Tuesday, 05 September 2017 07:55

Water tax inequitable, nonsensical

Written by 
NOIC chief executive Robyn Wells. NOIC chief executive Robyn Wells.

“A blunt instrument that is unclear in its purpose.”

That is how North Otago Irrigation Company (NOIC) chief executive Robyn Wells describes the Labour Party’s proposed water royalty or irrigation tax.

“On the face of it, it’s inequitable and nonsensical to apply a royalty to water as if it’s a finite resource such as coal or gold,” said Wells.

“We all know that when we take water and irrigate, some of it goes back into groundwater flows and some of it goes into growing of grasses and plants,” she told Rural News.

“From those plants there’s evapo-transpiration, so it goes back into the atmosphere and it comes back into the cycle. That’s basic science – a water cycle.”

Wells says if the purpose was to tax water take, then everybody should be taxed.

“If the purpose was to tax pollution coming from the use of water, then the polluters should pay.”

Wells pointed out that no-one now pays for water; they pay for the capital and operation of the infrastructure.

“Even in Auckland, people are paying for the infrastructure -- the pipes and the operation of the pipes to bring the water to the door. We already charge our farmers for that at NOIC.”

She says NOIC also spent substantially on environmental management and enhancement.

Wells noted that the Waitaki River is a good quality river in an area where a lot of good environmental work is done.

She says the farmers of North Otago would be paying a royalty which would probably have to go somewhere else in NZ.

More like this

North Otago expansion ready to flow

The North Otago Irrigation Company (NOIC) expects its $53 million stage two expansion to be fully operational by the end of September, following a year’s delay caused by construction problems.

Featured

Expo scales to new heights

Engaging, thought provoking speakers, relevant seminars and relatable topics alongside innovative produces and services are the order of the day at the 2026 East Coast Farming Expo.

New target 'political theatre'

OPINION: Farmers are being asked to celebrate a target that changes nothing for the climate, wastes taxpayer money, and ignores real science.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Red faced

OPINION: The Greens have taken the high moral ground on the Palestine issue and been leading political agitators in related…

Cold comfort

One of the most galling aspects of the tariffs whacked on our farm exports to the US is the fact…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter