NZ water services overhaul possible following inquiry

WELLINGTON: A major overhaul of how water is regulated and delivered could be on the cards, the Government being keen on fewer, larger suppliers.

Speaking to the Water Summit in Wellington yesterday, Local Government Minister Nanaia Mahuta said a ‘‘step change’’ was needed.

‘‘This is the conversation that we need everyone to be thinking about, because the Havelock North report says things need to change,’’ Ms Mahuta said.

The inquiry made 51 recommendations, including streamlining the number of water suppliers.

A separate Three Waters Review by the Department of Internal Affairs found drinking water, wastewater and stormwater services were ‘‘inconsistent and patchy’’.

Ms Mahuta said the Government was open to a range of options, but ‘‘issues of scale’’ might improve the entire service.

New Zealand had about 68 territorial authorities supplying water around the country, she said.

She put two proposals to the summit — either moving to regional or crossregional publicly owned water providers.

‘‘This is an open conversation . . . we’re not ruling anything in or out,’’ Ms Mahuta said.

She pointed to Wellington Water, which supplied residents and businesses in Lower Hutt, Porirua, Upper Hutt and Well ington, as an example.

‘‘They have been able to support a more consistent service delivery model where the cost gains . . . have applied to the positive benefit of ratepayers,’’ she said.

The Government was also looking at other countries such as Scotland, which has just one central water service, although she said she was not sure that would work in New Zealand.

‘‘It’s got to be an option that suits the New Zealand context in order to ensure good, reliable water service delivery.’’

A more aggregated approach would result in urban ratepayers effectively subsidising those in the regions, Ms Mahuta said.

‘‘That is a very real prospect and in some places, that could be an advantage.’’

‘‘Obviously, rural water suppliers [and] rural communities struggle with keeping up with investment in their asset infrastructure.’’

Ministers would consult local government, water industry stakeholders and Maori before reporting back to the Cabinet in October with ‘‘high level options’’. — RNZ