Ryall Tony: Health (Drinking Water) Amendment Bill — In Committee 
Ryall Tony: Health (Drinking Water) Amendment Bill — In Committee 
[Volume:642;Page:11920] 
Hon TONY RYALL (National—Bay of Plenty) 
: 
 I wonder whether the Minister would care to take a call and advise the Committee of the likely cost to water suppliers of complying with this legislation as introduced and now as amended. The reason why we ask that question is that there has been huge variability in the advice from officials from the ministry and from Local Government New Zealand about the likely costs associated here. 
The Health Committee heard at one stage that the cost of the bill could be between $50 million and $250 million based on standards and processes that existed some years before the bill was introduced. We subsequently heard as I am sure Mrs Goodhew will confirm that $300 million was the estimate provided by officials. Local Government New Zealand then came before the select committee and advised that it thought the cost for local governments and water suppliers to comply with the legislation would be more in the vicinity of $800 million. Understanding the costs on local government goes to the heart of the select committee’s deliberations. 
As the Minister will be aware there was an incredible amount of ongoing discussion with the representatives of local government about what costs they would have to face as the predominant suppliers affected by this legislation. At the end of the committee hearing Local Government New Zealand advised it was still in opposition to the bill because of the costs. Although Local Government New Zealand welcomed the changes to the bill it did not believe that they mitigated the concerns it had about the burdens that would be put on ratepayers and consumers of water who pay through charges. We would like to know from the Government what the current expectation is of the costs to local governments and water suppliers from what is being proposed in this legislation because that goes to the heart of the concerns that were expressed by communities. Communities are concerned about the costs they will have to carry as a result of this legislation. 
I would also like the Minister to provide the Committee with more information about what impact the changes the select committee proposed will have on the compliance costs of various users. We know that very small drinking-water suppliers will now face some different rules from what was originally proposed in the legislation. Different sized water schemes face different obligations. But can the Minister actually provide us with the detail as to the nature of those costs because those costs have moved so much. In the bill as introduced the regulatory compliance statement talked about $50 million to $250 million as I recall. The select committee then heard from officials that it was more up to $300 million. 
Dr Jackie Blue 
: They keep going up and up. 
Hon TONY RYALL 
: They kept going up and up as Mrs Blue said. 
Then Local Government New Zealand said the cost was $800 million. So we would like to know what those costs were when the bill was introduced; what the Minister now understands those costs will be now that the bill has been amended; and what mitigation the Government is proposing in order to provide a pragmatic solution for communities. This was the concern of Local Government New Zealand. It remained opposed to the bill because of the burden it would put on ratepayers and consumers. I think the Minister should provide the Committee with an indication of what the Government now thinks the compliance costs associated with this bill will be.