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STUFF The Hurunui, Hunter Downs and Flaxbourne projects will all have their funding cut.

The Government will cut funding to the three major irrigation projects in Canterbury and Marlborough.

Finance Minister Grant Robertson announced on Thursday afternoon that the Government would stop funding the Hurunui, Hunter Downs and Flaxbourne projects through Crown Irrigation Investments Ltd as part of its Confidence and Supply Agreement with the Green Party.

Funding for the Waimea Community Dam, Kurow-Duntroon Irrigation Scheme and the second phase of Canterbury's Central Plains Water Scheme have been given the green light though.

Robertson said the decision would provide certainty for those schemes, which were also trying to attract private investment.

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"We recognise that year-round water availability is important for drier areas of New Zealand. Smaller-scale, locally run and environmentally sustainable water storage projects could be considered on a case-by-case basis.

"Large-scale private irrigation schemes should be economically viable on their own, without requiring significant public financing. We must also be mindful of the potential for large-scale irrigation to lead to intensive farming practices, which may contribute to adverse environmental outcomes."

TONY BENNY/STUFF The drought-prone rolling country south of Timaru, South Canterbury, was close to getting irrigation from Hunter Downs Water.

National's Agriculture spokesman, Nathan Guy, said this was the second major blow Prime Minister Jacinda Ardern's Government has dealt to regional New Zealand within a week.

"Fresh from whacking a major new fuel tax on New Zealand motorists the Government has announced it will leave regional farmers and growers at the mercy of prolonged droughts by canning support for important irrigation projects. This is a huge blow to regional New Zealand, which is facing an increasingly uncertain future as a result of this Government's raid on our regions.

"This summer alone saw six regions declared in drought as dry weather hammered primary producers right around New Zealand. These irrigation projects would have given them the certainty they could deal with future dry spells but that certainty has now been ripped away."

IAIN MCGREGOR/STUFF A dam had been proposed for the Hurunui River water scheme.

​IrrigationNZ chief executive Andrew Curtis said he was disappointed because irrigation projects were worth $1.2 billion to communities around New Zealand every year.

"This is a huge lost opportunity for these rural communities. The projects all have local community support and also meet strict new environmental requirements around river swimmability and nutrient limits."

DOUG FIELD/STUFF IrrigationNZ says irrigation projects are worth $1.2 billion to communities around New Zealand every year.

The Green Party celebrated the decision to cut funding, saying it would lead to cleaner rivers and less pollution.

"[Thursday's] announcement marks an important step in cleaning up our rivers and protecting our water and climate for generations to come," leader James Shaw said.

"Large-scale irrigation projects and dairy conversions put all of that at risk. The industrial-scale irrigation schemes subsidised by the Crown Irrigation Fund created dependency, increased farm debt and led to increased pollution."