4. Question No. 4—Local GovernmentANGIE WARREN-CLARK (Labour) to the Minister of Local GovernmentQuestion No. 4—Local Government4. ANGIE WARREN-CLARK (Labour) to the Minister of Local Government: Does she stand by her comment on Three Waters that the case for change is [well-made] compelling … and needs to be [understood]"; if so what steps will she take to ensure feedback over the last eight weeks will be considered?SPEAKER: Just before the Minister starts her answer we seem to have an extra member or some confusion at the back of the House. Thank you.Hon NANAIA MAHUTA (Minister of Local Government): Xiexie Mr Speaker. Yes there is near universal agreement that the status quo is not sustainable. Our three waters assets are now liabilities and we need to position the system in a way where they are best placed to enable an estimated $120 billion to $180 billion investment needed over 30 years. Without action the situation for councils and communities is only going to get worse. Over the past eight weeks I've received considerable feedback from councils which has included a wide range of issues such as governance arrangements accountability and performance expectations ensuring assets remain in public ownership maintaining local voice especially in smaller areas and that consumer ratepayer benefits must be demonstrated. These are important topics and I'm committed to keeping the conversation going on how we progress the reforms in a way that respects the views represented from councils on behalf of their communities. In particular I'm alert to the concerns that positive effective relationships councils have built with partners like iwi and business with regards to water are important and should not be lost in the process of reform. Indeed such relationships should enhance this process.Angie Warren-Clark: What core challenges of the reform proposal need to be understood by councils and the public?Hon NANAIA MAHUTA: Even with the best of intentions the scale of the three waters challenge is too big for any one council to come up with a solution that can respond to a high-standards regime with comprehensive compliance monitoring and enforcement. Taumata Arowai the dedicated drinking-water regulator will ensure comprehensive implementation of health and environmental standards. That's why this reform is not simply tinkering around the edges. It fundamentally addresses the long-term under-investment in waters infrastructure that will provide a more financially sustainable and resilient waters infrastructure network and will deliver vastly improved health and environmental benefits. Leveraging balance sheets at this level will give greater certainty to communities that their rates will be going to a higher-quality water network than what is currently the case. This approach ultimately is about the wellbeing of people the community and the environment and the long-term economic growth of regions.Angie Warren-Clark: Why is a nationwide all-in model the best approach to address the significant affordability challenges for infrastructure investment?Hon NANAIA MAHUTA: I've consistently said that my preferred approach is to enable all communities within New Zealand to access the benefits of reform. As I've said before in this House the Government cannot accept a solution for the three waters challenge that works for cities and leaves smaller towns and regions facing the same issues as they are now. In practice a nationwide all-in approach would require every territorial authority district to be included in the new water services entities. Several councils have raised concerns about cross-subsidising their neighbours but an all-in approach means greater efficiencies for all councils and ratepayers through better capital asset management and more professional workforce procurement practices innovation and service delivery and improved services at a more affordable cost to consumers and ratepayers.Barbara Kuriger: How many more councils like Taupō and Timaru need to unequivocally oppose the three waters reforms before the Minister admits that she will force the reforms on the councils?Hon NANAIA MAHUTA: It may be good enough for that member to raise how many people oppose but the simple fact of the matter is that lot on that side of the House have no credible alternative. This issue has been around for a very very long time but let me explain: this hasn't emerged overnight this challenge for three waters. We have the advantage of a great deal of analysis from a wide range of sources including from the Parliamentary Commissioner for the Environment in their report that was tabled in the year 2000—and nothing was done. Also the Land and Water Forum in 2010—and nothing was done—the Auditor-General in 2017 and again in 2018 and many councils' own reports not to mention the recently commissioned reports under the tenure of this Government. It cannot be left to chance; something must be done. It is a challenging issue. At least on this side of the House we are dealing with the serious issues that will underpin long-term regional economic growth while that side of the House has no credible alternative."