Mahuta NanaiaLAWRENCE YULE (National—Tukituki): I would wish to discuss with the Minister around the three waters reform. The Minister will be aware of significant expenditure and the significant piece of work. But effectively what has happened is the Minister and the Government has announced $761 million towards the three waters.CHAIRPERSON (Hon Anne Tolley): Oh! You're now on—LAWRENCE YULE: Yes. Well either Minister but if they want to change—yes I am on internal affairs.CHAIRPERSON (Hon Anne Tolley): Internal affairs—right OK. So we'll just invite the Minister. This is internal affairs is it? [Interruption] She's willing to answer so—LAWRENCE YULE: OK. That's fine. Sorry Madam Chair new Minister—my apologies. The issue I wish to ask the Minister about is—the Minister recently announced $761 million towards three waters and in the appropriations in the Estimates on page 174—it's actually in the Estimates and reports of the committees on the Estimates—the Minister said that the Minister has told us about a water services bill that the Government will be introducing in conversation across the sector about the service delivery arrangements for the three waters systems. We asked the Minister whether the bill will be introduced prior to the election and she said that it was her intention but subject to parliamentary agenda. At a minimum she said she would like the sector to see what the Government is proposing. That is exactly where I'm getting to. So $761 million has been announced as a first draft of the water reform money and my understanding is that the Minister is basically saying If you want the money you sign up to my deal." So what I'd like the Minister to explain to the committee is what is her intention? Because my understanding from the sector is that that is less than clear at this point in terms of the structure of water delivery. Hon NANAIA MAHUTA (Minister of Local Government): I'm happy to take a call on this particular issue knowing that we've had two years of conversation around the perilous state of the water infrastructure system across New Zealand highlighted by the Havelock North campylobacter event that happened in the member's area. What we did ensure as we had the conversation about the extent of the challenge was the state of the system and the amount of investment that's required but also potentially what a reform option could look like if councils the 67 territorial authorities who deliver water aggregated their services created scale to be able to better ensure greater consistency across the country in the way that they deliver safe healthy drinking-water and importantly the way in which the system can improve freshwater outcomes so that we've got clean rivers to swim in lakes and oceans. So part of that conversation in relation to the question that the member has asked is what is it going to take for the councils around the country to be able to have a different conversation? Much of the conversation that we've had to date has been based on a joint approach to firstly stand up a dedicated regulator which we have passed the legislation for which is Taumata Arowai. The enabling legislation that determines the roles and functions of Taumata Arowai is the water services bill which again—I am hopeful that at the very minimum the bill will be able to be tabled in the House if it hasn't already been done so. Then the other part of the conversation is in the service delivery area. This is where the sum of funding around $761 million towards the stimulus package and supporting Taumata Arowai has been already announced. Now that funding is a part of the conversation to help steer councils into the reform programme. It's an opt-in process. This is the second week of a two-week consultation phase with councils that has been undertaken by a joint steering committee made up of local government representation as well as leaders from the sector to be able to have exactly the conversations I think the member is asking about which are: will the sector have greater clarity on the reform that's being proposed? Will they be able to work out the issues and concerns that they have in relation to the nature scale role and function of these multi-regional entities? And will they be able to embark right now on a programme of action to be able to invest in their infrastructure? My answer to all those three questions built into the member's contribution is yes they will. In terms of the $761 million $50 million will be made available to support the role and function of Taumata Arowai. The rest will be distributed. We have not yet announced how that will happen because we want to hear back from the consultation round about what the concerns are. But when the decision will be made loosely based on population and geography I consider that many councils have already made a commitment to a programme of action so this initial stimulus amount of funding will bring forward probably in year two and year three what has already been forecast in the asset management plans. It will be a welcome reprieve for councils who are continuing to struggle with reduced revenue. I hope that answers the member's question. It is very—Rt Hon David Carter: Very long answer.Hon NANAIA MAHUTA: Well actually it was very precise in relation to the range of issues. But I hope that that answers the member's questions.LAWRENCE YULE (National—Tukituki): In summary it didn't completely answer the question because what I was wanting to know was—and the response to what the Minister told the select committee. At a minimum she said she would like the sector to see what the Government is proposing. Now there's consultation going on right now. I accept that. But members that I'm talking to say to me that they still don't know what the Government is proposing in terms of the final structure. Will the Minister be announcing to the Parliament or the people of New Zealand before the election what the final structure is?Hon NANAIA MAHUTA (Minister of Local Government): Can I just—having confirmed with the Clerk the bill was tabled yesterday. So there will be access to see the detail of the bill and that's really important and I gave an undertaking at the select committee that that was my intention. I was a little bit ambitious to indicate that we might get to first reading. That's probably not going to happen but they will have access to the bill."