Tēnā koutou katoa

The partnerships between local government, iwi/Māori and central government are essential to the success of the three waters reform. At the end of an incredibly busy and challenging year for all of us, we want to acknowledge the commitment that all of you have shown in engaging in the reform process.

We particularly want to thank those who provided feedback on the Government’s three waters reform proposals earlier this year. We will be responding to questions you’ve raised more fully in January, and further information will be available on the DIA’s Three Waters Reforms website.

As we edge toward the holiday season, there is still a lot of mahi going on, as this update will show. With your continued engagement in the three waters reform, we’re working to support delivery of the best water services for all New Zealanders.

We wish you all a safe and relaxing break, and look forward to working with you again next year.

Water Services Entities Bill

As you will be aware, the Government had intended to introduce the Water Services Entities Bill to Parliament this month.

While the Government wishes to progress this legislation as quickly as possible, the Bill is likely to be improved by taking into consideration the perspectives of iwi/Māori and local government through the recently-established Working Group on Representation, Governance and Accountability, and the joint Central-Local Government Three Waters Steering Committee.

The Government has provided an exposure draft of the Water Services Entities Bill to the Working Group for consideration as part of its work. The Working Group will report back by 28 February, enabling Ministers to consider recommendations arising from the Working Group process before the Bill is introduced.

Cabinet has asked the Working Group to provide its recommendations slightly earlier than originally requested – by 28 February 2022 instead of 7 March 2022.

Draft Water Services Entities Bill
Read more about the Working Group

Introducing the Bill to the House at a later date has implications for the overall timeframe. The Bill is now expected to be introduced in mid-2022. However, the Government remains committed to the Water Services Entities being in place by July 2024, and will continue to progress early transition activity.

The Bill is expected to go to Select Committee next year, and people can make submissions on it at that time.

Working Group on Representation, Governance and Accountability update

The Working Group has now met twice, with the last meeting of the year scheduled for Friday 17 December. Read Chair Doug Martin's report on the second meeting.

Meeting papers will be available on the DIA website shortly.

Better off funding

The Department is continuing to work with the Joint Central-Local Government Three Waters Steering Committee, Taituarā and Local Government New Zealand on the design and implementation of the better off funding package. An informal sector reference group comprising members of the Steering Committee and other Mayors has been established to support this work and provide advice to Ministers.

Councils will be able to apply for their pro-rata share of the first $500 million tranche of better-off funding allocations from early 2022. Guidance and supporting documentation will be available in February 2022, following consultation with the sector reference group and Ministers.

We encourage councils to begin considering initiatives and project opportunities for their communities that can be funded from their pro-rata share which meet the criteria set out in the Heads of Agreement. Proposals may be included in annual plan consultation documents.

Transition information pack

The National Transition Unit has been working to ensure that it's ready to transition to the new water services delivery system over the coming years.

When we introduced ourselves in November, we committed to sharing detailed information about our work and how we’ll work together before the end of the year. Since then, we’ve heard from a number of stakeholders that this isn’t the right time of year, that you’re eager to hear more, but you have enough on your plate right now.

We want to let you know that we’ve heard you, and so we’ve made the call to push pause on the Transition Information Pack until early next year. Later this week, we’ll be in touch with a little more information about next steps.

Project substitution requests

We’d like to acknowledge the efforts of councils reporting on stimulus funding. We are seeing an increase in the number of project substitution requests (PSRs) due to a variety of issues.

To simplify the PSR process for councils, we have arranged for Crown Infrastructure Partners to undertake a review and approve (or decline) all PSRs that are less than 20% of your Expenditure Programme. This change is effective 20 December 2022.

Please note that this is a change to the terms of the funding agreement you have previously signed with the Department, and has been made to simplify the approval processes for PSRs.

Please contact threewaters@dia.govt.nz if you have any concerns.

Extending your stimulus funding quarterly reporting timeframe (period ending 31 December 2021)

As we come into the busy Christmas period, we know that many council staff will be taking well deserved breaks. 

Councils will now have 15 business days (instead of 10) to submit your quarterly report for the period ending 31 December 2021.

This is aligned with Infrastructure Reference Group reporting extensions. Some councils may have anniversary holidays in that period. If you’re unsure of when your report is due, please reach out to your Crown Infrastructure Partner contact.

Ngā mihi,
The Three Waters Team
Te Tari Taiwhenua | Department of Internal Affairs

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