Three Waters go down the legislative gurgler – but what should we make of Local Water Done Well?
Local Government Minister Simeon Brown – it seems fair to suppose – was flushed with success after the repeal of Labour’s divisive and unpopular Three Waters legislation.
As he explained, repealing this legislation is a necessary first step in implementing his government’s Local Water Done Well policy and a key part of our Government’s 100-day plan.
To what extent the repeal is a measure of Brown’s political prowess is open to question.
In the upshot, Parliamentary numbers were what mattered.
As Hansard reports, a party vote was called for on the question, That the Water Services Acts Repeal Bill be now read a third time.
MPs obviously did the bidding of their party whips:
In the upshot, Parliamentary numbers were what mattered.
As Hansard reports, a party vote was called for on the question, That the Water Services Acts Repeal Bill be now read a third time.
MPs obviously did the bidding of their party whips:
Ayes 68
New Zealand National 49; ACT New Zealand 11; New Zealand First 8.
Noes 55
New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.
That vote did give Brown an opportunity to bang out a media statement:
“The vast majority of councils around New Zealand were opposed to Labour’s Three Waters reform, and we are delivering on our commitment to restore local council ownership and control of water assets.
“I am aware that councils are in different stages of completing their long-term plans and some have already begun consultation. With local responsibility for water services restored, the legislation passed today provides much needed flexibility to councils by enabling a range of voluntary options to help them complete and adopt their long-term plans.”
What happens next will test Brown’s ministerial mettle more than did the repeal of the Hipkins government’s legislation.
Two further bills will be introduced this year to progress the government’s policy which has been cumbersomely branded “Local Water Done Well”.
The first will be introduced and enacted by mid-2024; the second will be introduced in December 2024 and enacted by mid-2025.
Brown gave only the vaguest of hints on what the Luxon government intends doing:
“Local Water Done Well recognises the importance of local decision-making and flexibility for communities and councils to determine how their water services will be delivered in future. We will do this while ensuring a strong emphasis on meeting rules for water quality and long-term investment in infrastructure.
“We are asking councils to lead the way in developing local solutions to our water services challenges. This includes requiring them to provide water services delivery plans that outline how they will deliver on outcomes for water quality, infrastructure investment and financial sustainability.
“I want to acknowledge mayors and communities across New Zealand who opposed Labour’s centralised and bureaucratic mega-entity model. I now look forward to working with them as we deliver Local Water Done Well.”
Point of Order makes one further observation.
Brown has yet to post his media statement on the government’s official website.
Nor has Social Development and Employment Minister Louise Upston posted news of how the government is dealing with cost of living support for beneficiary households.
She released a media statement this morning to say the coalition government is increasing main benefit rates in line with inflation and ensuring the Minimum Family Tax Credit threshold remains aligned with this change.
It would be more accurate to say the government has introduced legislation to achieve that result.
The Social Security (Benefits Adjustment) and Income Tax (Minimum Family Tax Credit) Amendment Bill was introduced under urgency in Parliament today. It amends the Social Security Act 2018 to ensure main benefits keep pace with inflation by indexing them to the Consumers Price Index (CPI).
This reverses the changes made by the previous government in 2019 to index main benefits to net average wage growth.
Upston declared:
“These changes will protect the real incomes of benefit recipients and low-income working families for years to come, while also making sure the cost of the benefit system to taxpayers is sustainable and manageable in the long-term.”
The Bill also amends the Income Tax Act 2007 to adjust the Minimum Family Tax Credit threshold from $34,216 to $35,204 (after tax) so that it remains aligned with changes to the rate of main benefits.
This change is intended to ensure low-income working families remain better off financially in full-time work and receiving the Minimum Family Tax Credit than they would be on a main benefit.
Fair to say, beneficiaries would be better off if benefits were indexed against wage increases.
That explains why restoring the indexation of main benefits to CPI is projected to save taxpayers $669.5 million over the forecast period through to 2027-28.
But Upston insisted:
“Indexing main benefits to inflation is a measure that has been used for 31 of the past 35 years by governments across the political divide. It’s a responsible and common-sense way to maintain the income support system.”
The Bill is being progressed under urgency to ensure the rate of main benefits will reflect the rise in inflation when the yearly indexation is implemented on April 1.
The media statement explained:
- Main benefits include Jobseeker Support; Sole Parent Support; Supported Living Payment (with and without children); Youth Payment; Young Parent Payment; Orphan’s Benefit; Unsupported Child’s Benefit; rates of generally abolished former Widows’ Benefits; rates of generally abolished former DPB for solo parents; and rates of benefit payable to long-term hospital patients
- The Minimum Family Tax Credit is a payment that tops up your family’s after-tax weekly income to an amount that is more than what you could potentially receive on benefit. Following these changes, the guaranteed minimum income for families in full time work will be $35,204 (after tax).
But while the government has much to bray about, only two fresh items of news had been posted on the government’s official website, when Point of Order checked around 12.30pm.
One was to announce agriculture delegations “to support key areas across the Primary sector to deliver for New Zealand’s food and fibre sector”.
The other was to announce the signing of a Memorandum of Understanding for a third medical school to address a critical shortage of New Zealand-trained doctors.
One was to announce agriculture delegations “to support key areas across the Primary sector to deliver for New Zealand’s food and fibre sector”.
The other was to announce the signing of a Memorandum of Understanding for a third medical school to address a critical shortage of New Zealand-trained doctors.
Latest from the Beehive
13 FEBRUARY 2024
The coalition Government has announced ministerial delegations to support key areas across the Primary sector to deliver for New Zealand’s food and fibre sector, Agriculture Minister Todd McClay announced today.
The Government has taken an important step forward in addressing a critical shortage of New Zealand-trained doctors, with today’s signing of a Memorandum of Understanding for a third medical school.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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