Reports:
LGNZ_3_Waters_Issues_Paper.pdf
LGNZ_Quarterly_Media_Briefing_slides__October_2014.pdf

LGNZ’s 3 Waters study presents first national picture of New Zealand’s water infrastructure

Local Government New Zealand (LGNZ) has today released an issues paper ‘Exploring the issues facing New Zealand’s water, wastewater and stormwater sector’ as part of its sector-led 3 Waters project.

The sector-wide research provides a clear picture of the state and performance of local potable, wastewater and stormwater assets and services at the national level for the first time.

LGNZ President Lawrence Yule says that the 3 Waters project was put in place to respond to a nationwide information gap on three waters assets and services in councils around New Zealand, and he is pleased with the sector’s response. It was a collaborative effort between LGNZ, its members, IPWEA, SOLGM and central government agencies including the National Infrastructure Unit of Treasury.

“Local government has collectively demonstrated a major commitment to greater information capture and transparency, and as a sector to own emerging issues and increase performance,” Mr Yule says.

“With an estimated $35 billion total asset replacement value, the 3 Waters are a significant and important infrastructure asset for New Zealand in which we need to manage prudently and invest wisely, particularly with changing demographics and expectations ahead.”

The information collected shows the potable, wastewater and stormwater system in New Zealand is generally sound and currently performing largely as expected. However LGNZ has found that new demands may mean that future levels of service may need to change.

“Local government has the opportunity to deliver on and further improve water infrastructure and services. These assets are usually intergenerational in nature, and investments made must continue to provide efficient delivery of clean and safe water in years to come,” Mr Yule says.

The project has identified three focus areas for further investigation by the sector:

• Investing to replace and renew existing assets;

• Investing to meet rising standards and increasing expectations: including Drinking Water Standards in the Health Act, new freshwater standards in the National Policy Statement for Freshwater Management and calls for greater management of the resilience of three waters assets; and

• Providing end-users with the right mix of incentives to use water infrastructure and service efficiently.

LGNZ’s is now consulting with councils and stakeholders to test the scale and scope of these issues and what might be an appropriate solutions mix. Feedback will inform the development of a White Paper due for release in March 2015.

*Ends*

Opportunities emerging for improved local government funding

Emerging themes in the LGNZ Local Government Funding Review show there are opportunities for the sector to contribute even more positively to economic prosperity.

At today’s LGNZ Quarterly Media Briefing, early findings in the Funding Review were discussed. The Review is looking at the adequacy of rating bases where populations are changing; improving council decision-making funding and financing; the pressure of imposed costs from central government; the challenge of sustaining small and less economically vibrant areas; and affordability of rates.

LGNZ launched the Funding Review in April to review current funding tools and whether innovation in funding approaches could be introduced to deliver better outcomes for New Zealand’s communities.

Local government plays an integral part in the overall wellbeing of New Zealand’s communities whether directly through providing the water that runs through taps or indirectly such as building and maintaining local roads or through regional economic development strategies. These are all largely funded from property rates.

“Funding is a fundamental and critical part of what determines a smoothly run and well-oiled local government sector. This review is not a revenue grab, but instead a practical and realistic examination of the reality in which the sector operates. This is also about identifying opportunities for the sector to contribute even more to the economic prosperity and social vibrancy of the country,” LGNZ President Lawrence Yule says.

“The review involves a critical self-examination of what the sector can do more efficiently, whether by improved decision-making processes, improved incentive structures, better utilising current funding mechanisms or better collaboration with stakeholders. Ensuring the right incentives are in place to deliver the right outcomes and ensuring local government funding is sustainable is an important and critical part of this process.”

The LGNZ Local Government Funding Review working group is now preparing its consultation paper, due for release in December.

*Ends*

Increased local government focus on risk and resilience

Local government has a growing focus on risk and resilience with two key Local Government New Zealand-led (LGNZ) pieces of work underway on managing natural hazards risk and insurance.

LGNZ President Lawrence Yule says this work is important to ensure our communities and local infrastructure are more resilient in the face of natural hazard and other risks.

Last week LGNZ launched its think piece ‘Managing natural hazard risk in New Zealand – towards more resilient communities’.

The think piece finds that local government needs to be well-prepared and should sharpen its management of risks because communities are increasingly reliant on external services and infrastructure for daily survival and communications.

“The proportion of the population whose health and welfare is inextricably linked to lifeline services such as electricity, water supplies and wastewater services, and to unencumbered access to the internet for primary communication and centralised large format shops for essential items, is greater than ever before,” LGNZ President Lawrence Yule says.

“’Just-in-time’ supply chains and outsourcing of services in business, coupled with reduced spare capacity and interdependence in infrastructure networks mean that a single localised even can have significant and widespread consequences.”

The second key piece of work is the Local Government Insurance Review. Adequate risk management and provision of insurance is another important factor in mitigating the impact of natural hazards. Following the Canterbury earthquakes, the price and extent of insurance available to local authorities has changed, creating extra costs.

LGNZ’s Insurance Market Working Group has met monthly since June to discuss the findings of the NZ Local Government Insurance Market Review penned by Craig Stobo. Its work to date recommends councils spend more resources on risk profiling, risk management and risk mitigation to improve self-reliance and resilience in infrastructure.

The Group is now considering a business case exists for the creation of a risk management entity. Such an agency would focus on creating a local authority-owned entity to advise on risk management and insurance on behalf of the sector, and ties in with the work LGNZ is doing on the LGNZ Local Government Funding Review and 3 Waters project.

“The sector needs to think smarter about self-reliant, sustainable solutions for key infrastructure such as roading and the three waters, including optimal local authority protection from the volatile global insurance market,” Mr Yule says.

“Local government needs the necessary tools and adequate information to ensure risk and resilience provisions are in place for the best interest of communities with the ability to make sound planning and policy decisions.”

*Ends*

© Scoop Media