The government is making moves to improve management of the country's fresh water to better support farming and recreational use of waterways.

Environment Minister Nick Smith and Agriculture Minister David Carter jointly announced today their pre-budget government fresh water policy package.

Government proposals made today hope to improve harmony between farmers and the general population over use of fresh water sources such as Lake Rotorua.

The ministers say improved water management is needed to grow the economy while better caring for our rivers, lakes and aquifers.
'This water package demonstrates the government's commitment to maximising the economic growth opportunities of water – our most plentiful natural resource – while protecting our environment,” says David.

'These steps are about improving the management of water to support a growing economy and the great Kiwi lifestyle of swimming, boating and fishing.”

The package comprises:

• A National Policy Statement on fresh water management to set a consistent, nationwide regulatory framework for setting water quantity and quality limits to govern the allocation and use of freshwater.
• An Irrigation Acceleration Fund of $35 million over five years to support the development of irrigation infrastructure proposals to the ‘investment-ready' prospectus stage which could unlock the economic growth potential of our primary sectors through the development of more efficient and effective water infrastructure, such as storage and distribution.
• A Fresh Start for Fresh Water Clean Up Fund to assist councils with historic pollution problems with reprioritised funding of $15 million over two years and a total clean-up programme commitment of $264.8 million.
• The government will also consider in a future budget investing up to $400 million of equity in water infrastructure schemes.

Environment Minister Nick Smith says the National Policy Statement for Fresh Water Management recognises the value of fresh water to New Zealand and gives stronger national direction to councils.

'This National Policy Statement is about government giving clear direction to councils on the importance of improving New Zealand's fresh water management,” says Nick.

'It requires councils to set limits on fresh water quality and the amount of water that can be abstracted from our rivers, lakes and aquifers.

'New Zealand's fresh water resources are among the cleanest and most abundant of anywhere in the world, but problems are developing in our quality and quantity in some areas.

'We need to get better rules in place so we don't end up having to fund major clean ups on rivers like the Waikato and lakes like Rotorua and make more efficient use of water for irrigation and electricity.”

Fonterra welcomed the new Irrigation Acceleration Fund.

'The natural competitive advantage associated with New Zealand's comparative water rich status can be turned into more wealth for our country,” says Fonterra's director supplier and external relations, Kelvin Wickham.

'Any investment in infrastructure to store water is a good step towards this goal.

'Projects like these have long lead times so this fund will hopefully support them through the developmental stages.”

Kelvin says he also welcomes indications that the government will consider further investment which could have the potential to encourage greater investment in water infrastructure projects.
'We look forward to more detail in the Budget on this funding and especially confirmation of the timing of its availability.”

Nick says the Fresh Start for Fresh Water Clean-up Fund is about the government providing a more consistent framework for supporting existing river and lake clean-ups and providing new funding that enables all regions a fair opportunity to secure government financial support.

'We have a number of significant rivers and lakes that require major clean-up investments where it is beyond the capacity of councils alone to meet the cost,” says Nick.

'A pre-condition for the government's funding support is councils having effective rules in place to prevent ongoing pollution.

'This is about the government using both a carrot and stick approach to improving freshwater management.

'This initiative brings together a number of existing one-off clean-ups in Waikato, Rotorua and Taupo into the Fresh Start for Fresh Water Programme as well as reprioritised funding in the budget for the new contestable clean-up fund of $7.5 million per year for 2011/12 and 2012/13.”

Check SunLive tomorrow for reaction from the Bay of Plenty authorities.