Drinking water fund to be reviewed

The Drinking Water Subsidy Scheme is being put on hold and reviewed, the Government has confirmed.

Last week in Parliament, Health Minister Tony Ryall indicated that the fund set up to subsidise small communities of under 5000 people to improve their drinking water supplies would be changed.

Yesterday he said no more new applications would be considered while a review took place to ensure the best use of the money.

The fund originally had $117.8 million for 10 years from 2006. Of this about $30 million had already been allocated and applications made for a further $27.5 million.

"The current applications will be the last to be assessed under the existing criteria, before the review of the scheme targets it on communities most in need and ensures best value for money." The Government was concerned that the first-come, first-served nature of the scheme did not target those in the most need, he said.

The review would be completed by early next year and then reopened with new criteria.

Last week Labour MP Brendon Burns said Mr Ryall had deferred applications from 71 small communities for projects to meet minimum water standards.

National has already put in a place a three-year moratorium on councils meeting the standard because of the burden it would place on rates.

Mr Burns said it was wrong to suggest that the current scheme did not target disadvantaged communities. "They were able to get up to 95 per cent of the funding to make their drinking water safe. A wealthier community might currently get only 5 per cent."

- NZPA