Water Services Entities Act 2022

1: Title
This Act is the Water Services Entities Act 2022.
2: Commencement
1: The following provisions come into force on the day after the date of Royal assent:
a: sections 3 4 5(a), (b), (c), and (f), 6 to 10
b: subparts 1 to 3 6 8
c: sections 121 122
d: sections 132 to 137 section 206 clause 8
e: section 210 section 206 section 210(1)﻿(a)
f: section 218
g: section 223 Local Government Act 2002
h: section 234 Taumata Arowai–the Water Services Regulator Act 2020
i: sections 236 237 Water Services Act 2021
i: te Mana o te Wai; and
ii: consultation on, and accounting for and banking of, cost-recovery levies):
j: Schedule 1
2: The rest of this Act comes into force—
a: on a date set by the Governor-General by Order in Council; or
b: to the extent not brought into force earlier, on 1 July 2024.
3: An Order in Council made under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
1: Preliminary provisions
3: Purpose
1: The purpose of this Act is to enable long-term, sustainable improvements in the safety, quality, resilience, accessibility, affordability, efficiency, and performance of—
a: water services; and
b: water services infrastructure.
2: This Act seeks to achieve that purpose by—
a: establishing 4 water services entities to provide water services in New Zealand:
b: providing for their service delivery areas and for their governance, reporting, and accountability arrangements:
c: providing for their objectives, operating principles, and duties, functions, and powers ( see sections 12 to 14
d: requiring them to give effect to the principles of te Tiriti o Waitangi Treaty of Waitangi see section 4
e: providing for monitoring and oversight arrangements:
f: ensuring water services infrastructure is retained in public ownership:
g: ensuring water services infrastructure is not operated for the purpose of generating profit for shareholders.
4: Te Tiriti o Waitangi/the Treaty of Waitangi and Te Mana o Te Wai
Duties to give effect
1: All persons performing or exercising duties, functions, or powers under this Act—
a: must give effect to the principles of te Tiriti o Waitangi Treaty of Waitangi
b: must give effect to Te Mana o te Wai, to the extent that Te Mana o te Wai applies to those duties, functions, or powers. Interaction with other provisions on te Tiriti/the Treaty
2: Subsection (1)﻿(a) is not limited by subsection (1)﻿(b) or section 5
3: This section is subject to section 9
5: Provisions on Te Tiriti o Waitangi/the Treaty of Waitangi
In order to recognise and respect the Crown’s responsibility to give effect to the principles of te Tiriti o Waitangi Treaty of Waitangi
a: in section 4(1)﻿(a) Tiriti o Waitangi Treaty of Waitangi
b: in section 4(1)﻿(b)
c: in section 14
i: partnering and engaging early and meaningfully with Māori; and
ii: giving effect to Treaty settlement obligations to the extent that the obligations apply to the performance or exercise of the duties, functions, or powers of the entity:
d: in section 27
e: in sections 38 59
i: the principles of te Tiriti o Waitangi Treaty of Waitangi
ii: perspectives of mana whenua, mātauranga, tikanga, and te ao Māori:
f: in section 76
i: ensure that the water services entity maintains systems and processes to ensure that, for the purpose of carrying out its functions, it has the capacity and capability to—
A: give effect to the principles of te Tiriti o Waitangi Treaty of Waitangi
B: engage with, and understand perspectives of, mana whenua; and
ii: maintain systems and processes for the continuing education of all board members to gain knowledge of, and experience and expertise in relation to, the principles of te Tiriti o Waitangi Treaty of Waitangi
g: in section 144
6: Interpretation
In this Act, unless the context otherwise requires,— board board appointment committee section 38 board member
a: means a member of the board appointed under section 59
b: for the purposes of sections 124 to 128 section 123 chairperson
a: of a regional representative group, means—
i: its chairperson ( see section 41
ii: if section 42(2)﻿(c)
b: of a regional advisory panel, means—
i: its chairperson ( see section 55
ii: if section 56(2)﻿(c) claimant group Treaty of Waitangi Act 1975 Commission
a: means the Commerce Commission established by section 8
b: in Schedule 4 section 28 see clause 1 committee
a: in relation to a regional advisory panel, a committee or subcommittee appointed under the constitution; and
b: in relation to a regional representative group, a committee or subcommittee appointed under the constitution (including the board appointment committee); and
c: in relation to a board, a committee or subcommittee appointed under the constitution constitution
a: the entity’s first constitution as provided for in section 96
b: if the regional representative group has amended the entity’s first constitution or adopted a new constitution under section 97 98 department deputy chairperson
a: of a regional representative group, means—
i: its deputy chairperson ( see section 41
ii: if section 42(2)﻿(c)
b: of a regional advisory panel, means—
i: its deputy chairperson ( see section 55
ii: if section 56(2)﻿(d) drinking water section 6 employee
a: includes the chief executive of the entity other than for the process of determining terms and conditions under section 121
b: for the purposes of sections 124 to 128 section 123 financial year funding and pricing plan section 154 generally accepted accounting practice section 8 green water services infrastructure
a: means a natural or semi-natural area, feature, or process that mimics natural areas, features, or processes that are planned or managed to provide water services; and
b: includes an engineered system that is an area, feature, or process that complies with paragraph (a) Government policy statement section 132 local authority section 5 mana whenua mana whenua panel member see section 53 mana whenua representative section 33 Minister ministerial appointee subpart 2 ministerial body subpart 2 monitor section 174 natural person act section 25 overland flow path regional advisory panel regional advisory panel member
a: a territorial authority panel member; or
b: a mana whenua panel member regional representative regional representative group section 27 regulations section 210 service area Schedule 2 stormwater network
a: means the infrastructure owned or operated by, or processes used by, a water services entity to collect, treat, drain, store, reuse, or discharge stormwater in an urban area; and
b: includes—
i: an overland flow path (as defined in this section):
ii: green water services infrastructure that delivers stormwater water services (as defined in this section) Te Mana o te Wai
a: has the meaning set out in the National Policy Statement for Freshwater Management issued in 2020 under section 52 see also sections 4 5 14
b: applies, for the purposes of this Act, to water (as that term is defined in section 2(1) Te Mana o te Wai statement for water services section 143 territorial authority section 5 territorial authority owners Schedule 2 territorial authority panel member see section 52 territorial authority representative section 32 Treaty of Waitangi claim section 6 Treaty settlement Act
a: an Act listed in Schedule 3
b: any other Act that provides redress for Treaty of Waitangi claims, including Acts that provide collective redress or participation arrangements for claimant groups whose claims are, or are to be, settled by another Act Treaty settlement deed
a: that is signed for and on behalf of the Crown by 1 or more Ministers of the Crown and by representatives of a claimant group; and
b: that is in settlement of the Treaty of Waitangi claims of the members of that group, or in express anticipation, or on account, of that settlement Treaty settlement obligations
a: Treaty settlement Acts:
b: Treaty settlement deeds wastewater network water services water services entity entity section 11 water services infrastructure
a: means infrastructure owned or operated by a water services entity for the purposes of the delivery of water services; and
b: includes—
i: a water supply network:
ii: a wastewater network:
iii: a stormwater network; and
c: for the purposes of section 118 Schedule 4 water supply
a: drinking water supply as defined in section 9
b: firefighting water supplies as defined in section 6
c: water supplied for agricultural or horticultural purposes water supply network
a: means the infrastructure owned or operated by, or processes used by, a water services entity to abstract, store, treat, transmit, or transport water as part of a water supply; and
b: includes—
i: the point of supply:
ii: any end-point treatment device:
iii: any backflow prevention device.
7: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1
8: Act binds the Crown
This Act binds the Crown.
9: Treaty settlement obligations prevail
If a provision of this Act is inconsistent with a Treaty settlement obligation, the Treaty settlement obligation prevails.
10: Rights or interests in water preserved
Purpose
1: The purpose of this section is to achieve both of the following outcomes:
a: any rights or interests in water are preserved, consistent with assurances—
i: given by the Crown to the Supreme Court in 2012; and
ii: recorded in New Zealand Māori Council v Attorney-General
b: this Act, and duties, functions, and powers under this Act, operate effectively. Act does not create, transfer, extinguish, or limit rights or interests
2: No legislation in or made under this Act—
a: creates or transfers any proprietary right or interest in water:
b: extinguishes or limits any customary right or interest (for example, one founded on, or arising from, aboriginal title or customary law) any iwi or hapū may have in water. Nothing in section affects duties, functions, and powers under Act
3: Nothing in this section affects, or affects the lawfulness or validity of the performance or exercise by any person of, any duty, function, or power under this Act. 2010 No 24 s 90(1)﻿(a) 2014 No 74 s 15(5)﻿(a) 2017 No 7 s 46(1), (2)﻿(b)
2: Water services entities
1: Establishment of water services entities
11: Water services entities established
1: This section establishes the water services entities named in Parts 1 to 4
2: This section does not limit section 210(1)﻿(d) section 25(4)
12: Objectives of water services entities
The objectives of each water services entity are to—
a: own and operate water services infrastructure, and deliver water services, in an efficient and financially sustainable manner:
b: protect and promote public health:
c: protect and promote the environment:
d: support and enable planning processes, growth, and housing and urban development:
e: operate in accordance with best commercial and business practices:
f: act in the best interests of present and future consumers and communities:
g: deliver water services in a sustainable and resilient manner that seeks to—
i: mitigate the effects of climate change and natural hazards; and
ii: support and enable climate change adaptation. 2020 No 52 s 8
13: Functions of water services entities
The functions of each water services entity are—
a: to provide safe, reliable, and efficient water services in its area; and
b: any functions that are incidental and related to, or consequential on, its functions set out in paragraph (a).
14: Operating principles
The operating principles of a water services entity for the purposes of section 75
a: developing and sharing capability and technical expertise with other water services entities and throughout the water services sector; and
b: being innovative in the design and delivery of water services and water services infrastructure; and
c: having regard in the delivery of water services to—
i: green water services infrastructure (as defined in section 6
ii: water-sensitive design; and
d: in their employment, and in their procurement (including by way of contractual arrangements, joint arrangements, or joint water services entity arrangements),—
i: having regard to the areas where services are delivered to consumers and communities; and
ii: ensuring there is capability in, and an understanding of the local cultural or environmental factors in, those areas; and
e: taking a whole-of-catchment approach to the delivery of water services, and to the identification and management of risks and hazards relating to water services; and
f: being open and transparent, including in relation to—
i: the calculation and setting of prices; and
ii: determining levels of service delivery to consumers and communities; and
iii: reporting on the performance of the water services entity; and
g: partnering and engaging early and meaningfully with Māori, including to inform how the water services entity can—
i: give effect to Te Mana o te Wai; and
ii: understand, support, and enable the exercise of mātauranga Māori, tikanga Māori, and kaitiakitanga; and
h: giving effect to Treaty settlement obligations to the extent that the obligations apply to the performance or exercise of the duties, functions, or powers of the entity; and
i: partnering and engaging early and meaningfully with territorial authorities and their communities; and
j: co-operating with, and supporting, other water services entities, infrastructure providers, local authorities, and the transport sector.
15: Status of water services entities
Body corporate and separate legal entity
1: A water services entity—
a: is a body corporate; and
b: is accordingly a legal entity separate from the entity’s board members, the entity’s employees, the Crown, the entity’s regional representative group and any regional advisory panel for that group, and the entity’s territorial authority owners; and
c: continues in existence until it is dissolved by an Act. Co-owned in shares by territorial authority owners
2: A water services entity is co-owned—
a: by the territorial authorities in its service area; and
b: in shares allocated and reallocated under section 16
3: Shares allocated or reallocated to, and held by, a territorial authority owner cannot, for any reason, be sold, or otherwise transferred ( see also section 171
4: Subsection (3) overrides any legislation to the contrary. Not company, council organisation, council-controlled organisation, etc
5: Despite subsections (1) to (4), a water services entity is not—
a: a company as defined in section 2(1)
b: a council organisation or a council-controlled organisation as those terms are defined in section 6
c: a local government organisation as defined in section 124 2004 No 115 s 15
16: Shares in water services entities
1: Shares in a water services entity are, on each relevant date, allocated or reallocated to each territorial authority owner based on the population of its district or part district.
2: The allocation or reallocation is as follows:
a: if that population is not more than 50,000 people, 1 share:
b: if that population is more than 50,000 people,—
i: 1 share for every 50,000 people in that district or part district; and
ii: 1 share for a group of fewer than 50,000 people, additional to those 1 or more multiples of 50,000 people, in that district or part district.
3: In this section,— population relevant date
a: the establishment date (as defined in clause 1
b: the date immediately after a 5-year period that started on—
i: the establishment date (as so defined); or
ii: a fifth anniversary of the establishment date (as so defined); or
c: a date on which a territorial authority owner, or its district, is created, adjusted, altered, or abolished in or under the Local Government Act 2002
i: territorial authority owners named in Parts 1 to 4
ii: their districts or part districts specified in those Parts; or
d: a date on which a divestment proposal (as defined in clause 1 Parts 1 to 4
4: The monitor must notify every allocation or reallocation, as soon as practicable, to the Minister, the water services entity, and every territorial authority owner.
5: The monitor must also make every allocation or reallocation publicly available, as soon as practicable, by publishing a copy on an Internet site maintained by, or on behalf of, the department in a format that is readily accessible.
17: Core things water services entities can do
A water services entity may do anything that is authorised by this Act. 2004 No 115 s 16
18: Other things water services entities can do
1: A water services entity may do anything that a natural person of full age and capacity may do.
2: Subsection (1) applies except as provided in this Act or another Act or rule of law. 2004 No 115 s 17
19: Acts must be for purpose of functions
A water services entity may do an act under section 17 18 2004 No 115 s 18
2: Validity of acts
20: Acts in breach of statute are invalid
1: An act of a water services entity is invalid, unless section 21
a: an act that is contrary to, or outside the authority of, an Act; or
b: an act that is done otherwise than for the purpose of performing the entity’s functions.
2: Subsection (1) does not limit any discretion of a court to grant relief in respect of a minor or technical breach. 2004 No 115 s 19
21: Some natural person acts protected
1: Section 20
a: of an express restriction in an Act that makes the act contrary to, or outside the authority of, the Act; or
b: that the act is done otherwise than for the purpose of performing the entity’s functions.
2: A person who relies on subsection (1) has the onus of proving that they did not have, and ought not reasonably to have had, the knowledge referred to in that subsection.
3: A water services entity must report, in its annual report, each transaction that the entity has performed in the year to which the report relates that was invalid under section 20
4: This section does not affect any person’s other remedies (for example, remedies in contract) under the general law. 2004 No 115 s 20
22: Limits on protection of natural person acts
Section 21
a: section 86
b: the board of a water services entity bringing an action against a board member who voted for or otherwise authorised the act for breach of their individual duties as a board member; or
c: a board member who voted for or otherwise authorised the act being removed from office for breach of the individual duties of board members or the collective duties of the board; or
d: an application, in accordance with the law, for judicial review; or
e: section 111 2004 No 115 s 21
23: Acts that are not in best interests of water services entity
It is irrelevant to the validity of an act that the act is not, or would not be, in the best interests of a water services entity. 2004 No 115 s 22
24: Dealings between water services entities and other persons
1: A water services entity may not assert against a person dealing with the entity that—
a: a person held out by the water services entity to be a board member, an employee, or an agent of the entity (as the case may be)—
i: has not been duly appointed in that capacity or has ceased to be appointed in that capacity; or
ii: does not have the authority to exercise a power which, given the nature of the entity, a person appointed to that capacity customarily has authority to exercise; or
iii: does not have the authority to exercise a power that the entity holds them out as having; or
b: a document issued on behalf of the water services entity by a board member, an employee, or an agent of the entity with actual or usual authority to issue the document is not valid or genuine.
2: However, a water services entity may assert any of those matters if the person dealing with the entity had, or ought reasonably to have had, knowledge of the matter.
3: Nothing in this section affects a person’s right to apply, in accordance with the law, for judicial review. 2004 No 115 s 23
25: Interpretation for sections 15 to 24
In sections 15 to 24 act do
a: to do an act; and
b: to have a capacity; and
c: to have or exercise a power, right, or privilege natural person act
a: means an act that a natural person of full age and capacity can do (whether or not the act is something that is also authorised by an Act); and
b: includes entry into a contract for, or relating to,—
i: acquisition of financial products or borrowing:
ii: the purchase, leasing, or sale of, or other dealings with, property:
iii: the employment, or engagement of the services, of a person person dealing
a: means the other party to the transaction, if the act of the water services entity is a transaction; and
b: includes a person who has acquired property, rights, or interests from a water services entity. 2004 No 115 s 24
3: Minister’s role
26: Minister’s role
The role of the Minister is to oversee and manage the Crown’s interests in, and relationship with, the water services entities, and—
a: to issue a Government policy statement on water services under section 132
b: to appoint a Crown review team to perform functions under section 180
c: to appoint a Crown observer to perform functions under section 182
d: to appoint a Crown manager to perform functions under section 184
e: to perform or exercise any other duties, functions, or powers the Minister has, in respect of the entities, under legislation.
4: Regional representative groups
Establishment, role, and decision making of regional representative group
27: Establishment and membership of regional representative group
1: This section establishes a regional representative group for each water services entity.
2: Each regional representative group consists of a number of regional representatives that is provided for in the constitution ( see section 93(a)﻿(i)
a: 12 regional representatives; or
b: any greater number of regional representatives.
3: Each entity’s regional representative group must include an equal number of—
a: territorial authority representatives; and
b: mana whenua representatives.
28: Role of regional representative group
The role of a water services entity’s regional representative group is—
a: appointing and removing the entity’s board members under this Part; and
b: participating in the process of setting the entity’s strategic direction and performance expectations under subpart 5
c: reviewing the performance of the entity under section 142
d: approving the appointment and remuneration policy prepared by its board appointment committee under section 40
e: performing or exercising any other duties, functions, or powers it has under legislation.
29: Collective duty of regional representative group
The regional representative group of a water services entity must perform or exercise its duties, functions, and powers under legislation—
a: wholly or mostly for the benefit of all consumers and communities in the entity’s service area; and
b: taking into account the diversity of the consumers and communities, and the diversity of the consumers’ and communities’ interests, in that area; and
c: taking into account the interests of future as well as current consumers and communities in that area. 2002 No 84 s 14
30: Decision making by regional representative group
Decisions made by a regional representative group of a water services entity must be made—
a: by consensus if consensus can be reached by regional representatives taking all reasonably practicable steps to reach consensus in accordance with a procedure, and within a time frame, specified in the constitution; and
b: in any other case, by 75% of the regional representatives present and voting.
31: Group may regulate its own procedure if none specified
A regional representative group of a water services entity may regulate its own procedure for a matter if this Act and the constitution do not specify a procedure for the matter. Appointment of regional representatives
32: Method of appointing territorial authority representatives to regional representative group
1: The territorial authority owners of a water services entity must appoint territorial authority representatives to the regional representative group of the water services entity in accordance with section 27(2) and (3)
2: The territorial authority owners must appoint only persons who are—
a: elected members or chief executives of a territorial authority owner of the water services entity; or
b: senior managers of a territorial authority owner that, in the collective opinion of the territorial authority owners, have the appropriate knowledge, skills, and experience to assist the regional representative group in performing its role ( see section 28
33: Method of appointing mana whenua representatives to regional representative group
Mana whenua whose rohe or takiwā is within the service area of a water services entity must appoint mana whenua representatives to the regional representative group of the water services entity in accordance with section 27(2) and (3)
34: Requirements before appointment as regional representative
1: Before a person is appointed as a regional representative, the person must—
a: consent in writing to the appointment; and
b: certify that they are not disqualified from being a regional representative ( see section 99
c: disclose the nature and extent (including monetary value, if quantifiable) of all interests that the person has at that time, or is likely to have, in matters relating to the water services entity (if the person is, or is to be, interested, as defined in section 102
2: A disclosure under subsection (1)﻿(c) must be made,—
a: in the case of a proposed appointment as a territorial authority representative, to the entity’s territorial authority owners:
b: in the case of a proposed appointment as a mana whenua representative, to the mana whenua whose rohe or takiwā is within the entity’s service area.
3: As soon as practicable after becoming aware of a failure to comply with subsection (1)﻿(c), the regional representative group must notify the monitor. 2004 No 115 s 31
35: Validity of regional representatives’ acts
The acts of a person as a regional representative, chairperson, or deputy chairperson of the regional representative group are valid even though—
a: a defect existed in the appointment of the person; or
b: the person is or was disqualified from being a regional representative; or
c: the occasion for the person acting, or for their appointment, had not arisen or had ended. 2004 No 115 s 34
36: Validity of appointments
1: The appointment of a person as a regional representative, chairperson, or deputy chairperson of a regional representative group is not invalid only because a defect existed in the appointment of the person.
2: This section does not apply to a defect in the qualifications for appointment of a regional representative, chairperson, or deputy chairperson (if any). 2004 No 115 s 35(1), (2)﻿(a)
37: Resignation of regional representatives
1: A territorial authority representative may resign from office by written notice to the entity’s territorial authority owners signed by the territorial authority representative.
2: A mana whenua representative may resign from office by written notice to the mana whenua whose rohe or takiwā is within the entity’s service area signed by the mana whenua representative.
3: A resignation under subsection (1) or (2) is effective—
a: on receipt of the notice by the territorial owners or mana whenua (as applicable); or
b: at any later time specified in the notice. 2004 No 115 s 44 Board appointment committee
38: Regional representative group must appoint board appointment committee
1: Each regional representative group must appoint a board appointment committee.
2: The regional representative group must appoint members to the board appointment committee who, collectively, have knowledge of, and experience and expertise in relation to,—
a: performance monitoring and governance; and
b: network infrastructure industries (for example, water services network infrastructure industries); and
c: the principles of te Tiriti o Waitangi Treaty of Waitangi
d: public health; and
e: the environment; and
f: perspectives of mana whenua, mātauranga, tikanga, and te ao Māori; and
g: perspectives of consumers and communities; and
h: perspectives of local government.
3: The regional representative group must not appoint a person as a member of the board appointment committee unless,—
a: before appointment, the person discloses to the regional representative group the details of any interest the person may have if they were a member of that committee; and
b: the person is a regional representative.
39: Functions of board appointment committee
The functions of the board appointment committee are—
a: to appoint and remove members of the board of a water services entity; and
b: to prepare and maintain an appointment and remuneration policy for the board; and
c: to perform or exercise any of the regional representative group’s functions and powers that are delegated to the committee in relation to appointing and removing board members.
40: Board appointment committee must prepare board appointment and remuneration policy
1: The board appointment committee must prepare and maintain an appointment and remuneration policy that provides for—
a: the collective or individual experience, qualifications, skills, or expertise required of members of the water services entity’s board in addition to those required by section 65(2)
b: a remuneration and expenses framework for members of the entity’s board.
2: The regional representative group must—
a: review the policy prepared by the board appointment committee; and
b: if satisfied with the policy, approve it.
3: The regional representative group must, at least once every 3 years, review the policy, and approve any amendments to it the group considers necessary or desirable.
4: The regional representative group must copy to the board of the water services entity every policy, or amended policy, as soon as practicable after it is approved under this section.
5: The board of the water services entity must make every policy, or amended policy, publicly available as soon as practicable after it is approved under this section by publishing a copy on an Internet site maintained by, or on behalf of, the entity in a format that is readily accessible. Chairperson and deputy chairperson
41: Appointment of chairperson and deputy chairperson
1: Each regional representative group must elect or appoint, in accordance with the constitution ( see section 93(a)﻿(x)
a: 1 of its regional representatives as chairperson of the group; and
b: 1 of its regional representatives as deputy chairperson of the group.
2: However, this section does not apply if the constitution provides that the group has co-chairpersons and deputy co-chairpersons, in accordance with section 42
42: Co-chairpersons and deputy co-chairpersons
1: The constitution may provide that a regional representative group must elect or appoint, in accordance with the constitution ( see section 93(a)﻿(x)
a: 2 of its regional representatives as co-chairpersons of the group; and
b: 2 of its regional representatives as deputy co-chairpersons of the group.
2: If the constitution provides for, and requires, a regional representative group to elect or appoint co-chairpersons and deputy co-chairpersons of the group,—
a: 1 co-chairperson and 1 deputy co-chairperson must be elected or appointed by the group’s territorial authority representatives; and
b: 1 co-chairperson and 1 deputy co-chairperson must be elected or appointed by the group’s mana whenua representatives; and
c: references in legislation, other than this section, to the group’s chairperson are taken to be references to both of its co-chairpersons; and
d: references in legislation, other than this section, to the group’s deputy chairperson are taken to be references to both of its deputy co-chairpersons. Disputes
43: Disputes between regional representatives
1: This section applies if a dispute arises between regional representatives on a matter that they are required under this Act to work together on, jointly develop, or agree.
2: The regional representatives—
a: may by agreement undertake a binding process of dispute resolution; but
b: if they do not reach agreement on a binding process, must undertake a non-binding process of dispute resolution.
3: Whether the regional representatives choose a binding process or a non-binding process, each regional representative must—
a: jointly appoint an arbitrator or a mediator; and
b: meet that regional representative’s own costs of the process (so they are not met by the represented territorial authority or mana whenua).
4: If the dispute remains unresolved after a non-binding process has been undertaken, the regional representatives may individually or jointly seek the assistance of the Minister.
5: The Minister, with a view to assisting the regional representatives to resolve the dispute, may—
a: appoint, and meet the costs of, a Crown facilitator:
b: direct the regional representatives to use a particular alternative dispute resolution process for that purpose. 1991 No 69 s 58S Obligation for regional representative group to hold at least 2 public meetings each financial year
44: Regional representative group must hold at least 2 public meetings each financial year
1: The regional representative group of a water services entity must hold at least 2 meetings during each financial year that are open to members of the public (the group public meetings
2: The group must—
a: give public notice of the details of a group public meeting at least 1 month before the meeting; and
b: allocate a reasonable amount of time for members of the public attending a group public meeting to address the group in relation to the subject matter of the meeting.
3: Part 7 see section 45 Official information
45: Application of Local Government Official Information and Meetings Act 1987 to regional representative group
1: Part 7
2: This section does not limit—
a: section 44 Part 7
b: section 46 Part 7
c: section 57 Part 7
d: section 62(6) Part 7
e: section 63 Parts 1 to 6 Obligation for entity’s shareholders to hold at least 1 public meeting each financial year
46: Shareholders must hold at least 1 public meeting each financial year
1: The territorial authority owners of a water services entity that are shareholders of the entity ( see sections 15 16 shareholders’ public meeting
2: The territorial authority owners must—
a: give public notice of the details of the shareholders’ public meeting at least 1 month before the meeting; and
b: allocate a reasonable amount of time for members of the public attending a shareholders’ public meeting to address the shareholders in relation to the subject matter of the meeting.
3: Part 7 see section 45
5: Regional advisory panels
Establishment, role, and decision making of regional advisory panels
47: Establishment and membership of regional advisory panels
1: The constitution of a water services entity may establish 1 or more regional advisory panels.
2: Each regional advisory panel must include an equal number of—
a: territorial authority panel members; and
b: mana whenua panel members.
48: Role of regional advisory panel
1: The role of a regional advisory panel is to provide advice to a regional representative group about that group’s performance or exercise of, or about how the panel considers that group should perform or exercise, its duties, functions, or powers ( see section 28
a: in the service area of the water services entity; and
b: for which the panel is responsible under the constitution ( see section 93(g)﻿(ii)
2: For example, a regional advisory panel’s role includes providing advice by way of input under—
a: section 138(5)
b: clause 9(2)
c: clause 15(2)
d: clause 21(2)
49: Collective duty of regional advisory panel
A regional advisory panel for a regional representative group of a water services entity must, in performing or exercising its duties, functions, and powers under legislation, take into account—
a: that the panel should, whenever reasonably practicable, perform or exercise them wholly or mostly for the benefit of all consumers and communities in the entity’s service area; and
b: the diversity of the consumers and communities, and the diversity of the consumers’ and communities’ interests, in that area; and
c: the interests of present and future consumers and communities in that area. 2002 No 84 s 14
50: Decision making by regional advisory panel
Decisions made by a regional advisory panel for a regional representative group of a water services entity must be made—
a: by consensus if consensus can be reached by regional advisory panel members taking all reasonably practicable steps to reach consensus in accordance with a procedure, and within a time frame, specified in the constitution; and
b: in any other case, by 75% of the regional advisory panel members present and voting.
51: Panel may regulate its own procedure if none specified
A regional advisory panel for a regional representative group of a water services entity may regulate its own procedure for a matter if this Act and the constitution do not specify a procedure for the matter. Appointment of regional advisory panel members
52: Method of appointing territorial authority panel members
The territorial authority owners of a water services entity may appoint territorial authority panel members to a regional advisory panel in accordance with section 47(2)
53: Method of appointing mana whenua panel members
Mana whenua whose rohe or takiwā is within the service area of a water services entity may appoint mana whenua representatives to a regional advisory panel in accordance with section 47(2)
54: Requirements before appointment as regional advisory panel member
1: Before a person is appointed as a regional advisory panel member, the person must—
a: consent in writing to the appointment; and
b: certify that they are not disqualified from being a regional representative ( see section 99
c: disclose the nature and extent (including monetary value, if quantifiable) of all interests that the person has at that time, or is likely to have, in matters relating to the water services entity (if the person is, or is to be, interested, as defined in section 102
2: A disclosure under subsection (1)﻿(c) must be made,—
a: in the case of a proposed appointment as a territorial authority panel member, to the entity’s territorial authority owners:
b: in the case of a proposed appointment as a mana whenua panel member, to the mana whenua whose rohe or takiwā is within the entity’s service area.
3: As soon as practicable after becoming aware of a failure to comply with subsection (1)﻿(c), the regional advisory panel must notify the monitor. 2004 No 115 s 31 Chairperson and deputy chairperson
55: Appointment of chairperson and deputy chairperson
1: Each regional advisory panel must elect or appoint, in accordance with the constitution ( see section 93(g)﻿(x)
a: 1 of its regional advisory panel members as chairperson of the panel; and
b: 1 of its regional advisory panel members as deputy chairperson of the panel.
2: However, this section does not apply if the constitution provides for the panel to have co-chairpersons and deputy co-chairpersons, in accordance with section 56
56: Co-chairpersons and deputy co-chairpersons
1: The constitution may provide that a regional advisory panel must elect or appoint, in accordance with the constitution ( see section 93(g)﻿(x)
a: 2 of its regional advisory panel members as co-chairpersons of the panel; and
b: 2 of its regional advisory panel members as deputy co-chairpersons of the panel.
2: If the constitution provides for, and requires, a regional advisory panel to elect or appoint co-chairpersons and deputy co-chairpersons of the panel,—
a: 1 co-chairperson and 1 deputy co-chairperson must be elected or appointed by the panel’s territorial authority panel members; and
b: 1 co-chairperson and 1 deputy co-chairperson must be elected or appointed by the panel’s mana whenua panel members; and
c: references in legislation, other than this section, to the panel’s chairperson are taken to be references to both of its co-chairpersons; and
d: references in legislation, other than this section, to the panel’s deputy chairperson are taken to be references to both of its deputy co-chairpersons. Official information
57: Application of Local Government Official Information and Meetings Act 1987 to regional advisory panel
1: Part 7
2: This section does not limit—
a: section 45 Part 7
b: section 62(6) Part 7
c: section 63 Parts 1 to 6
6: Boards of water services entities
Role, membership, and accountability
58: Board’s role
1: The board is the governing body of a water services entity, with the authority, in the entity’s name, to exercise the powers and perform the functions of the entity.
2: All decisions relating to the operation of a water services entity must be made by, or under the authority of, the board in accordance with this Act. 2004 No 115 s 25
59: Membership of board
1: The board of a water services entity consists of no fewer than 6, and no more than 10, members.
2: The board appointment committee must appoint board members who, collectively, have knowledge of, and experience and expertise in relation to,—
a: performance monitoring and governance; and
b: network infrastructure industries (for example, water services network infrastructure industries); and
c: the principles of te Tiriti o Waitangi Treaty of Waitangi
d: public health; and
e: the environment; and
f: perspectives of mana whenua, mātauranga, tikanga, and te ao Māori; and
g: perspectives of consumers and communities; and
h: perspectives of local government.
60: Chairperson and deputy chairperson
The board of a water services entity must have a chairperson and a deputy chairperson appointed by the regional representative group, or by its board appointment committee, in accordance with the constitution.
61: Accountability of board members to regional representative group
1: Board members must comply with—
a: the board’s collective duties ( see sections 75 76
b: their individual duties as board members ( see sections 77 to 81
2: Board members of an entity are accountable to the entity’s regional representative group for performing their duties as board members. 2004 No 115 s 26 Obligation to hold specified meetings in public
62: Board must hold 2 public meetings each financial year
1: The board of a water services entity must hold at least 2 meetings during each financial year that are open to members of the public (the public board meetings
2: At least 1 of the public board meetings must be held after 1 July each year for the purpose of considering the entity’s performance under its statement of intent in the previous financial year.
3: The board must—
a: give public notice of the details of the public meeting at least 1 month before the meeting; and
b: allocate a reasonable amount of time for members of the public attending a public board meeting to address the board in relation to the subject matter of the meeting.
4: To the extent consistent with the requirements of this section, a public board meeting is subject to the rules and requirements that normally apply to the meetings of the board.
5: This section prevails in the event of any conflict between this section and the rules and requirements that normally apply to meetings of the board.
6: Part 7 Official information
63: Application of Local Government Official Information and Meetings Act 1987 to water services entity
1: Parts 1 to 6
2: This section does not limit—
a: section 45 Part 7
b: section 57 Part 7
c: section 62(6) Part 7 Appointment, removal, and conditions of board members
64: Method of appointing board members
1: Board members are appointed by a board appointment committee.
2: The appointment must be made by written notice to the board member (with a copy to the water services entity).
3: The notice must—
a: state the date on which the appointment takes effect, which must not be earlier than the date on which the board member receives the notice; and
b: state the term of the appointment. 2004 No 115 s 28(2)
65: Criteria for appointments by board appointment committee
1: A board appointment committee must appoint board members under section 64 section 40
2: The board appointment committee may only appoint a person who, in the committee’s opinion, has the appropriate knowledge, skills, and experience to assist the water services entity to achieve its objectives and perform its functions.
3: In making an appointment, the board appointment committee must take into account the desirability of promoting diversity in the membership of the board. 2004 No 115 s 29
66: Requirements before appointment as board member
1: Before a person is appointed as a board member of a water services entity, the person must—
a: consent in writing to the appointment; and
b: certify that they are not disqualified from being a board member ( see section 99
c: disclose to the chairperson of the entity’s regional representative group the nature and extent (including monetary value, if quantifiable) of all interests that the person has at that time, or is likely to have, in matters relating to the entity (if the person is, or is to be, interested, as defined in section 102
2: The board of a water services entity must notify the chairperson of the entity’s regional representative group of a failure to comply with subsection (1)﻿(c) as soon as practicable after becoming aware of the failure. 2004 No 115 s 31
67: Term of office of board members
1: A board member holds office for 5 years or any shorter period stated in the notice of appointment.
2: A board member may be reappointed.
3: A board member continues in office despite the expiry of their term of office until—
a: the board member is reappointed; or
b: the board member’s successor is appointed; or
c: the board appointment committee informs the board member by written notice (with a copy to the water services entity) that the board member is not to be reappointed and no successor is to be appointed at that time.
4: This section is subject to section 74 2004 No 115 s 32
68: Validity of board members’ acts
The acts of a person as a member, chairperson, or deputy chairperson of the board are valid even if—
a: a defect existed in the appointment of the person; or
b: the person is or was disqualified from being a board member; or
c: the occasion for the person acting, or for their appointment, had not arisen or had ended. 2004 No 115 s 34
69: Validity of appointments of board members
1: The appointment of a person as a member, chairperson, or deputy chairperson of the board is not invalid only because a defect existed in the appointment of the person.
2: This section does not apply to a defect in the qualifications for appointment of a member, chairperson, or deputy chairperson (if any). 2004 No 115 s 35(1), (2)﻿(a)
70: Removal of board members
1: The board appointment committee may, at any time for just cause, remove a board member from office.
2: The removal must be made by written notice to the board member (with a copy to the water services entity).
3: The notice must state—
a: the date on which the removal takes effect which must not be earlier than the date on which the board member receives the notice; and
b: the reasons for the removal.
4: In this section, just cause 2004 No 115 ss 37 39(1)–(3) 40
71: Process for removal
The board appointment committee may remove a board member with as little formality and technicality, and as much expedition, as is permitted by—
a: the principles of natural justice; and
b: a proper consideration of the matter. 2004 No 115 s 41(a), (b)
72: No compensation for board member’s loss of office
A board member is not entitled to any compensation or other payment or benefit relating to them ceasing, for any reason, to hold office as a board member. 2004 No 115 s 43
73: Resignation of board members
1: A board member may resign from office by giving written notice to the board appointment committee (with a copy to the water services entity) signed by the board member.
2: The resignation is effective on receipt of the notice by the board appointment committee or at any later time specified in the notice. 2004 No 115 s 44
74: Board members ceasing to hold office
A board member ceases to hold office if the board member—
a: resigns in accordance with section 73
b: is removed from office in accordance with section 70
c: becomes disqualified from being a member under section 99(2) 2004 No 115 s 45 Collective duties of board
75: Board must act consistently with objectives, functions, operating principles, and statement of intent
The board of a water services entity must ensure that the entity acts in a manner consistent with its objectives, functions, operating principles, and current statement of intent. 2004 No 115 s 49
76: Collective duties relating to te Tiriti o Waitangi/the Treaty of Waitangi
The board of a water services entity must—
a: ensure that the entity maintains systems and processes to ensure that, for the purpose of carrying out its functions, the entity has the capacity and capability to—
i: give effect to the principles of te Tiriti o Waitangi Treaty of Waitangi
ii: engage with, and understand perspectives of, mana whenua; and
b: maintain systems and processes for the continuing education of all board members to gain knowledge of, and experience and expertise in relation to, the principles of te Tiriti o Waitangi Treaty of Waitangi Individual duties of board members
77: Duty of board members to comply with relevant legislation
A board member of a water services entity must not contravene, or cause the contravention of, or agree to the entity contravening, this Act or the Water Services Act 2021 2004 No 115 s 53
78: Duty of board members to act with honesty and integrity
A board member of a water services entity must, when acting as a board member, act with honesty and integrity. 2004 No 115 s 54
79: Duty of board members to act in good faith and not at expense of water services entity’s interests
1: A board member of a water services entity must, when acting as a board member, act in good faith and not pursue their own interests at the expense of the entity’s interests.
2: A board member of a water services entity commits an offence if the board member performs or exercises a duty, function, or power of a board member of the entity—
a: in 1 or both of the following ways:
i: other than in good faith:
ii: knowingly pursuing their own interests at the expense of the entity’s interests; and
b: knowing that their performance or exercise of the duty, function, or power will, or is likely to, cause the entity serious loss.
3: A person convicted of an offence against subsection (2) is liable to imprisonment for a term not exceeding 5 years or to a fine not exceeding $200,000. 1993 No 105 ss 138A 373(4) 2004 No 115 s 55
80: Duty of board members to act with reasonable care, diligence, and skill
A board member of a water services entity must, when acting as a board member, exercise the care, diligence, and skill that a reasonable person would exercise in the same circumstances, taking into account (without limitation)—
a: the nature of the entity; and
b: the nature of the action. 2004 No 115 s 56
81: Duty not to disclose information
A board member of a water services entity who has information in their capacity as a board member that would not otherwise be available to them must not disclose that information to any person or make use of, or act on, that information, except—
a: in the performance of the entity’s functions; or
b: as required or permitted by law; or
c: in complying with the requirements for board members to disclose interests. 2004 No 115 s 57(1) Effect of non-compliance with duties
82: Accountability for collective board duties
1: The duties of the board and board members of a water services entity under sections 75 76 collective duties
2: If a board does not comply with any of its collective duties, the board appointment committee may remove all or any of the board members from office.
3: However, subsection (2) does not apply to a board member if—
a: the board member did not know, and could not reasonably be expected to know, that the duty was to be or was being breached; or
b: the board member took all reasonable steps in the circumstances to prevent the duty being breached.
4: The taking of reasonable steps does not require a board member to apply to a court for an order under section 86
5: This section and section 83 2004 No 115 s 58(1)–(4), (7)
83: Board member’s liability for breach of collective duty
1: A board member of a water services entity is not liable for a breach of a collective duty under this Act.
2: However, subsection (1) does not limit section 82(2)
3: Subsection (1) does not affect—
a: anything else for which the board member may be liable under any other Act or rule of law arising from the act or omission that constitutes the breach; or
b: the right to apply for a court order under section 86 2004 No 115 s 58(5), (6), (8)
84: Accountability of board members for individual duties
1: The duties of the board members of a water services entity under sections 77 to 81 individual duties
2: If a board member does not comply with their individual duties, that board member may be removed from office (subject to any requirements in sections 70 71
3: A water services entity may bring an action against a board member for breach of any individual duty.
4: This section and section 85 2004 No 115 s 59(1)–(3), (5)
85: Board member’s liability for breach of individual duty
1: A board member of a water services entity is not liable for a breach of an individual duty under this Act except as provided in section 84(2) and (3)
2: Subsection (1)—
a: does not affect anything else for which the board member may be liable under any other Act or rule of law arising from the act or omission that constitutes the breach; or
b: the right to apply for a court order under section 86 2004 No 115 s 59(4), (6)
86: Court actions requiring or restraining board or board members
1: The Minister or a regional representative may apply to a court for an order—
a: restraining the board or a board member of a water services entity from engaging in conduct that would contravene any requirement under this Act; and
b: granting any consequential relief.
2: The court may make an order on the application subject to the following rules:
a: an order may be made only if it is just and equitable to do so:
b: no order may be made in respect of conduct that has been completed.
3: The court may, at any time before the final determination of an application under this section, make as an interim order any order that it is empowered to make as a final order.
4: This section is subject to section 117 2004 No 115 s 60(1), (3)–(5) Delegation
87: Board’s ability to delegate
1: The board of a water services entity may delegate any of the functions or powers of the entity or the board, either generally or specifically, to any of the following persons by resolution and written notice to the person or persons:
a: a board member:
b: the chief executive or any employee of the entity:
c: a committee of the board:
d: any class of persons comprising any of the persons listed in paragraphs (a) to (c).
2: Subsection (1) does not apply to any functions or powers specified in this Act as not being capable of delegation.
3: The board must not delegate the general power of delegation. 2004 No 115 s 73
88: Powers of delegate
1: A delegate to whom any functions or powers of a water services entity or its board are delegated—
a: may, unless the delegation provides otherwise, perform the function or exercise the power in the same manner, subject to the same restrictions, and with the same effect as if the delegate were the entity or the board; and
b: may delegate the function or power only—
i: with the prior written consent of the board; and
ii: subject to the same restrictions, and with the same effect, as if the subdelegate were the delegate.
2: A delegate who purports to perform a function or exercise a power under a delegation—
a: is, in the absence of proof to the contrary, presumed to do so in accordance with the terms of that delegation; and
b: must produce evidence of their authority to do so, if reasonably requested to do so. 2004 No 115 s 74
89: Effect of delegation on water services entity or board
No delegation in accordance with this Act—
a: affects or prevents the performance of any function or the exercise of any power by a water services entity or its board; or
b: affects the responsibility of the board for the actions of any delegate acting under the delegation; or
c: is affected by any change in the membership of the board, or of any committee or class of persons, or by any change in a chief executive or other employee. 2004 No 115 s 75
90: Revocations of delegations
1: A delegation under section 87
a: resolution of the board and written notice to the delegate; or
b: any other method provided for in the delegation.
2: A delegation under section 88(1)﻿(b) 2004 No 115 s 76 Board procedure
91: Board may regulate its own procedure if none specified
The board may regulate its own procedure for a matter if this Act and the constitution do not specify a procedure for the matter.
7: Constitutions of water services entities
92: Entity must have constitution
Each water services entity must have a constitution that complies with the requirements of this Act.
93: What constitution must contain
The constitution of a water services entity must provide for the following matters: Composition of regional representative group
a: the composition of the regional representative group, including—
i: the group’s number (which must be a whole number and an even number) of regional representatives ( see section 27(2) and (3)
ii: the procedures for the appointment of territorial authority representatives to the group ( see section 32
iii: the procedures for the appointment of mana whenua representatives to the group ( see section 33
iv: the requirements before appointment to the group, including disclosure of interests ( see section 34
v: the procedures for the appointment of regional representatives to the board appointment committee ( see section 38
vi: the composition of any other committees; and
vii: the term of office of regional representatives; and
viii: how a person ceases to be a regional representative; and
ix: the process and grounds for removing regional representatives; and
x: how the group’s chairperson and deputy chairperson are elected or appointed or, if the constitution provides that the group has co-chairpersons and deputy co-chairpersons, how they are elected or appointed ( see sections 41 42 Procedures for regional representative group
b: how the group will perform or exercise its functions, powers, and duties:
c: procedures to enable or support effective decision making by the group:
d: arrangements and requirements for meetings of the group and of committees (including the board appointment committee) of the group, including—
i: the intervals between meetings; and
ii: the information that must be presented at meetings; and
iii: when minutes are required to be kept; and
iv: the manner of calling meetings; and
v: the time within which, and manner in which, notices of meetings (including public meetings) and notices of motion must be notified; and
vi: the quorum and procedure for meetings, including decision-making procedures:
e: if the constitution provides for the group to have co-chairpersons and deputy co-chairpersons ( see section 42
i: the procedure, for a regional representative to disclose details of an interest, required for the purposes of section 104(4)﻿(c)
ii: the procedure, for the board to notify a failure by a board member to comply with section 103 107(1) section 108(1)﻿(b)
iii: the procedure, for giving a permission for 1 or more regional representatives, or regional representatives with a specified class of interest, to do anything otherwise prohibited by section 107 section 109(5)
f: procedures and time frames for making decisions by consensus ( see section 30 Composition of regional advisory panel
g: the composition of a regional advisory panel, including—
i: the total number of regional advisory panel members ( see section 47(2)
ii: the particular geographic area for which the panel is responsible ( see section 48
iii: the procedures for the appointment of territorial authority panel members to the panel ( see section 52
iv: the procedures for the appointment of mana whenua panel members to the panel ( see section 53
v: the requirements before appointment as a regional advisory panel member, including disclosure of interests ( see section 54
vi: the composition of any committees; and
vii: the term of office of regional advisory panel members; and
viii: how a person ceases to be a regional advisory panel member; and
ix: the process and grounds for removing regional advisory panel members; and
x: how the panel’s chairperson and deputy chairperson are elected or appointed or, if the constitution provides that the panel has co-chairpersons and deputy co-chairpersons, how they are elected or appointed ( see sections 55 56 Procedures for regional advisory panel
h: arrangements and requirements for meetings of a regional advisory panel and of committees of the panel, including—
i: the intervals between meetings; and
ii: the information that must be presented at meetings; and
iii: when minutes are required to be kept; and
iv: the manner of calling meetings; and
v: the time within which, and manner in which, notices of meetings (including public meetings) and notices of motion must be notified; and
vi: the quorum and procedure for meetings, including decision-making procedures:
i: if the constitution provides for the panel to have co-chairpersons and deputy co-chairpersons ( see section 56
i: the procedure, for a regional advisory panel member to disclose details of an interest, required for the purposes of section 105(4)﻿(c)
ii: the procedure, for giving a permission for 1 or more regional advisory panel members, or regional advisory panel members with a specified class of interest, to do anything otherwise prohibited by section 107 section 109(8)
j: procedures and time frames for making decisions by consensus ( see section 50 Procedures for performing duty to provide funding for specified remuneration, expenses, or costs
k: procedures for the entity to perform its duty under section 116(1)
i: remuneration for, and reasonable expenses of,—
A: regional representatives:
B: regional advisory panel members:
ii: reasonable administrative costs of each meeting of that group or panel:
iii: reasonable costs of that group or panel performing or exercising its duties, functions, or powers under this Act or the constitution:
iv: reasonable costs related to that group or panel establishing or operating committees:
v: reasonable costs of territorial authority owners and mana whenua related to participating in appointment procedures for that group or panel:
vi: reasonable costs for that group or panel obtaining advice to enable it to perform or exercise effectively its duties, functions, or powers under this Act or the constitution:
vii: reasonable costs of training, or capacity building, for that group or panel:
viii: other reasonable costs related to that group or panel performing or exercising its duties, functions, or powers under this Act or the constitution:
ix: any unforeseen costs incurred with the prior approval of the board of the entity:
l: procedures for the entity to perform its duty under section 116(2)
i: support and enable mana whenua to provide Te Mana o te Wai statements for water services; and
ii: monitor any plan of the entity, or actions that the entity takes, as part of the entity’s response to a Te Mana o te Wai statement for water services: Composition of board
m: the composition of the board, including—
i: the procedures for the appointment of board members by the board appointment committee ( see sections 64 65
ii: the requirements before appointment to the board, including disclosure of interests ( see section 66
iii: the term of office of board members ( see section 67
iv: how a person ceases to be a board member ( see section 74
v: how the chairperson and deputy chairperson of the board will be appointed and their term of office: Procedures for board
n: the procedures for the board, including—
i: the intervals between meetings; and
ii: the information that must be presented at meetings; and
iii: when minutes are required to be kept; and
iv: the manner of calling meetings; and
v: the time within which, and manner in which, notices of meetings (including public meetings) and notices of motion must be notified; and
vi: the quorum and procedure for meetings:
o: decision-making procedures, including any requirements relating to voting or consensus decision making: Procedures for dispute resolution
p: procedures for dispute resolution (in addition to those in section 43(4) and (5)
i: disputes within a regional representative group (that is, between regional representatives); and
ii: disputes between the regional representative group and the board; and
iii: disputes between parties that are able to appoint regional representatives and that are disputes about appointment processes: Procedures for reviewing, amending, or replacing the constitution
q: procedures for reviewing, amending, or replacing the constitution ( see sections 97 98
94: Constitution may contain other matters not inconsistent with Act
1: The constitution of a water services entity may provide for any other matters that are not inconsistent with this Act or any other legislation.
2: In particular, the constitution may provide for—
a: collective or individual experience, expertise, qualifications, or skills required of a regional representative group, its committees, or its regional representatives (in addition to those required by section 38(2)
b: collective or individual experience, expertise, qualifications, or skills required of any regional advisory panel, its committees, or its members:
c: collective experience, qualifications, skills or expertise required of the board (in addition to those required by section 59(2)
d: additional reporting and monitoring requirements imposed on the board by the regional representative group, over and above requirements in the statement of strategic and performance expectations, statement of intent, annual report, asset management plan, funding and pricing plan, and infrastructure strategy:
e: reviews, done by the regional representative group, of the board’s performance, including the intervals between those reviews.
3: Subsection (2) does not limit subsection (1).
95: Effect of constitution
1: A constitution of a water services entity has no effect to the extent that it contravenes, or is inconsistent with, this Act or any other legislation.
2: The constitution cannot—
a: delegate or transfer duties, functions, or powers imposed or conferred by this Act:
b: confer decision-making rights weighted by shares held by a territorial authority owner for any matter:
c: confer on a territorial authority owner (in its capacity as a holder of shares in a water services entity, or any other capacity), a regional representative group, or a regional representative any right, title, or interest (legal or equitable) in the assets, security, debts, or liabilities of a water services entity ( see also sections 15(3) 171(1)﻿(a)
d: confer a power of direction contrary to section 117
3: The constitution is binding, in accordance with its terms, as between—
a: the regional representative group, its regional representatives, and its committees; and
b: the regional representative group, and the territorial authority owners and mana whenua who, under this Act ( see sections 32 33
c: any regional advisory panel, its members, and its committees; and
d: the board, its members, and its committees.
4: Subsection (2) is subject to the rest of this Act (for example, to the board’s ability under sections 87 to 90
96: First constitution of water services entity
1: The first constitution of a water services entity is the model constitution for the entity set out in regulations.
2: But, when that model constitution is first amended or replaced under section 97 98
a: that model constitution as so amended or replaced must set out all provisions of the entity’s constitution (including any unchanged from that model constitution); and
b: the regulations setting out the model constitution for the entity are revoked.
97: Process for amending or replacing constitution
1: A regional representative group may propose to amend the water services entity’s constitution or adopt a new constitution for the entity in the manner provided in this section.
2: A proposed amendment to the entity’s constitution or a proposed new constitution for the entity must be approved by the Minister before it is effective.
3: A draft constitution, or a proposed amendment to the entity’s constitution, must be—
a: in writing; and
b: approved at a general meeting of the group by a resolution passed by a 75% majority of all of the group’s regional representatives; and
c: otherwise proposed in accordance with the constitution.
4: The regional representative group must ensure that written notice of the draft constitution or proposed amendment is—
a: provided to the Minister; and
b: published, for at least 20 working days, on an Internet site maintained by, or on behalf of, the entity in a format that is readily accessible.
5: The Minister may, after that 20-working-day period, approve or reject the amendment or proposed new constitution.
6: If the Minister approves the amendment or proposed new constitution, the amendment or replacement constitution is effective—
a: on the day immediately after the date of that approval; or
b: on a later date that is specified in the amendment or replacement, and that is in accordance with the terms of the resolution of the group under subsection (3)﻿(b).
7: A proposed amendment to the entity’s constitution or a proposed new constitution for the entity has no effect if rejected by the Minister.
8: The constitution as amended or replaced under this section is secondary legislation ( see Part 3
9: For that Act, the regional representative group is, despite the Minister’s approval, taken to be the maker of the constitution.
10: This section applies, without limitation, to an amendment or new constitution increasing the number of regional representatives ( see section 210(4) section 98(1) The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)﻿(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
98: Minor or technical amendments
1: A regional representative group may, in the manner provided by the constitution, amend the water services entity’s constitution under this section if the amendment—
a: has no more than a minor effect; or
b: corrects errors or makes similar technical alterations.
2: The regional representative group must, in accordance with the constitution, ensure that written notice of the amendment is sent to the monitor.
3: If no objection from the monitor is received within 20 working days after the date on which the notice is served (or any longer period specified in the entity’s constitution), the regional representative group may make the amendment.
4: If the group makes the amendment, the amendment is effective—
a: on the day immediately after the date on which the group makes the amendment; or
b: on a later date that is specified in the amendment.
5: The constitution as amended under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)﻿(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
8: General provisions relating to regional representatives, regional advisory panel members, and board members
Qualifications
99: Qualifications of regional representatives, regional advisory panel members, and board members
1: A natural person who is not disqualified by this section may be a regional representative, a regional advisory panel member, or a board member of a water services entity.
2: The following persons are disqualified from being a regional representative, regional advisory panel member, or board member:
a: a person who is an undischarged bankrupt:
b: a person who is prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated or unincorporated body under the Companies Act 1993 Financial Markets Conduct Act 2013 Takeovers Act 1993
c: a person who is subject to a property order under the Protection of Personal and Property Rights Act 1988
d: a person in respect of whom a personal order has been made under the Protection of Personal and Property Rights Act 1988
i: competence to manage their own affairs in relation to their property; or
ii: capacity to make or to communicate decisions relating to any particular aspect or aspects of their personal care and welfare:
e: a person who has been convicted of an offence punishable by imprisonment for a term of 2 years or more, or who has been sentenced to imprisonment for any other offence, unless that person has obtained a pardon, served the sentence, or otherwise suffered the penalty imposed on the person:
f: a member of Parliament.
3: The following persons are also disqualified from being a board member:
a: a regional representative:
b: a regional advisory panel member:
c: a member—
i: of a territorial authority; and
ii: elected under section 19B 19C 2004 No 115 s 30 Reliance on information and advice
100: When regional representatives, regional advisory panel members, and board members may rely on certain information and advice
1: A regional representative, regional advisory panel member, or board member of a water services entity may, when acting as a regional representative, regional advisory panel member, or board member, rely on reports, statements, financial data, and other information prepared or supplied, and on professional or expert advice given, by any of the following persons:
a: an employee of a water services entity whom the regional representative, regional advisory panel member, or board member believes on reasonable grounds to be reliable and competent in relation to the matters concerned:
b: a professional adviser or expert in relation to matters that the regional representative, regional advisory panel member, or board member believes on reasonable grounds to be within the person’s professional or expert competence:
c: any other regional representative, regional advisory panel member, or board member or a committee on which the regional representative, regional advisory panel member, or board member did not serve in relation to matters within the designated authority of the regional representative, regional advisory panel member, board member, or committee (as applicable).
2: This section applies to a regional representative, regional advisory panel member, or board member only if they—
a: act in good faith; and
b: make proper inquiry if the need for inquiry is indicated by the circumstances; and
c: have no knowledge that the reliance is unwarranted. 2004 No 115 s 61(1), (3) Conflict of interest disclosure rules
101: Water services entity must keep interest registers for entity, regional representative group, and regional advisory panel
A water services entity must keep a separate interest register for each of the following:
a: interests of board members:
b: interests of regional representatives:
c: interests of regional advisory panel members.
102: When person is interested
1: A person is interested
a: may derive a financial benefit from the matter; or
b: is the spouse, civil union partner, de facto partner, child, or parent of a person who may derive a financial benefit from the matter; or
c: may have a financial interest in a person to whom the matter relates; or
d: is a partner, director, officer, board member, or trustee of a person who may have a financial interest in a person to whom the matter relates; or
e: is otherwise directly or indirectly interested in the matter.
2: However, a person is not interested in a matter—
a: because the person receives an indemnity, insurance cover, remuneration, or other benefits authorised under this Act or another Act; or
b: if their interest is so remote or insignificant that it cannot reasonably be regarded as likely to influence them in carrying out their responsibilities under this Act or another Act; or
c: only because they have past or current involvement in the relevant sector, industry, or practice.
3: In this section, matter
a: in relation to a board member,—
i: a water services entity’s performance of its functions or exercise of its powers; or
ii: an arrangement, agreement, or contract made or entered into, or proposed to be entered into, by the entity:
b: in relation to a regional representative,—
i: a regional representative group’s performance of its functions or exercise of its powers; or
ii: a board appointment committee’s performance of its functions or exercise of its powers:
c: in relation to a regional advisory panel member, a regional advisory panel’s performance of its functions or exercise of its powers. 2004 No 115 s 62
103: Obligation of board member to disclose interest
1: A board member who is interested in a matter relating to a water services entity must disclose details of the interest in accordance with subsection (4) as soon as practicable after the board member becomes aware that they are interested.
2: A general notice of an interest in a matter relating to a water services entity, or in a matter that may in future relate to the entity, that is disclosed in accordance with subsection (4) is a standing disclosure of that interest for the purposes of this section.
3: A standing disclosure ceases to have effect if the nature of the interest materially alters or the extent of the interest materially increases.
4: A board member must disclose details of an interest in the interests register kept by the water services entity, and to—
a: the chairperson of the board or, if there is no chairperson or if the chairperson is unavailable or interested, the deputy chairperson of the board; or
b: the regional representative group, if there is neither a chairperson nor a deputy chairperson of the board, or if both the chairperson and the deputy chairperson of the board are unavailable or interested. 2004 No 115 ss 63 64
104: Obligation of regional representative to disclose interest
1: A regional representative who is interested in a matter relating to an entity’s regional representative group must disclose details of the interest in accordance with subsection (4) as soon as practicable after the member becomes aware that they are interested.
2: A general notice of an interest in a matter relating to a regional representative group, or in a matter that may in future relate to the group, that is disclosed in accordance with subsection (4) is a standing disclosure of that interest for the purposes of this section.
3: A standing disclosure ceases to have effect if the nature of the interest materially alters or the extent of the interest materially increases.
4: A regional representative must disclose details of an interest in the interests register kept by the water services entity, and—
a: to the chairperson of the regional representative group or, if there is no chairperson or if the chairperson is unavailable or interested, the deputy chairperson of the group; or
b: to the monitor, if there is neither a chairperson nor a deputy chairperson of the regional representative group, or if both the chairperson and the deputy chairperson of the group are unavailable or interested; or
c: in accordance with the procedure specified for the purposes of this paragraph in the constitution if it provides for the group to have co-chairpersons and deputy co-chairpersons ( see sections 42 93(e) 2004 No 115 ss 63 64
105: Obligation of regional advisory panel member to disclose interest
1: A regional advisory panel member who is interested in a matter relating to a regional advisory panel for an entity’s regional representative group must disclose details of the interest in accordance with subsection (4) as soon as practicable after the member becomes aware that they are interested.
2: A general notice of an interest in a matter relating to a regional advisory panel, or in a matter that may in future relate to the panel, that is disclosed in accordance with subsection (4) is a standing disclosure of that interest for the purposes of this section.
3: A standing disclosure ceases to have effect if the nature of the interest materially alters or the extent of the interest materially increases.
4: A regional advisory panel member must disclose details of an interest in the interests register kept by the water services entity, and—
a: to the chairperson of the regional advisory panel or, if there is no chairperson or if the chairperson is unavailable or interested, the deputy chairperson of the panel; or
b: to the monitor, if there is neither a chairperson nor a deputy chairperson of the regional advisory panel, or if both the chairperson and the deputy chairperson of the panel are unavailable or interested; or
c: in accordance with the procedure specified for the purposes of this paragraph in the constitution if it provides for the panel to have co-chairpersons and deputy co-chairpersons ( see sections 56 93(i) 2004 No 115 ss 63 64
106: What must be disclosed
The details that must be disclosed under sections 103 104 105
a: the nature of the interest and the monetary value of the interest (if the monetary value can be quantified); or
b: the nature and extent of the interest (if the monetary value cannot be quantified). 2004 No 115 s 65
107: Consequences of being interested in matter
Board member
1: A board member who is interested in a matter relating to a water services entity—
a: must not vote or take part in any discussion or decision of the board or otherwise participate in any activity of the entity that relates to the matter; and
b: must not sign any document relating to the entry into a transaction or the initiation of the matter; and
c: is to be disregarded for the purpose of forming a quorum for that part of a meeting of the board during which a discussion or decision relating to the matter occurs or is made. Regional representative
2: A regional representative who is interested in a matter relating to a regional representative group—
a: must not vote or take part in any discussion or decision of the group or otherwise participate in any activity of the group that relates to the matter; and
b: is to be disregarded for the purpose of forming a quorum for that part of a meeting of the group during which a discussion or decision relating to the matter occurs or is made. Regional advisory panel member
3: A regional advisory panel member who is interested in a matter relating to a regional advisory panel—
a: must not vote or take part in any discussion or decision of the panel or otherwise participate in any activity of the panel that relates to the matter; and
b: is to be disregarded for the purpose of forming a quorum for that part of a meeting of the panel during which a discussion or decision relating to the matter occurs or is made. 2004 No 115 s 66
108: Consequences of failing to disclose interest
Board
1: As soon as practicable after becoming aware of a failure by a board member to comply with section 103 107(1)
a: to the chairperson of the regional representative group (if the constitution does not provide for the group to have co-chairpersons and deputy co-chairpersons); or
b: in accordance with the procedure specified for the purposes of this paragraph in the constitution if it provides for the group to have co-chairpersons and deputy co-chairpersons ( see sections 42 93(e) Regional representative group
2: The regional representative group must notify the monitor of a failure by a regional representative to comply with section 104 107(2) Regional advisory panel
3: The regional advisory panel must notify the monitor of a failure by a regional advisory panel member to comply with section 105 107(3) Validity of act or matter
4: A failure to comply with section 103 104 105 107
5: However, subsection (4) does not limit the right of any person to apply, in accordance with law, for judicial review. 2004 No 115 s 67
109: Permission to act despite being interested in matter
Board
1: The chairperson of the board may, by prior written notice to the board, permit 1 or more board members, or board members with a specified class of interest, to do anything otherwise prohibited by section 107
2: The deputy chairperson (if any) of the board may give a permission if there is no chairperson, or if the chairperson is unavailable or interested. Regional representative group
3: The chairperson of a regional representative group may, by prior written notice to the regional representative group, permit 1 or more regional representatives, or regional representatives with a specified class of interest, to do anything otherwise prohibited by section 107
4: The deputy chairperson of a regional representative group may give a permission if there is no chairperson, or if the chairperson is unavailable or interested.
5: Despite subsections (3) and (4), if the constitution provides for the group to have co-chairpersons and deputy co-chairpersons ( see section 42 see section 93(e) Regional advisory panel
6: The chairperson of a regional advisory panel may, by prior written notice to the regional advisory panel, permit 1 or more regional advisory panel members, or regional advisory panel members with a specified class of interest, to do anything otherwise prohibited by section 107
7: The deputy chairperson of a regional advisory panel may give a permission if there is no chairperson, or if the chairperson is unavailable or interested.
8: Despite subsections (6) and (7), if the constitution provides for the panel to have co-chairpersons and deputy co-chairpersons ( see section 55 see section 93(i) Permission
9: A permission may state conditions that the board member, regional representative, or regional advisory panel member must comply with.
10: A permission may be amended or revoked in the same way as it may be given. 2004 No 115 s 68(1)–(5)
110: Permission must be disclosed in annual report
The water services entity must disclose an interest to which a permission under section 109 2004 No 115 s 68(6)
111: Entity may avoid certain acts done in breach of conflict of interest rules
1: A water services entity may avoid a natural person act done by the entity in respect of which a board member was in breach of section 107
2: However, the act of a board member—
a: may be avoided only within 3 months of the affected act being notified—
i: to the chairperson of the regional representative group, under section 108(1)﻿(a)
ii: under section 108(1)﻿(b)
b: cannot be avoided if the entity receives fair value in respect of the act.
3: An act in which a board member is interested can be avoided on the ground of the board member’s interest only in accordance with this section. 2004 No 115 s 69
112: What is fair value
1: A water services entity is presumed to receive fair value in respect of an act that is done by the entity in the ordinary course of its business and on usual terms and conditions.
2: Whether a water services entity receives fair value in respect of an act must be determined on the basis of the information known to the entity and to the interested board member at the time the act is done. 2004 No 115 s 70
113: Onus of proving fair value
1: A person who is seeking to prevent an act from being avoided, and who knew, or ought reasonably to have known, of the board member’s interest at the time the act was done, has the onus of establishing fair value.
2: In any other case, a water services entity has the onus of establishing that it did not receive fair value. 2004 No 115 s 71
114: Effect of avoidance on third parties
The avoidance of an act under section 111
a: from a person other than the water services entity; and
b: for valuable consideration; and
c: without knowledge of the circumstances of the act under which the person referred to in paragraph (a) acquired the property from the entity. 2004 No 115 s 72 Vacancies in membership
115: Vacancies in membership of board, regional representative group, or regional advisory panel
1: The powers and functions of a water services entity are not affected by any vacancy in the membership of—
a: its board; or
b: its regional representative group; or
c: a regional advisory panel for that group.
2: The powers and functions of a water services entity’s regional representative group are not affected by any vacancy in the membership of—
a: the entity’s board; or
b: the regional representative group; or
c: a regional advisory panel for that group.
3: The powers and functions of a regional advisory panel for the regional representative group of a water services entity are not affected by any vacancy in the membership of—
a: the regional advisory panel; or
b: the regional representative group; or
c: the entity’s board. 2004 No 115 s 77 Duties to provide funding and information
116: Duties to provide funding and information
Duty to provide funding for remuneration, expenses, or costs
1: A water services entity must provide funding, in accordance with the procedures specified in its constitution ( see section 93(k) section 93(k) Duty to provide funding for Te Mana o te Wai statements for water services
2: A water services entity must provide funding, in accordance with the procedures specified in its constitution ( see section 93(l)
a: support and enable mana whenua to provide Te Mana o te Wai statements for water services; and
b: monitor any plan of the entity, or actions that the entity takes, as part of the entity’s response to a Te Mana o te Wai statement for water services. Duty to provide information
3: A water services entity must provide information that the entity holds if that information is required—
a: by any territorial authority owner, any mana whenua in the service area, the entity’s regional representative group, or a regional advisory panel for that group; and
b: to help the territorial authority owner, mana whenua, group, or panel perform or exercise its duties, functions, or powers under this Act.
4: But personal information within the meaning of the Privacy Act 2020
3: Operation of water services entities
Independence of water services entities
117: Safeguarding independence of water services entities
1: The Minister, a territorial authority owner, a regional representative, or a regional representative group cannot direct a water services entity or a board member or an employee of a water services entity—
a: in relation to the performance or exercise of a duty, function, or power under this Act; or
b: to require the performance or non-performance of a particular act, or the bringing about of a particular result, in respect of a particular person or persons.
2: This section applies to all Government policy statements and statements of strategic and performance expectations issued under this Act.
3: This section also prevents a constitution of a water services entity from conferring a power of direction that would contravene this section.
4: However, nothing in this section affects the performance or exercise of a territorial authority’s regulatory duties, functions, or powers under legislation other than this Act. 2004 No 115 s 113 Obligation to maintain ownership and control of water services and significant assets
118: Obligation to maintain water services
1: A water services entity must continue to provide water services and maintain its capacity to perform or exercise its duties, functions, or powers under this Act.
2: In order to perform or exercise its duties, functions, or powers under this Act, a water services entity must not do any of the following:
a: use water services infrastructure as security for any purpose:
b: divest its ownership or other interest in any water services except in accordance with Schedule 4
c: lose control of, sell, or otherwise dispose of, the significant infrastructure necessary for providing water services in its service area except—
i: in accordance with Schedule 4
ii: if, in doing so, the entity retains its capacity to perform or exercise its duties, functions, or powers.
3: In this section,— significant infrastructure
a: water services infrastructure that—
i: is owned or operated by a water services entity for the purposes of the delivery of water services to consumers or communities in any part of the entity’s service area; and
ii: a water services entity needs to retain to—
A: maintain its capacity to achieve its objectives; or
B: perform or exercise its duties, functions, or powers; or
C: promote an outcome that the entity has identified as important to the current or future well-being of consumers or communities in the entity’s service area; and
b: infrastructure that is identified by the water services entity as being material to its operations and that is included in the entity’s current statement of intent. 2002 No 84 s 130(2), (3)﻿(a), (b), (c) Contracting out of water services
119: Contracts relating to provision of water services
1: Despite section 118
2: If a water services entity enters into a contract under subsection (1), it must—
a: continue to be legally responsible for providing the water services; and
b: maintain ownership of the infrastructure and assets relating to the water services; and
c: retain control over—
i: the pricing of water services; and
ii: developing policy related to the delivery of water services.
3: This section does not prevent a water services entity from entering into a contract with 1 or more other water services entities if the purpose of the contract relates solely to water services. 2002 No 84 s 136
120: Joint arrangements for purpose of providing water services
1: Section 118
2: Before a water services entity enters into a joint arrangement or joint water services entity arrangement, it must have engaged in accordance with section 206
a: the territorial authority owners in whose district services will be delivered, or other arrangements made, as part of the arrangement; and
b: the consumers and communities, and mana whenua, in the entity’s service area; and
c: any other interested persons that the board considers appropriate.
3: If a water services entity enters into a joint arrangement under subsection (1), it must—
a: continue to be legally responsible for providing the water services; and
b: retain control over—
i: the pricing of water services; and
ii: developing policy related to water services; and
c: after the end of the joint arrangement, retain ownership of all the infrastructure associated with the water services, whether or not the infrastructure was—
i: provided by the water services entity at the beginning of the joint arrangement; or
ii: developed or purchased during the joint arrangement; and
d: not sell or transfer ownership of any existing infrastructure associated with the water services, unless the water services entity reasonably believes that the sale is—
i: incidental to the joint arrangement; and
ii: desirable for the success of the joint arrangement.
4: In this section,— concession or other franchise agreement joint arrangement joint water services entity arrangement 2002 No 84 ss 136 137 Employees of water services entities
121: Employment of chief executive
1: A chief executive of a water services entity is appointed by the entity’s board.
2: The terms and conditions of employment of a chief executive must be agreed between the board and the chief executive.
3: When considering the terms and conditions of a chief executive, the board must have regard to all of the following (among any other relevant factors):
a: the legal, commercial, and operational context of the entity:
b: the person’s knowledge, skills, experience, and performance:
c: the public interest in prudent stewardship of public resources:
d: relevant market information.
4: A failure to comply with this section does not invalidate the acts of a chief executive of a water services entity. 2004 No 115 s 117
122: Water services entity to be good employer
1: A water services entity must, if it employs employees,—
a: operate a personnel policy that complies with the principle of being a good employer; and
b: make the policy (including the equal employment opportunities programme) available to its employees; and
c: ensure its compliance with the policy (including its equal employment opportunities programme) and report in its annual report on the extent of its compliance.
2: For the purposes of this section, a good employer
a: good and safe working conditions; and
b: an equal employment opportunities programme; and
c: the impartial selection of suitably qualified persons for appointment; and
d: recognition of—
i: the aims and aspirations of Māori; and
ii: the employment requirements of Māori; and
iii: the need for involvement of Māori as employees of the entity; and
e: opportunities for enhancing the abilities of individual employees; and
f: recognition of the aims and aspirations, employment requirements, and cultural differences of ethnic or minority groups; and
g: recognition of the employment requirements of women; and
h: recognition of the employment requirements of persons with disabilities; and
i: recognition of the importance of achieving pay equity between female and male employees; and
j: recognition of the importance of decisions about remuneration being free from bias including, but not limited to, gender bias.
3: For the purposes of this section, an equal employment opportunities programme 2004 No 115 s 118 Protections from liability
123: Definitions for protections from liability
In sections 124 to 128 board member
a: means a member of the board appointed under section 59
b: includes a board member who is a board member at any time after the commencement of this section but who ceases to be a board member effect insurance employee
a: includes the chief executive of the entity other than for the process of determining terms and conditions under section 121
b: includes a person who is an employee at any time after the commencement of this section but who ceases to be an employee entity’s functions excluded act or omission indemnify indemnity 2004 No 115 s 126
124: Protections for board members and employees from liabilities of water services entity
A board member or an employee of a water services entity is not liable for any liability of the entity by reason only of being a board member or an employee. 2004 No 115 s 120
125: Immunity from civil liability
1: A board member of a water services entity is not liable, in respect of an excluded act or omission,—
a: to the entity, unless the excluded act or omission is also a breach of an individual duty under any of sections 77 to 81
b: to any other person.
2: An employee of a water services entity is not liable to any person in respect of an excluded act or omission.
3: Nothing in this section affects—
a: the making of an order under section 86
b: the liability of any person that is not a civil liability:
c: the right of any person to apply, in accordance with the law, for judicial review. 2004 No 115 s 121
126: Indemnities in relation to excluded act or omission
A water services entity may only indemnify a board member or an employee in respect of an excluded act or omission (including costs incurred in defending or settling any claim or proceeding relating to that excluded act or omission). 2004 No 115 s 122
127: Insurance for liability of board member or employee
A water services entity may effect insurance cover for a board member or an employee of the entity in relation to their acts or omissions, except an act or omission that is—
a: in bad faith; or
b: not in the performance or intended performance of the entity’s functions. 2004 No 115 s 123
128: Breach of indemnity and insurance limits
1: A board member or an employee who is indemnified or insured by a water services entity in breach of this Act must repay to the entity the cost of providing or effecting that indemnity or insurance cover, to the extent that the indemnity or insurance cover exceeds that which could have been provided or effected under this Act.
2: The water services entity may recover the amount as a debt due in a court of competent jurisdiction. 2004 No 115 s 125 Dealings with third parties by water services entities
129: Method of contracting
1: A contract or other enforceable obligation may be entered into by a water services entity as provided in this section.
2: An obligation that, if entered into by an individual, is required to be by deed may be entered into on behalf of a water services entity in writing, signed under the name of the entity, by 2 or more of its board members.
3: An obligation that, if entered into by an individual, is required to be in writing may be entered into on behalf of a water services entity in writing by a person acting under the entity’s express or implied authority.
4: An obligation that, if entered into by an individual, is not required to be in writing may be entered into on behalf of a water services entity in writing or orally by a person acting under the entity’s express or implied authority.
5: This section applies to a contract or other obligation—
a: whether or not that obligation was entered into in New Zealand; and
b: whether or not the law governing that obligation is the law of New Zealand. 2004 No 115 s 127
130: Address for service and location of head office
1: The address for service in respect of a water services entity is the address of the head office of the entity.
2: The head office of a water services entity must be located within its service area. 2004 No 115 s 130
4: Financial and accountability matters
1: Outline of Part
131: Outline of Part (financial and accountability matters)
Planning, performance, and reporting continuous, and integrated with engagement
1: Subparts 2 to 5 see sections 206 to 209 Government policy statement on water services
2: Subpart 2
a: states the Government’s overall direction and priorities for water services; and
b: informs and guides agencies involved in, and the activities necessary or desirable for, water services. Statement of strategic and performance expectations
3: Subpart 3
a: states the regional representative group’s objectives and priorities for water services in the entity’s service area; and
b: informs and guides the decisions and actions of the board of the entity. Te Mana o te Wai statement for water services
4: Subpart 4 see sections 206 to 209 Reporting obligations
5: Subpart 5 see sections 206 to 209
a: a statement of intent:
b: an asset management plan:
c: a funding and pricing plan:
d: an infrastructure plan:
e: an annual report. Financial management and independence, accounting, and borrowing
6: Subpart 6
7: Subpart 7
8: Subpart 8 Status of outline
9: This outline is only a guide to this Part’s general scheme and effect.
2: Government policy statement on water services
132: Minister may issue Government policy statement on water services
1: The Minister may issue a Government policy statement on water services.
2: The Minister must review a Government policy statement no later than 3 years after the date on which it is issued and later at intervals of no more than 3 years after the most recent review.
3: A Government policy statement may be issued under subsection (1) if—
a: the Government policy statement is consistent with the objectives of water services entities under section 12
b: the Minister has complied with section 134(b)
4: A Government policy statement issued under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)﻿(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. 2019 No 50 s 22
133: Purpose and content of Government policy statement
1: The purpose of a Government policy statement is to—
a: state the Government’s overall direction and priorities for water services; and
b: inform and guide agencies involved in, and the activities necessary or desirable for, water services.
2: A Government policy statement must include the following:
a: the Government’s overall direction for water services, which must include a multi-decade outlook:
b: the Government’s priorities for water services:
c: how the Government expects other agencies to support that direction and those priorities:
d: the Government’s expectations in relation to Māori interests, partnering with mana whenua, and giving effect to Te Mana o te Wai:
e: how the Government expects water services entities to take into account the well-being of consumers and communities.
3: A Government policy statement may also include—
a: the Government’s expectations in relation to the contribution of water services entities to the outcomes sought by the Government in the following areas:
i: public health:
ii: the environment:
iii: planning processes, growth, and housing and urban development:
iv: climate change mitigation and adaptation:
v: water security:
vi: resilience to natural hazards:
vii: local procurement, employment, joint arrangements, and joint water services entity arrangements:
b: any other matters the Minister considers relevant. 2019 No 50 s 23
134: Preparation or review of Government policy statement
When preparing or reviewing a Government policy statement, the Minister must—
a: be satisfied that it promotes a water services system that contributes to the current and future well-being of New Zealanders; and
b: engage in accordance with section 206
i: the water services entities; and
ii: the regional representative group of each water services entity; and
iii: Taumata Arowai–the Water Services Regulator; and
iv: other persons, and representative groups of persons, who have an interest in water services in New Zealand. 2019 No 50 s 24
135: Water services entities to give effect to Government policy statement
A water services entity must give effect to any Government policy statement (as that term is defined in section 6 2019 No 50 s 26
136: Amending Government policy statement
1: The Minister may amend a Government policy statement at any time.
2: Sections 134 137
a: apply with the necessary modifications to an amendment to the Government policy statement; but
b: do not apply if the amendment to the Government policy statement is not significant. 2019 No 50 s 29
137: Obligation to publish and present Government policy statement
1: As soon as practicable after issuing a Government policy statement, the Minister must—
a: present a copy to the House of Representatives; and
b: arrange for a copy to be given to each water services entity.
2: The department must make the Government policy statement publicly available as soon as practicable after it is issued by publishing a copy on an Internet site maintained by, or on behalf of, the department in a format that is readily accessible. 2019 No 50 s 28
3: Regional representative group’s statement of strategic and performance expectations
138: Regional representative group must issue and review, and may replace, statement of strategic and performance expectations
1: The regional representative group of a water services entity must issue a statement of strategic and performance expectations for the entity.
2: The regional representative group must, at least once during every year after the year in which a statement of strategic and performance expectations is issued, review the statement.
3: The regional representative group may, following a review, issue a new statement of strategic and performance expectations that replaces the statement of strategic and performance expectations that was reviewed, in which case, the reviewed statement expires when it is replaced.
4: A statement of strategic and performance expectations must relate to at least 10 financial years.
5: Before issuing a statement or new statement, the regional representative group must seek, and consider, input from any regional advisory panel for the group—
a: on the statement or new statement; and
b: in respect of, or otherwise affecting, a particular geographic area for which the panel is responsible under the constitution ( see section 93(g)﻿(ii)
139: Purpose and content of statement of strategic and performance expectations
1: The purpose of a statement of strategic and performance expectations for a water services entity is to—
a: state the regional representative group’s objectives and priorities for water services in the entity’s service area; and
b: inform and guide the decisions and actions of the board of the entity.
2: A statement of strategic and performance expectations for a water services entity must—
a: include the following matters:
i: the regional representative group’s expectations and strategic priorities for the entity:
ii: the outcomes the group expects to be achieved through the delivery of water services by the entity:
iii: how the group expects the water services entity to respond to any advice—
A: provided to the group by a regional advisory panel; and
B: about how the entity should perform or exercise its duties, functions, or powers in a particular geographic area ( see section 48
iv: how the group expects the water services entity to meet its objectives, perform or exercise its duties, functions, and powers, and comply with its operating principles:
v: how the group expects the water services entity to give effect to Te Mana o te Wai, to the extent that Te Mana o te Wai applies to the entity’s duties, functions, and powers; and
b: require the entity to give effect to the objective under section 12(a)
c: consider the needs and concerns of consumers and communities, as articulated in the latest consumer engagement stocktake under section 208
3: A matter under subsection (2)﻿(a) must not be inconsistent with the direction and priorities for water services in the Government policy statement (if any) issued under section 132
140: Water services entity to give effect to statement of strategic and performance expectations
The board of a water services entity must give effect to the statement of strategic and performance expectations for the entity when performing its functions. 2019 No 50 s 26
141: Obligation to publish statement of strategic and performance expectations
1: The regional representative group of a water services entity must provide a copy of a statement of strategic and performance expectations to the board of the entity as soon as practicable after issuing it.
2: The board must make the statement of strategic and performance expectations publicly available as soon as practicable after it is issued by publishing a copy on an Internet site maintained by, or on behalf of, the entity in a format that is readily accessible.
142: Obligation of regional representative group to review board performance
The regional representative group of a water services entity must annually review the performance of the board in giving effect to the statement of strategic and performance expectations.
4: Te Mana o te Wai statements for water services
143: Mana whenua may provide Te Mana o te Wai statements for water services
1: A Te Mana o te Wai statement for water services may be provided to a water services entity by mana whenua—
a: whose rohe or takiwā includes a water body in the service area; or
b: whose interests in the service area are recognised in a Treaty settlement Act.
2: A Te Mana o te Wai statement for water services provided under subsection (1) may—
a: be provided by an individual iwi or hapū, or by a group of iwi or hapū:
b: relate to 1 water body, or to multiple water bodies.
3: Mana whenua who have provided a Te Mana o te Wai statement for water services under subsection (1)—
a: may review the statement at any time; and
b: following a review, may provide a new statement that replaces the statement that was reviewed, in which case the reviewed statement expires when it is replaced.
4: A statement provided under subsection (1) or (3)﻿(b) expires after 10 years.
144: Water services entity must respond to Te Mana o te Wai statement for water services
1: As soon as practicable after receiving a Te Mana o te Wai statement for water services under section 143
a: acknowledge receipt of the statement; and
b: engage with the mana whenua who provided the statement in accordance with section 206
2: A response to a Te Mana o te Wai statement for water services must include a plan that sets out how the water services entity intends (consistent with, and without limiting, section 4(1)﻿(b)
145: Obligation to publish response to Te Mana o te Wai statement for water services
The board of a water services entity must make its response to a Te Mana o te Wai statement for water services publicly available by publishing a copy on an Internet site maintained by, or on behalf of, the entity in a format that is readily accessible—
a: as soon as practicable after issuing the response; and
b: in any event, within 2 years after receiving the statement to which it relates.
5: Reporting obligations
Forecasting assumptions and risks
146: Forecasting assumptions and risks to be identified
1: This section applies to a reporting obligations document that must—
a: be prepared under this subpart; and
b: include forecast financial statements.
2: The document must identify clearly—
a: all significant forecasting assumptions and risks underlying the financial estimates:
b: in particular the following assumptions on which the financial estimates are based:
i: the entity’s assumptions about the life cycle of significant assets; and
ii: the entity’s assumptions about sources of funds for the future replacement of significant assets:
c: for significant forecasting assumptions and risks that involve a high level of uncertainty,—
i: the fact of that uncertainty; and
ii: an estimate of the potential effects of that uncertainty on the estimates provided in the document. 2002 No 84 Schedule 10 cl 17 Planning: statement of intent
147: Purpose of statement of intent
The purpose of a statement of intent is to promote the public accountability of a water services entity by—
a: setting out the entity’s strategic intentions; and
b: providing a base against which the water services entity’s actual performance can later be assessed. 2004 No 115 s 138
148: Board must prepare statement of intent
1: The board of a water services entity must provide to the regional representative group a statement of intent that complies with this section and section 149
2: The board must provide a statement of intent annually.
3: A statement of intent must—
a: relate to at least the following 10 financial years; and
b: be prepared in accordance with Part 1
4: A statement of intent must contain a report from the Auditor-General on—
a: whether the statement gives effect to its purpose stated in section 147
b: whether the statement provides a reasonable basis for long-term integrated planning and accountability; and
c: the reasonableness of assumptions, and information, underlying the forecast information provided in the statement; and
d: whether required disclosures have been made.
5: A statement of intent must also describe the significant longer-term issues, risks, and challenges that the entity may face over a 30-year period, consistent with the entity’s infrastructure strategy adopted under section 157
6: A statement of intent must include the information in section 149(2)﻿(f) and (3)﻿(a) and (c)
a: in detail for each of the first 3 financial years covered by the statement; and
b: in outline for each of the later financial years covered by the statement.
149: Content of statement of intent
Strategic elements
1: A statement of intent for a water services entity must, for the period to which it relates, set out—
a: how the entity intends to meet its objectives, perform or exercise its duties, functions, and powers, and comply with its operating principles; and
b: the outcomes the board expects to achieve through the delivery of water services; and
c: how the entity intends to give effect to—
i: the expectations, strategic priorities, and outcomes outlined in the statement of strategic and performance expectations for the entity; and
ii: the direction and priorities in the Government policy statement; and
d: how the statement relates to engagement requirements and will respond to or reflect the results of engagement; and
e: an explanation of how the proposals in the statement are linked to the matters raised in, and the findings from, consumer engagement stocktakes. Operational elements
2: A statement of intent for a water services entity must, for the period to which it relates, set out—
a: the nature and scope of the activities the entity proposes to undertake; and
b: significant work that the entity proposes to undertake; and
c: any actions the entity intends to take in a particular geographic area (consistent with the statement of strategic and performance expectations) in response to advice provided (to the entity’s regional representative group) by a regional advisory panel; and
d: any actions the entity intends to take (consistent with its plan under section 144(2)
e: how the entity proposes to approach consumer and community engagement; and
f: a forecast statement of service delivery performance for water supply, wastewater, and stormwater services, including non-financial performance measures and targets about the quality of the services to be delivered. Financial elements
3: A statement of intent must also include—
a: the forecast financial statements for each financial year in the period to which the statement of intent relates; and
b: the financial statements for the financial year immediately preceding the period to which the statement of intent relates; and
c: a forecast of expenditure to be applied to—
i: meet additional demand for water supply, wastewater, and stormwater services; and
ii: improve the level of the service delivery performance; and
iii: replace existing assets.
4: For the purposes of this section, budgeted expenditure applied for 2 or all of the purposes in subsection (3) may be treated as if it were applied solely in relation to the primary purpose of the expenditure.
150: Board must publish statement of intent
The board of a water services entity must, as soon as practicable after providing a statement of intent to the entity’s regional representative group,—
a: provide the statement to the entity’s territorial authority owners; and
b: make the statement publicly available by publishing a copy on an Internet site maintained by, or on behalf of, the entity in a format that is readily accessible. Planning: asset management plan
151: Board must prepare asset management plan
1: The board of a water services entity must provide an asset management plan to the entity’s regional representative group at least once in every 3-year period.
2: The asset management plan must—
a: cover a period of not less than 10 consecutive financial years; and
b: comply with section 152
c: be prepared in accordance with Part 2
152: Content of asset management plan
An asset management plan for a water services entity must, for the period to which it relates, set out—
a: the investment priorities for the infrastructure assets of the entity; and
b: how the entity will—
i: operate, maintain, and renew its infrastructure assets; and
ii: provide new infrastructure assets; and
c: how the plan meets the proposed activities and intention of the entity set out in its statement of intent; and
d: any actions the entity intends to take in a particular geographic area (consistent with its statement of intent) in response to advice provided (to the entity’s regional representative group) by a regional advisory panel; and
e: how the plan relates to any actions the entity intends to take (consistent with its plan under section 144(2)
153: Obligation to publish asset management plan
As soon as practicable after an asset management plan is provided to the regional representative group, the chief executive of a water services entity must—
a: make the plan publicly available by publishing a copy on an Internet site maintained by, or on behalf of, the entity in a format that is readily accessible; and
b: prepare and publish a report on how the entity considered consumer and community, and territorial authority owner, input into, and feedback on, the plan and incorporated it into the plan. Planning: funding and pricing plan
154: Board must prepare funding and pricing plan
1: The board of a water services entity must provide a funding and pricing plan to the entity’s regional representative group at least once in every 3-year period.
2: The funding and pricing plan must—
a: cover a period of not less than 10 consecutive financial years; and
b: comply with section 155
c: be prepared in accordance with Part 3
155: Content of funding and pricing plan
1: A funding and pricing plan for a water services entity must, for the period to which it relates, set out—
a: the sources of, and the entity’s intended approach to, funding, revenue, and pricing; and
b: the entity’s intended approach to pricing its services and charging consumers; and
c: a financial strategy for all of the consecutive financial years covered by the funding and pricing plan.
2: A financial strategy must—
a: include a statement of the factors that are expected to have a significant impact on the water services entity during the consecutive financial years covered by the strategy, including—
i: the expected changes in population and the use of land in the entity’s service area, and the capital costs and operating costs of providing for those changes; and
ii: any actions the entity intends to take in a particular geographic area (consistent with its statement of intent) in response to advice provided (to the entity’s regional representative group) by a regional advisory panel; and
iii: the expected capital expenditure and operating expenditure on network infrastructure that is required to maintain existing levels of service currently provided by the entity; and
iv: other significant factors affecting the entity’s ability to maintain existing levels of service and to meet additional demands for services; and
b: specify the entity’s policy on the giving of security for its borrowing; and
c: specify the entity’s objectives for holding and managing financial investments and equity securities and its quantified targets for returns on those investments and equity securities. 2002 No 84 s 101A(1), (3)﻿(a), (c), (d)
156: Obligation to publish funding and pricing plan
As soon as practicable after a funding and pricing plan is provided to the regional representative group, the chief executive must—
a: make the plan publicly available by publishing a copy on an Internet site maintained by, or on behalf of, the entity in a format that is readily accessible; and
b: prepare and publish a report on how the entity considered consumer and community, and territorial authority owner, input into, and feedback on, the plan and incorporated it into the plan. Planning: infrastructure strategy
157: Board must prepare and adopt infrastructure strategy
1: The board of a water services entity must provide an infrastructure strategy to the entity’s regional representative group at least once in every 3-year period.
2: The purpose of an infrastructure strategy is to identify—
a: significant infrastructure issues for the water services entity over the period covered by the strategy; and
b: the main options for managing those issues and the implications of those options.
3: The strategy must—
a: cover a period of at least 30 consecutive financial years; and
b: comply with section 158
c: be prepared in accordance with Part 4
158: Content of infrastructure strategy
1: An infrastructure strategy must identify—
a: significant infrastructure issues for the water services entity over the period covered by the strategy; and
b: the main options for managing those issues and the implications of those options.
2: An infrastructure strategy must also, for the period to which it relates, outline how the water services entity intends to operate, maintain, and renew its existing infrastructure assets and provide for new infrastructure over the period covered by the strategy.
3: An infrastructure strategy must also set out any actions the entity intends to take in a particular geographic area (consistent with its statement of intent) in response to advice provided (to the entity’s regional representative group) by a regional advisory panel.
4: An infrastructure strategy must outline how the water services entity intends to manage its infrastructure assets, taking into account the need to—
a: renew or replace existing assets; and
b: respond to growth or decline in the demand for services reliant on those assets; and
c: allow for planned increases or decreases in levels of service provided through those assets; and
d: maintain or improve public health and environmental outcomes, or mitigate adverse effects on them; and
e: provide for the resilience of infrastructure assets by identifying and managing risks relating to natural hazards and by making appropriate financial provision for those risks.
5: An infrastructure strategy must outline the most likely scenario for the management of the water services entity’s infrastructure assets over the period of the strategy and, in that context, must—
a: show indicative estimates of the projected capital expenditure and operating expenditure associated with the management of those assets—
i: in each of the first 10 years covered by the strategy; and
ii: in each later period of 5 years covered by the strategy; and
b: identify—
i: the significant decisions about capital expenditure the entity expects it will be required to make; and
ii: when the entity expects those decisions will be required; and
c: include the following assumptions on which the scenario is based:
i: the entity’s assumptions about the life cycle of significant infrastructure assets:
ii: the entity’s assumptions about growth or decline in the demand for relevant services:
iii: the entity’s assumptions about increases or decreases in relevant levels of service; and
d: if assumptions referred to in paragraph (c) involve a high level of uncertainty,—
i: identify the nature of that uncertainty; and
ii: include an outline of the potential effects of that uncertainty.
6: An infrastructure strategy must also, for the period to which it relates, outline how the water services entity intends (consistent with, and without limiting, section 4(1)﻿(b)
7: An infrastructure strategy must also contain a report from the Auditor-General on—
a: whether the strategy gives effect to its purpose stated in section 157
b: the quality of the information and assumptions underlying the forecast information provided in the strategy.
8: An infrastructure strategy for a water services entity must also identify and explain any significant connections with, or interdependencies between, the matters included in—
a: that infrastructure strategy; and
b: the infrastructure strategies prepared and adopted (under section 101B 2002 No 84 s 101B
159: Obligation to publish infrastructure strategy
The chief executive of a water services entity must, as soon as practicable after an infrastructure strategy is provided to the entity’s regional representative group,—
a: make the strategy publicly available by publishing a copy on an Internet site maintained by, or on behalf of, the entity in a format that is readily accessible; and
b: prepare and publish a report on how consumer and community, and territorial authority owner, input into, and feedback on, the strategy was considered and incorporated into the strategy. Reporting: annual report
160: Obligation to prepare and publish annual report
1: A water services entity must,—
a: as soon as practicable after the end of, and within 4 months after, each financial year, prepare a report (with the contents required by section 161
b: provide the report to its regional representative group no later than 15 working days after receiving the audit report provided under section 165
2: A water services entity must publish a copy of its annual report on an Internet site maintained by, or on behalf of, the entity—
a: as soon as practicable after it has been provided to the regional representative group; and
b: in any event, no later than 20 working days after receiving the audit report.
3: When publishing the annual report, the entity must also consider whether to take additional or specific steps to ensure it is appropriately available to interested people. 2004 No 115 s 150(1)
161: Form and content of annual report
1: An annual report of a water services entity must contain the following information and reports in respect of the financial year to which it relates:
a: information on operations that complies with subsection (2):
b: a statement of service delivery performance in accordance with section 162
c: the annual financial statements for the entity in accordance with section 163
d: a statement of responsibility in accordance with section 164
e: an audit report in accordance with section 165
f: information on compliance with its obligation to be a good employer, including its equal employment opportunities programme ( see section 122
g: information required by section 166
h: information on responses the board has made to Te Mana o te Wai statements for water services during that financial year ( see section 144
i: information on any action that the entity has taken (consistent with its plan under section 144(2) see section 144
j: information required by section 21(3)
k: information required by section 110
l: any matters that relate to or affect the entity’s operations that the entity is otherwise required, or has undertaken, or wishes to report on in its annual report.
2: The annual report must provide the information that is necessary to enable an informed assessment to be made of the entity’s operations for that financial year, including—
a: an assessment of the entity’s progress in relation to—
i: the strategic elements as set out in the most recent statement of intent ( see section 149(1)
ii: the most recent asset management plan; and
iii: the most recent funding and pricing plan; and
b: an assessment of whether the entity is complying with its operating principles set out in section 14
3: The annual report must also set out any actions the entity has taken in a particular geographic area (consistent with its statement of intent) in response to advice provided (to the entity’s regional representative group) by a regional advisory panel.
4: The annual report must present information about entity progress and performance in a clear manner that is accessible to, and easy to comprehend by, consumers and communities. 2004 No 115 s 151(1)﻿(a)–(e), (g)–(k), (2)
162: Form and content of statement of service delivery performance
1: A statement of service delivery performance must, in relation to a water services entity and a financial year, contain the following information:
a: a comparison of the actual performance achieved with the forecast statement of service delivery performance in the statement of intent ( see section 149(2)﻿(f)
b: whether any intended changes to the level of service delivery have been achieved:
c: the reasons for any significant variation between the level of service delivery achieved and the intended level of service delivery:
d: whether proposed activities, work, and actions have been undertaken or taken as set out in the statement of intent ( see section 149(2)﻿(a), (b), and (d)
e: the reasons for any significant variation between proposed activities, work, and actions, and actual activities, work, and actions undertaken or taken:
f: the actual revenue, capital expenditure, and operating expenditure for water supply, wastewater, and stormwater services, compared to the revenue, capital expenditure, and operating expenditure budgeted for those services in the statement of intent:
g: information on consumer engagement stocktakes, including any relevant metrics, and a progress update on how the entity has been addressing and responding to consumer and community concerns.
2: For the purposes of subsection (1)﻿(f), the statement must separately provide for actual and budgeted expenditure applied to—
a: meet additional demand for the water supply, wastewater, and stormwater services:
b: improve the level of service delivery performance:
c: replace existing assets.
3: For the purposes of this section, actual or budgeted expenditure for 2 or all of the purposes in subsection (2) may be treated as if it were made solely in relation to the primary purpose of the expenditure. 2004 No 115 s 153
163: Annual financial statements
1: As soon as practicable after the end of each financial year, a water services entity must prepare financial statements in relation to the entity for that financial year.
2: The financial statements must—
a: include any information or explanations needed to fairly reflect the financial operations and financial position; and
b: include the forecast financial statements prepared at the start of the financial year for comparison with the actual financial statements. 2004 No 115 s 154
164: Statement of responsibility
The statement of responsibility must—
a: contain a statement of the signatories’ responsibility for the preparation of the financial statements and statement of performance and for the judgments in them; and
b: contain a statement of the signatories’ responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and
c: contain a statement of the signatories’ responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of performance reporting; and
d: contain a statement that, in the opinion of the signatories, the financial statements and statement of performance for the financial year fairly reflect the financial position and operations of the water services entity; and
e: be dated and signed—
i: by 2 board members on behalf of the board; and
ii: by the chief executive. 2004 No 115 s 155
165: Audit report
1: A water services entity must forward to the Auditor-General—
a: the entity’s annual financial statements and statement of service delivery performance; and
b: any other information that the Auditor-General has agreed, or is required, to audit.
2: The Auditor-General must, within 3 months after the end of a financial year,—
a: audit the statements and information referred to in subsection (1); and
b: provide an audit report on those statements and that information to the water services entity.
3: The audit report must indicate whether those statements and that information—
a: comply with this Act; and
b: comply with generally accepted accounting practice; and
c: are free from material misstatement. 2004 No 115 s 156(1), (2)
166: Disclosure of payments in respect of board members and employees
1: The annual report must include, in respect of the water services entity,—
a: a report on the remuneration that, in the financial year to which the report relates, was received by, or was payable to, the chief executive and each board member of the water services entity; and
b: a report on the number of employees who were employed by the entity—
i: on the last day of the financial year to which the report relates; and
ii: on the last day of the immediately preceding financial year; and
c: the amount of any severance payments made in the financial year to any person who vacated office as the chief executive; and
d: the number of employees of the entity to whom, in the financial year, severance payments were made and the amount of each severance payment (if any); and
e: the details of any indemnity provided by the entity during the financial year to the chief executive, any board member, or any employee; and
f: the details of any insurance cover effected by the entity during the financial year in respect of the liability or the costs of the chief executive, any board member, or any employee.
2: The report under subsection (1)﻿(a) must include, in relation to the chief executive and each board member, the total annual remuneration (including the value of any non-financial benefits) that was paid to the person, or was payable to the person, in their capacity as a chief executive or as a board member of the entity during the financial year.
3: The report must state, as at the last day of the financial year,—
a: the number of full-time employees; and
b: the full-time equivalent number of all other employees; and
c: the number of employees receiving total annual remuneration of less than $100,000; and
d: the number of employees receiving total annual remuneration of $100,000 or more, expressed in bands of $10,000.
4: If the number of employees in any band to which subsection (3)﻿(d) applies is 5 or fewer, the number for that band must be combined with the next-highest band and the statement in the report in relation to that subsection must be adjusted accordingly.
5: In this section,— board member chief executive employee severance payment
a: any final payment of salary; or
b: any holiday pay; or
c: any superannuation contributions total annual remuneration 2002 No 84 Schedule 10 cls 32 32A 33 2004 No 115 s 152
167: Information to be prepared in accordance with generally accepted accounting practice
All information that is required by any provision of this subpart to be included in a statement of intent, a funding and pricing plan, an asset management plan, an infrastructure strategy, or an annual report must be prepared in accordance with generally accepted accounting practice if that information is of a form or nature for which generally accepted accounting practice has developed standards. 2002 No 84 s 111
168: Insurance of assets
An annual report must state, as at the end of the financial year,—
a: the total value of all assets of the water services entity that are covered by insurance contracts and the maximum amount to which they are insured; and
b: the total value of all assets of the water services entity that are covered by financial risk sharing arrangements and the maximum amount available to the water services entity under those arrangements; and
c: the total value of all assets of the water services entity that are self-insured and the value of any fund maintained by the water services entity for that purpose. 2002 No 84 Schedule 10 cl 31A
6: Other provisions for financial management and independence
Major transactions
169: Major transactions
1: A water services entity must not enter into a major transaction unless the transaction is approved by, or contingent on approval by, a special resolution.
2: In this section,— assets major transaction
a: the acquisition of, or an agreement to acquire, whether contingent or not, assets the value of which is more than 25% of the value of the entity’s assets before the acquisition; or
b: the disposition of, or an agreement to dispose of, whether contingent or not, assets of the entity the value of which is more than 25% of the value of the entity’s assets before the disposition; or
c: a transaction that has or is likely to have the effect of the entity acquiring rights or interests or incurring obligations or liabilities, including contingent liabilities, the value of which is more than 25% of the value of the entity’s assets before the transaction special resolution
a: presented to all the entity’s regional representative group’s regional representatives in writing before that group’s meeting in which the resolution will be voted on; and
b: approved by a majority of 75% of those representatives voting on the resolution.
3: In assessing the value of any contingent liability for the purposes of paragraph (c) of the definition of major transaction in subsection (2), the entity’s board members—
a: must have regard to all circumstances that the board members know, or ought to know, affect, or may affect, the value of the contingent liability; and
b: may rely on estimates of the contingent liability that are reasonable in the circumstances; and
c: may take account of—
i: the likelihood of the contingency occurring; and
ii: any claim the entity is entitled to make and can reasonably expect to be met to reduce or extinguish the contingent liability.
4: This section does not affect or limit section 118 Schedule 4 1993 No 105 s 129 Bank accounts
170: Bank accounts of water services entities
1: A water services entity must ensure that all money received by the entity is paid, as soon as practicable after it is received, into 1 or more bank accounts that are established, maintained, and operated by the entity at 1 or more of the following:
a: a registered bank or registered building society that satisfies a relevant credit-rating test specified in a notice in the Gazette
b: a registered bank or registered building society that meets the conditions of any relevant approval given by the Minister of Finance by notice in the Gazette
c: a bank outside New Zealand that meets the conditions of any relevant approval given by the Minister of Finance by notice in the Gazette
2: A water services entity must ensure that it does not establish, maintain, or operate a bank account other than as provided for in subsection (1).
3: A water services entity must properly authorise the withdrawal or payment of money from a bank account of the entity.
4: There is a period of grace if a bank account ceases to qualify under subsection (1) and,—
a: during that period, the water services entity may continue to pay money into the bank account; but
b: by the end of the period, the water services entity must have closed the account and paid all the money in the account into another bank account that qualifies under subsection (1).
5: The period of grace ends on the earlier of—
a: the date that is 2 months after the bank account ceases to qualify under subsection (1); and
b: the date that is specified by the Minister of Finance and notified to the water services entity. 2004 No 115 s 158 Financial independence
171: Financial independence
1: A territorial authority owner (in its capacity as a holder of shares in a water services entity, or any other capacity), a regional representative group, or a regional representative—
a: has no right, title, or interest (legal or equitable) in the assets, security, debts, or liabilities of a water services entity (and the constitution cannot confer any such right, title, or interest— see also sections 15(3) 95(2)﻿(c)
b: must not receive any equity return, directly or indirectly, from a water services entity; and
c: must not give a water services entity any financial support or capital; and
d: must not lend money or provide credit to a water services entity; and
e: must not give any person any guarantee, indemnity, or security in relation to the performance of any obligation by a water services entity.
2: However, nothing in subsection (1) or (3) limits or affects—
a: the allocation or reallocation of shares under sections 15(2) 16
b: the holding of those shares by the relevant territorial authority owner; or
c: voting under Schedule 4
3: In this section,— equity return
a: profits of the entity; or
b: distributions from the entity; or
c: any benefit derived, directly or indirectly, from a water services entity that represents, is calculated by reference to, or is determined by,—
i: a share in or proportion of the entity’s capital; or
ii: the entity’s surplus or residual economic value (after satisfying prior contractual claims); or
iii: the entity’s profitability or any other indicator of its success give financial support or capital
a: in the ordinary course of the territorial authority owner’s, or the water services entity’s, performance of its lawful responsibilities; and
b: on terms and conditions generally available to other parties of equivalent creditworthiness lend money or provide credit
a: includes, without limiting the generality of that expression,—
i: to defer payment for any goods or services supplied or works constructed for any person, organisation, or government; and
ii: to enter into hire purchase agreements or agreements that are of the same or a substantially similar nature; and
iii: to enter into finance lease arrangements or arrangements that are of the same or a substantially similar nature; and
iv: to subscribe for any debt securities or uncalled capital; but
b: does not include to sell or supply goods or services on credit—
i: in the ordinary course of the territorial authority owner’s, or the water services entity’s, performance of its lawful responsibilities; and
ii: on terms and conditions generally available to other parties of equivalent creditworthiness security section 6 2010 No 116 Schedule 2 cl 6 2020 No 47 s 114
7: Accounting records
172: Board must ensure that proper accounting records are kept
1: The board of a water services entity must cause accounting records to be kept that—
a: correctly record and explain the transactions of the entity; and
b: will, at any time, enable the financial position of the entity to be determined with reasonable accuracy; and
c: will enable the board members of the entity to ensure that the financial statements of the entity comply with sections 163 167
d: will enable the financial statements of the water services entity to be readily and properly audited.
2: The accounting records must be in written form or in a manner in which they are easily accessible and convertible into written form. 2004 No 115 s 168
8: Borrowing
173: Borrowing in foreign currency
A water services entity may borrow or enter into incidental arrangements within or outside New Zealand in currency other than New Zealand currency.
5: Monitoring
1: Monitor
Appointment and role of monitor
174: Appointment and role of monitor
1: The Minister must appoint a department to be the monitor.
2: The role of the monitor is—
a: to act as a steward to provide oversight of the water services system from a whole of government perspective; and
b: to assist the Minister to carry out the Minister’s role (which is described in section 26
c: to perform or exercise any or all of the following functions or powers:
i: administering appropriations:
ii: administering legislation:
iii: tendering advice to Ministers:
iv: any other functions or powers in this Act or another Act that may, or must, be performed by the monitor.
3: The monitor may exercise all powers that are—
a: conferred on the monitor by this Act; or
b: reasonably necessary for performing the monitor’s functions and duties. 2021 No 31 s 80 Monitor’s information-gathering power
175: Monitor’s power to request information
1: The monitor may, by notice in writing, require a water services entity, or any other relevant person, to provide it with information the monitor considers necessary to carry out its role under section 174
2: The entity or other relevant person must provide the information—
a: by the date specified in the notice; or
b: by any other date the monitor has agreed to.
176: Good reason for refusing to supply requested information
1: A request for information made under section 175
a: the withholding of the information is necessary to protect the privacy of a living natural person; or
b: the supply of the information would limit the ability of the water services entity, or of any of its employees or board members, to perform or exercise duties, functions, or powers under this Act in relation to a particular matter.
2: A reason in subsection (1)﻿(a) applies only if it is not outweighed by the monitor’s need to have the information in order to exercise or perform its duties, functions, or powers under this Act.
3: The information cannot be withheld other than for the reasons in subsection (1), and cannot be withheld at all if it could not properly be withheld under the Local Government Official Information and Meetings Act 1987 2004 No 115 s 134
177: Civil proceedings relating to non-compliance with information request
1: The monitor may apply to the High Court for an order if an entity, or other relevant person, does not comply with section 175
2: If the court is satisfied that the entity, or other relevant person, has not complied with section 175
a: an order directing the entity, or other relevant person, to comply with section 175
b: an order imposing a civil pecuniary penalty not exceeding $50,000.
3: In addition to the orders referred to in subsection (2), the court may make any other order that it considers appropriate in the circumstances, including an order directing the entity, or other relevant person, to pay to the monitor the reasonable costs of the proceedings. 2021 No 36 s 143
178: Content of notice
1: A notice under section 175
a: the information required by the monitor; and
b: the form in which the water services entity, or other relevant person, must provide the information; and
c: the date by which the water services entity, or other relevant person, must provide the information.
2: The notice may require a water services entity, or other relevant person, to provide information—
a: by instalments on specified dates:
b: by instalments at specified intervals. 2002 No 84 s 257(3), (5)
2: Minister’s powers to intervene
179: Meaning of problem for purposes of subpart
In this subpart, problem
a: a matter or circumstance relating to the management or governance of the entity that detracts from, or is likely to detract from, its ability to give effect to its purpose; and
b: a significant or persistent failure by the entity—
i: to perform 1 or more of its functions or duties under this Act; or
ii: to give effect to a Government policy statement issued by the Minister under section 132
c: the consequences of a state of emergency (within the meaning of section 4
d: a failure by the entity to demonstrate prudent management of its revenues, expenses, assets, liabilities, investments, or general financial dealings; and
e: a potential problem that relates to a matter, circumstance, or failure specified in paragraph (a), (b), or (d). Crown review team
180: Minister may appoint Crown review team
1: The Minister may appoint a Crown review team to perform functions under this section if—
a: the water services entity has received a notice under section 175
b: the Minister believes on reasonable grounds that a problem relating to the water services entity or the entity’s regional representative group may exist and—
i: the water services entity or the entity’s regional representative group is unable or unwilling to effectively address the problem; or
ii: a ministerial body currently or previously appointed in relation to the water services entity or the entity’s regional representative group has recommended the appointment; or
c: the Minister has received a written request to do so from the water services entity, the entity’s regional representative group, or all or any of the entity’s territorial authority owners, and the Minister believes on reasonable grounds that a problem relating to the entity or the entity’s regional representative group may exist.
2: Before appointing a Crown review team, the Minister must give notice of the proposed appointment in accordance with section 190
3: Before the Crown review team begins its review, the Minister must give notice of the appointment in accordance with section 191
4: A Crown review team must, to the extent authorised by its terms of reference,—
a: investigate and report on the nature and extent of the problem or failure to provide information; and
b: make recommendations to the water services entity and the Minister on how the water services entity or the entity’s regional representative group could address the problem (if any); and
c: make recommendations to the Minister on whether the Minister should take further action in relation to the water services entity or the entity’s regional representative group, including whether the Minister should appoint any other ministerial body in relation to the entity or the entity’s regional representative group; and
d: ensure, as far as practicable, that the existing organisational capability of the water services entity or the entity’s regional representative group is not diminished.
5: To the extent authorised by its terms of reference, a Crown review team may also investigate, and report on, any related matter recommended by a ministerial body currently or previously appointed in relation to the water services entity or the entity’s regional representative group.
6: A water services entity or the entity’s regional representative group must—
a: co-operate with a Crown review team so that it may comply with its terms of reference; and
b: comply with any reasonable request of the Crown review team to provide any relevant information that the water services entity or the entity’s regional representative group holds.
7: A Crown review team must produce a final report that complies with section 193 2002 No 84 s 258
181: Appointment of Crown review team
1: A Crown review team comprises 1 or more members.
2: If a Crown review team comprises 2 or more members, the Minister must appoint 1 member as the chairperson.
3: The Minister must appoint each member by notice in writing.
4: Each notice of appointment must include—
a: the terms of reference of the Crown review team, including—
i: an outline of the reason it has been appointed to perform functions under section 180
ii: the extent of its authority; and
b: the start and end dates of each member’s appointment; and
c: the start and end dates of the review period. 2002 No 84 s 258A Crown observer
182: Minister may appoint Crown observer
1: The Minister may appoint a Crown observer to perform functions under this section if—
a: the Minister believes, on reasonable grounds, that a problem relating to a water services entity or the entity’s regional representative group exists and—
i: the appointment of a Crown observer is necessary to enable, or better enable, the water services entity or the entity’s regional representative group to effectively address the problem; or
ii: the appointment of a Crown observer is necessary to enable, or better enable, the Minister to monitor the water services entity’s or the entity’s regional representative group’s progress in addressing the problem; or
iii: a ministerial body currently or previously appointed in relation to the water services entity or the entity’s regional representative group has recommended the appointment; or
b: the Minister has received a written request to do so from the water services entity, the entity’s regional representative group, or all or any of the entity’s territorial authority owners, and the Minister believes, on reasonable grounds, that a problem relating to the entity or the entity’s regional representative group exists.
2: Before appointing a Crown observer, the Minister must give notice of the proposed appointment in accordance with section 190
3: Before the Crown observer begins their observation period, the Minister must give notice of the appointment in accordance with section 191
4: A Crown observer must, to the extent authorised by the Crown observer’s terms of reference,—
a: assist the water services entity or the entity’s regional representative group to address the problem; and
b: monitor the water services entity’s or the entity’s regional representative group’s progress in relation to the problem; and
c: make recommendations to the Minister on whether the Minister should take further action in relation to the water services entity or the entity’s regional representative group, including whether the Minister should appoint any other ministerial body in relation to the entity or the entity’s regional representative group; and
d: ensure, as far as practicable, that the existing organisational capability of the water services entity or the entity’s regional representative group is not diminished; and
e: assist the water services entity or the entity’s regional representative group with, and monitor progress on, any related matter as recommended by a ministerial body currently or previously appointed in relation to the entity or the entity’s regional representative group.
5: A water services entity or the entity’s regional representative group must—
a: co-operate with a Crown observer so that it may comply with its terms of reference; and
b: comply with any reasonable request of the Crown observer to provide any relevant information that the water services entity or the entity’s regional representative group holds.
6: A Crown observer must produce a final report that complies with section 193 2002 No 84 s 258B
183: Appointment of Crown observer
1: The Minister must appoint a Crown observer by notice in writing.
2: Each notice of appointment must include—
a: the terms of reference of the Crown observer, including—
i: an outline of the problem that the Crown observer has been appointed to observe; and
ii: the extent of the Crown observer’s authority; and
b: the start and end dates of the Crown observer’s appointment; and
c: the start and end dates of the observation period. 2002 No 84 s 258C Crown manager
184: Minister may appoint Crown manager
1: The Minister may appoint a Crown manager to perform functions under this section if—
a: the Minister believes, on reasonable grounds, that a problem relating to the water services entity or the entity’s regional representative group exists and—
i: the nature and extent of the problem is such that the water services entity or the entity’s regional representative group is unlikely to effectively address the problem without the appointment of a Crown manager; or
ii: the water services entity or the entity’s regional representative group has not, without good reason, adequately implemented a recommendation of any other ministerial body in relation to the problem; or
iii: a ministerial body currently or previously appointed in relation to the water services entity or the entity’s regional representative group has recommended the appointment; or
b: the Minister has received a written request to do so from the water services entity, the entity’s regional representative group, or all or any of the entity’s territorial authority owners, and the Minister believes, on reasonable grounds, that a problem relating to the entity or the entity’s regional representative group exists.
2: Before appointing a Crown manager, the Minister must give notice of the proposed appointment in accordance with section 190
3: Before the Crown manager begins their management period, the Minister must give notice of the appointment in accordance with section 191
4: A Crown manager must, to the extent authorised by their terms of reference,—
a: direct the water services entity, or the board of the water services entity, or the entity’s regional representative group to act to address the problem; and
b: make recommendations to the Minister on whether the Minister should take further action in relation to the water services entity or the entity’s regional representative group, including whether the Minister should appoint any other ministerial body in relation to the entity or the entity’s regional representative group; and
c: ensure, as far as practicable, that the existing organisational capability of the water services entity or the entity’s regional representative group is not diminished; and
d: direct the water services entity or the entity’s regional representative group on any related matter as recommended by a ministerial body currently or previously appointed in relation to the entity or the entity’s regional representative group.
5: A Crown manager may work together with, or apart from, the board of a water services entity, or the entity’s regional representative group.
6: A water services entity or the entity’s regional representative group must—
a: co-operate with a Crown manager so that it may comply with its terms of reference; and
b: comply with the directions of a Crown manager; and
c: comply with any reasonable request of a Crown manager to provide any relevant information that the water services entity or the entity’s regional representative group holds.
7: A Crown manager must produce a final report that complies with section 193 2002 No 84 s 258D
185: Appointment of Crown manager
1: The Minister must appoint a Crown manager by notice in writing.
2: Each notice of appointment must include—
a: the terms of reference of the Crown manager, including—
i: an outline of the problem it has been appointed to manage; and
ii: the extent of the Crown manager’s authority; and
b: the start and end dates of the Crown manager’s appointment; and
c: the start and end dates of the management period. 2002 No 84 s 258E
3: General provisions applying to Minister’s powers to intervene
186: Application
This subpart applies in relation to any appointment the Minister makes under subpart 2
187: Minister may consult
The Minister may consult any person, organisation, or group—
a: when determining what action, if any, to take under subpart 2
b: when appointing a ministerial body:
c: when formulating the terms of reference for a ministerial body. 2002 No 84 s 258N
188: Minister must publish list of matters
1: The Minister must publish a list of matters relevant to determining what action, if any, the Minister will take under subpart 2
2: Without limiting subsection (1), the list must include the following matters:
a: guiding principles that the Minister is likely to adopt when making decisions under this Part:
b: matters or circumstances relating to the management or governance of a water services entity that the Minister considers are likely to detract from the ability of the entity to give effect to its objectives or undertake its functions:
c: the types and sources of information that the Minister is likely to consider when making decisions under this Part.
3: The Minister must review the list no later than 5 years after the date on which it is published and later at intervals of no more than 5 years after the most recent review.
4: The Minister must republish the list after each review.
5: Before publishing or republishing a list, the Minister—
a: must consult Local Government New Zealand; and
b: may consult any other person, organisation, or group.
6: In this section, publish republish Gazette 2002 No 84 s 258O
189: Minister must have regard to published list
1: The Minister must, when determining what action, if any, to take under subpart 2 section 188
2: However, the Minister may act under subpart 2 2002 No 84 s 258P
190: Notice of proposed appointment of ministerial body
1: Before appointing a ministerial body to perform functions under this subpart in relation to a water services entity, the Minister must—
a: give the entity and the entity’s regional representative group notice that the Minister intends to make the appointment; and
b: state—
i: the reasons for the proposed appointment; and
ii: the proposed terms of reference; and
c: give the entity an opportunity to satisfy the Minister of the following matters, as applicable, by a date specified in the notice, which must be no earlier than 10 working days after the date on which the Minister gives the notice to the entity:
i: that the reasons for the Minister to make the appointment do not exist:
ii: that the water services entity is acting effectively to address the problem (if any) or the reasons for the proposed appointment:
iii: that, for any other reason, the Minister should not make the appointment:
iv: that the Minister should appoint a different ministerial body.
2: The Minister must notify a water services entity, in writing, if the Minister decides not to appoint a ministerial body.
3: This section does not apply if—
a: the water services entity has requested the Minister to make the appointment; or
b: the problem in relation to which the Minister intends to make the appointment relates to the consequences of a state of emergency and the Minister believes, on reasonable grounds, that the public health or safety of the people within the water services entity’s service area is, or is likely to be, endangered. 2002 No 84 s 258Q
191: Notice of appointment of ministerial body
1: A notice of appointment of a ministerial body under section 180(3) 182(3) 184(3)
a: be in writing; and
b: be given as soon as is reasonably practicable after the Minister makes the appointment; and
c: be sent to the relevant water services entity and the entity’s regional representative group; and
d: be published in the Gazette
e: be publicly notified.
2: A notice of appointment must include—
a: a statement that the Minister has appointed a ministerial body in relation to the relevant water services entity; and
b: the type of ministerial body appointed; and
c: the terms of reference; and
d: the start and end dates of the ministerial body’s appointment; and
e: the name of each member of the ministerial body; and
f: if applicable, the name of the chairperson of the ministerial body.
3: The Minister must notify any change in the membership of a ministerial body by notice in the Gazette
4: In this section, publicly notify
a: a notice on an Internet site maintained by, or on behalf of, the monitor; and
b: any other notice that the Minister thinks desirable in the circumstances. 2002 No 84 ss 258S 258T
192: Information to Minister
A ministerial body must inform the Minister about—
a: the steps it is taking to address the problem; and
b: the progress of those steps. 2020 No 47 s 128(1)
193: Final report of ministerial body
1: A final report produced by a ministerial body under section 180(7) 182(6) 184(7)
a: a narrative description of the activities of the ministerial body in relation to its terms of reference; and
b: in respect of the problem in relation to which the ministerial body was appointed, an assessment of progress in addressing the problem; and
c: any final recommendations of the ministerial body to all or any of the Minister, the water services entity, and the entity’s regional representative group; and
d: without limiting paragraph (c), any final recommendations of the ministerial body to the Minister on whether the Minister should take further action in relation to the water services entity or the entity’s regional representative group, including whether the Minister should appoint any other ministerial body in relation to the entity or the entity’s regional representative group; and
e: any other matter required by the ministerial body’s terms of reference.
2: The Minister must, as soon as practicable,—
a: give a copy of the report to the relevant water services entity and the entity’s regional representative group; and
b: make the report publicly available, excluding any information that it is necessary to withhold for any of the reasons stated in section 6 7 2002 No 84 s 258U
194: Remuneration and expenses of ministerial appointees
1: A ministerial appointee is entitled—
a: to receive remuneration for services as a member of a ministerial body as determined by the Minister in accordance with the fees framework; and
b: to be reimbursed for actual and reasonable travelling and other expenses incurred in providing the services as a member in accordance with the fees framework.
2: In this section, fees framework 2002 No 84 s 258V
195: Recovery of expenses from water services entity
1: A water services entity owes, as a debt to the Crown, any expenses that the Crown incurs for the appointment of a Crown manager in relation to the entity, including the payment of remuneration and expenses to the Crown manager.
2: Any expenses that the Crown incurs for the appointment of a Crown observer or a Crown review team in relation to a water services entity, including the payment of remuneration and expenses to the Crown observer or any member of the Crown review team, may be recovered by the Crown from the entity if—
a: the Minister decides that it is reasonable to do so in the circumstances; and
b: the terms of reference authorise the recovery. 2002 No 84 s 258W
196: Minister may terminate appointment of ministerial body or ministerial appointee
1: The Minister may terminate the appointment of a ministerial body or ministerial appointee at any time by notice in writing.
2: The Minister must give notice of the termination of a ministerial body—
a: in writing to the water services entity and the entity’s regional representative group; and
b: by notice in the Gazette
c: by public notice.
3: The Minister must give notice of the termination of the appointment of a ministerial appointee in writing to the appointee, the water services entity, and the entity’s regional representative group.
4: No compensation is payable to a ministerial appointee as a result of the appointee’s termination. 2002 No 84 s 258X
197: Protection from liability for ministerial appointees
1: A ministerial appointee is not liable for any act done or omitted to be done by the appointee in good faith in the performance or intended performance of the appointee’s functions, responsibilities, and duties, or the exercise of the appointee’s powers as a ministerial appointee.
2: The protection from liability in subsection (1) includes protection in relation to acts done or omitted to be done by a Crown manager when directing a water services entity to act. 2002 No 84 s 258Y
198: Disclosure of information held by water services entity
1: For the purposes of this Part, information held by a water services entity may be disclosed to the Minister or a ministerial body despite anything to the contrary in the Official Information Act 1982 Local Government Official Information and Meetings Act 1987 Privacy Act 2020
2: However, the Minister, the ministerial body, or a ministerial appointee must not publish or disclose the information to any other person except in accordance with those Acts. 2002 No 84 s 258Z
199: Decisions and directions of Crown manager remain in force
On and from the expiry of the term of a Crown manager appointed in relation to a water services entity,—
a: a direction given to the water services entity by the Crown manager ceases to have effect; and
b: despite paragraph (a), any decision made by the water services entity giving effect to the direction continues in force unless and until the board of the entity revokes or amends the decision. 2002 No 84 s 258ZA(1), (2), (3)
6: Miscellaneous provisions
1: Reviews
200: Interim review of governance and accountability arrangements under Act
1: The Minister must, in the relevant period, commission a review of the need for, and the operation and effectiveness of, the governance and accountability arrangements under this Act.
2: The relevant period starts on the fifth anniversary, and ends on the sixth anniversary, of the establishment date (as defined in clause 1
3: The interim review required by this section must include consideration of the following matters:
a: governance structures, and related roles and responsibilities, under this Act:
b: interaction of each water services entity’s regional representative group with the following:
i: the entity’s board:
ii: territorial authority owners:
iii: mana whenua in the entity’s service area:
iv: consumers and communities in the entity’s service area:
c: interaction of each water services entity with the following:
i: territorial authority owners:
ii: mana whenua in the entity’s service area:
iii: consumers and communities in the entity’s service area:
iv: the entity’s consumer forums:
d: each water services entity’s—
i: relationships with financiers; and
ii: financing arrangements:
e: accountability, strategic direction, or planning or reporting mechanisms, including each—
i: Government policy statement:
ii: regional representative group’s statement of strategic and performance expectations:
iii: Te Mana o te Wai statement for water services:
iv: statement of intent:
v: other planning or reporting document under this Act:
f: each water services entity’s constitution, including amendments to it, or its replacement:
g: any other relevant matters identified by the Minister.
4: Before commissioning the review required by this section, the Minister must consult any other Ministers of the Crown (for example, any whose portfolio responsibilities are affected by or relevant to the review) that the Minister thinks fit.
201: Comprehensive review of water services legislation
1: The Minister must, in the relevant period, commission a review of the need for, and operation and effectiveness of, water services legislation.
2: The relevant period starts on the ninth anniversary, and ends on the tenth anniversary, of the establishment date (as defined in clause 1
3: The comprehensive review required by this section must include consideration of the following:
a: legislation in or made under this Act, plus each water services entity’s constitution:
b: legislation in or made under Taumata Arowai–the Water Services Regulator Act 2020
c: legislation in or made under the Water Services Act 2021
d: legislation about economic regulation of, or consumer protection in respect of, water services:
e: interaction of relevant regulators and relevant regulatory systems:
f: oversight, monitoring, and stewardship arrangements:
g: any other relevant matters identified by the Minister.
4: Before commissioning the review required by this section, the Minister must consult any other Ministers of the Crown (for example, any whose portfolio responsibilities are affected by or relevant to the review) that the Minister thinks fit.
202: Reviewer
A review required by this subpart must be done by the following reviewer:
a: the monitor, if the monitor is asked by the Minister to do the review:
b: in any other case, a review panel commissioned by or on behalf of the Minister.
203: Reviewer’s power to request information
1: The reviewer may, by notice in writing, require a water services entity, or other relevant person, to provide the reviewer with information the reviewer thinks necessary to do the review.
2: The entity or other relevant person must provide the requested information by the reasonable date that the reviewer has specified for that purpose in the notice.
3: Sections 176 to 178
204: Report
1: The reviewer must prepare a report on a review required by this subpart.
2: The report must include at least the following contents:
a: any terms of reference, consistent with section 200 201
b: the process that was followed:
c: the issues that were examined:
d: the key findings:
e: any recommendations arising out of the review, including—
i: whether any amendments to any of the legislation reviewed are necessary or desirable:
ii: any other matters that the reviewer recommends be considered by the Minister.
3: The reviewer must ensure that the people and organisations that the reviewer thinks appropriate are consulted, during the preparation of the report, about the matters to be considered in the report.
4: The reviewer must, after completing the report, promptly present the report to the Minister.
5: The Minister must, after receiving the report, promptly present a copy to the House of Representatives.
205: Repeal of this subpart
This subpart is repealed on the 15th anniversary of the establishment date (as defined in clause 1 2039-07-01 Water Services Entities Act 2022 Subpart 1 of Part 6 repealed
2: Engagement
206: Engagement requirements
1: This section applies to engagement that a water services entity or the Minister must undertake in accordance with any of the following provisions:
a: section 120(2)
b: section 134(b)
c: section 144(1)﻿(b)
d: section 210(1)﻿(a) and (2)
e: clauses 1 7 14 19
2: Engagement requires that a water services entity or the Minister do either or both of the following before deciding on a matter:
a: consult on a proposal:
b: seek input during the formulation of a proposal, or feedback on a proposal, on an iterative basis.
3: Input or feedback may be sought via hui or meetings, social media, or any other forum that the water services entity or the Minister thinks appropriate.
4: In undertaking an approach to engagement on a matter, a water services entity or the Minister—
a: must consider the purpose of the engagement; and
b: must consider the needs of the particular person or persons with whom the water services entity is engaging; and
c: must allow adequate time for engagement to occur and for a response or responses from the particular person or persons with whom the water services entity or the Minister is engaging; and
d: may consider the relevance and sufficiency of any earlier engagement. 2020 No 42 s 22 Consumer engagement
207: Consumer forum
1: The chief executive of a water services entity must establish 1 or more consumer forums.
2: The purpose of a consumer forum is to—
a: assist with effective and meaningful consumer and community engagement; and
b: gather and compile consumer views; and
c: assist the water services entity to understand consumer needs, expectations, and service requirements; and
d: reflect and represent the interests and diversity of consumers across the entity’s region.
3: A consumer forum may be established under this section—
a: for the whole or part of a service area; and
b: in relation to all, or a particular class of, consumers.
4: The chief executive of a water services entity must ensure that each of its consumer forums achieves equitable and reasonable representation of metropolitan, provincial, and rural communities in its service area.
5: The chief executive of the entity must provide a guidance document to each consumer forum established under this section that provides for the composition and procedures of the forum, including—
a: the intervals between meetings; and
b: the number of members that may be on the forum; and
c: the method of selecting forum members; and
d: any additional purposes to those set out in subsection (2); and
e: the roles and responsibilities of forum members; and
f: the term of membership of the forum; and
g: any other matters not inconsistent with the purpose of a consumer forum under this section.
6: The chief executive must ensure that each consumer forum established has a guidance document.
208: Consumer engagement stocktake
1: The chief executive of a water services entity must prepare a consumer engagement stocktake annually and no later than 3 months before the end of a financial year.
2: The purpose of a consumer engagement stocktake is to—
a: capture consumer and community feedback on, and satisfaction with, how the entity is performing; and
b: set out how the water services entity will respond to consumer and community needs and address consumer and community concerns.
3: A consumer engagement stocktake must cover,—
a: for the first consumer engagement stocktake, the period from the establishment date (as defined in clause 1
b: for later consumer engagement stocktakes, the period since the last consumer engagement stocktake.
4: A consumer engagement stocktake must contain a report from the Auditor-General on—
a: whether the stocktake gives effect to its purpose stated in subsection (2); and
b: whether the water services entity, in preparing the stocktake, has given effect to the principles of engagement in section 209
5: The chief executive must, by the end of a financial year, make the consumer engagement stocktake publicly available as soon as practicable after it is issued by publishing a copy on an Internet site maintained by, or on behalf of, the entity in a format that is readily accessible.
209: Principles of engagement
In performing its functions under sections 147 to 159 208
a: the entity’s communication to consumers and communities should be clear and appropriate and recognise the different communication needs of consumers and communities:
b: the entity should be openly available for consumer and community feedback and seek a diversity of consumer voices:
c: the entity should clearly identify and explain the role of consumers and communities in the engagement process:
d: the entity should consider the changing needs of consumers and communities over time, and ensure that engagement will be effective in the future:
e: the entity should prioritise the importance of consumer and community issues to ensure that the entity is engaging with issues that are important to its consumers and communities.
3: Regulations
210: Regulations
1: The Governor-General may, by Order in Council on the recommendation of the Minister, make regulations for all or any of the following purposes:
a: providing for a model constitution for the purposes of section 96
b: providing for financial and non-financial disclosure requirements relating to the statement of intent, asset management plan, funding and pricing plan, and infrastructure strategy that are consistent with generally accepted accounting practice:
c: providing for transitional and savings provisions concerning the coming into force of this Act that may be in addition to, or in place of, the transitional and savings provisions in Schedule 1
d: changing the name of a water services entity by amending or replacing the references to that entity in Schedule 2
e: providing for anything this Act says may or must be provided for by regulations:
f: providing for anything incidental that is necessary for carrying out, or giving full effect to, this Act.
2: The Minister must, before recommending the making of regulations under subsection (1)﻿(a) in relation to a water services entity, engage in accordance with section 206
3: Regulations made under subsection (1)﻿(a) in relation to a water services entity must, despite sections 27(2) 93(a)﻿(i)
a: at least 12; and
b: no more than 18.
4: However, subsection (3) does not limit sections 27(2) 93(a)﻿(i) section 97
5: Regulations made under subsection (1)﻿(b) may include requirements relating to—
a: the type of information that must be provided; and
b: the frequency of the reporting.
6: Regulations made under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
4: Amendments to other Acts
Amendments to Crown Organisations (Criminal Liability) Act 2002
211: Principal Act
Sections 212 to 214 Crown Organisations (Criminal Liability) Act 2002 2024-07-01 Crown Organisations (Criminal Liability) Act 2002 Sections 212–214 come into on 1 July 2024 unless brought into force earlier by OIC (see section 2(2)﻿(a) and (b ))
212: Section 4 amended (Interpretation)
In section 4 government-related organisation
k: a water services entity (as defined in section 6 of the Water Services Entities Act 2022
213: Section 6 amended (Prosecutions against Crown organisations)
After section 6(1)﻿(e)
f: an offence against the Water Services Act 2021
214: Section 7 amended (Legal status of certain Crown organisations)
In section 7(a) or Part 3 of the Children’s Act 2014 Part 3 of the Children’s Act 2014 Water Services Act 2021 Amendments to Goods and Services Tax Act 1985
215: Principal Act
Sections 216 to 218 Goods and Services Tax Act 1985 2022-12-15 Goods and Services Tax Act 1985 Section 218 comes into force on day after the day of Royal assent (see section 2(1)﻿(f)) 2024-07-01 Goods and Services Tax Act 1985 Section 216 comes into on 1 July 2024 unless brought into force earlier by OIC (see section 2(2)﻿(a) and (b ))
216: Section 2 amended (Interpretation)
In section 2(1) water services entity section 6 of the Water Services Entities Act 2022
217: Section 6 amended (Meaning of term taxable activity)
In section 6(1)﻿(b) or any local authority or , local authority, water services entity, or
218: New section 78I inserted (Support package payment made by water services entity to be zero-rated)
After section 78H
78I: Support package payment made by water services entity to be zero-rated
1: A support package payment made by a water services entity is, when and after it is made, treated as being consideration for a taxable supply that is charged with tax at the rate of 0%.
2: In this section, support package payment made by a water services entity clause 36 of Schedule 1 of the Water Services Entities Act 2022
a: made by a water services entity to a local authority (within the meaning of the Local Government Act 2002
b: made under the Three Waters Reforms Programme—Support package (announced in July 2021); and
c: made under that package’s better off no worse off
d: arising from a funding proposal made or finalised before, on, or after the commencement of this section. Amendments to Income Tax Act 2007
219: Principal Act
Sections 220 221 Income Tax Act 2007 2024-07-01 Income Tax Act 2007 Sections 220 & 221 come into on 1 July 2024 unless brought into force earlier by OIC (see section 2(2)﻿(a) and (b ))
220: New section CW 38C inserted (Water services entities)
After section CW 38B
CW 38C: Water services entities
Exempt income: sinking funds
1: An amount of income derived from sinking funds relating to the debt of a water services entity is exempt income. Exempt income: other income
2: Any other amount of income derived by a water services entity is exempt income. Exclusion: amounts received in trust
3: Subsection (2) does not apply to an amount of income that a water services entity derives as a trustee.
221: Section YA 1 amended (Definitions)
In section YA 1 water services entity section 6 of the Water Services Entities Act 2022 Amendments to Local Government Act 2002
222: Principal Act
Section 223 Local Government Act 2002 2022-12-15 Local Government Act 2002 Section 223 comes into force day after the date of Royal assent (see section 2(1)﻿(g)).
223: Amendments set out in Schedule 5
Amend the Act as set out in Schedule 5 Amendments to Local Government Official Information and Meetings Act 1987
224: Principal Act
Sections 225 226 Local Government Official Information and Meetings Act 1987 2024-07-01 Local Government Official Information and Meetings Act 1987 Section 225 and 226 come into force on 1 July 2024 if not brought into force earlier by OIC (see section 2(2)﻿(a) and (b)
225: Schedule 1 amended
In Schedule 1, Part 1 Water services entities established under section 11 of the Water Services Entities Act 2022
226: Schedule 2 amended
In Schedule 2 Boards of water services entities established under section 11 of the Water Services Entities Act 2022 Regional advisory panels for regional representative groups established under subpart 5 of Part 2 of the Water Services Entities Act 2022 Regional representative groups established under subpart 4 of Part 2 of the Water Services Entities Act 2022 Amendment to Ombudsmen Act 1975
227: Principal Act
Section 228 Ombudsmen Act 1975 2024-07-01 Ombudsmen Act 1975 Section 228 comes into force on 1 July 2024 if not brought into force earlier by OIC 2(2)﻿(a) and (b).
228: Schedule 1 amended
In Schedule 1 Regional advisory panels for regional representative groups established under subpart 5 of Part 2 of the Water Services Entities Act 2022 Regional representative groups established under subpart 4 of Part 2 of the Water Services Entities Act 2022 Water services entities established under section 11 of the Water Services Entities Act 2022 Amendment to Public Audit Act 2001
229: Principal Act
Section 230 Public Audit Act 2001 2024-07-01 Public Audit Act 2001 Section 229 comes into force on 1 July 2024 if not brought into force earlier by OIC 2(2)﻿(a) and (b).
230: Schedule 1 amended
In Schedule 1 Water services entities established under section 11 of the Water Services Entities Act 2022 Amendment to Public Records Act 2005
231: Principal Act
Section 232 Public Records Act 2005 2024-07-01 Public Records Act 2005 Section 232 comes into force on 1 July 2024 if not brought into force earlier by OIC 2(2)﻿(a) and (b).
232: Section 4 amended (Interpretation)
In section 4 local authority
c: includes a water services entity as defined in section 6 of the Water Services Entities Act 2022 Amendments to Taumata Arowai–the Water Services Regulator Act 2020
233: Principal Act
Section 234 Taumata Arowai–the Water Services Regulator Act 2020 2022-12-15 Taumata Arowai–the Water Services Regulator Act 2020 Section 234 comes into force the day after the date of Royal assent (see section 2(1)﻿(h))
234: Section 4 amended (Interpretation)
In section 4 Te Mana o te Wai
a: has the meaning set out in the National Policy Statement for Freshwater Management issued in 2020 under section 52 of the Resource Management Act 1991 see also sections 5, 10, 17, and 18
b: applies, for the purposes of this Act, to water (as that term is defined in section 2(1) of the Resource Management Act 1991 Amendments to Water Services Act 2021
235: Principal Act
Sections 236 and 237 Water Services Act 2021 2022-12-15 Water Services Act 2021 236 and 237 come into force 1 day after Royal assent (see section 2(1)﻿(i))
236: Section 14 replaced (Effect and interpretation of Te Mana o te Wai)
Replace section 14
14: Te Mana o te Wai: meaning, application, effect
Meaning and application
1: In this Act, Te Mana o te Wai
a: has the meaning set out in the National Policy Statement for Freshwater Management (as that term is defined in section 5 of this Act
b: applies, for the purposes of this Act, to water (as that term is defined in section 2(1) of the Resource Management Act 1991 Effect
2: When exercising or performing a function, power, or duty under this Act, a person must give effect to Te Mana o te Wai, to the extent that Te Mana o te Wai applies to the function, power, or duty.
237: Section 201 amended (Levy)
1: After section 201(2)
2A: Before making a recommendation under subsection (1) during the establishment period (as defined in clause 1 of Schedule 1 of the Water Services Entities Act 2022
a: water services entities established under section 11
b: their territorial authority owners (as defined in section 6
2B: Subsection (2A) and this subsection are repealed on the establishment date (as defined in clause 1 of Schedule 1 of the Water Services Entities Act 2022
2: Replace section 201(5)
5: Taumata Arowai—
a: must ensure that each levy payment received under the regulations is separately accounted for; and
b: may, but need not, pay each such payment into a Crown Bank Account.