With promises of money for irrigation and keeping agriculture out of the Emissions Trading Scheme, for the time being, the National Party announced its environment and agricultural policies in Nelson on Wednesday.

Prime Minister John Key said $400 million would be set aside for irrigation projects, from the proposed Future Investment Fund, a fund to be set up with the proceeds from the partial sell-down of state assets.

The money will be managed by a new Crown Water Investment Company and will be investments and not grants, according to the Prime Minister.

John Key said there were ‘quite a number’ of potential new schemes around the country which could get off the ground with more investment.

Agriculture Minister David Carter said the plan was not about delivering irrigation to farmers at all costs.

Projects would have to reach ‘very, very high environmental standards’ if they were to succeed.

The National Party also confirmed it would be slowing down the phase-in of the Emissions Trading Scheme, with transport, electricity and industrial sectors coming on from January 2013.

However, agriculture wouldn’t join the scheme until there is progress on curbing emissions in other parts of the world..

Climate Change Minister Nick Smith said it isn’t in New Zealand’s interests to include agricultural emissions in the ETS yet.

‘A lack of any practical and real technologies means it would only impose a cost or a tax on our most important export industry.’