Farmers say they weren’t expecting much from this year’s Budget but are pleased that three flood protection schemes in Northland look set to receive support from the Government’s new regional infrastructure funding.

The projects, including
one of the country’s biggest – stopbank upgrades on the SH12 side of the Wairoa River between Dargaville and Te Kōpuru – could be some of the first recipients of the new Regional Infrastructure Fund (RIF).

The other two in Northland are phases one and two of an upgrade to the Quarry Road Bridge in Kaitāia that leads to the airport.

After the fund opens on July 1, five ministers – including Regional Development Minister and Northlander Shane Jones – will make decisions about the three Northland projects and 39 other flood resilience schemes already identified nationwide as potential recipients.

All three projects have resource consent, are construction ready, and meet the criteria of the RIF, a spokesperson for the minister said. However, no decisions had been made yet on projects or allocated funding for projects.

“When the RIF goes live in July, the Government contribution to the total cost of the project and what financial instrument will be most appropriate for the council will be presented to ministers for decisions,” the spokesperson said.

Northland farmers welcomed the potential go-ahead of the projects. Federated Farmers Northland provincial president Colin Hannah said the Dargaville to Te Kōpuru upgrades would enable farmers in that region to plan and farm with some confidence.

However, he noted farmers on the other side of the river also needed some certainty.

“Maybe this is just the beginning. Let’s hope,” Hannah said.

The RIF makes available $1.2 billion over three years for regional development type projects, the criteria for which would be established this month.

In a Budget day press release Jones said, “We are dedicating an initial $200 million for flood resilience infrastructure. Of this, up to $101.1 million is committed, along with co-investment from recipients to 42 flood resilience projects that are close to getting started. The Government is working through the nature and size of support that will be offered for each project.”

Most of the flood protection projects up for immediate consideration were those identified by local authorities and other stakeholders in a report called Before the Deluge 2.0, which landed with the Government at the end of 2022 and was updated after cylcones Hale and Gabrielle struck early last year.

In that report the Dargaville to Te Kōpuru project was estimated at $13 million – the sixth biggest project of those identified nationwide.

Phases one and two of the Quarry Road Bridge upgrades would replace the Kawakawa deflection bank project and phase two of the Matangirau Flood Risk reduction works, which were previously identified in the report but which had since received funding from the Cyclone Recovery Fund.

Jones said, “Extreme weather events such as cyclones Hale and Gabrielle last year highlighted the critical need for this infrastructure. Stopbanks are often the only thing standing between a deluge and economic devastation for a region. While we see councils as responsible for flood protection, this fund will provide valuable one-off support to address critical gaps across the country.

“Last month I visited an upgraded stopbank near Gisborne. That project alone increased flood resilience for around 7000ha of residential and horticultural land. It protected a reported 10,000 people and $7 billion of assets, including major transport links.”

Speaking to the Advocate about other farming matters in the wake of this year’s Budget, Hannah said farmers weren’t expecting much as “the cupboard has been bare for a while”.

“We have had reduced incomes and rampant inflation and the costs have been really biting, particularly here in Northland as someone has to pay for the increased costs from the Brynderwyn closure and that is you and I plus all the other residents of Northland. It is amplified by the fact that we are on a no-exit road and someone has to pay for the empty return journey. It has hit the rural community in particular as a very large number of on farm supplies have to be transported in from outside the region.

“We are also seeing increased interest rates draining any surplus cash out of farmers’ pockets which would have in better times been spent in our towns and villages around the region. Our retailers are feeling the tightening rural belts.

“Recent policy draft plans from our regional council haven’t helped with the positivity around Northland. The rate increases planned for the region are leaving many rural residents gasping wondering how they are going to meet these impositions.

“Farmers’ view of the services their bankers offer is at an all-time low across New Zealand, this view is particularly high in Northland. Bankers have a view that it is a higher risk to farm in Northland and charge accordingly. Farmers are looking forward to the banking review.

“As far as the ETS (Emissions Trading Scheme) is concerned, Simon Upton (Parliament’s commissioner for the environment) has circulated a document for discussion which the federation will consider and respond to accordingly. One of the problems with the ETS is that no ETS system around the world is the same and so there are huge discrepancies from one jurisdiction to another. The ETS has certainly been distorting land values around Northland in recent times. It does need some attention.”