Providing Total Rural & Residential Property Management Solutions

Rebecca Smith - 027 370 8045

Office: 027 313 2270

E: rebecca@ruraltenancy.co.nz

W: www.ruraltenancy.co.nz

1972 Telegraph Road, Darfield independentWaterInfrastructure Regulator within the Commerce Commission to work alongside the existing Water Quality Regulator, Taumata Arowai. Water services will be regulated under Part 4 of the Commerce Act, alongside other essential infrastructure, such as electricity lines.

We will set strict rules for water quality and pipe maintenance. The new Water Infrastructure Regulator will monitor councils to ensure they are investing adequately in maintaining pipes and upgrading their water infrastructure, ensure that water pricing or connection charges are fair, and will set quality standards for water infrastructure.

In terms of a timeframe, we propose that within a year of repealing the Water Services Entities Act, a National Government would ask councils to deliver their plan for how they will transition their water services to financial sustainability and comply with waterinfrastructureregulation.A future Minister for Local Government would sign o on councils’ plans after receiving advice from the Water InfrastructureRegulator. A legislated backstop would provide step-in powers for the Government if any council or group of councils were unable to develop an acceptable plan for financial sustainability and compliance with water quality and water infrastructure regulation.

We believe this laser focus on financial sustainability will ensure ratepayers are not exposed to - or liable forlosses, as the Government's currentproposalwill.

Future councils will need to ensure their water services earn su cient revenues, either directly from users or from rates, to cover maintenance and depreciationofinfrastructure. We would expect funds are ringfenced, meaning water services must standon their own two feet and not put pressure on funding for other council services.

Webelieveinfunding forgrowth - and that water services should beallowedtoborrowtoinvestin infrastructure wherever users are willing to pay the cost of services.

To achieve this, most councils will opt to form regional CCOs withotherlike-mindedcouncilsfor example, Selwyn District Council’s Corde would form a CCO with Ashburton’s ACL. The organisation, Communities for Local Democracy, fully endorse thisapproach.

In terms of transitional support, under National’s Three Waters plan, local councils will retain ownership of their water assets, and be responsible for both maintenance and new infrastructuredevelopment.

Nicola