Only 5% of income!

NewstalkZB reports:

The Green Party says it has the numbers to prove farms will remain very profitable, even if they’re charged for irrigation.

It says MAF statistics show its suggested charge for irrigation is 4.8 percent of total farm income for the average Canterbury dairy operation.

Co-leader Russel Norman believes it shows farmers can afford the cost

This sort of claim could only be made by someone who has never owned or managed a business.

An extra charge which amounts to 4.8% of gross income is a huge expense. Hell many businesses have a net profit margin of less than 5%, so an extra 5% would turn them into a loss maker.

I’ve actually said I do support user pays for water – so long as it applies to all water users. But the Greens shouldn’t say that an expense equal to 5% of income is easily affordable.