Infrastructure NZ is calling for clearer policy on water infrastructure changes. Photo: 123RF
Infrastructure New Zealand is pushing for water infrastructure to be taken off the financial books of councils.
The industry group has urged the government to provide clarity around its water reform programme and the replacement for the Three Waters legislation as soon as possible.
They have also today released a policy position on water infrastructure and services calling for budget separations of local councils and any future water entities.
Infrastructure New Zealand advocacy and strategy lead Martina Moroney told Morning Report they have also suggested exploring relaxing credit requirements for councils to allow more debt headroom.
"There's a huge infrastructure deficit and water infrastructure deficit in the country and [councils] are going to have to borrow more in order to invest in that and pay that off over the long term, over the life of that asset."
"That is one option, another option is that financial entity."
Moroney said that would include having financially independent entities with separate governance and decision-making instructions.
She said in the meantime it was likely that central government will need to consider credit wrapping council water services and providing bridging funding until the new entities were established and self-sufficient.
When asked whether this direction was similar to Three Waters and backlash over loss of council assets, Moroney said not everyone had to have a separate entity.
"There will be councils around the country that don't necessarily have to go to a separate entity model and that's why there's flexibility in the national policy, but at the end of the day the water deficit we're facing is large and is going to continue increasing."
There were also pieces of work from Three Waters that could be carried over, such as backroom systems and managing and refining data processes, she said.
Infrastructure NZ was also recommending volumetric water charges be explored so that, like other utilities such as telecommunications and electricity, consumer demand could be better managed and a direct service-related revenue stream created.
Moroney said the organisation was looking forward to engaging with the government about the future of water infrastructure in New Zealand over the coming months.
