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Home / Hawkes Bay Today

$40m earn in water royalties suggested

By Sophie Price
Hawkes Bay Today·
26 Aug, 2015 06:53 PM3 mins to read

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Peter Beaven.

Peter Beaven.

Bottling water has the potential to make $40million for the Bay, says Hawke's Bay Regional Council member Peter Beaven.

At a meeting of the council (HBRC) yesterday, he cited the figure during a discussion on water-bottling plants tapping into Heretaunga Plains groundwater.

Mr Beaven said his attitude to water-bottling had nothing to do with China, and he would feel the same if it was going to India or Timbuktu.

However, he deplored the fact that for Hawke's Bay there was little added value in the process.

"We use water currently on these Heretaunga Plains to grow our crops, to feed livestock, to water our parks and reserves and factories for further processes.

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"Those sorts of things that add value, if you like, to the activities this community participates in.

"On the other hand with water-bottling it is very hard to see any of those enhancements.

"I can't see any environmental benefit.

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"In fact, it is arguable with the amount of plastic that would have to be generated there is a disadvantage environmentally."

However, he said there were very few economic benefits in the form of jobs created through water-bottling plants.

He could not see the point of giving away the Bay's spare water without trying to add value to it in some way.

For that reason the council needed to try to find some way to add value.

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The only way he could think of was by introducing a royalty, such as half a cent, if it was legal to do so.

"And the money might be quite significant," he said.

"Right now there are about four million cubic metres of water that have been consented for water-bottling plants and even if we charge one half a cent per 500ml bottle, that would generate $40million on income for this region."

He said, however, the council had no legal opportunity to do it.

"But I am assured by staff that it is not possible without legislative change, which is why I am suggesting that is what we need to do," he said.

"We need to commence discussions with Government with a view to be able to charge a royalty for our water if, in fact, it turns out that we have a surplus that can be used for that purpose."

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Mr Beaven was speaking to four recommendations made on the item before the council at the time concerning the Heretaunga Plains groundwater.

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