Tuesday, July 18, 2017



Why we should price water IV

At their campaign launch in Nelson the Greens announced a 10 cents a litre levy on bottled water. So how much is that worth? Up to $2 billion:

Right now, 73 companies hold consents to take up to 23.7 billion litres of New Zealand water between them. Adopting the same approach as our Pacific neighbour and charging 10 cents per litre would bring in nearly $2.37 billion a year in revenue - roughly about 1 percent of the country’s GDP, and comparable to a third of the $8 billion the dairy industry contributes every year.

The country’s largest water permit grants Okuru Enterprises permission to pump 800 million litres of water out of Jackson Bay on the South Island’s West Coast for export every month, or 9.6 billion litres annually. With a 10 cents per litre tax, the West Coast Regional Council-approved consent would rake in a staggering $960 million a year alone.


Of course, not all of these consents are fully utilised, or even used at all: Okaru infamously has consent, but hasn't pumped a single drop in 25 years. And really, we want some of these consents (such as Okaru's) to be surrendered or never used. At the same time, it shows how charging water bottling companies for their use of a public resource could be a significant revenue stream for the government (and for iwi, once the necessary settlement is reached) and allow us to fund better public services for kiwis. And at the heart of it, there is the basic fairness article: that water belongs to the people of New Zealand. It is only right that those who want to profit from its extraction pay for it.