Polaris Institute calls for corporate tax on water profits

Posted May 3, 2007 in [Water]

May 3, 2007, Ottawa – The Polaris Institute is calling on Ontario Environment Minister Lauren Broten and Premier Dalton McGuinty to impose a corporate tax on the profits of commercial and industrial water takers.

Last month, the Ontario Liberals announced a proposal to apply a $3.71/million litre conservation charge on highly consumptive water takers, starting with the bottled water industry.

The Polaris Institute states that this new charge amounts to only 0.000004 cents per litre of water. They argue the charge will do nothing to curb the intensification of commercial water takings in Ontario and will simply be passed on to the consumer.

“Instead of placing a price tag on water, what is necessary is to tax the profits of commercial and industrial water takers at rates high enough to create a real incentive to conserve water. It is high profit margins that primarily motivate water exploitation”, says Tony Clarke, Director of the Polaris Institute.

According to the Institute, tax revenue should be used directly by public officials to conduct thorough research into the state of Ontario’s watersheds. Corporate taxes on water profits, they contend, should also go to support municipalities faced with the high cost of updating public water systems.

“Rather than protecting Ontario’s water resources, what we are witnessing through this ‘charges’ proposal and other water legislation introduced by the Liberal government in recent months is nothing short of stage setting for the privatization of water management and services in this Province”, says Leigh Thomson, rural water activist.

The Polaris Institute is an organization that works on water policy issues in Canada and internationally.

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If you’d like more information on this topic or to schedule an interview with the Polaris Institute, please call Verda Cook at (613) 237-1717 ext 104 or email Verda at verda@polarisinstitute.org.