$137 million to improve drinking water

The Government is establishing a $137 million fund to help improve New Zealand's drinking water.

Associate Health Minister Pete Hodgson today said waterborne diseases were estimated to cost the economy about $15m a year and to avoid this, drinking water standards needed to be raised.

The money would help councils and private suppliers of drinking water to meet those standards, he said in a statement.

Money would be spent on technical advice and upgrading water systems.

"This is funding that would otherwise have come from rates or water charges and will be of particular help to many rural communities," Local Government Minister Chris Carter said.

An average $13.7m a year would be set aside for 10 years.

Councils and water suppliers would have to apply to get funding.

The ministers said a similar fund totalling $133.3m was established in 2003 to help councils pay for sewerage systems and a $9.8m fund was established last year to help communities cope with rising tourist numbers.

- NZPA