11. Question No. 11—Local GovernmentSIMON WATTS (National—North Shore) to the Minister of Local GovernmentQuestion No. 11—Local Government11. SIMON WATTS (National—North Shore) to the Minister of Local Government: Which councils if any have expressed opposition to her on the Governments proposed Three Waters reforms?Hon NANAIA MAHUTA (Minister of Local Government): Periodically throughout the reform process councils have spoken in favour of and against aspects of the three waters reform. At the heart of councils' concerns have been the issues of governance representation ownership and local voice. That's why I accepted the majority of recommendations made by the independent working group on representation including a shareholding plan to ensure greater community say. The reality is that 500000 New Zealanders each year have to boil their drinking water. We're well past the point for change. The status quo is unacceptable and the Government is working to improve the quality of water the health of our environment and a financially sustainable way of funding waters infrastructure.Simon Watts: Is one of the reasons why councils oppose the reforms because in Entity B they only have seven seats between 22 councils on the regional representative group?Hon NANAIA MAHUTA: There have been a number of concerns in relation to the regional representative group but I can assure you that the working group and the changes that they recommended to strengthen the regional representative group have been taken on board and what they have highlighted is that that group at a strategic level can guide the work of the water services entities to achieve those regional and sub-regional outcomes and to improve community outcomes in terms of waters infrastructure safe drinking water and the like.Simon Watts: Under the proposed reforms how can councils affect decision making when decisions require a 75 percent majority and councils only hold 50 percent of the votes on these regional representative groups?Hon NANAIA MAHUTA: That voting threshold only takes place on questions of a merger or the divestment of assets and just to recall the position of the Government is that we will safeguard against privatisation and ensure that we have a public model of water service delivery. I don't think that member can give that guarantee.Simon Watts: Is one of the reasons why councils oppose these reforms because they have no right title or interest [legal or equitable] in the assets security debts or liabilities of a water services entity"?Hon NANAIA MAHUTA: That member fails to understand that the model that we are proposing is a public model of water service delivery. So in creating a shareholding interest it is to ensure there is a threshold that enables councils to have a say on the most significant decision which will be the question of a merger or the divestment of assets. In fact that member can't give the same assurances. Our Government's commitment is to safeguard against privatisation.Simon Watts: So under the proposed three waters reforms why are water service entities a body corporate?Hon NANAIA MAHUTA: It's outlined in much of the information that we've got but we have set up stand-alone water service entities enabled to ensure that they have the right structure and strategic ability to undertake their role and actually have balance sheet separation to ensure that they can financially invest in waters infrastructure."