The Water Services Entities Bill of the three waters reform has been introduced to Parliament. Photo / 123rf
The Water Services Entities Bill of the three waters reform has been introduced to Parliament. Photo / 123rf
The Water Services Entities Bill that will see New Zealand's water assets transferred to four mega entities has been introduced to Parliament and will soon undergo its first reading debate before going through a full select committee process.
Local Government action group Communities for Local Democracy (C4LD) says the bill is an "unacceptable erosion" of community property rights and the group will make a submission to the select committee to present another reform proposal.
Meanwhile, Timaru, Waimakariri and Whangarei district councils are taking action in the High Court, asking for declarations on the rights and interests that property ownership entails.
Local Government Minister Nanaia Mahuta says the Water Services Entities Bill is only the first of several pieces of legislation that will set up a new system for national water services that "will deliver clean and safe drinking water at an affordable price".
"The bill establishes four dedicated Water Service Entities that will enable infrastructure to provide safe and affordable drinking water, wastewater and stormwater services.
"Everyone accepts the need for change. Without reform, our water infrastructure will continue to deteriorate. Households, businesses and communities would face genuine public health risks ... and rising bills of up to $9000 a year per household just for water services."
Mahuta says years of underinvestment across the country have led to a number of problems, including bursting pipes and sewage flowing into waterways.
"This is unacceptable and the costs to communities and ratepayers are just too big to ignore.
"Independent advice shows up to $185 billion of investment over 30 years is needed to address [issues including] underinvestment ..., upgrades ..., growing communities and [building] resilience against climate change."
Local Government Minister Nanaia Mahuta. Photo / Mark Mitchell
She says the bill contained strong protections against privatisation and will also ensure public ownership as the entities will be owned by councils through a shareholding structure, as recommended by the Working Group on Representation, Governance and Accountability.
C4LD chair and Manawatu District Mayor Helen Worboys disagrees with this saying although the bill proposes a "tangible expression of ownership", it would not offer the recognisable aspects of ownership.
"While the bill talks about a 'tangible expression of ownership', later it says that the 'owners' have no right, title, or interest in the assets, security, debts or liabilities of the company.
"We don't understand how this form of ownership can be tangible when it comes with none of the rights and responsibilities that property rights would normally confer."
Worboys says C4LD will make a submission to the select committee.
Mayors and chief executives of Communities 4 Local Democracy He hapori mo te Manapori members at Parliament. Photo / Andrew Turner
"Our submission ... will present a different set of reform proposals that would achieve the desired policy outcomes whilst respecting community property rights. It is possible to achieve both goals despite the views of the Government."
As announced in November, three member councils of C4LD, Timaru, Whangarei and Waimakariri, are seeking clarity from the High Court regarding local government's rights and obligations as infrastructure asset owners.
They had two hearing dates this week at the High Court in Wellington.
The councils say the reform proposals are incompatible with long-standing laws around property ownership and democratic accountability, as the Government is expropriating council-owned property without conceding that it is a "taking" and without fair compensation being paid to communities.
Timaru District Council mayor Nigel Bowen. Photo / Timaru District Council
They also say that proposals remove local democratic accountability associated with the management of those water assets.
Timaru District Mayor Nigel Bowen says: "While the Three Waters reform prompted this action, what we're talking about here concerns some really basic and fundamental rights that most people ordinarily would take for granted and normally wouldn't be up for discussion."
Other pieces of legislation that are set to come include bills covering the transfer of water assets from councils to the entities and consumer protection.
