Point of Order: Mahuta invites local bodies to queue up for a portion of Three Waters funding

Hard on the heels of announcing further humanitarian support for Afghanistan (to the tune of $6 million), Nanaia Mahuta was preparing to dole out big bucks on the home front.

The humanitarian aid was announced in her capacity as Minister of Foreign Affairs.

Yesterday, as Minister of Local Government, she announced that councils can now apply for the first tranche of funding from the Three Waters Reform Package to invest in their local communities

The Department of Internal Affairs has issued guidance to councils on the application process. The first tranche of $500 million of funding will be available from 1 July.

Unallocated money will be rolled into the next tranche, which becomes available on 1 July 2024, when the four publicly owned Water Service Entities are established.

Never mind the small matter of the need for Parliament to pass legislation, the Water Services Bill, to create four publicly owned water entities to take over responsibility for three waters services from local councils.

The only other ministerial announcement since Point of Order last reported on the buzz from the Beehive came from Transport Minister Michael Wood

He visited the flood-damaged Tairāwhiti region to view progress on restoring vital connections for the area’s isolated communities.

He was joined by local Ikaroa-Rāwhiti MP, Meka Whaitiri, Mayor Rehette Stoltz and representatives from Ngati Porou for a blessing of the Managhauini Bridge before it opened for light traffic.

The bridge had been closed ten days earlier after an abutment was washed out, leaving a gap of approximately 16 metres in the road.

There was nothing in the press statement to indicate whether the bridge had been blessed when it was first built and/or the need for a blessing. Will this afford some protection against future flood damage?

Mahuta’s invitation to councils to dip into Three Waters funding coincided with a discussion (a somewhat one-sided discussion in mainstream media) of the special role of Maori tribal leaders in the Three Water reforms.

These reforms have triggered a debate around the appropriateness of a Treaty-based co-governance arrangement to manage storm, waste and drinking water services.

But for now, Mahuta was arguing about the need for change rather than the need for co-governance:

“For far too long, Councils have had to offset difficult decisions about funding water infrastructure and services against other important initiatives, with water infrastructure often coming out second best,” Nanaia Mahuta said.

“Councils are facing significant challenges over the coming years; with population growth, housing pressures, an increase in natural disasters and climate change, it is important that Councils are able to prepare their communities for the future.

“As well as saving ratepayers money in the long term, the Government’s reform programme will enable councils to focus on the wellbeing and aspirations of their communities. This “better off” funding can be used for those projects communities feel they need the most, be it local parks and gardens, swimming pools, libraries and community centres, or investment in public transport and infrastructure to protect against extreme weather events and sea level rises.”

Applications are open until 30 September for councils to submit funding proposals for their share of this first tranche of funding.

The terms around the use of this funding are set out in the Heads of Agreement negotiated by Local Government New Zealand last year.

Mahuta referred to estimates that $185 billion is needed to fix, upgrade and maintain New Zealand’s water services over the next 30 years, to ensure that critical water infrastructure is maintained.

Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton.