Provincial officials say they are taking the next step in protecting water resources with a new fee hike for water bottling companies that take groundwater.
But reaction is mixed on how effective the increased fee will be – or even if the fee will help areas most impacted by water bottling operations.
Currently, water bottlers are charged $3.71 per million litres of groundwater drawn.
The province proposed on Jan. 18 that water bottlers pay an additional $500 fee, which would bring the cost up to $503.71 for every million litres of groundwater taken.
“Ontario is committed to making sure we protect groundwater resources – now and in the future,” environment minister Glen Murray stated in a Jan. 18 press release.
“Fair pricing will help ensure those who are benefiting today from water resources do their part to safeguard it for tomorrow.”
The province’s announcement states the proposed fee would “help recover the costs of managing groundwater taken by water bottlers, including supporting scientific research, policies, outreach and compliance.”
‘No amount of money will bring our water back’
Wellington Water Watchers (WWW) officials say their focus remains on new regulations to protect water.
“No fee change is going to deter this industry, whose profit margins are so enormous that no impact will be felt by such a fee increase,” states a press release from the group.
In short, WWW wants the province to phase-out, stop granting and stop renewing permits that allow for the reselling of water.
While the group supports a cost-recovery fee to help manage water permits, it opposes turning water into a commodity.
“It has never been about the fees for us. It has always been about the principled use of our water,” WWW chair Mike Nagy stated in a press release.
“Although we are pleased to see that the MOECC (Ministry of Environment and Climate Change) is responding to the people’s request to see this industry treated differently from other water takers, we have always been clear that no amount of money will bring our water back once it is gone.”
WWW board member Rob Case agrees.
“It’s not that we oppose the fee increase … but it’s a bit of a diversion from the real issues,” Case said.
He added, “We just cannot afford to keep letting industries take this public resource merely to put it into a piece of garbage to send around the world for great profits. It is time we bring our regulations into the modern reality.”
Nestlé Waters
Officials with Nestlé Waters Canada, which operates commercial wells in Aberfoyle and Erin and has proposed a third Wellington well near Elora, have stated they support Ontario’s water pricing review.
However, an estimate based on its wells in Aberfoyle and Hillsburgh (if operated at full permitted capacity) could potentially increase Nestlé’s water taking fees by $800,000 each year.
“Nestlé Waters Canada fully supports the government’s commitment to invest in a secure water future for all Ontarians,” Nestlé Waters president and CEO Debbie Moore stated.
She added, “We will accept the final water price set through this process. In principle, we believe all groundwater users should be treated equally, but we understand and appreciate that opinions differ regarding the rates various water users should pay.”
Moore also stressed her company “agrees that water sustainability is non-negotiable and all investments in groundwater research are a positive step toward our shared prosperity and a sustainable future.”
In a later email to the Wellington Advertiser regarding future plans in light of the fee change, Nestlé’s director of corporate affairs Jennifer Kerr stated, “We do not have enough information at this time to make that assessment …
“It is a significant increase, and we are currently assessing potential impacts and options to the business.”
MPP, township concerns
Wellington-Halton Hills MPP Ted Arnott said he supports increasing the fee charged to water bottlers, but he still has questions how the new fee would be used.
“How much revenue will the new fee bring in?” Arnott asked. “Will it go into a dedicated fund for water protection, or are we just supposed to trust them?”
Arnott has repeatedly argued any increase in the fee charged for taking water should be shared with the municipalities affected.
“Our local municipalities are impacted by extensive reporting requirements and an increase in trucks on our local roads,” said Arnott.
“If the government is unwilling to share the new revenue it raises, people will rightly conclude that this is just another cash grab.”
In December, Puslinch Mayor Dennis Lever said, “If this is to be determined based on science … all water users need to be included in this – we shouldn’t single out one specific industry.”
On proposed changes to water taking charges, Lever said at some point it will need to be based on science – or redefined as a tax, fee or levy.
Comparisons, comments
The province’s proposal marks a huge increase over the current fee of $3.71 per million litres of water drawn (companies also pay permit fees ranging from $750 to $3,000 depending on the assessed risk to the environment).
In comparison, municipal water users in Guelph are charged $1.59 per cubic metre or $1,590 per million litres.
In Centre Wellington, the numbers are $2.19 per cubic metre or $2,190 per million litres.
Ontarians can comment on the proposed new fee through the Environmental Registry (#012-9574) until March 20. They can also comment on proposed new rules for waster bottling companies through the registry (#012-9151) until Jan. 31.
