Performance of New Zealand irrigation systems after transfer : a thesis presented in fulfillment of the requirements for the degree of Master of Applied Science in Agricultural Engineering at Massey University
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Date
1999
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Massey University
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Abstract
This paper discusses the performance of irrigation schemes after they were transferred from Government control to irrigation companies in New Zealand. This study tested two hypotheses: a) privatisation of irrigation schemes in New Zealand has produced very large efficiency gains, and b) the privatisation of irrigation schemes in New Zealand has been very successful. These hypotheses were proven. Water costs for the same scheme would have been higher if it had not been privatised. The staff size was at minimum level. The companies seemed to be consistent with the O&M budget for water charge. Legal, financial and technical advice and services from professional groups were made available to the irrigation companies. The water costs were controlled by irrigation companies. The schemes received strong physical, financial and spiritual support from farmers and shareholders. No evidence of documented environmental side-effects was found. The farmers indicated that they would stay with the current management instead of returning to the past system under which they received financial supports from the Government. However, as the resource consents were thought to be a strategic threat and the irrigation companies seemed not to be prepared to enforce their capability in human resource management, technology development and company infrastructure, the irrigation companies could face difficulties in the future. A number of recommendations were made as follows: 1. The water costs should be calculated on the basis of life cycle-costing. 2. The irrigation companies should consider contributing funds for training and research activities in order to achieve high efficiency for irrigation systems and irrigation techniques. Research would not only bring about improvement of efficiency in irrigation, but also gain glory for New Zealand science in the international arena. 3. The irrigation companies may need to consider re-establishing the New Zealand Irrigation Association to act as a focal point for the irrigation companies. This type of organisation would facilitate the networking of information, and the sharing of experience amongst its members.
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New Zealand, Irrigation -- Economic aspects, Privatization