Previous govt's efforts to sell Franz Josef water to overseas buyers 'very disturbing' - PM

Prime Minister Jacinda Ardern holds up a NZ Trade and Enterprise list of aquifers to promote bottled water exports during her post-Cabinet press conference. Photo / Mark Mitchell

Prime Minister Jacinda Ardern says New Zealand's pristine freshwater should not be promoted to overseas companies, and has blasted the previous government's efforts to do so as "very disturbing".

During her post-Cabinet press conference today, Ardern revealed a 2015 document from NZ Trade and Enterprise that listed eight potential sources for bottled water exports, including West Coast - Franz Josef, Te Anau basin, and Golden Bay's Waikoropupu Springs, famous for its water clarity.

"[The document] details aquifers that for all intents and purposes look like they might be for sale," Ardern said.

"West Coast - Franz Josef was listed as one of the pristine glaciers that overseas investors might come and want to take a stake in. I find it incredible that we would have been in that position in 2015 - and absolutely unacceptable."

NZTE, a Government agency, is meant to promote New Zealand trade and exports, but Ardern said it should not be promoting bottled water exports, and no longer does.

"The fact that it once was, I find very disturbing."

A spokesman for Ardern said NZTE had stopped promoting bottled water exports in 2016, but the Government had spoken to NZTE today to make it "very clear" that bottled water was not a line of trade to pursue.

Ardern noted that any attempt from an overseas investor to buy New Zealand water for export would have to pass the sensitivity test with the Overseas Investment Office.

In June, the OIO approved the sale of a Bay of Plenty spring, near Whakatane, to Chinese-owned company Cresswell NZ Limited to export more than a billion litres of drinking water each year. Most will be exported to China.

Land Information Minister Eugenie Sage, who granted the application along with Associate Finance Minister David Clark, copped heavy criticism for approving the sale, given her vocal opposition to such deals in the past.

Sage has said her hands were tied as the application ticked the statutory criteria, including significant job creation.

The Labour Party campaigned last year on introducing a broad water-pricing regime, but this was downgraded to a royalty on bottled water exports following coalition negotiations with New Zealand First.

Today Ardern said the Government was still looking at options.

"It does have some complexity around the kind of mechanism you would use to ensure we stick with the rules and obligations from a trade respect."