Hon Amy Adams

Minister for the Environment

7 August 2014 Media Statement

Labour attacks rural NZ, continues anti-jobs agenda

Environment Minister Amy Adams says Labour’s water tax is a pointed attack on rural New Zealand and small businesses that operate there.

“Labour is suggesting that rural New Zealand should pay taxes that no other New Zealander has to pay and should abide by rules that other water users aren’t subject to,” Ms Adams says.

“In fact, under Labour’s plan, the productive sector could be hit with a $60 million bill for every one cent of tax Labour imposes per cubic metre of water.

“You have to ask why Labour is looking to penalise farmers and small, rural businesses by making them and only them pay for water use when the issue of water quality is one that applies across urban and rural New Zealand.

“It’s an out-and-out attack on rural and provincial New Zealand.

“Only a few days ago Labour was claiming they supported small businesses. However, Labour’s water tax, which they are hiding the amount of, would cause real damage to hundreds of small, rural businesses in the productive sector.

“It's not just costs dairy farmers would have to bear. Sheep and beef farmers in Canterbury, apricot growers in Roxburgh, market gardeners in Pukekohe and kumara growers in Dargaville could all be hit by Labour’s water tax.

“As Irrigation New Zealand points out, an equitable and affordable water tax will be impossible to implement and will cost a fortune to establish.

“If it was really about ensuring efficient water use, why is every other commercial water user, except farmers, exempt?

“A water tax will increase the cost of production which could mean higher costs for New Zealanders for products like milk, cheese and fresh vegetables.

“Improving the quality of our freshwater is important to us all but we must do it sensibly so it doesn't cost thousands and thousands of jobs across regional New Zealand and impose millions of dollars of costs on communities.

“National’s plan will improve and maintain the economic health of our regions while improving the health of our lakes and rivers at the same time.

"With policies like this, Labour might as well give up the pretence that they care about rural and provincial New Zealand and the small businesses that are at the heart of these areas."

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