Re: The new tax on water - that no one is talking about – NZ Political Email Archive

Re: The new tax on water - that no one is talking about

Party: Taxpayers’ Union

Sender: Jordan Williams <[email protected]>

Date Received: 2026-02-13 14:07

HTML Version

Hi [Name],

I wanted to give you a progress update on our campaign to pull the plug on the "Water Tax" contained in the Government's replacement laws for the Resource Management Act.

Peter's email below caused a bit of a stir in Wellington. And after the self-inflicted damage the Government did to itself with Monday's announcement of a new energy tax, sorry, "levy", it's fair to say the Beehive is awake to the political risks.

Thanks to so many of our supporters hitting the phones off the back of Peter's email, and a follow-up media release by the Federated Farmers, the media have now woken up to the issue.

Govt. now says Water Tax was 'never their intention'

Yesterday, RMA Reform Minister Chris Bishop was asked onto Heather du Plessis-Allan Drive. He was determined to reassure listeners that the Water Tax "is not government policy". You can listen to that interview here.

Other media have also been all over it:

"Nothing to see here"

We are obviously delighted with the Government's response, but saying that the Federated Farmers' (and our) "interpretation" and "characterisation" of the Bill is wrong is a bit disingenuous.

It isn't complex: the ability to declare a levy (read, a tax) is in the Bill black and white (here's a link to the clause).

To be very clear: while we can all accept that this Government is unlikely to impose water taxes/levies on farmers and water users, passing a law to allow a future government or Minister to do so is madness.

But, as it's written, it's precisely what this Bill does.

The Minister also said:

That might be the Government's intention, but it's simply not reflected in the words in the Bills they put before the Parliament.

Here's what the Federated Farmers have just sent to their own members:

Our message must have hit its mark, because within hours Minister Chris Bishop was on Heather du Plessis-Allan’s radio show on NewstalkZB backpedalling as fast as he could.

The Minister was quick to rule out the possibility of this Government introducing a water tax, but he was disappointingly dismissive of the very fair concerns we had raised.

Even if Chris Bishop doesn’t want to tax water right now, a future Minister might, and including the ability to do so in legislation would make it an incredibly quick and easy process.

Federated Farmers strongly support the objectives of the Government’s RMA reforms: growing productivity and making it easier to get things done.

We’re also in total alignment that there needs to be a stronger focus on property rights, a tighter scope, fewer resource consents, and far less expensive litigation.

All the Government’s public messaging has been bang-on but, unfortunately, it’s looking like the laws as currently drafted fail to meet farmers’ expectations or match the political rhetoric.

To be honest, it is a bit surreal to even have to ask a National Government to rule out a water tax

If debate about a Water Tax sounds familiar, that's because the National Party hammered Labour when they tried the same thing.

First in 2017 when David Parker mooted the idea of a two cents royalty per 1000 litres: the then National Party leader, Sir Bill English, told farmers the tax could cost $50,000 to $100,000 per farm.

A Water Tax - but only when Labour do it?

The National Party even produced TV adverts highlighting - you guessed it – the very same "Water Tax" powers!

And then in 2023, when David Parker passed a law (highlighted in Peter's email below) that gave the Minister these same powers, National called it a 'Water Tax'.

That what makes it so concerning that the powers to introduce "natural resource levies", water auctions, and tenders have leaked through at the behest of officials.

It is reasonable for groups like ours to ask why.

Next steps: cutting the RMA-tax

As you can see, Friend, the devil really is in the detail. Chris Bishop is one of the most capable and competent Ministers, so it is a real worry that this got past the staff in his office and into the Bills before Parliament.

But, trust me, those raising concerns are right: there is so much more to be done to fix these Bills.

Unless groups like the Taxpayers' Union are on top of the detail, it'll be even harder for the Government to deliver the meaningful RMA reform New Zealand badly needs to get stuff done, increase our productivity, and our kids' prosperity.

Right now, the research team are up the road meeting with our lawyers to put the final touches on our written submissions on the Bills. There's a lot more to be done than scrapping just these Water Tax clauses.

Once filed, we'll be inviting our supporters to add their name and back us again. After all, the Resource Management Act is New Zealand's biggest regulatory tax – and if the Government does cut the red tape, it'll be the biggest legacy (and tax relief!) delivered by the Luxon regime.

We can't let them get it wrong. And your support is what keeps the pressure on and ensures the details are scrutinised properly.

Thank you for making the work possible,

Jordan @ Taxpayers' Union

To: <[Email]>
From: Peter Williams <[Email]>
Date: Wednesday, 11 February 2026 at 11:30AM
Subject: The new tax on water - that no one is talking about

Dear [Name],

Peter Williams here.

I really didn't want to write this email.

When I look at the political polls and see how close it is, I despair.

But this issue is too important to ignore – or avoid holding the National Party to account on. Unless we act now, the door is being thrown open for future governments to radically alter the New Zealand way of life – and not in a good way.

I’m writing because Parliament is quietly advancing sweeping new powers to tax water.

It's contained deep within the Government's proposed replacement to the Resource Management Act and gives Ministers the ability to impose taxes on water – farmers, orchardists, electricity generators, households, recreational users, the lot – without even the need to go through Parliament.

We’re moving fast to expose and shut this down — but we can only do it with your support and donation.

It's astonishing the media aren't covering it. Except for the Federated Farmers, no one is talking about these provisions!

For the media, it's all too complex, and I can only presume that the business/industry groups don't want to fight the Government or derail what are, this matter aside, important reforms.

So we have a real challenge on our hands, but it's one I'm imploring the Taxpayers' Union to take head-on. I'm asking you to take a moment to back the effort.

The Coalition's proposed Water Tax

So what is the Water Tax?

Clause 313 of the Natural Environment Bill (one of the two Bills set to replace the Resource Management Act) will give the Minister for the Environment the power to prescribe any levy for the taking or use of "natural resources" (listed in clause 223).

[Please excuse the legalistic language (technically ministers are not given the powers by the Parliament, the Governor-General - who acts on the advice of Ministers), but the effect is identical.]

The "natural resources" specified are water – by the widest possible definition:

And the scope of the Water Tax, sorry, water "levy" couldn't be wider. In order to "fund central Government and regional councils" (Clause 313(2)), Ministers can tailor them to hit whoever they like:

But there are some exceptions:

A blank cheque for a future Green Party Minister?

Friend, you might trust the current lot with an unfettered power to tax water, but do you trust a future Labour or Green Minister for the Environment?

If passed, this law will mean water levies can be imposed by a Minister without even going through Parliament!

It hands the power over so a Minister could literally do it overnight!

We must act now to force the Government to commit to scrapping this part of the Bill.

How did this happen?

I've had some long chats with the Feds, Jordan, and the Taxpayers' Union team in Wellington. They spent the summer immersing themselves in the 900-odd pages of proposed legislation.

While the Cabinet decisions on the replacement to the RMA (for example, wanting to get back to a property rights-based regime) were good, the consensus is that much of the content within the Bills reflect what the officials want rather than what the Ministers instructed (and have been saying publicly).

That's why this email probably comes as a surprise. The draft laws just don't match what Ministers, and the media, have been saying.

The same Ministry that were responsible for David Parker's 2017-attempt to replace the RMA with regional, co-governed "central planning committees" has held the drafter's pen for this new law. It's only clear now that they've run amok.

The Water Tax appears to be a legacy from the Labour Party and David Parker's earlier version. Back in 2017, Parker tried to give himself the very same powers. Now the same officials appear to be trying to sneak the same powers through!

Allowing farmers (and other water users) to trade existing water rights can make sense. But officials have taken that simple idea and turned it into a power grab – using it as cover to tax water.

We must act now to stop the Water Tax

Make no mistake , if passed these provisions will hand a blank cheque to regional councils and the next government. Once set in law, it is very hard to abolish a new tax.

The Government has sold the Resource Management Act overhaul as a reset, with a tighter scope, more certainty and stronger property rights.

Right now, the Bills don't do what's on the tin. Giving future Governments a tool to turn water into a revenue scheme for themselves (and councils) is not going to save costs!

Why hasn't Christopher Luxon ruled this out?

Friend, it's now been two weeks since the Federated Farmers went public and called on the Government to commit to removing these Water Tax provisions from its RMA-reform.

But, to date, the request has fallen on deaf ears.

Officials desperately want this taxing power – and local government is trying to use the proposed rates cap to justify this new way to extract money.

We need to put the torch on this issue before it's too late. Submissions close very soon (the Taxpayers' Union submission is nearly finalised) – but a Parliamentary submission won't be enough.

We must ensure public attention is given to this issue, so the Government sees sense and does a u-turn.

I know a lot of us are concerned about a change of Government, but this one is about ensuring the current Government doesn't lock-in David Parker's legacy of taxing water.

The team needs the resources to tackle this head on, but they can only fight this with your support.

Will you join me in supporting the cause?

The Water Tax will impact you

The Government will pretend this is about farmers. But a Water Tax doesn't stay on the farm.

The Water Tax means higher food prices, higher export costs, higher prices at the supermarkets and economic vandalism.

> Back the fight to Stop the Water Tax <

We Stopped Three Waters, and we can do it again. But we need to raise the alarm and expose these hidden Water Tax provisions in the Natural Environment Bill. That's why I'm asking for your support.

Thank you for your support,

Peter Williams
Financial Supporter and Former Board Member
New Zealand Taxpayers’ Union

PS. The Taxpayers' Union relies on donations from supporters like me and you to keep fighting the good fight and calling out stories that the media won't. Chip in to support the fight.

New Zealand Taxpayers' Union Inc. · 117 Lambton Quay, Level 4, Wellington 6011, New Zealand
This email was sent to [Email]. To change your email preferences, click here.
Authorised by the New Zealand Taxpayers' Union, Level 4, 117 Lambton Quay, Wellington 6011.

Text Version

<https://www.taxpayers.org.nz>Hi [Name],
I wanted to give you a progress update on our campaign to pull the plug on the "Water Tax" contained in the Government's replacement laws for the Resource Management Act.
Peter's email below caused a bit of a stir in Wellington. And after the self-inflicted damage the Government did to itself with Monday's announcement of a new energy tax, sorry, "levy" <https://www.taxpayers.org.nz/tax_or_levy_the_most_self_destructive_conversation_national_could_choose>, it's fair to say the Beehive is awake to the political risks.
Thanks to so many of our supporters hitting the phones off the back of Peter's email, and a follow-up media release by the Federated Farmers, the media have now woken up to the issue.
Govt. now says Water Tax was 'never their intention'
Yesterday, RMA Reform Minister Chris Bishop was asked onto Heather du Plessis-Allan Drive <https://www.newstalkzb.co.nz/on-air/heather-du-plessis-allan-drive/audio/chris-bishop-rma-reform-minister-rules-out-proposed-water-tax-for-farmers/>. He was determined to reassure listeners that the Water Tax "is not government policy". You can listen to that interview here. <https://www.newstalkzb.co.nz/on-air/heather-du-plessis-allan-drive/audio/chris-bishop-rma-reform-minister-rules-out-proposed-water-tax-for-farmers/> <https://www.newstalkzb.co.nz/on-air/heather-du-plessis-allan-drive/audio/chris-bishop-rma-reform-minister-rules-out-proposed-water-tax-for-farmers/>
Other media have also been all over it:
"Nothing to see here"
We are obviously delighted with the Government's response, but saying that the Federated Farmers' (and our) "interpretation" and "characterisation" of the Bill is wrong is a bit disingenuous.
It isn't complex: the ability to declare a levy (read, a tax) is in the Bill black and white (here's a link to the clause <https://www.legislation.govt.nz/bill/government/2025/0234/latest/LMS1531748.html>).
To be very clear: while we can all accept that this Government is unlikely to impose water taxes/levies on farmers and water users, passing a law to allow a future government or Minister to do so is madness.
But, as it's written, it's precisely what this Bill does.
The Minister also said:
That might be the Government's intention, but it's simply not reflected in the words in the Bills they put before the Parliament.
Here's what the Federated Farmers have just sent to their own members:
Our message must have hit its mark, because within hours Minister Chris Bishop was on Heather du Plessis-Allan’s radio show <https://aus01.safelinks.protection.outlook.com/ on NewstalkZB backpedalling as fast as he could.
The Minister was quick to rule out the possibility of this Government introducing a water tax, but he was disappointingly dismissive of the very fair concerns we had raised.
Even if Chris Bishop doesn’t want to tax water right now, a future Minister might, and including the ability to do so in legislation would make it an incredibly quick and easy process.
Federated Farmers strongly support the objectives of the Government’s RMA reforms: growing productivity and making it easier to get things done.
We’re also in total alignment that there needs to be a stronger focus on property rights, a tighter scope, fewer resource consents, and far less expensive litigation.
All the Government’s public messaging has been bang-on but, unfortunately, it’s looking like the laws as currently drafted fail to meet farmers’ expectations or match the political rhetoric.
To be honest, it is a bit surreal to even have to ask a National Government to rule out a water tax
If debate about a Water Tax sounds familiar, that's because the National Party hammered Labour when they tried the same thing.
First in 2017 when David Parker mooted the idea of a two cents royalty per 1000 litres: the then National Party leader, Sir Bill English, told farmers the tax could cost $50,000 to $100,000 per farm <https://www.rnz.co.nz/news/election-2017/339289/pressure-on-labour-s-water-tax>.
A Water Tax - but only when Labour do it?
The National Party even produced TV adverts highlighting - you guessed it – the very same "Water Tax" powers! <https://www.youtube.com/watch
<https://www.youtube.com/watch
And then in 2023, when David Parker passed a law (highlighted in Peter's email below) that gave the Minister these same powers, National called it a 'Water Tax'.
That what makes it so concerning that the powers to introduce "natural resource levies", water auctions, and tenders have leaked through at the behest of officials.
It is reasonable for groups like ours to ask why.
Next steps: cutting the RMA-tax
As you can see, Friend, the devil really is in the detail. Chris Bishop is one of the most capable and competent Ministers, so it is a real worry that this got past the staff in his office and into the Bills before Parliament.
But, trust me, those raising concerns are right: there is so much more to be done to fix these Bills.
Unless groups like the Taxpayers' Union are on top of the detail, it'll be even harder for the Government to deliver the meaningful RMA reform New Zealand badly needs to get stuff done, increase our productivity, and our kids' prosperity.
Right now, the research team are up the road meeting with our lawyers to put the final touches on our written submissions on the Bills. There's a lot more to be done than scrapping just these Water Tax clauses.
Once filed, we'll be inviting our supporters to add their name and back us again. After all, the Resource Management Act is New Zealand's biggest regulatory tax – and if the Government does cut the red tape, it'll be the biggest legacy (and tax relief!) delivered by the Luxon regime.
We can't let them get it wrong. And your support is what keeps the pressure on and ensures the details are scrutinised properly.
Thank you for making the work possible,
Jordan @ Taxpayers' Union
To: <[Email]>
From: Peter Williams <[Email]>
Date: Wednesday, 11 February 2026 at 11:30AM
Subject: The new tax on water - that no one is talking about
<https://www.taxpayers.org.nz>Dear [Name],
Peter Williams here.
I really didn't want to write this email.
When I look at the political polls and see how close it is, I despair.
But this issue is too important to ignore – or avoid holding the National Party to account on. Unless we act now, the door is being thrown open for future governments to radically alter the New Zealand way of life – and not in a good way.
I’m writing because Parliament is quietly advancing sweeping new powers to tax water.
It's contained deep within the Government's proposed replacement to the Resource Management Act and gives Ministers the ability to impose taxes on water – farmers, orchardists, electricity generators, households, recreational users, the lot – without even the need to go through Parliament.
We’re moving fast to expose and shut this down — but we can only do it with your support and donation. <http://www.taxpayers.org.nz/donate_water_tax>
It's astonishing the media aren't covering it. Except for the Federated Farmers, no one is talking about these provisions!
For the media, it's all too complex, and I can only presume that the business/industry groups don't want to fight the Government or derail what are, this matter aside, important reforms.
So we have a real challenge on our hands, but it's one I'm imploring the Taxpayers' Union to take head-on. I'm asking you to take a moment to back the effort. <http://www.taxpayers.org.nz/donate_water_tax>
The Coalition's proposed Water Tax
So what is the Water Tax?
Clause 313 of the Natural Environment Bill (one of the two Bills set to replace the Resource Management Act) will give the Minister for the Environment the power to prescribe any levy for the taking or use of "natural resources" (listed in clause 223).
[Please excuse the legalistic language (technically ministers are not given the powers by the Parliament, the Governor-General - who acts on the advice of Ministers), but the effect is identical.]
The "natural resources" specified are water – by the widest possible definition:
And the scope of the Water Tax, sorry, water "levy" couldn't be wider. In order to "fund central Government and regional councils" (Clause 313(2)), Ministers can tailor them to hit whoever they like:
But there are some exceptions:
A blank cheque for a future Green Party Minister?
Friend, you might trust the current lot with an unfettered power to tax water, but do you trust a future Labour or Green Minister for the Environment?
If passed, this law will mean water levies can be imposed by a Minister without even going through Parliament!
It hands the power over so a Minister could literally do it overnight!
We must act now to force the Government to commit to scrapping this part of the Bill. <http://www.taxpayers.org.nz/donate_water_tax>
How did this happen?
I've had some long chats with the Feds, Jordan, and the Taxpayers' Union team in Wellington. They spent the summer immersing themselves in the 900-odd pages of proposed legislation.
While the Cabinet decisions on the replacement to the RMA (for example, wanting to get back to a property rights-based regime) were good, the consensus is that much of the content within the Bills reflect what the officials want rather than what the Ministers instructed (and have been saying publicly).
That's why this email probably comes as a surprise. The draft laws just don't match what Ministers, and the media, have been saying.
The same Ministry that were responsible for David Parker's 2017-attempt to replace the RMA with regional, co-governed "central planning committees" has held the drafter's pen for this new law. It's only clear now that they've run amok.
The Water Tax appears to be a legacy from the Labour Party and David Parker's earlier version. Back in 2017, Parker tried to give himself the very same powers. Now the same officials appear to be trying to sneak the same powers through!
Allowing farmers (and other water users) to trade existing water rights can make sense. But officials have taken that simple idea and turned it into a power grab – using it as cover to tax water.
We must act now to stop the Water Tax
Make no mistake , if passed these provisions will hand a blank cheque to regional councils and the next government. Once set in law, it is very hard to abolish a new tax.
The Government has sold the Resource Management Act overhaul as a reset, with a tighter scope, more certainty and stronger property rights.
Right now, the Bills don't do what's on the tin. Giving future Governments a tool to turn water into a revenue scheme for themselves (and councils) is not going to save costs!
Why hasn't Christopher Luxon ruled this out?
Friend, it's now been two weeks since the Federated Farmers went public and called on the Government to commit to removing these Water Tax provisions from its RMA-reform.
But, to date, the request has fallen on deaf ears.
Officials desperately want this taxing power – and local government is trying to use the proposed rates cap to justify this new way to extract money.
We need to put the torch on this issue before it's too late. <http://www.taxpayers.org.nz/donate_water_tax>  Submissions close very soon (the Taxpayers' Union submission is nearly finalised) – but a Parliamentary submission won't be enough.
We must ensure public attention is given to this issue, so the Government sees sense and does a u-turn. <http://www.taxpayers.org.nz/donate_water_tax>
I know a lot of us are concerned about a change of Government, but this one is about ensuring the current Government doesn't lock-in David Parker's legacy of taxing water.
The team needs the resources to tackle this head on, but they can only fight this with your support.
Will you join me in supporting the cause? <http://www.taxpayers.org.nz/donate_water_tax>
The Water Tax will impact you
The Government will pretend this is about farmers. But a Water Tax doesn't stay on the farm.
The Water Tax means higher food prices, higher export costs, higher prices at the supermarkets and economic vandalism.
> Back the fight to Stop the Water Tax < <https://www.taxpayers.org.nz/donate_water_tax>
We Stopped Three Waters, and we can do it again. But we need to raise the alarm and expose these hidden Water Tax provisions in the Natural Environment Bill. That's why I'm asking for your support. <https://www.taxpayers.org.nz/donate_water_tax>
Thank you for your support,
Peter Williams
Financial Supporter and Former Board Member
New Zealand Taxpayers’ Union
PS. The Taxpayers' Union relies on donations from supporters like me and you to keep fighting the good fight and calling out stories that the media won't. Chip in to support the fight <http://www.taxpayers.org.nz/donate_water_tax>.
New Zealand Taxpayers' Union Inc. · 117 Lambton Quay, Level 4, Wellington 6011, New Zealand
This email was sent to [Email]. To change your email preferences, click here <https://www.taxpayers.org.nz/unsubscribe>.
Authorised by the New Zealand Taxpayers' Union, Level 4, 117 Lambton Quay, Wellington 6011.