Building Tomorrow’s Company – Optimising Water Management 13 Aug 10

 

Effective governance requires vision and succession planning – Irrigation NZ is committed to ensuring rural communities have leaders well versed in their governance role . . .

Many people’s first thoughts about their role as a company director and board member revolve around compliance and monthly monitoring, or justifying actions already taken.

Corporate governance is often compared to a visit to the dentist – you know you should do it, you want to get it over with quickly and you hope it’s not going to hurt.

The governance of irrigation infrastructure is a business that carries risk and most importantly puts community/company needs above the needs of any one individual. 

Recognising the importance of effective governance Irrigation NZ (INZ) is working alongside industry professionals to ensure boards within the irrigation industry have a clear understanding of governance given the responsibilities and liabilities associated with water management.

In partnership with Goodman Tavendale Reid Ltd and KPMG, INZ recently completed its second governance essentials course with the focus towards ensuring responsible and sustainable water management throughout New Zealand.

“If the governance is good then there is a much greater chance that the whole of community values are met – economic, culture, social and environmental,” says INZ business manager Chris Coughlan.

Farmers by the nature of their role are often sole traders and isolated on their farms. Those ‘community leaders’ that step up to fulfil the role of managing the local irrigation water on behalf of whole communities, often have little experience or understanding of the role and responsibility it carries. 

“It requires vision and succession planning and INZ is committed to ensuring rural communities have leaders well versed in what their governance role entails whether it is because they are governing now or identified as a future leader by their community,” Coughlan said.

In presenting the programme tutor Richard Westlake delves into the issues of distinguishing between management roles and governance, rights and liabilities, understanding responsibilities and making informed decisions.

“This course was a huge hit and we already have a waiting list for the next one,” Coughlan concluded.

Recognising the importance of effective water management in enhancing the productivity of New Zealand agriculture and the flow on benefits for the wider economy was the key driver for KPMG in partnering with INZ to present the governance training.

“We are very pleased to be partnering with INZ to provide current and future leaders of irrigation and water management schemes with the governance skills to assist them in managing these assets of national importance in a manner to maximise the benefits they provide to the scheme users, their communities and the New Zealand economy,” KPMG partner Ian Proudfoot said.

In supporting Goodman Tavendale Reid’s (GTR) three-way partnership with INZ and KPMG, GTR director Andrew Leete acknowledged governance as a key issue for water groups and schemes.

“This course provides valuable training and advice to directors taking part in them.  We are very pleased to be involved with INZ in supporting the governance essentials course," Leete said.

For North Otago Irrigation Company (NOIC) chairman and former mayor of Waitaki Alan McLay the governance essentials course revealed “a lot of gems”.

The man with much experience in the governance field said the course stood out from the usual directors’ courses.

“I was absolutely encouraged. It was well presented and articulated in a way I had not heard before reaching into areas that a lot involved in governance do not understand. I would encourage any one of my directors to attend,” McLay said.

Not yet a director but encouraged to attend, Pleasant Point farmer Dan Kelly said he fronted up to the course with a broad understanding of directorship.

“But I have a far more in depth understanding now. The course really honed in on responsibilities and in particular around water legislation. I could only say it was outstanding and well worth the time to attend,” Kelly said.

Further comment:

Chris Coughlan – INZ business manager phone: 0276717705