committee have established for the Zone, the first being ‘Thriving Communities and Sustainable Economies’. Providing certainty to the farming community around the duration of land use and water take and use consents is also key to ensuring the success of the Thriving Communities and Sustainable Economies. Rule 5.46 has potentially a significant impact on achieving the ‘Thriving Communities and Sustainable Economies’ outcome for the Selwyn Waihora Zone.
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