The Water Services Bill (Bill) received its first reading on Tuesday 8 December 2020 and has been referred to the Health Select Committee for consideration. It proposes to repeal Part 2A of the Health Act 1956 and replace it with a standalone Act to regulate drinking water.

The Bill is a companion to the Taumata Arowai - the Water Services Regulator Act 2020 which was passed earlier in the year, and provides the new drinking water regulator Taumata Arowai with significant new powers.

In this FYI we outline some of the features of the Bill.

Context for the Bill: ensuring that drinking water suppliers provide safe drinking water to consumers

The Bill is a part of the Government’s response to the Havelock North Drinking Water Inquiry, which found the contamination that caused 5000 people to become ill was the result of systemic failure across service provision, regulation and source protection.

When introducing the Bill, Local Government Minister Nanaia Mahuta was clear that the Bill is designed to give Taumata Arowai the powers it needs to give effect to the Government’s expectation that New Zealanders are “able to drink the water that comes out of the tap knowing that it is safe”.[1]

The Bill creates a new and more onerous regulatory regime

The Bill will replace the existing regime set out in Part 2A of the Health Act 1956 and will replace it with a new regulatory regime that applies to all drinking water suppliers (except individual household suppliers). The Health Select Committee will no doubt look closely at clause 8 and the meaning of “drinking water supplier” in terms of who will be captured by the legislation.

As currently drafted the Bill requires all drinking water suppliers to:

• provide safe drinking water and meet drinking water standards, along with clear obligations to act when drinking water is not safe or fails to meet standards;
• ensure that there is a sufficient quantity of drinking water to support the ordinary needs of consumers, with clear obligations to act where supply is interrupted or restricted for any reason;
• have a drinking water safety plan that contains a multi-barrier approach to drinking water safety; and
• notify Taumata Arowai and take action where there are risks to public health arising from drinking water, breaches of drinking water standards, or other significant risk events.

The Bill also proposes new arrangements regarding sources of drinking water:

• drinking water suppliers must have a source water risk management plan, which identifies and manages any risks to a source of drinking water;
• local authorities must contribute to source water risk management plans; and
• drinking water suppliers must monitor source water quality, and regional councils must assess the effectiveness of regulatory and non-regulatory interventions relating to source water every 3 years.

Taumata Arowai is also responsible for approving & monitoring compliance with drinking water safety plans and source water risk management plans.

Cabinet Papers make it clear that Taumata Arowai is expected to take an active role in compliance and enforcement, including by providing support, assistance and guidance, and taking appropriate action to address non-compliance.[2]

The Government has acknowledged it will be challenging for smaller drinking water suppliers to comply with the new regulatory framework. However, the Government is also clear that it is determined that rural communities are not “second-class citizens” when it comes to drinking water quality.[3]

The Bill is part of the Government’s broader Three Waters Reform programme

As noted during the Bill’s first reading, New Zealand does have a significant Three Waters infrastructure deficit, with as much as $574 million and $4.3 billion being required to upgrade water treatment plants and wastewater treatment systems respectively. Furthermore, the ability for local authorities to meet those costs is low.[4] This will no doubt be a challenge for Taumata Arowai as it means that some local authorities may struggle to comply with the more rigorous regulatory regime created by the Bill.

To address these challenges, the Government has initiated a Three Waters Reform programme and local authorities are currently working with the Government on potential models for reform. It is expected that that reform will be accompanied by significant central Government investment into Three Waters infrastructure (in addition to the $761 million announced in July 2020).

Next Steps

A deadline for making submissions on the Bill will be announced in due course. If you would like assistance in making a submission on the Bill, or would like to know about its implications for your council or business, please contact one of our experts above.

Contributors chris.ryan@simpsongrierson.com