580M LITRES OF WATER BOTTLED FOR CHINA

Company fears backlash as bid to tap freshwater springs is revealed amid election campaign, writes Matt Shand.

A Chinese-owned company has applied to draw up to 580 million litres of water a year from pristine Otakiri Springs, to bottle and ship overseas.

At a time when the commercialisation of freshwater is a sensitive election issue, the bid by the Nongfu Spring subsidiary is set to open the political floodgates.

Labour leader Jacinda Ardern is promising to crack down on royalty-free use of New Zealand’s limited water resources. And Environment Minister Nick Smith says the National Party has asked a technical group to look into charging for bottling water, but the report won’t be finished until after next month’s election.

Creswell NZ Ltd has applied to Bay of Plenty Regional Council for nonnotified consent to increase its ability to draw and sell pure NZ water by a massive 27,400 per cent.

The total annual take would be enough to give a 330ml bottle of water to every man, woman and child in New Zealand, every day of the year.

Creswell admits to the public sensitivity of the issue. The company’s own report writers, Beca Consulting, acknowledge the negative public view around the lack of royalties on New Zealand water.

‘‘One matter not discussed in detail in that analysis is the recent negative publicity regarding various proposals around New Zealand to bottle and export water and concerns raised about the lack of a royalty payment regime for such proposals,’’ says the report, obtained by the Sunday Star-Times.

‘‘As the council will appreciate, that is because those matters are not relevant to the consideration of the application under the Resource Management Act and must not be taken into account in the council’s notification decision.’’

Currently the company takes two million litres of water for bottling but this could increase to 580 million litres a year. By 2021, the plant would be drawing 208,000 litres per hour, every hour of every day.

Labour’s water spokesman, David Parker, said the fact Beca mentioned the negative public reaction in their application should be a red flag. ‘‘This is a prime example of why we need fair royalty from water use back to New Zealand,’’ he said. ‘‘How can people think this bottling operation is right?’’

Premium water for bottling and export could carry a 1 or 2 cent per litre royalty which would go back to the regional authorities, Parker said.

Nongfu Spring Ltd has a sale and purchase agreement with Otakiri Springs Ltd and Robertson Farms (the landowners) which includes the transfer of the existing land use consent.

The premium quality of New Zealand water is key to Creswell NZ’s application. ‘‘Nongfu Spring wishes to retain the Otakiri Brand and to market it as a premium New Zealand artesian bottled water brand.’’

The impact on the environment would be minimal, the application says, and the expansion of the existing bottling plant will generate 50 new jobs for Otakiri. That would be worth $8.59 million to the local economy every year once the plant is fully operational.

Approached yesterday outside his home in the Auckland suburb of Glendowie, Creswell NZ director Michael Gleissner initially refused to comment. But he later issued a

This issue has become a social focal point. We need to be mindful of that changing mood and people’s interests. Doug Leeder Bay of Plenty Regional Council chairman

statement, through a public relations consultant.

He defended the application, saying the aquifer had plenty of water and ability to recharge, and many jobs would be filled by local residents.

Gleissner agreed water bottling had been a contentious issue in the election campaign.

‘‘Water pricing, whether it’s a broadbased or targeted levy is an extraordinarily complex issue. This is for the Government to decide, and we will respect whatever decision it makes.’’

He said the application was put forward as a non-notified consent because it was within the limits of the existing water allocation.

Regional council chairman Doug Leeder said water resource consents were typically handled at an executive level and were usually non-notified.

But public concern about water bottling for export might become a consideration in this case.

‘‘This issue is about royalties or charges for volumetric use of water. This issue has become a social focal point,’’ he said. ‘‘We need to be mindful of that changing mood and people’s interests.’’