There’s a lot of debate about the business climate in Maine.
Taxes and regulation are often the first reasons cited for the state’s trouble attracting new businesses. But the case of Poland Spring – and what appears to be an all-out war against the bottler – offers an illuminating example of the hurdles a business can face.
Proponents of a new tax on bottled water have submitted signatures to the secretary of state to have a question on the ballot next year that would assess a 3-cent fee on every 20 ounces of water extracted in Maine for resale. The tax would affect several companies, but Poland Spring, as the largest, would suffer the most, amounting to a tax of about $100 million a year.
The company’s attempts to expand its operations in the state are also under assault. Last week in Rangeley, about 80 residents came out to oppose a proposed pumping station in Dallas Plantation, which would help supply water to a proposed new bottling facility in Kingfield. Opponents zeroed in on increased truck traffic in the region and worries that Rangeley’s water supply would be stressed.
Even supporters of the water tax and opponents of Poland Spring’s expansion plans admit that it’s a reputable company that provides good jobs and is a responsible corporate citizen.
But Poland Spring is more than that. Its business depends on being sensitive to the environment. Without a clean, sustainable supply of water, its business fails. The company has a direct interest in protecting the state’s drinking water and maintaining high water quality.
Poland Spring, through its marketing and promotions, also advances the Maine “brand.” Over and over again, economists tell us that Maine has a unique identity, which is a significant asset as it works to develop new jobs and new industries. Every bottle of water from Maine – from Poland Spring and other state bottlers – is a mini-ambassador to consumers in other places, trumpeting the state’s reputation.
As a resource-dependent industry, water bottling, if done correctly, has to be among the most environmentally friendly going. There are no billowing smokestacks, no open pits or nuclear waste. We understand concerns about traffic, but otherwise you’d think a water bottler would be the kind of business a community would want.
In an area that needs jobs and is hungry for economic development that goes beyond new condominiums or vacation homes, the strong opposition to the expansion of a respected company speaks more about the state’s difficult business climate than a foot-high stack of corporate tax comparisons.
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