Stop Three Waters

To the Finance and Expenditure Committee,

I oppose the Water Services Entities Bill and the Three Waters reforms.

The Select Committee should go on the road and hear oral submissions face to face in the communities directly affected by the Bill. Three Waters is a uniquely local issue that warrants genuine local consultation, especially in light of how local councils were denied the opportunity to conduct their own local consultation last year.

Three Waters will result in higher water costs. The Government claims the larger water entities will be more efficient, but the Government’s own peer review rubbishes the claimed savings, which don’t even consider the financial implications of co-governance. There is no limit on how much the unelected entities can charge for water services, no stopping iwi groups charging ‘water royalties’, nor is there a requirement for councils to reduce rates to reflect the fact they will no longer supply water services.

Despite the Government’s claim that councils will still ‘own’ water assets, councils will lose their rights of control. Decisions around selling assets, receiving dividends, and setting charges will be made by unelected entities, with no provision for councils to withdraw from the new regime.

Labour did not campaign on these reforms during the last election and is now forcing councils to support the complex, far-reaching reforms without time for local consultation. This is despite 76% of New Zealanders believing that those responsible for the provision of water services should be directly accountable to voters, as revealed in a scientific poll commissioned by the Taxpayers’ Union in June.

These reforms will add multiple layers of unnecessary bureaucracy. Ratepayers will be separated from the new water entities by four layers of bureaucracy. Council representatives will join with iwi to appoint a regional body, which will appoint a selection panel, which will appoint the entity board. That is madness!

I ask that the Committee recommends to the House that the Bill not proceed.

Sincerely,
David Clark
david@falconsultants.co.nz