7. Question No. 7—Local GovernmentRACHEL BOYACK (Labour—Nelson) to the Minister of Local GovernmentQuestion No. 7—Local Government7. RACHEL BOYACK (Labour—Nelson) to the Minister of Local Government: Will the Three Waters reforms benefit smaller communities; if so how?Hon NANAIA MAHUTA (Minister of Local Government): Yes. The reforms will deliver the benefits from scale and aggregation primarily by leveraging waters infrastructure across large regions to finance infrastructure investment and improve water services to all communities especially small communities. In Nelson for example over the next 30 years the increase per household without reform is forecast to increase by $2330 per household. With reform households will be paying instead $1260. But let's look next door to Marlborough because the forecast increase in cost to households without reform will be $6560 over the next 30 years in contrast to with reform $1260 per annum. That's got to be good.Rachel Boyack: What response does she have to concerns that small councils and their local interests will be deprioritised by larger council areas in the four large entity areas in the three waters changes being proposed?Hon NANAIA MAHUTA: I was initially concerned right at the beginning when I heard those types of concerns which is why we try to ensure that they were being addressed within the context of the changes that we're proposing. However I'm particularly grateful to the recommendations of the governance working group for their suggestion to improve the changes that we're making by establishing sub-regional committees to ensure local priorities are consulted on and being addressed within the context of the reform. This means also that we will be responsive to consumers and ratepayers and their needs will be the subject of greater scrutiny that is already happening in the current case under economic regulation. We know that when those benefits are being reported on to ratepayers there will be greater transparency over the benefits of this reform that will meet the household needs of deserving communities big and small.Simon Court: If councils get one share in the new water entities for every 50000 ratepayers how many shares would Waitaki District Council get with 23000 population or Manawatū with 33000 and would that give them the same rights as shareholders under the Companies Act?Hon NANAIA MAHUTA: As I've already explained those communities with 50000 people or less will get at least one share. That's an important principle when we consider that across a large entity small communities will be able to benefit from scale and aggregation where there will be a smoothing of cost benefit to those households. If there's an alternative that that member has and is willing to put on the table I'd be grateful to hear it.Simon Watts: Does she think her reforms will benefit the communities in the Kaipara Whangārei and in the Far North district councils who will have a total of five shares in entity A between them while Auckland has 35?Hon NANAIA MAHUTA: Absolutely and across entity A they have the added advantage of Watercare which has already delivered demonstrable benefits through scale and aggregation that will only translate to benefit communities in the Kaipara District. And if the member has an alternative that he is willing to put on the table I'd love to hear it.Rachel Boyack: How will the interests of local communities—[Interruption]SPEAKER: Order! No can the member start again. The very senior member should know better.Rachel Boyack: How will the interests of local communities be provided for in the proposed reforms and what assurance will they have that local priorities will be provided for?Hon NANAIA MAHUTA: Thank you for the question and can I just draw the attention of the House again to the helpful recommendations of the governance working group who suggested that included under the regional reference group each entity can establish sub-regional groups that will bring in local decision-making and set local priorities in such a way that that can be reflected through the water service entity by way of investment prioritisation methodology and frameworks set by the water service entity and included within the context of the statement of strategic and performance expectation the statement of intent asset management plans funding and pricing plans and the overall infrastructure strategy for that region. It will assure small communities that their priorities not only are being listened to but are being planned for.Kieran McAnulty: Can she confirm that ratepayers in the South Wairarapa District Council and the Tararua District Council are projected to face fees of $8690 without reform but $1260 with reform?Hon NANAIA MAHUTA: Yes and that's why these reforms are so necessary. [Interruption]SPEAKER: Order! Order! Do any of the members asking questions from their seats want to stand up? All right.