Brown SimeonWATER SERVICES ACTS REPEAL BILLFirst ReadingHon SIMEON BROWN (Minister of Local Government): I present a legislative statement on the Water Services Acts Repeal Bill.SPEAKER: That legislative statement is published under the authority of the House and can be found on the Parliament website.Hon SIMEON BROWN: I move That the Water Services Acts Repeal Bill be now read a first time. This bill embodies the National Party's commitment to repealing the previous Labour Government's divisive and unpopular three waters regime. It marks the first step towards implementing Local Water Done Well—our plan for addressing the country's longstanding water infrastructure challenges. I want to start by acknowledging the commitment and support from our coalition partners the ACT Party and the New Zealand First Party. I also want to acknowledge a number of mayors who are in the House here today and who have come to Wellington to witness the passing of this piece of legislation.This bill serves multiple purposes. Firstly it repeals the Labour's three waters legislation thereby removing the 10-entity model which prescribed co-governance and this will ensure water assets remain under the local ownership of local councils. Additionally it halts the establishment of the economic regulation and consumer protection regime for those 10 mega bureaucratic entities. Secondly this bill disestablishes the Northland and Auckland water services entity ending the costly and unnecessary activity involved in setting up this body including significant IT contracts. In December last year it was revealed that the previous Government's reforms cost the country an eyewatering $1.25 billion while achieving very little. The termination of this work is anticipated to save a further $343 million aligning with our Government's objective to curb irresponsible spending.Thirdly the bill relieves pressure on councils that will now need to include water services in their long-term plan (LTP). Councillors are in the midst of preparing these plans and require direction and support to plan for and finance water services that they will continue to hold responsibility for. The bill provides a range of options that recognise that different councils will have different needs and preferences and will be at various stages of developing their long-term plans. The options include having an unaudited LTP consultation document adopting the long-term plan for up to three months later than usual or deferring the 2024 LTP by one year and preparing and consulting on an annual plan for 2024-25 instead. This is about providing flexibility to councils. All of the options are voluntary and councils can choose to use them or not depending on their local circumstances. Unlike the former Government which came in and mandated the approach on local councils we instead are taking the approach of flexibility in terms of this particular issue. The bill provides much-needed clarity about the choices available to councils in addition to standard processes and what is required if particular options are taken up.Repealing the previous Government's three waters legislation is just the first step in our plan. The coalition Government is committed to addressing New Zealand's longstanding water infrastructure challenges. While some communities operate and maintain efficient high-quality water services we cannot ignore the fact that many are struggling to maintain and upgrade critical water infrastructure and fund new investments. There is a pressing need for futureproofed reform in our water infrastructure in the face of aging assets inflation population growth and regulation. With Local Water Done Well we will enable councils and communities to determine what works best for them while establishing clear expectations and bottom lines. The Government's plan for water reform will require councils to demonstrate how they will meet strict regulatory standards that ensure safe resilient and cost-effective water services. This approach will improve transparency accountability and efficiency by identifying where there are areas that can be improved. And as outlined yesterday we'll be doing this through a two-step approach.The next piece of legislation will be passed through this House by the middle of this year. It will deal with issues in regard to how councils can more efficiently set up council-controlled organisations. Currently when they set up a council-controlled organisation each council has to consult separately with its local community. This will include changes which streamline that process and enable them to be able to consult widely across the region or amongst the councils which want to work together. It'll include elements around the requirements to put forward their financial sustainable plans to demonstrate what they're doing to be able to meet the requirements so they have long-term sustainable plans. And it will have the first steps towards ensuring that we deal with Watercare to ensure that Auckland Council is able to have balance sheet separation for Watercare. This approach will improve transparency accountability and efficiency for those local councils in the investments that they're needing to do.The second step in terms of legislation will be another bill coming to the House later this year which will have more detail around setting up specific balance sheet separated council-controlled organisations. It will include full regulation under the Commerce Act for these water entities to ensure that they're investing responsibly that prices are set appropriately that infrastructure is not gold plated but that they're pricing appropriately and that investment is done over a long period of time so that we improve the water infrastructure that we have here in New Zealand. And I look forward to bringing those future pieces of legislation to the House.Our Government aims to set standards for critical infrastructure delivery focusing on value for money investment to drive economic growth productivity and quality of life. Taumata Arowai will continue to retain its role as the water-quality regulator and will be tasked with setting safe water standards and overseeing that for local councils in a proportional way which meets their needs. Economic regulation will play as I said a key role in ensuring that the necessary investment in infrastructure is made without making charges unaffordable. Clean quality water is a fundamental expectation of every New Zealander. Changes are needed to build better water services for current and future generations and this is what Local Water Done Well will deliver. We do not need more centralised and bloated bureaucracies which is what the last Government imposed on local communities but after six years failed to deliver. Instead central government will provide the tools for local government to deliver and the oversight necessary to ensure an efficient system.To those who voted for the National Party the ACT Party and the New Zealand First Party we have delivered on our promise to end the last Government's co-governed mega entities mandated three waters regime. We will now begin the process of implementing Local Water Done Well so that local councils are able to invest in the long-term infrastructure that they are responsible for. I commend this bill to the House.