Who will pick up Essential Freshwater’s $80b price tag?
Excessively stringent freshwater policies that won’t achieve significantly better water quality outcomes will cost New Zealanders more than $80 billion over the next thirty years, says DairyNZ chief executive Dr Tim Mackle. “The water quality limits under Essential Freshwater are so severe that the net result is a significant economic loss, both regionally and nationally, potentially without the environmental gains they are hoping for,” Dr Mackle said. “An $80 billion price tag equates to a cost of over $38,000 for every household in the country, according to independent and robust economic analysis of the Essential Freshwater proposals. “These costs are more than three times higher in Southland, Taranaki and the West Coast. Here, they rise to around $120,000 per household. “This will have a devastating impact on regional employment, too. Our analysis shows that there will be an extra 800 households in Southland and 1000 in Taranaki left with a breadwinner out of work. “These are significant costs to be borne, particularly in rural communities, and they should not be taken lightly. “These points emphasise the role of dairy farming as the economic engine of the regions where there is no guarantee another sector will replace it. “By 2050 this will be costing the country $6 billion per year – equivalent to the cost of unmitigated climate change in that year, predicted by the OECD. “Our current scientific understanding and economic modelling indicates there is a more pragmatic way to achieve similar environmental outcomes at less cost to the economy and communities,” said Dr Mackle. “To be clear, the Essential Freshwater policy isn’t all about economics or money. Healthy and swimmable waterways are important to all New Zealanders, including dairy farmers, who share the same aspirations to protect our rivers, lakes and wetlands. “Up to twenty percent of New Zealand waterways run […]