The Wakatu Incorporation will go back to the Government to seek funding for an aquaculture centre near Nelson.
Waatea News reports the Ministry for Economic Development has turned down a request for $10 million.
Wakatu chief executive Keith Palmer says most of that money was to build a pipeline bringing seawater to the Horoirangi centre of seafood and aquaculture, for commercial-scale development of aquaculture ponds, hatcheries and incubators.
He says the Government seems to have its wires crossed about the development, which is a joint venture with the Cawthron Institute and the Nelson Marlborough Institute of Technology.
Mr Palmer says Wakatu is prepared to invest more than $20 million on the project, but it considered the pipeline was infrastructure which should be paid for by public funds.
