Carter John: Local Government Act 2002 Amendment Bill — In Committee Third Reading 
Carter John: Local Government Act 2002 Amendment Bill — In Committee Third Reading 
[Volume:660;Page:15549] 
Hon JOHN CARTER (Associate Minister of Local Government) 
: 
 Let us get one thing very very clear: this Government is not privatising water. Let us get that really clear on the floor of the House. This Government is not privatising water. What we are allowing is what has been happening for many years. 
Dr Rajen Prasad 
: It’s a monopoly. Why do it? 
Hon JOHN CARTER 
: I will just explain to the member if the member will listen. I will put a very cogent argument and point of view as to what is happening. 
The fact is that for many many years local government has had the opportunity if they wish to have their water supplies managed by the private sector for 15 years. They have come to us and said that they think there is a very good reason why it may be prudent to extend that beyond 15 years. So in this legislation we have said OK. The system has worked well for many many years and we have allowed the management—not the ownership and not the privatisation but the management—of water by the private sector for 15 years. Local government is saying to us that it would not mind if it was extended a bit more so we will allow them—the local authorities which are democratically elected by their community to represent their community—to decide whether they might want to have their water supplies managed by the private sector for up to 35 years if they decide that is prudent. It is up to local government to make that decision. 
I just say to the Committee that I am not certain of the number but I suspect that 30 40 or even more private water supplies managed by the private sector already exist in this country. I dare the Opposition and Sue Kedgley to go to one of those people who are the recipients of water supplied by the private sector and ask why they do not stop doing that and hand the supplying of water back to the local authority. I can tell members what the answer would be and there would be a quick march out the door. I have asked many of those water suppliers. The member Kelvin Davis knows of one just up in Taipa for example up on the East Coast. There is a privately managed water supply there. I ask that member to ask those people whether they think it would be a good idea if Wayne Brown and the Far North District Council took over the supply of water. I know what the member’s response would be if he asked that question. I have asked that question and I have to tell him— 
Dr Cam Calder 
: What was it? 
Hon JOHN CARTER 
: Well it was not a very good response I have to say. It was commented that if I even suggested that happen that I might lose some local support. So I did not even make that comment. The point is that those people are very happy with the way their water is supplied. They can turn on their taps they get the water they pay the bill there are no extra huge charges they are very happy with the rate at which water is charged so it works. The point is that it has been working for years and years and it will continue to work because that is what that community wants. 
The other thing that might be useful is for the member George Hawkins to take a call to tell us what happened when he was Mayor of Papakura. I tell members that this might come as a surprise to the left but one of their members who was a former mayor instigated allowing the private sector to run the Papakura water supply. What happened? Well the local people kept turning on the taps and getting water out of the taps—it did not stop—and it ended up that they had the cheapest water supply in the Auckland area. Goodness we should not let that happen should we? No maybe we should change this bill and not allow that to happen! But I dare anyone to ask the people of Papakura whether they think this Government should stop allowing that to happen. 
All we are doing is applying what one might call a modicum of common sense to a practice that has been happening in New Zealand for a long time. It allows locally elected democratically elected councils to make a decision as to whether they think it is in the best interests of their community. 
Phil Twyford 
: But they don’t have to consult the community. 
Hon JOHN CARTER 
: Yes they have to consult the community—that is a lot of hogwash. Councils have to put it in their long-term council community plan. Councils have to tell the people that they think it is not a bad idea to extend the provision out and give them the reasons why. Councils will get feedback from their people. What will happen is that in 3 years’ time if the public do not like it—because it is going through the long-term council community plan and all the consultation procedures—they will not vote for the council will they? Is it not that simple? I cannot understand this objection to our extending something that is already working so well in New Zealand. We have plenty of examples where the supply of water is cheaper. I know that is a dreadful thing that the Opposition might not like to think about. 
Dr Cam Calder 
: They do not think about money. 
Hon JOHN CARTER 
: That is true. It is unfortunately sad. But in this case there is a very good reason why this should happen. There is a very good reason why we want to give local communities the opportunity to make the decision. Parliament is not making the decision; all we are doing is providing the opportunity. It is up to each community to make the decision. To suggest that this Government is privatising the supply of water is silly. What we are doing is allowing for prudent management if that is what the community decides. There are many good examples across— 
Phil Twyford 
: Ownership of assets. 
Hon JOHN CARTER 
: I say to Mr Twyford that there are many good examples across New Zealand where it happens well. As I said if that member suggested to those communities that it should not do this I tell him that we might go out and say that Labour is suggesting to the private sector suppliers that it wants them to come back into local government control. That might not be a bad policy actually. 
Phil Twyford 
: But you wouldn’t be telling the truth would you? 
Hon JOHN CARTER 
: Well that is true. I say to Mr Twyford that if he thinks it is so bad why are the Labour Opposition and the Greens not going around saying that it should be taken back into local government control? I will tell him why. It is because he knows that they would not get support for that policy. If they tried to unstitch what is happening now they would get a negative view and it would not help them in their endeavours to become the next Government which of course will fail. 
The fact is that this system works; it works well across the community. We are putting the responsibility and the opportunity back to local communities to make decisions about their own destiny and why would we not do that? We should allow local communities to have that opportunity. Thank you.