Large water users will be charged a water consumption fee, estimated at 1.6 billion to be included in fallow compensation expenditure
In response to the recent water shortage decision to halt irrigation and fallow fields, the Executive Yuan said at a post-cabinet meeting press conference today (January 8) that a water consumption fee could be levied as early as 2016, with about 5742 households charged if their monthly water use exceeds one thousand units, and estimated revenue of 1.6 billion; in addition, government agencies will also stop non-essential water use.
Executive Yuan spokesperson Sun Li-chun said at the post-cabinet meeting press conference that in the second half of last year, rainfall in Taiwan was low, and the water collected by reservoirs across Taiwan was only 20% to just over 50% of the average over the years. With the announcement of the halt to agricultural water use and fallow fields, facing doubts from all sides, "each agency should humbly review, and in future water shortage allocation must be more detailed and flexible."
Users using more than one thousand units of water will be charged a water consumption fee, with estimated revenue of 1.6 billion
Deputy Minister of Economic Affairs and Director-General of the Water Resources Agency Yang Wei-fu said that the Ministry of Economic Affairs is planning to levy a water consumption fee, targeting large water-intensive industrial users, and charging a water consumption fee on users whose monthly water use exceeds one thousand units. These large users are estimated to use 725 million cubic meters of water a year, accounting for 26.1% of total water use, with 5742 households charged and estimated revenue of about 1.6 billion. Agencies, schools, hospitals and collective housing will not be charged for the time being.
Yang Wei-fu said the water consumption fee is expected to be implemented as early as 2016 and collected in 2017, and the fees collected will also be included in future expenditures for compensating irrigation halts during dry periods.
Subsidies for irrigation halts and fallow fields: subsidy amounts raised; related questions can be directed to the Council of Agriculture hotline
As for subsidies for this irrigation halt and fallow fields, Council of Agriculture Deputy Minister Chen Wen-te said the subsidy amounts have been raised, with compensation for converting fallow areas to soybeans, sesame and hard corn increased from 39,000 to 62,000 per hectare, and compensation for forage grass and silage corn also raised from 35,000 to 52,000.
Regarding outside doubts that fallow and irrigation-halt compensation is only given to landowners, while actual cultivators still cannot receive it, Chen Wen-te said tenant farmers still need to negotiate with landowners. In addition, for farmers receiving irrigation-halt and fallow subsidies, after farmers receive the fallow subsidy, "if they find their own water source to irrigate rice, the irrigation-halt and fallow subsidy will become invalid, but if they collect water to plant dry crops, it will not affect the rice fallow subsidy."
Chen Wen-te said that within the irrigation-halt areas, loans under the "small landowners, large tenant farmers" program, young farmer startup loans, agricultural grain operator loans and agricultural machinery operator loans will not require principal repayment for half a year, with interest borne by the government. As for who bears the interest costs, Chen Wen-te said: "The Council of Agriculture will coordinate with relevant agencies for them to bear it jointly."
Chen Wen-te said that at this stage, stabilizing the water situation is still the main consideration, but to ensure the rights and interests of farmers in the irrigation-halt areas, farmers with related questions can call the Council of Agriculture's 24-hour toll-free consultation hotline 0800-015158.