Irrigation New Zealand

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11th August 2017

In the absence of a policy from the Labour Party, the organisation representing irrigating farmers is seeking answers from Labour Leader Jacinda Ardern on how a new water tax on irrigation might work.

“The Labour Party’s glib and misleading announcement this week about a new water tax was disappointing for all New Zealanders,” says IrrigationNZ Chief Executive, Andrew Curtis.

“Farmers are clear that a tax on irrigation would affect all New Zealanders through higher food prices but Labour has failed to address this, even though many of their voters cannot afford to pay more for groceries,” he says.

“We think the tax is inconsistent in treating water used for irrigation differently to other types of commercial water use and there are a range of complex issues associated with how it would be implemented which appear not to have been thought through at all,” he adds.

“Kiwis have a right to understand the tax before they vote.”

IrrigationNZ requests that Labour provides written answers to the questions below so that voters can understand the impact of this new tax on all New Zealanders.

 

“Labour – Let’s Answer This” – New Zealanders deserve answers on water tax!” 

What is the impact of Labour’s water tax?

  1. How much tax will be charged per unit of water?
  2. Who will be charged?
  3. What impact will the tax have on price increases for food eg fruit, vegetables, meat, milk, beer, bread, wine, ice-cream, and how will poorer households afford price increases?
  4. How many jobs would be lost across New Zealand due to our food becoming unaffordable at home and not competitive internationally?
  5. How will a water tax enable local communities to implement solutions to their environmental issues?

How is Labour’s water tax fair?

  1. Who owns New Zealand’s water?
  2. Who will the tax be paid to?
  3. Why is it fair to tax some types of commercial water use and not tax others?
  4. Exporters already pay income tax – why should they pay twice?
  5. Why is Labour not going to introduce a sewage tax in town water supplies when the Our Freshwater 2017 Report found that E.coli and nitrate-nitrogen concentrations are highest in urban catchments?

How is Labour’s water tax proposal workable?

  1. If the tax varies depending on water scarcity, water quality and weather conditions then how many different tax rates will there be?
  2. Which organisations have you consulted on the tax?
  3. Can Labour confirm that that those affected by the tax will set the new tax level as suggested by the Leader?
  4. If tax payers have a different view to Labour will the tax payers’ view prevail?

How will Labour’s water tax address the impacts of climate change and existing investment?

  1. How will taxing water used to grow food increase New Zealand’s resilience to climate change?
  2. Over the last 5 years there has been $1.7 billion investment in modern efficient irrigation infrastructure – what impact will the tax have on this?

Contact: Andrew Curtis, CEO, IrrigationNZ, 027 496 6314


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