Through the Three Waters Reform, the government intends to address issues in the three waters networks of safety, reliability and affordability, compliance with environmental standards and building resilience to natural hazards and climate change. Currently, 67 local councils own and operate most of the drinking water, wastewater, and stormwater services across New Zealand. It is believed that greater investment in water services/asset base will contribute to improved capabilities and efficiency through the formation of the water services entities.
There are many benefits associated with the reform of the water system across the country. We asked respondents which outcomes should be prioritised during the water reform — retention of key staff, focus on operations and maintenance of existing assets, open transparent communication of the transition plan to stakeholders, and clarifying funding and prioritising key activities for the new entities. It is evident that respondents believe a successful transition will require a combination of all factors rather than just one aspect. This reflects the reform’s scale, complexity, and uncertainty on the steps to transition.
Retention of key staff
The shortage of skilled water industry professionals has been highlighted as a significant problem for the water sector. The reality is that there will be a repositioning of people within the water industry during the reform process. Finding and developing staff to fill future water-related roles and engaging people will be crucial.
Clarity of funding and prioritisation
It’s clear that water reform comes at a cost, and there is a strong emphasis on having clarity of a centralised funding model and prioritisation of future investment for the new water entities. Clear communication on the details of the reforms is required to enable change, and by developing better regulatory frameworks the implementation of programmes with key stakeholders working collaboratively — local councils, government agencies, regulators, customers and communities.
Focus on operations and maintenance of existing assets
The response is mixed with many positive comments where respondents are optimistic about the future opportunities to address the decades of underinvestment in water infrastructure. However, there is apprehension about how the increased oversight of regulation will work in practice. Concerns are being expressed that the reform will result in increased bureaucracy not great efficiency.
Benefits for organisations
Within the context of the water reform offering different benefits for organisations, we asked respondents to comment on how the benefits of the Three Water Reform could impact their business. Many respondents are concerned the benefits of water reform, for example, safety, quality and efficiency could come from increased oversight of regulation. This may have a negative impact and without consultation or collaboration, could lead to increased costs from the supply chain. This is mainly associated with the buildings sector, which is unlikely to be directly or significantly impacted by the reforms other than the resource pressure.
