11. Question No. 11—Local GovernmentNICOLA WILLIS (National) to the Minister of Local GovernmentQuestion No. 11—Local Government11. NICOLA WILLIS (National) to the Minister of Local Government: Does she stand by all of her statements and actions?Hon NANAIA MAHUTA (Minister of Local Government): Yes particularly my statement that there has been 10 years of under-investment in three waters infrastructure and the case for change for our three waters infrastructure is too compelling to ignore. Without the new entities we will continue to see a frail network and contaminated water. To delay will only push the problem on increase future household costs and put livelihoods at risk.Nicola Willis: Will councils be issued shares in the new water entities and if not how is this not simply State-sponsored theft?Hon NANAIA MAHUTA: Mr Speaker.SPEAKER: Well I'll allow the—I mean it is out of order but I'll—Hon Members: Why?SPEAKER: Of course it's out of order. The idea that a bill passed by Parliament is State-sponsored theft is just ridiculous. The member can answer the first part of the question.Hon NANAIA MAHUTA: To the first part of the question—Hon Michael Woodhouse: Point of order. Mr Speaker given the comment that you just made I think it would be appropriate if you could point to the appropriate Standing Order that makes the second part of that question out of order.SPEAKER: The member could start with irony.David Seymour: Speaking to the point of order. Mr Speaker it's a widely held view in New Zealand that half the bills passed by Parliament are State-sponsored theft.SPEAKER: Well it might be the widely held view in the circle that the member moves in and it might be an increasing circle at the current time but it's not generally the case.Hon NANAIA MAHUTA: To the first part of the—Hon Michael Woodhouse: Point of order.SPEAKER: I hope the member's not going to dispute my ruling.Hon Michael Woodhouse: Yes Mr Speaker. Well I want to just point out—SPEAKER: Well I just want to say to the members behind Mr Woodhouse he's at risk and they're at risk too if they continue their noise.Hon Michael Woodhouse: Point of order. Mr Speaker the definition of irony" according to my recollection is a statement that usually means one thing intended to mean another. The question was very direct and had no double meaning.SPEAKER: All right—OK. Well the member's used his last chance.Hon NANAIA MAHUTA: To the first part of the question in order to ensure a public ownership model of water service entities and to safeguard against privatisation the design of these entities will not be of a shareholding nature or distribute dividends to councils. But let me be very clear: councils currently own water assets. Those assets will transfer and be collectively owned by councils under their respective entity.Nicola Willis: How will local communities keep control of their water assets when her Government is confiscating those assets and handing over control to a complex smorgasbord of unelected appointees and officials?Hon NANAIA MAHUTA: That member wants to perpetuate a myth of her own making. In fact what the new water service entities will do is enable the ability to invest in waters infrastructure in a way that councils cannot currently do. What that will deliver is greater benefits to households who will have the assurance that with reform they will get not only a quality service but also the benefit of small and big regions alike being treated in a way where absolutely they will have safe drinking water. There will be improved environmental outcomes and there will be an assurance that alongside regional growth and opportunity certainty of employment of those currently in the water industry and going forward under these reforms are guaranteed.Hon Dr Megan Woods: Is it true that lack of investment in three waters infrastructure has been holding back housing developments and does the Minister expect today's announcement will improve the development of new housing across New Zealand?Hon NANAIA MAHUTA: Yes and sadly the previous Government did nothing about this so the legacy of under-investment was left as a too hard issue that was not addressed. And the total sum of that as we know is that three waters infrastructure now is in dire need of investment in order to enable housing—a priority of this Government. These reforms will certainly support that ambition and ensure that we can continue to invest in housing so that our regions can grow and there will be further opportunities for our communities.Nicola Willis: How much of the proposed entity A would Auckland Council own and therefore Auckland ratepayers have control over?Hon NANAIA MAHUTA: As I announced today the whole purpose of announcing the three waters working group is to further refine the governance representation and accountability arrangements which provide for local voice to be worked on. The simple answer is that there will be no shareholding or dividend opportunity under any of these entities because we are giving an absolute assurance to ratepayers that this is a public model and that we are safeguarding against privatisation.Nicola Willis: Why has she ignored most of New Zealand's mayors and all those New Zealanders who have asked for three waters plans to be put on hold and what is the point of a working group when she intends to force these changes on councils regardless?Hon NANAIA MAHUTA: We are not like the Opposition that when there are really hard issues and long-term challenges that need to be addressed you kick the can down the road; you run away close your eyes and say "Well we won't do anything." The simple thing is to do nothing. The more difficult thing which this Government is prepared to do is address the long-term systemic challenges of under-investment in waters infrastructure. That's why we're acting."