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Need For Strong Regulation And Long-Term Certainty For Water Services

Strong economic, water quality and environmental regulators are vital to ensure consumer protection and healthy water under the Government’s new Local Water Done Well policy direction.

Water New Zealand CEO, Gillian Blythe told the Finance and Expenditure Select Committee that the new legislation is an important step to enable appropriate funding, investment and regulatory compliance in our water networks across the country.

Under the proposed new legislation, Local Government Water Services (Preliminary Arrangements) Bill, all councils supplying water services will be given one year to develop new Water Service Delivery Plans, which outline how they will deliver water services that are financially sustainable and meet regulatory standards.

“We are pleased that the Government has signalled regulatory standards will be better enforced.

“However, under the proposed legislation, environmental regulators are missing from the set of parties required to be consulted when deciding whether to accept a water services delivery plan.

“It is critical that the environmental regulator (regional councils), along with the economic regulator (Commerce Commission) and water services regulator (Taumata Arowai) are all consulted to assess whether a plan meets all regulatory standards and targets.

“We know that there will be affordability and resource challenges for some councils.  But it is important that councils are able to deliver safe drinking water while ensuring that wastewater and stormwater do not pollute the water environment.

“Most New Zealanders want to be able to swim in lakes, rivers and beaches and expect to see polluted waterways cleaned up.

“Water assets are a long-term investment and that’s why councils will need to ensure they plan long term – well beyond the proposed ten year term to avoid short term thinking. Certainty of timing and funding is essential for the whole supply chain.”

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