increase font size
Infrastructure New Zealand wants to see the Government provide clarity around its water reform programme and the replacement for the Three Waters legislation as soon as possible.
According to a new policy position from Infrastructure New Zealand, long-term financial independence is critical for enabling local water entities to sustainably manage water assets and water standards into the future.
Infrastructure New Zealand advocacy and strategy lead Martina Moroney says that maintaining the current systems, where councils are left to oversee a steady deterioration of their water infrastructure, is not a feasible option.
“If the current situation is left to continue, New Zealanders will face significant social, economic and environmental costs along with ongoing risks to public health,” Moroney says.
She says Infrastructure New Zealand wants to see the Government provide clarity around its water reform programme and the replacement for the Three Waters legislation as soon as possible.
“Ultimately, it will be important to achieve economies of scale through mergers and shared service arrangements,” she says.
“However, whatever water service entities are eventually established, the Government must ensure balance sheet separation from councils, and that appropriate funding mechanisms and access to borrowing is available to the new entities to renew existing network infrastructure and adequately maintain new infrastructure.”
Moroney says that financial independence, or debt headroom, will be crucial to the new water entities’ success.
She says this is because it will allow them to borrow to fund the significant backlog in asset renewal and replacement, while allowing for repayment to be made over the life of these long-term assets.
“In the meantime, it is likely that central Government will need to consider credit wrapping council water services and providing bridging funding until the new entities are established and self-sufficient,” Moroney concludes.
National Party local government spokesperson Simon Watts claims Labour is planning to rush a backdown bill through Parliament with as possible in what he describes as “another undemocratic Three Waters play”.
The Government's Three Waters reforms, now rebranded as the ‘Affordable Water Reforms’, is more of a rebrand than an actual policy reset.
The New Zealand Government looks set to vest the control of water to four regional authorities under its Three Waters policy, having already spent $34m on developing the concept and committing to office space in Auckland to house its 350+ staff and consultants that will cost at least $2.1m annually.
OPINION: Farmers have delivered a message to the Government – time to push the pause button on Three Waters Reforms and have a rethink.
Federated Farmers say the controversial Three Waters Reform should be paused before the legislation bill reaches its second reading.
Humbling, overwhelming, and an absolute honour. That’s how 2024 Fonterra Dairy Woman of the Year Katrina Roberts describes her win at the Dairy Women’s Network conference earlier this month.
Hamilton-based Dairy Goat Co-operative (DGC) is revamping its leadership in the hope of recovering from its financial doldrums.
With just over two weeks left in the 2023-24 season, all eyes will be on Fonterra's opening milk price for the new season.
Fonterra Brands' Cathy Lang has been crowned the country's best cheesemaker for the second time in three years.
James and Debbie Stewart of Dairylands in the Manawatū are no strangers to taking home the silverware.
Troubled milk processor Synlait's share price is taking a hammering as nervous investors offload their stakes.
