King Annette: South Taranaki District Council (Cold Creek Rural Water Supply) Bill — First Reading 
Text is incorporated into the Bound Volume 
King Annette: South Taranaki District Council (Cold Creek Rural Water Supply) Bill — First Reading 
[Sitting date: 21 March 2012. Volume:678;Page:1184. Text is incorporated into the Bound Volume.] 
Hon ANNETTE KING (Labour—Rongotai) 
: 
 Labour will be supporting this South Taranaki District Council (Cold Creek Rural Water Supply) Bill’s referral to the Local Government and Environment Committee and we support its first reading. But we do need to tell the local member Chester Borrows who is bringing this bill that we have some serious concerns with the bill not the least of which is that this bill overrides the Local Government Act 2002 when it comes to the ownership of water supply and the provision of water in New Zealand. We will be wanting to ask questions at the select committee as to why we should do that because on this side of the House we strongly support public ownership of water for New Zealanders. The most crucial element you can have in your diet is the water that you drink every day and it must be available affordable good-quality water. So we will be asking why we should allow the Local Government Act to be overridden by a local bill. 
The Local Government Act that we passed when we were in Government states in section 130(3)(b) that a local government organisation must “not divest its ownership or other interest in a water service except to another local government organisation:”. Furthermore section 130(3)(c) states that a local government organisation must “not lose control of sell or otherwise dispose of the significant infrastructure necessary for providing water services in its … district”. It does provide an out in that legislation. It is to do with the closure of a particular water service or transfer and it relates to the size of that water service. It has to be one that is delivered to fewer than 200 persons—persons who are ordinarily resident in the district. This bill covers many more people than 200 people; in fact it has 162 connections with 400 people across the area that it covers. So we will certainly be asking questions as to why this Parliament should override that very good provision to ensure public ownership of water supply. 
People need to know if they are listening to this debate what this bill actually does. I do not know whether they got the sense of that from the member who put a lot of the background into it but what it actually does is it gives a process—a process—for the transfer of the Cold Creek rural water supply scheme from the South Taranaki District Council over to the Cold Creek Community Water Supply Ltd the company that has been contracted by the council for some time to actually run this water scheme. So it provides the mechanism; it does not provide the transfer. 
There are a number of issues if the water supply was to be transferred that we would also raise. One of them would be this. From what I can see this water supply is going to require quite a lot of upgrading in the future and we will want to know whether the owners of this new water supply the new company that takes over will be coming cap in hand to the Government for there to be additional Government money to go into the maintenance of this small water supply. You see we have had experience of this in the past when under the previous National Government small hospitals were handed over to community trusts. 
Hon Parekura Horomia 
: That’s right. 
Hon ANNETTE KING 
: I am sure that the member my friend and colleague Parekura Horomia knows this very clearly because Te Puia Springs hospital was one of those that was handed over to the community trust out of public ownership. When it came to maintenance on that hospital there was no money to be had. So it is all very well transferring over but what about the maintenance what about the upgrading? And I gather from what I have read that there is going to be a lot of upgrading necessary in the future for this small water supply. I do not want to see if this goes through that we then have the farmers coming back to this House asking for taxpayers’ and ratepayers’ money for that upgrading and maintenance. 
A question we will want answered is about the fact that the farmers have had water at a very low rate under this scheme. I read from the South Taranaki District Council that the cost of the water will have to go up and so I do not wish to see that there is going to be a demand made on this Parliament taxpayers and ratepayers for there to be some sort of subsidy to go in if they take over the ownership of it. You see under the local government reforms that were announced 2 days ago some of those who were very excited about the reforms were Federated Farmers because they said they wanted to curb local government activities. Well we will want to be assured that when—and if—this water supply is transferred over local government is not then going to be asked by Federated Farmers to put its hands in its pocket to support them because that would be hypocritical of Federated Farmers having said they would like to see fewer local government rates going into unnecessary activities. 
We would also want to know what pressure has been put on the South Taranaki District Council for this water supply to be transferred over to a company. Now I am not making any accusations but the chairperson of this company is Mr Ardern’s brother. Mr Ardern no doubt has a great interest in what happens and I understand he has advocated for the water supply to be transferred over to the company that his brother is the chairperson of. I will be questioning at the select committee what pressure has been applied not just as good local members of Parliament but as interested farmers interested family members on the local council to transfer this company over. I think they are legitimate questions because this is an important transfer—going back to the idea that we do have public ownership of water supply. 
I am also concerned about Opunake. We just heard from Chester Borrows who has brought this bill to the House that the new owners of this company would be quite happy to keep the emergency arrangements that are in place; those arrangements being that the people of Opunake can take water from this water supply when they run short. But there is a problem that I have read of and that is it is all very well when they are short in the winter but when the farmers are milking and they need a lot of water themselves the people of Opunake have been given bottles of water. I do not see that as being a good and constant water supply and I understand that the South Taranaki District Council was very keen to try to link the two water supplies up to give a very solid water supply to the people of Opunake. 
Shane Ardern 
: You were OK up to there. 
Hon ANNETTE KING 
: I might have it wrong Mr Ardern but I would want to be assured at the select committee about what is going to happen to those people. It is not good enough just to get some bottled water in an emergency because the farmers need most of it. 
I am sure my other colleagues will raise quite a number of other issues relating to this bill but we will support its referral to the select committee. A local member’s job is to bring such a bill. It does not necessarily mean that the local member supports all parts of the bill and I am sure knowing Chester Borrows as I do that he will be concerned for all his constituents not just a few who might be advantaged by a scheme like this. He will want to be assured that it is for the best benefit of the ratepayers and the taxpayers in his constituency. But he is bringing it here as a local member. That is his job and we will make sure it gets the scrutiny it deserves at the select committee.