Water shakeup on the cards
New Zealand councils could lose responsibility for providing drinking water under a major reform of national water management, the Government has announced.
Local Government Minister Nanaia Mahuta said she is exploring whether dedicated water providers should take over, as recommended from an inquiry launched after the deadly Havelock North gastroenteritis outbreak in August 2016.
Mahuta confirmed she has ruled out privatisation of existing infrastructure, saying the need for it to remain in public hands remained a ‘‘core pillar’’ for the Government
In a speech to the Local Government New Zealand annual conference in Christchurch yesterday, Mahuta suggested establishing an independent drinking water regulator was all but certain.
But in a boost for Christchurch, she said Health Minister David Clark is giving ‘‘serious consideration’’ to the possibility of exemptions for certain areas if mandatory permanent chlorination of drinking water is introduced.
Mayor Lianne Dalziel urged Mahuta to look at the Dutch water system, which allows the provision of pure water, telling her Christchurch is committed to providing the necessary infrastructure to support the natural barriers and protections already in the city.
Speaking to conference delegates, the minister warned the country’s water systems face ‘‘significant challenges’’ and that ‘‘neither central nor local government can address these alone’’.
Plans to overhaul three waters infrastructure – drinking, storm and waste waters – are still in the ‘‘conceptual policy stage’’, with government ministers developing a strategy that will involve the interests of iwi and Ma¯ori and reporting back to Cabinet in October.
Determining how local authorities can remain involved in the governance of water assets is a ‘‘critical part of any successful change’’, she said.
The minister has just returned from a trip studying the public provision of water services in the United Kingdom.
She told the audience any solution here ‘‘must fit our context, what we value and undoubtedly what is in the best strategic interest for our citizens’’.
And she promised it would be a ‘‘core pillar for the Government’’ that water provision would not be privatised.
‘‘Any option that goes forward for consideration must ensure continued public ownership of existing infrastructure assets and we must provide the protections of that assurance through governance and ownership arrangements, at law and ministerial oversight.’’
How dedicated water providers and local and national government interact to manage water services – and, critically, who pays for the long-overdue
overhaul – remains unclear, but Mahuta said there would be ‘‘significant funding pressures’’ for decades to come.
A report by Beca, released in March and commissioned by the Department of Internal Affairs – which is leading the Government’s three waters review – found councils and water suppliers face a bill of more than half a billion dollars just to upgrade drinking water infrastructure.
Canterbury alone could have to find almost $200 million to ensure its water treatment plants are up to scratch.
Wastewater improvements are likely to cost significantly more, Mahuta told the conference, saying small communities bear the brunt of the financial burden and that they cannot do so alone.
She said: ‘‘We have a real opportunity before us. With the right conversations, and the willingness to work together, we have the potential to achieve solutions that will be of lasting benefit to our communities and the country as a whole.’’
Speaking to media, Mahuta said water provision could take the form of governance oversight of local government, with potentially a board structure over a water service utility provider.
And she suggested it was almost inevitable the government would set up an independent drinking water regulator, saying ignoring the Havelock North inquiry’s recommendation would be a disservice to those affected.
The promise not to privatise was welcomed as a ‘‘comfort’’ by Christchurch City Council infrastructure committee chairwoman Pauline Cotter.
She argued water provision is a ‘‘core function’’ of councils, saying: ‘‘We engage with our people best, we know our people best, so I personally would prefer to see it to stay local.’’