New Zealand’s government has revamped planned reforms to water infrastructure, seeking to take the heat out of a contentious issue ahead of an election later this year.
(Bloomberg) — New Zealand’s government has revamped planned reforms to water infrastructure, seeking to take the heat out of a contentious issue ahead of an election later this year.
The government will now establish 10 new publicly-owned water services entities instead of four, Local Government Minister Kieran McAnulty said on Thursday. A start date for services has been pushed to July 2026 at the latest, two years later than originally planned.
The reforms aim to improve drinking, waste and stormwater infrastructure, which has started to fail after a lack of investment. Some estimates suggest as much as NZ$185 billion ($115 billion) is needed over 30 years to get systems up to standard, with consumers likely to bear the costs via higher local council rates bills.
The government’s plans, which sought to reduce the costs for households, had become unpopular with some councils that saw them as the state appropriating valuable assets. Provisions for Maori to share in the decision making had also been criticized by opposition parties as undemocratic.
McAnulty said the government has “heard concerns from councils that the four-entity model we had developed will result in a loss of local influence and voice.” By extending the number of new entities to 10, “every district council in the country will have a say and representation over their local water services,” he said.
However, the increased number of entities will reduce the projected savings for consumers.
The government has also retained Maori involvement in the regional groups that will oversee the new entities, saying the Treaty of Waitangi — the country’s founding document — gives indigenous communities the right to participate in decisions that relate to water services.
“The number of entities isn’t what New Zealanders care about, they care about ownership and control,” said Simon Watts, local government spokesman for the main opposition National Party. Keeping the co-governance structure with Maori is “undemocratic and will not lead to better water services,” he said.
The election is due to be held on Oct. 14.
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