Focus on Politics

Councils get their Three Waters wish - but will they regret it?


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The coalition has ticked off another objective - repealing the troubled Three Waters programme - but in doing so may have just delayed the bigger problem for another day.

In this week's Focus on Politics, Deputy Political Editor Craig McCulloch tests the temperature as the coalition moves to repeal and replace Labour's water reforms.

"This is what councils across the country said they wanted" - Simeon Brown

The coalition has ticked off another objective - repealing the troubled Three Waters programme - but in doing so may have just delayed the bigger problem for another day.

Listen to the full podcast

Three Waters has a turbulent history, going back to mid-2017 when the then-National government launched a review of the Havelock North water crisis.

After the election, the new Labour-led coalition began circulating its proposed response: taking control of water away from councils and giving it instead to four separate mega-entities. The idea was the new entities would be large enough and far enough removed from the councils' debts that they could borrow more and at a cheaper rate than the councils could do alone.

But by the time the details were fully unveiled in late-2021, a rump of opposition had built - with accusations of asset theft and concerns about the co-governance model requiring iwi involvement. It set the stage for a prolonged messy debate driven by furious councils.

The depth of feeling was such that Labour pivoted in March last year: rebranding to "Affordable Water Reform". The Minister in charge - Nanaia Mahuta - was replaced by Kieran McAnulty, the timeline was pushed back, and the four entities became 10, but the changes failed to end the furore.

Labour's opponents doubled down: pledging to repeal and replace, and - now in government - those parties achieved step one of that promise, using urgency to push through legislation consigning the Three Waters programme to the scrap heap.

Read more:

Minister points to 'backstops' if councils refuse Three Waters amalgamations

Councils 'don't have the capacity' to pay for water upgrades - Hipkins

Parliament repeals Three Waters programme under urgency

Three Waters repeal: 'It's going to be councils and mayors that cop it'

Government sets up advisory group ahead of Three Waters repeal

The coalition's new plan - championed by new Local Government Minister Simeon Brown - still has a lot of detail to be worked out, prompting the government to gather a technical advisory group…

Go to this episode on rnz.co.nz for more details

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