Walker HamishHAMISH WALKER (National—Clutha-Southland): It is a fine day not because of this bill but because we finally have the Government saying that water storage is a positive thing. So it's a fine day.But back to the bill: this bill relates to a wonderful part of New Zealand being Ōtama which is just inland from Gore. In Ōtama you will meet some of the friendliest and smartest people in the country. Their determination and commitment to the district is clearly shown through this bill which has made it to Parliament and this scheme has a very interesting story and has been widely debated in the district over the years.Following a public meeting in May last year a referendum was held with 300 votes where three out of four people voted for the ownership of the scheme to be transferred from the council to the water scheme committee under a new ownership scheme where the users are the shareholders. This is a very straightforward local government bill which transfers the ownership of the Otama Rural Water Supply scheme from the council to Otama Rural Water Limited. It also provides for certain related matters if the scheme is transferred to the council. This is a fair and practical solution.I've been lucky enough to drive around the scheme in the fine company of Hamish MacKay on a wonderful sunny Southland day—as they all are down there. You don't actually realise just how impressive it is and how much the scheme does for the local farming community until you see it for yourself firsthand. I urge farmers out there who do struggle with water solutions to get in touch with the scheme as it's a great way—and the founders back in the 1970s and the current committee have done something wonderful here.This is not a significant economic asset. The farmers who use it who will be the shareholders are the only ones affected by this and who will benefit from the scheme. This is about pipes and concrete; this is not about water. The bill enables community ownership of an asset built by the local community. As I mentioned earlier it's a very interesting story which started in 1969 when Bill English was a young chap following a series of meetings of farmers who got together and considered that the supply and reticulation of water on the farms would be of great assistance to stock management and health. A group of Southland farmers who have since passed started this scheme and I think need to be acknowledged for having the foresight in those days to put in place a sustainable solution for the future generations to enjoy. This story gives you a small insight into the innovative nature of the people down south. They get on with the challenges they face and make improvements where they can to make life just that little bit easier for future generations to come.I want to briefly pay tribute to that group of farmers who got the scheme off the ground. Excuse me if I leave someone out but they were Stuart Baird Kevin Kelly and Ian Robertson. Back then the cost of the scheme was met in contributions in cash and labour from farm users of the scheme and a subsidy from central government and a loan raised by the former support of Southland County Council. Fast forward a few decades and ongoing costs and related costs in transferring the scheme will all be met by the scheme users.The scheme is still primarily used for stock but it also services an estimated 223 dwellings that are likely to use it for drinking-water purposes. As mentioned the water is untreated but is chlorinated. The ownership of the scheme has been a bit murky in recent years but the council considers that it currently has legal responsibility for the scheme hence why we are here discussing this today.The Otama Rural Water Supply Committee has governed the operation of the scheme on behalf of users since it was established. However the day-to-day operation and maintenance of the scheme is undertaken by the council including all the admin duties field work technical advice and reporting to the committee. The cost of the maintenance and operations of the scheme is met by the committee from fees paid by users. Reasons for this local bill come under section 130 of the Local Government Act 2002. A local government organisation—in this case the council—must continue to provide water services and maintain its capability to meet its obligations relating to the provision of water services.There is history as mentioned for a local bill such as this. The South Taranaki District Council (Cold Creek Rural Water Supply) Act 2013 was passed back in March 2013 for the same purposes. An interesting point to note is that New Zealand First the Greens the Māori Party and Mana opposed the Cold Creek bill. New Zealand First wanted a referendum for the greater South Taranaki district instead of only those in the catchment. The Greens complained on that occasion that the South Taranaki District Council can privatise a community water scheme that draws water from a stream running off Mount Taranaki and ratepayers contributed to its operating costs and it was created and built with public money.This bill has been drafted using the Cold Creek Act as its foundation. The Cold Creek Act was passed to enable the transfer of the Cold Creek water supply scheme to Cold Creek Community Water Supply Ltd—a company owned by the users despite section 130 of the Act. As with the Cold Creek Act this bill broadly provides for the process set out in the Act for the transfer of a small water service—sections 131 to 135—with some variations to take into account the nature and size of the scheme.The committee has consulted local iwi through the Hokonui Rūnanga who confirmed in writing its support for the transfer.The scheme supplies water to 253 connections on 210 farms in the Gore district. There is just under 240 kilometres of pipeline. I visited the site where the water comes from which is a bore next to the Mataura River at the site of the former Pyramid Bridge. Numerous homes as well as two schools and a marae use the water and historically the water was untreated as the scheme was originally only for stock water.I want to finish by acknowledging some key members of the committee who have put in the hard yards and those hard yards are about to pay off. I'd like to acknowledge chairman Tom Affleck vice-chairman John Kerse Chris Affleck Gavin Cruickshank David Smith Donald Johnston and Hamish MacKay.I hope you're all watching from back home with your feet up relaxing for a change. You should feel proud of your efforts and your hard work over the last 12 to 18 months and it's finally being recognised. Well done.I urge all members of the House to support this fine piece of work undertaken by a group of talented Southland farmers. This will add a huge amount of value and certainty for the farmers who live in Ōtama. Thank you.