Limited engagement with iwi on Three Waters replacement, Local Water Done Well - officials

Officials say the Department of Internal Affairs is progressing "targeted engagement" with iwi on Local Water Done Well. Photo / Mark Mitchell

The Government’s replacement of Three Waters, Local Water Done Well (LWDW), has had “limited engagement” with iwi and Māori so far, officials have warned.

Labour’s Three Waters reforms would’ve merged water assets into council-owned entities with borrowing powers, to invest into new water infrastructure.

Local Government Minister Simeon Brown slammed the prior policy in a statement, saying, “Local Water Done Well repeals Labour’s divisive co-governed mega-entity approach which stripped ownership and control of water infrastructure away from local councils.”

A regulatory impact statement, released by Treasury on the new plans, states there has been “limited consultation and engagement with stakeholders” on the development of the policies.

“This includes with sector organisations, councils, iwi and hapū, and other interest groups,” the document said.

Officials warned the lack of consultation presents risks, “including a lack of ability to test the workability of proposals, provide full information on the implications of proposals, and ensure the proposals present long-term enduring options”.

“Lack of consultation may create perceptions that decisions have already been made, without the input of affected stakeholders, or understanding the implications for individual Treaty settlements.”

In April, the Government announced its next steps to implement its LWDW plan, stating legislation was expected to be passed by mid-2024 to shift water services into council-controlled organisations.

Councils have been required to prepare “financially sustainable” Water Services Delivery Plans within a year.

“Information supplied by councils in these plans will assist in the establishment of economic regulation for water services by late 2025, ensuring fair prices and service quality for consumers, and appropriate investment in infrastructure,” Brown said at the time.

The regulatory impact statement confirms the Department of Internal Affairs is going ahead with a “targeted engagement process” with iwi and Māori.

“Engagement will include iwi who have settled with the Crown through Treaty of Waitangi negotiations, to ensure the potential impacts of LWDW on existing Treaty settlements are understood,” the document stated.

“The lack of engagement with iwi/Māori has further meant that it is difficult to assess whether or not the Treaty principles of partnership, participation and active protection have been met. The Government intends to engage with iwi/Māori and report back in late 2024.”

Officials state LWDW intends to deliver safe, reliable water services at the least cost.

“Like other consumers of water services, iwi/Māori will benefit from more efficiently managed water services, transparent pricing and charging, and clarity about pricing decisions for consumers and communities,” the document said, adding Māori will benefit from greater transparency around consumer protection measures.

A regulatory impact statement shows engagement has been "limited" so far.

University of Auckland Māori Studies lecturer Dr Daniel Hikuroa said as Treaty partners with the Crown, it is of “critical importance” that iwi are consulted.

“Research has shown Māori approaches to working with water and approaches to the relationship we have with water are probably better placed than the thinking that some of our current systems are based on [...] It’s important that iwi are consulted. Surely we want the best information available to be included?” he said in an interview with NZME.

In a statement, Local Government New Zealand vice-president Campbell Barry said, “Councils continue to engage constructively with communities, including iwi, on a range of issues. Water infrastructure and services make up a large amount of council investment, and the involvement of communities and iwi is essential as we move forward with water reform.”

Wellington Mayor Tory Whanau added it was “extremely important” the Government engages with Māori on matters relating to water.

“Māori have clear kaitiaki waterways. It was disappointing that the Government dropped the principle of Te Mana o te Wai from it’s latest reform. Te Mana o te Wai was an excellent guiding principle for our responsibility to protect and enhance water ways as part of our water networks,” Whanau added.

The regulatory impact statement adds there is a “clear expectation” water services policy should uphold, align, and integrate with Te Mana o te Wai and freshwater management. Dr Hikuroa suggested people should think about water as something that’s less of a commodity, and “rather something that’s absolutely fundamental to human life”.

Its removal from resource consenting had earlier sparked concern from some local Government entities.

“In Wellington, we are including iwi in our discussions on water reform, and I want to be clear that iwi will have a role in any new regional water entity,” Whanau said.

Auckland Council director of policy, planning and governance Megan Tyler said the council’s usual process is to carry out diligent engagement “as soon as possible” to help the council make “well-informed decisions and submissions that consider the views and input of mana whenua”.

“In the case of Local Water Done Well, there was a two-week timeframe to make a submission on the proposal. Because of this, the council had to carry out a lessened level of engagement with iwi than its usual process. The mayor of Auckland led two hui with iwi in order for Auckland Council to develop its position, and eventual Auckland solution. Local Water Done Well has also been discussed with Houkura at a meeting of the council’s governing body, which includes the mayor and all councillors,” Tyler confirmed.

Hikuroa suggested one example of when consultation has gone well has been when conversations have taken place in significant areas, such as “next to the springs or the river, or the places where we’re thinking about this water”.

On consultation in the Wellington region, Te Rūnanga o Toa Rangatira chief executive Helmut Modlik said iwi had been “most definitely part of the process”.

“We are woven integrally into the thinking that is being done right now on how the Wellington region will utilise that Local Water Done Well model to bring about a good outcome,” Modlik said.

“We have what we call a kaitiaki responsibility, which is a guardianship over the land and the waters [...] That’s a perspective that we consistently bring.”

Modlik suggested the previous government’s attempt regarding co-governance was a “good-faith effort”.

Labour’s local government spokesman Kieran McAnulty told NZME he was not surprised the regulatory impact statement flagged a lack of consultation on the proposals thus far.

“If you don’t want to hear bad news, don’t talk to anyone,” he said, suggesting the Government “know it’s not going to work”.

In a statement, Brown said the Department of Internal Affairs is currently engaging with iwi/Māori and will report back later this year.

“I expect local councils will engage with local iwi on local issues such as how they implement Local Water Done Well in their community,” Brown added.

Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, public service agency reform and transport.