Pesticides taxes

A new report commissioned by the Department of Environment, Transport and the Regions(1) (DETR) has put the cat among the pigeons with its suggestion of taxation for water pollution and, more specifically, a pesticide tax for the UK.
    The report looks at the problems of water pollution, and how economic instruments might be suited to solving them-most of the text deals with pollution from industrial plants and sewage treatment works, and examines how practical water pollution charges and tradeable permits might be. For pesticides, the report suggests tradeable permits might work over small areas; or pesticides could be 'banded' depending on their toxicity.
    It takes as an example work done on modelling the impacts of charges on the use of cereal grass weed herbicides-a herbicide price increase of 50% could lead to a reduction in current levels of use by 20-25%, generating £70-80 million a year which could then be fed back into advice and information work.
    Other proposals suggested by another DETR consultation(2) on groundwater pollution were the creation of a new statutory offence covering the disposal on land of agricultural products-such as spent sheep dip and surplus pesticides-that could pollute groundwater. Proposed charges for investigation of disposal and authorisation could amount to an initial £537 per holding, with an annual charge up to £871.50 according to DETR.
    At the same time, the Royal Society for the Protection of Birds has come out in favour of a green pesticide tax(3) of 20-30% of the sale price, levied at the point of sale. The tax would be used within the agricultural sector for incentives under the Arable Stewardship Scheme; advice, training and awareness raising; and research and development.
    Already there are emotional accusations of a 'tax on food': but we already pay taxes on food through the CAP contributions. It may be time for us all to consider what sort of farming we want and how we are prepared to pay for it.

1. Economic Instruments for Water Pollution, DETR, London, November 1997, 71pp.
2. Proposed groundwater regulations, Consultation paper and compliance cost assessment, DETR, London, December 1997, 48pp.
3 , Matthew Rayment, Hannah Bartram and Jonathan Curtoys, Pesticide Taxes, A Discussion Paper, RSPB, Sandy, Bedfordshire, UK, January 1998, 55pp.

[This article first appeared in Pesticides News No. 39, March 1998, page 23 ]