Monday, May 22, 2017

We are being ripped off on water

How badly are kiwis being ripped off on water? This badly:

Water bottling companies are paying an average 500 times less than ratepayers for each litre of water they're allowed to use.

A Herald investigation into water fees set by every regional council around the country found bottlers were charged an average $0.003 - or one third of a cent - per cubic metre of water.

Comparatively, in Auckland, Watercare charges $1.40 per cubic metre (1000 litres) for water piped to houses, while the rest of the country paid an average $1.60 per cubic metre.

This is, as the article points out, grossly unfair. A resource we get charged for is provided to foreign-owned bottling companies for free (unmentioned: farmers get it even cheaper). Who then sell it back to us for 300,000 times what they pay for it. I don't think we can get a clearer demonstration of how badly we are being ripped off than that.

This isn't acceptable. And the obvious solution is to charge commercial water users exactly what residential ones pay. Its not as if they can't afford it, or that it would destroy their business - paying the residential price for water would add all of 0.2 cents to a 1.5 litre bottle, which would be unnoticeable to the end user. But the revenue it would bring in to local councils and iwi would make a huge difference.

But the last thing National wants is for farmers to have to actually pay their way rather than freeloading on the rest of us. And so water companies will be able to continue ripping us off and price gouging for something they got for free as long as this government is in office.