Belief that water rights are forever major issue for Govt

Monday, 22 October 2018, 6:53 pm
Article: NZ Energy and Environment Business Week

This article first appeared in the Energy and Environment weekly bulletin on October 17

Convincing current water users their current rights are not guaranteed in perpetuity is one of the key planks of success in the Government’s plans for water quality and allocation issues.

Last week Energy and Environment covered the release of plans for freshwater which highlighted the lack of detail around allocation issues. In particular, how the offer of new water rights to underdeveloped Maori land in already over allocated catchments would work as part of the Government’s need to address Maori rights and interest in water.

Cabinet papers around last week announcement show ministers are aware the problems that water allocation could cause them. Officials told ministers: “Existing users often assert that their current time-limited use / discharge rights are their property, and have expectations they will continue indefinitely”. One measure of success for change will be “It is clearly understood there is no right to pollute; and there is broad understanding that rights to use water / discharge do not endure perpetually, and changes to them should be expected – within appropriate frameworks”.

Managing all aspects of water quality, quantity and ecosystem health Not all aspects of water quality, quantity and ecosystem health are considered in resource management decisions. All key aspects of water quality, quantity and ecosystem health are considered, and where appropriate, are specified in regulatory instruments (such as an NPS). Allocation and economic efficiency Many externalities are not factored into water and land use decisions, distorting investment and management decisions. Relevant externalities are recognised and factored into investment and management decisions of water users and dischargers.
The papers said progressing fair and effective allocation of the right to take water and discharge nutrients is becoming more pressing because:
• the increased scarcity of water resources reduces supply (in part, due to introducing limits on takes and discharges) at the same time as demand has increased;
• introducing limits means that decisions on how to allocate the rights to use resources are unavoidable – not making a decision is actually a decision for the status quo; and
• part of the approach requires addressing Māori rights and interests in freshwater including the development aspirations of owners of Māori freehold land.
The work will look for opportunities to increase the efficiency and fairness from the use of NZ’s freshwater resources especially, through:
• incentivising reductions in wastage of water and minimising nutrient discharges;
• enabling higher value uses to access water and to discharge nutrients;
• the development and use of more adaptable and flexible tools to manage diffuse agricultural discharges;
• reducing the capitalisation of the right to use water or nutrient discharges into the value of the business/land; and
• enabling new users to access the rights to take water and discharge nutrients, including Māori landowners who own a disproportionately high percentage of under-developed land.

The Cabinet paper said ministers would need to “keep NZers informed and involved, taking the public along with us as we stop further degradation and loss, reverse past damage, and address water allocation issues… address systemic failures and gaps in the system for managing freshwater and land use; and establish solutions for water quality, use, allocation and storage that are effective, durable, and future-proofed for a changing climate; and work with the land use sectors to move toward higher value land uses with lower environmental impacts.”

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