Brown SimeonSecond ReadingHon SIMEON BROWN (Minister of Local Government): I move That the Water Services Acts Repeal Bill be now read a second time.I commend this bill to the House for its second reading. This bill serves as a decisive step in stopping Labour's unpopular and divisive three waters regime. This Government is determined to do things differently in a way that recognises the importance of localism and flexibility while ensuring a strong emphasis on investment in infrastructure and that regulatory requirements are met.As I outlined in my first reading speech of this legislation our plan for addressing New Zealand's longstanding water infrastructure challenges Local Water Done Well will provide the tools for local government to deliver and the oversight necessary to ensure an efficient system for New Zealanders. The previous Government's lack of trust in local councils led to the imposition of a mandatory and centralised co-governed 10-entity water model—a model that spent $1.25 billion without even implementing their policy approach. This flawed one-size-fits-all approach would have burdened councils and it would not have actually delivered what New Zealanders need.The coalition Government intends to make changes to build better water services for current and future generations in New Zealand ensuring strict bottom-lines for water service delivery are met without entangling local councils in co-governance structures. We know the status quo cannot continue. The reality is that we need to have a plan which supports local councils to make the long-term investment decisions that they need so they can control the water infrastructure and invest over the long term and that is exactly what Local Water Done Well will do.The first bill which we'll be passing by the middle of 2024 will set out provisions relating to council service delivery plans and transitional economic regulations. It will also provide streamlined requirements for establishing council-controlled organisations under the Local Government Act 2002 enabling councils to start shifting the delivery of water services into more financially sustainable configurations should they wish to do so.A second bill providing for the long-term replacement regime will be introduced in December 2024 and passed by the middle of 2025. This will set out provisions relating to long-term requirements for financial sustainability and provide for a complete economic regulation regime and a new range of structural and financing tools including a new type of financially independent council-controlled organisation. This second bill will also establish regulatory backstop powers to be used when required to ensure effective delivery of financially sustainable or safe water services.In addition we will also make necessary amendments to the water regulations legislation to ensure the regulatory framework is fit for purpose and workable for drinking water suppliers. All legislation to support the implementation of Local Water Done Well is expected to be passed by mid-2025 ahead of the local government elections in October 2025.The Water Services Acts Repeal Bill which we are passing through the House today is the first step in restoring continued local council ownership and control of water services and responsibility for service delivery. Local Water Done Well recognises the importance of local decision making and flexibility for communities and councils to determine how their water services will be delivered into the future. We will do this while ensuring a strong emphasis on meeting rules for water quality and investment and infrastructure.Financial sustainability is a key principle of this Government's plan to implement Local Water Done Well. Financial sustainability can include revenue sufficiency balance sheet separation ring-fencing and funding for growth. We're creating options for councils around how they choose to ensure their water services are financially sustainable. Balance sheet separation is one of the ways that councils can achieve this and ultimately this Government will be working alongside councils not forcing solutions upon them.This is a Government which actually believes in the importance of local government and in the responsibilities that they have towards their local communities. That is why I just want to acknowledge my colleague from the ACT Party Simon Court and his speech before which was saying water delivery is a local government issue; they are responsible for this infrastructure. It is our job as a Government to ensure that they have the foundational policy and the ability to make the long-term investments in the long-term assets that water is for their communities. They need to ensure that they are funding for the long term they need to have access to long-term funding tools and they need to ensure that they are funding this as a must-have not a nice-to-have. Council-controlled organisations can help make those long-term decisions and raise that long-term debt and spread that cost over the life of those assets rather than upon ratepayers today.So we commend this legislation to the House. This is about repealing what was a divisive policy from the last Government—policy which wasn't even implemented despite six years and over a billion dollars spent on it—and we're actually going to act in pace to get this implemented so local government has the tools and the policies to be able to get on and make the long-term infrastructure investments they need for New Zealanders.