$761m to upgrade old water systems
A $761 million package for a major overhaul of the country’s ailing water sector has been announced to help councils upgrade creaking infrastructure and services.
However, they will have to agree to sweeping changes proposed by the Government to get the cash.
Billions of dollars of investment is urgently needed to ensure drinking water supplies are safe and that wastewater is not damaging the environment, and to replace ageing and leaking pipes.
The problem has come under scrutiny since 2016’s Havelock North campylobacter outbreak, which left four people dead and
5500 ill.
Ministers are now pushing through reforms that over the next three years will see tighter regulation and major changes to the way water services are managed.
Councils, which own and manage most treatment plants and provide drinking water to almost
90 per cent of the population, are set to be stripped of their roles. Instead, water provision will be taken over by a small number of publicly owned super-regional entities.
While there is a substantial pot of cash to help councils pay for maintenance and renewals, they will only get funding if they agree to the Government’s reform plans – and they will still have to meet strict new drinking and waste water standards even if they do not.
Though the money will be a lifeline for smaller authorities, there are concerns that ratepayers in larger urban areas will have to subsidise improvements in rural communities where cash is in short supply.
Unveiling the plans yesterday at the site of the water bore that was the source of the fatal Havelock North outbreak, Prime Minister Jacinda Ardern said she was determined not to allow such a tragedy to happen again.
‘‘Investing in water infrastructure is about investing in the health of New Zealanders,’’ she said.
‘‘New Zealand’s public water infrastructure is run down and needs upgrading, but local government often doesn’t have the resources needed to fix it.
‘‘This $761 million investment will kickstart much-needed work to bring our drinking, waste and storm water infrastructure up to scratch.’’
The money will create jobs and pay for maintenance and infrastructure renewal – a welcome boost, given the financial strain councils face from the fallout of the coronavirus pandemic.
Funds will be allocated based on population and area to authorities that opt in to the Government’s plans, with money split equally across the country between urban and rural or provincial communities.
The sum of $51m is set aside to support Taumata Arowai, the new water services regulator being set up to ensure drinking water is safe, and a further $30m is to help rural drinking water suppliers meet safety standards.
Local Government New Zealand president Dave Cull welcomed the funding, as it recognised water as part of New Zealand’s broad infrastructure, planning and governance system.
Ardern did not give a time frame for when funding would begin, but said they needed to act fast and it would come ‘‘quickly’’.
Councils will only get funding if they agree to the Government’s reform plans – and they will still have to meet strict new standards even if they do not.