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THE INDEPENDENT VOICE OF MID CANTERBURY
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Motoring August 11, 2017
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‘Water tax would bankrupt me’ BY COLIN WILLISCROFT
Gluyas Motor
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Mid Canterbury farmer David Clark says a water tax of 10 cents a cubic metre would cost him $234,000 a year – and put him out of business. PHOTO SUPPLIED
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IN TODAY’S GUARDIAN
A water tax at a level that was previously Labour Party policy would bankrupt many Mid Canterbury farmers, Federated Farmers’ Mid Canterbury vicechairman David Clark says. Clark, who has an irrigated arable and livestock farm, said based on a tax of 10 cents a cubic metre on the consented water take volume for his property, the cost to his farm would be $234,000 a year, or 12 per cent of the gross farm income, which was “certainly more than the tax paid profit”. The value of the product he sells overseas is set by the international market, which he cannot increase, he said, so the only way he could hope to claw back
even part of that cost would be to increase the price of arable products on the local market – and that still would not be anywhere near enough. “There is not sufficient money in our system of farming to pay that tax,” he said. “It cannot be done.” Clark said if a water tax was applied to farmers, the cost of food would rise to cover it. “Labour assumes that irrigation equals pollution but that’s not necessarily the case.” Clark said he upgraded the irrigation system used on his farm in 2011, spending well over a million dollars in the process, so that he now employs the best available pivot technology to apply water across his farm.
The only way he could afford to make that sort of investment was to operate a profitable farm business, he said, and under a water tax all that profit and more would go. “The only way our farm could afford to pay 10 cents would be to put in a dairy shed and convert to dairying. “And even then we’d be hard pressed.” Labour’s approach was completely wrong, he said. “We need farm businesses investing in technology to improve environmental outcomes, rather than the socialism the Labour Party seems to be stuck on.”
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