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Three Waters – trouble for the government and broader impact on the Civil Construction industry
The Three Waters Story So Far
What does Three Waters Mean?
Three Waters refers to drinking water, waste water and storm water.
Local governments have long claimed that their council owned infrastructure has been breaking down and causing problems like poisoning tap water, polluting the swimming water, and causing sewage run in the streets. They have consistently claimed that they haven’t the money to fix it, causing the central government to discuss solutions with local governments and iwi. November saw the decision to remove the responsibility for asserts and services from the local councils and put that responsibility onto four regional bodies
Why are councils angry about the Three Waters Proposed Changes?
The reforms that are on the table will amalgamate council owned drinking water, waste water, and storm water infrastructure and services into four regional bodies.
This move has caused local mayors to claim that the plans are a theft of water assets, though this isn’t entirely accurate as they will still belong to local communities. The reforms will, however, see the local councils lose some of the control they have wielded over water previously.
That is, however, somewhat the idea behind the reforms. The entities governance needs to be far removed from the councils in order to get rating agencies to approve higher debt levels which are necessary for the ultimate goal of investing in new infrastructure – as councils are already approaching their debt limits.
However, this fear of losing the control they have previously enjoyed has led to a stream of misinformation and a racist undertone to much of the discourse.
With some calling the move a power grab and theft – calling the government deceitful and liars – Labour maintains that the move is simply a measure to get its citizens drinking and swimming water that isn’t poisonous.
Representation and Input
Labour have centred co-governance in their policymaking throughout their first and second terms and with the proposed inclusion of Māori in the governance arrangement, Iwi representatives are set to have seats on the boards of the entity’s. However, they will not have direct ownership as some people have painted it.
Pākehā-dominated councils have a poor record in providing reticulation, clean drinking water, and waste treatment to Māori communities. Many communities are not connected to their regional drinking water or waste systems. This has led to communities having to manage with their own water and septic systems.
The systems put in place by these councils have shown a deep disrespect for the Māori world view. Te Mana o te Wai (respect for the water) is completely disregarded by the direct discharge of sewerage into water sources, the disposal of trade waste into rivers, and ongoing violation of consent standards.
But bringing mana whenua to the table, this long needed perspective will finally be taken into consideration.
It is not, however, a way of handing control of water ownership to Māori. The model in question foes not allow revenue to be generated from the assets or for them to be sold – it is purely cost recovery for transport, cleaning, and disposal of water.
Conspiracy theorists have linked the Three Waters proposal to the allocation of water rights question – a stretch in itself.
Royalties, ownership, and allocation are entirely separate problems and it is disingenuous to lump them together to make a point.
Regional councils have been guilty of over-allocation, which over the decades of mismanagement has led to lowered quality and increased pollution. Additionally, successive governments have failed to adequately deal with iwi water claims – in spite of Waitangi Tribunal and court findings that rights were not extinguished.
The conspiracy theory simple doesn’t hold up, the government has attempted to achieve fair allocation of freshwater through work programs and reforming the Resource Management Act.
However, critics have found a weak point where the government has failed to communicate its intentions and poorly explained asset ownership and royalties. Secrecy on the part of the Environment Minister David Parker about progress on the next tranche of the freshwater reforms has not helped this view
Three Waters – overhauling broken infrastructure
Three Waters is attempting to fix a decades long problem caused by chronic mismanagement and under investment which has evolved into a $185 billion crisis.
The infrastructure that is currently in place is not coping, breaking down, and not future proofed. Three Waters is, essentially, a thirty year overhaul of our water and sewer systems.
With beaches often polluted after rains, drinking water with lead levels 40 times over the acceptable limit, and nearly 800,000 New Zealanders drinking water that cannot be considered safe – an overhaul must be needed.
Civil Construction Industry
With Three Waters contractors concerned over work slow or stop during the reform, they have pushed for continuity of work particularly during the transition phase while entities are established.
Business owners are concerned that they may be left in the lurch should a new structure be put in place quickly, with small and medium sized companies worried about being ousted for larger enterprises and having their own roles whittled away.
While this concern of existing contractors about new players must be taken into consideration, the hopeful increases in funding for improvement and maintenance of vital services and infrastructure could make all the difference in the long run.
What’s next?
These water issues are complex and demand time consuming negotiation and careful policy work – but generally they do not make the difference in election results. As the country works to emerge from the pandemic with some semblance of stability, the issue is likely to fade out of the general public concern and into the background until the general election in 2023.