Summarised by Centrist
The New Zealand government has unveiled an overhaul of its water infrastructure, replacing the previous Labour government’s Three Waters reforms.
Local Government Minister Simeon Brown announced that council-controlled organisations (CCOs) can now immediately access increased borrowing from the Local Government Funding Agency (LGFA). This change allows CCOs to borrow up to five times their water rate revenue, enabling crucial infrastructure investments while mitigating the need for steep rate hikes.
“This will enable councils to better manage debt and make essential infrastructure investments without drastic rate hikes,” Brown said.
The government’s plan includes passing the “Local Water Done Well” bill, expected this month, which mandates councils to submit detailed funding plans within a year. These plans must ensure the financial sustainability of water services, leveraging joint-council arrangements where needed.
Additionally, Cabinet approved revisions to water quality standards, aiming to reduce regulatory burdens and allow for more practical compliance measures. Changes include exempting smaller suppliers and enabling proactive exemptions from costly regulations.
