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A simple solution to those annoying water restrictions : Comments
By Andrew Leigh, published 29/3/2005Andrew Leigh argues raising the price of water and lifting restrictions is the solution to managing a scarce resource.
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We see celebrities on TV saying "water is our most precious resource" and I always wonder "If it is so precious, why does it cost a dollar a tonne delivered." Even dirt costs $30 a tonne. If a 1000 Litre rainwater tank costs $500 you would have to fill it 500 times to break even on the water at current prices. You would be lucky to fill it 20 times a year so the tank would need to last 25 years. Unlikely. That does not include the cost of the pump and the electricity to get the water to your garden.
Even so there are other considerations. Comparing the supply of milk and bread to the supply of water is not really appropriate.
Water supply is a government monopoly. When bread makers make a profit they have earned it by producing a superior product in a free market. Government does not face this competition. No second Warragamba Dam is going to be built in competition. Doubling the price of water across Australia would pop a cool $1-3 billion into government coffers every year even if demand did drop. History suggests this would be used for general revenue, not for improving water supply or planning for the future. The cry that it is just another sneaky tax would be hard to argue.
If all the revenue above the current price were set aside for environmental purposes, there might be some consensus in the public to allow the price increase, but governments have not been able to make themselves do this in the past. They want all the money.
I think recycling sewage is an excellent sustainable solution to the problem of water supply. It reduces the pollution discharged to the rivers and ocean and provides a source of water near the consumers who need it. Even so, it will be difficult selling the idea that water is going to cost more and it is going to be recycled sewage, instead of clean mountain runoff.