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THE WATER PRESSURE GROUP VOTER’S GUIDE ON WATER SERVICES.

WATER PRESSURE GROUP SURVEY OF POLITICAL PARTIES ON THE PROVISION OF WATER / WASTEWATER SERVICES AND RELATED ISSUES FOR THE 2002 GENERAL ELECTION: (The Water Pressure Group policy is stated first, then the parties.)
(The Alliance, Greens, Labour and NZ First were the only parties which answered our questionnaire.)

1. Does your Party agree that water should be treated as a saleable commodity to be sold as an economic good and traded for commercial purposes and thus stay under the Commerce Act?

WATER PRESSURE GROUP : NO
ALLIANCE:   NO
GREENS:   Water is a basic human need.  All people are entitled to high quality drinking water. The public supply of household water is a service not a commodity to be sold for profit.  By contrast, commercial and industrial water use must be based on the full costs of such supply.  In many rural areas, water supply is based on rainwater and bores supplemented by commercial tanker supplies.
We believe that reticulated household water supply ought not to be sold for profit but provided at true cost with those costs shared fairly.  Our answer is therefore
NO to that extent.  We also oppose the use of the Commerce Act to prevent cooperative management of water on the grounds of restricting competition.
LABOUR:   NO
NZ FIRST:   NO
 
2.    Does your Party agree that water is a commons – a fundamental human right, essential to life, to which every person  is entitled, and thus should be taken out from under the Commerce Act?
 
WATER PRESSURE GROUP : YES
ALLIANCE:   YES
GREENS:   Enough water is a fundemental need; wasting water is not – see our answer above.
LABOUR:    Labour believes that access to adequate water supplies should be everyone’s right. How that supply is provided should be determined by local communities.
NZ FIRST:   YES

3. Does your Party agree that water services are essential public services and should be owned, operated and managed by Councils, under the direct democratic control of elected Council representatives, and run on a non-profit making basis?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:  YES  Reticulated water supply is an essential public service and should be democratically controlled via elected public bodies.  Water should be managed on a true cost recovery, non-profit making basis.  The Green Party believes the use of contractors is a matter for case by case judgement provided that policies such as charging, quality etc are set by the local authority.
 
LABOUR:    Labour supports the public ownership of such essential services. The Local Government Bill currently before the House contains provisions to protect against the privatisation of such services.  Labour will maintain such safeguards. Communities need to be fully involved in decisions about how such services are provided.
NZ FIRST:    YES

4. Does your Party agree that water services should be operated and managed as profit-making businesses while under Council ownership ie: commercialised – whether the name of such a Council owned entity be a Local Authority Trading Enterprise (LATE),  a ‘Council-controlled business’ or any other such name given to cover such a commercialised entity?

WATER PRESSURE GROUP: NO
ALLIANCE:   NO

      (Pg 1 of 8 )
 

GREENS:   NO
LABOUR:     See response to Question 3.
NZ FIRST:   NO
 
5. Does your Party agree that water services should be operated and managed under a public-private-partnership, where Councils still own the water services infrastructural assets, but the operation and management is in the hands of a privately-owned ‘for-profit’ water company?

WATER PRESSURE GROUP: NO
ALLIANCE:   NO
GREENS:   NO, although as noted we see there is scope for the involvement of the private
sector provided policies that affect the welfare of households are determined by the local authority.
LABOUR:     See response to Question 3.
NZ FIRST:   NO

6. Does your Party agree that the franchise agreement between the Papakura District Council  (PDC) and United Water is such a public-private-partnership where the PDC still owns the water services  infrastructural assets but their management and operation is in the hands of a consortium of two of the largest water multinational companies in the world – Vivendi and RWE?
WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:   YES The Green Party opposes the Papakura “franchise” agreement.
LABOUR:    See response to Question 3.
NZ FIRST:   YES

7. Does your Party agree that public-private-partnerships are also known as ‘franchising’, ‘concessions’ and ‘contracting out’?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:   YES  Sometimes
LABOUR:   This is not a matter of party policy.
NZ FIRST:   YES

8. Does your Party agree that public-private-partnerships are a form of privatisation?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS: As a general point rather than relating to water, it depends on the nature of the PPP and the project.  We are concerned to ensure that public funds do not end up being diverted simply to support private profit.  However some PPPs may be the best means of providing community assets that cannot be delivered in other ways  Provided they meet tests of ecological and social sustainability, we believe such matters are best decided locally through proper community involvement in decisions.  On those and other grounds for example we opposed the idea of a PPP to build the PENLINK toll road.  We oppose PPPs being used to fund otherwise uneconomic grandiose projects that risk leaving a legacy of debt to the future.

LABOUR: It depends on the form of the partnership.
NZ FIRST:   YES

9. Does your Party agree that water services should be owned, operated and managed by the private sector?

WATER PRESSURE GROUP: NO
ALLIANCE:   NO
GREENS: In principle NO, though as noted the situation is complex in some areas without reticulation.
LABOUR:   See response to Question 3.
NZ FIRST:   NO

      (Pg 2 of  8 )

10.  Does your Party agree NOT to support any changes at central government level which would give local bodies greater power or ability to commercialise, privatise in any form including PPPs  (contracting out), of essential public services such as water?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:   YES
LABOUR: While Labour believes that local government should be able to exercise a power of general competence we will ensure that provisions remain in legislation which protect essential infrastructure and strategic assets from being sold off for short term gain.
NZ FIRST: YES
 
11. Does your Party agree to initiate and/or support any changes at Central Government level which would reverse any existing commercialisation, privatisation (including contracting out) of essential services such as water / wastewater?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS: N0 –We cannot commit to any legislation we have not seen.  We prefer to put in place measures to enhance participatory democracy and requirements for ecological and social sustainablility so that these decisions require democratic support and cannot undermine communities or the environment.  The effect is likely to be much the same.

LABOUR: The Local Government Bill, which is currently before the Local Government & Environment Select Committee says a local authority that provides water supply and waste water services within its district is required to continue to do so.
NZ FIRST: YES

12. Does your Party agree to initiate and/or support the removal of water services from LATE legislation?

WATER PRESSURE GROUP: YES
ALLIANCE: YES. We would certainly support any Council that did decide to take water services back under direct council control. Our policy states: “… The Alliance will amend the Commerce Act so that water provision can no longer be a commercial activity. We oppose the contracting out of water services and public-private partnerships (joint ventures). The Alliance supports the abolition of Local Authority Trading Enterprises (LATES) and will return water services to Council ownership and control.”

GREENS: NO – see our answer above.  Legislative changes supported by the Greens have also made it clear that LATEs can have non-commercial objectives and must display social and environmental responsibility.  Coupled with better democracy at the local level we feel this provides a way of dealing with problems with existing LATEs.
LABOUR: The  Labour-led  government  passed  legislation  that  has made LATEs more transparent  and  their  operations  more accountable to the people who own them.   This  includes  requiring  them  to  exhibit  a sense of social and environmental responsibility
NZ FIRST:   YES

13. Does your Party agree to initiate and/or support public-public-partnerships, such as, where central government gives financial assistance such as low interest loans to local government for water services infrastructure?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS: Encouraging greater cooperation between local bodies is important if water management is to be sustainable and democratic.  We support moves to get better integration between local and regional government.  We do not support the use of low interest finance for infrastructure as it encourages an undue focus on increasing supply at the expense of conservation and management strategies.
   (Pg 3 of 8 )
 

LABOUR: Labour supports such initiatives where appropriate.
For example we recently announced a new Sanitary Works Subsidy Scheme.
NZ FIRST:   YES

14. Does your Party agree that user charges for essential services puts the burden on those least able to pay?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS: If the user-charges are at a flat rate for all levels of service – YES.
If they are progressive ie: if the the first level of service is exempt from charges and there is a sliding scale upwards for further levels of use then they can be a major tool for encouraging water conservation among major users of water and may be have fewer social justice problems than property rates eg property rates can force the elderly and the working poor to move from areas as they gentrify.
LABOUR:   It would depend on the structure of the charges.
NZ FIRST:   YES

15.  Does your Party agree with the principle that those who own higher-value properties should contribute proportionally more towards infrastructure costs through general property taxes (rates)?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS: IN GENERAL YES, BUT WITH THE PROVISO THAT IN SOME CASES DIRECT CHARGES MAY BE BETTER ON BOTH EQUITY AND ENVIRONMENTAL GROUNDS.  We note that a high property value in some areas may relate neither to the income of the property owner nor to the level of use of the resource.
LABOUR: Labour believes that taxation based on property values is appropriate for local government revenue raising.
NZ FIRST: NO

16. Does your Party agree NOT to support any legislative changes at central government level that would give Councils greater power to charge for water services on a fixed (Uniform Annual Charge or Uniform Annual General Charge)  user pays or any other method of funding which moves away from property-based rates?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS: YES in respect of increased use of Uniform Annual Charges or Annual General Charges for water.  NO as a more general point – the key issue is to ensure all people have access to sufficient water to meet their needs.  Property-based rates are not the only way of achieving this.
LABOUR: See response to Question 3.
NZ FIRST: NO

17. Does your Party agree with  the principle that commercialisation of water services works against the conservation of water because if water services are set up to profit from selling water as a commodity then the last thing commercialised or privatised water companies want is for people to use less?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:   In general – YES
LABOUR:   See response to Question 3.
NZ FIRST:   YES

18. Does your Party agree with and have  policies - other than punitive user charges which make water unaffordable to people who NEED to use more – to encourage water conservation to avoid massive future infrastructural costs?  Please detail these policies.

WATER PRESSURE GROUP: YES
   (Pg 4 of 8 )
 
 

ALLIANCE: YES. We have a strategy of regional and national economic development that emphasizes the sustainable use of resources. This implies conservation of resources so that they are available for future generations.

GREENS: YES.  Exact details of conservation initiatives are a matter for each local area.  In broad terms we support increased use of practices such as greywater recycling, rooftop collection for garden water, low-flow shower heads etc.  Our overall policy is to require local authorities to develop a water management plan, in which they assess water conservation strategies against new supply strategies. Citizens will be involved in discussing and approving these plans, so will have the information they need to take action in their own lives.
LABOUR: Labour has worked extensively with health authorities and regional councils to manage fresh and coastal waters to protect human health. We have produced guidelines for managing waterways on farms and worked with local government and farmers developing national standards for water quality adjoining dairy farms.   Labour will also develop a water allocation policy to ensure fair and equitable allocation.
NZ FIRST: Cannot be answered in a YES/NO fashion.
19. Does your Party agree that public accountability and democratic traditions are diminished when public assets are commercialised or privatised?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS: In principle YES.  We note that some local authorities have been far from models of democratic accountability in the past.

LABOUR: See response to question 3
NZ FIRST:   Cannot be answered in a YES/NO fashion.
 
20. Does your party agree to initiate and/or support legislative change that will make it illegal to restrict or disconnect for non-payment of water services bills as in the UK Water Industry Act 1999?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS: YES – with some reservations.  Water is a basic human need.  No-one ought to have their water disconnected because they cannot pay a bill.  Provided flow restrictions are set to allow people to meet the basic needs of a household, we believe they may have a place.  However they are not a long-term solution and they must be used in concert with broader measures to constructively address the reasons why financial problems arise for people.

LABOUR: Labour has no plans at this stage to introduce such legislation or to support its introduction.
NZ FIRST: Cannot be answered in a YES/NO fashion.

21. Specific questions relating to the Waikato pipeline:

a) Does your Party support the precautionary principle that the future risk to public health is minimised by using ‘best raw water first’  for drinking water supplies?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:    YES
LABOUR: It is the responsibility of the Medical Officer of Health, through designated officers within District Health Boards to determine whether water is suitable for human consumption.
NZ FIRST: YES
 
 

      (Pg 5 of 8 )
 
 

b) Does your Party acknowledge that for Watercare to say that treated Waikato river water will be safe to drink, means that it will comply with or better New Zealand Drinking Water Standards, and thus does not minimise the risk to public health, because NZDWS 2000 only measure 137 of the thousands of bugs and chemicals that flow into the Waikato river from factory effluent, leaching landfills, agricultural chemicals, road pollutant runoff and sewerage outflows?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:   YES
LABOUR: The Medical Officer of Health approved the water as suitable for human consumption following an exhaustive 10 day test, on 17 June, 2002.
NZ FIRST:   YES

c) Does your Party agree that the short and long term health risks to people of the Auckland region from drinking Waikato river water as a raw source of drinking water should be assessed, managed and minimised?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:   YES
LABOUR: The short and long term health risks to people of the Auckland region are already being assessed, managed and measured by the District Health Board.
NZ FIRST:   YES

d) Does your Party agree that evidence of such public health risk assessment, management and minimisation should be available from the drinking water suppliers; ‘wholesalers’Watercare services; ‘retailers’ the Line Network Operators; Local Authorities, and Medical Officers for Health in the Auckland region who have statutory duties for public health?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:   YES
LABOUR: Public health officers work alongside local authorities and communities to ensure a high level of safety is maintained.
NZ FIRST:   YES
 

e) Does your party agree that decisions that have major implications for public health (namely the signing of the Watercare bulk water supply contract )should be made by a LATE (namely Metrowater Ltd) that apparently has no statutory duties for public health?

WATER PRESSURE GROUP: NO
ALLIANCE:   NO
GREENS: NO major decisions affecting public health ought to be made by agencies without a public health mandate.
LABOUR:  The Labour led government has begun the process of drafting legislation which will require councils to provide water to a certain standard. The changes to the Public Health Act are likely to include changing the guidelines into standards and place strict responsibilities on both public and private water supplies.
NZ FIRST:  NO

f) Will your Party initiate and/or support action to ensure that the future risk to public health is minimised by use of ‘best raw water first’  for drinking water supplies? If YES – what are you prepared to do?
WATER PRESSURE GROUP: YES
ALLIANCE: YES – take part in action to ensure it if it is proved beyond reasonable doubt that Waikato water is a risk to public health.

  (Pg 6 of  8 )
 
 

GREENS: YES – we believe that the Waikato pipeline water, if used at all, ought to be reserved for industrial use or emergency water supplies only.  We would support moves to ensure that water from protected catchments is used first and not mixed with water from less pure sources of supply.

LABOUR: Please see answer to Question No. 21(a)
NZ FIRST:   Cannot be answered in a YES / NO fashion.

g) Will your party support the Health (Drinking Water) Amendment Bill , that intends to make it mandatory for drinking water suppliers to produce Public Health Risk Management Plans, (to prevent contaminants entering the ‘raw’ water supplies in the first place) being given the most urgent priority in the completion of  its drafting, introduction and passage?

WATER PRESSURE GROUP: YES
ALLIANCE: NO – this is important, but not of the most urgent importance.  Ending child poverty, for instance, ranks much higher, as do a raft of other social and economic problems that need to be addressed urgently.
 
GREENS: We support a greater emphasis on ensuring contaminants do not enter the water supply. We cannot commit to legislation we have not seen.  Further study is needed to determine whether the best means of doing this is the proposed Bill or alternatives such as amendments to the Local Government Act coupled with a national policy statement under the Resource Management Act.

LABOUR: Labour will pass such legislation.
NZ FIRST: YES
 
22. Specific questions relating to The General Agreement on Trade in Services (GATS):

In 1994 the General Agreement on Trade in Services (GATS) was adopted as part of the Uruguay Round of trade negotiations, which also created the World Trade Organisation (WTO) to enforce such agreements. New Zealand is one of the 144 countries in the WTO, and every country in the WTO will be subject to the GATS once/if it is adopted.
 “Liberalisation” has the aim of opening services to market forces, under the WTO.
Economic sanctions and other remedies would be available to the WTO, and corporations, if, for example governments (central or local) discriminated in favour of their domestic service suppliers to the detriment of foreign suppliers of those services.

a) Does your Party agree that “liberalisation” as expressed above, is in fact privatisation?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS: YES – the Green Party agrees that the intention of liberalisation as defined by the WTO is to facilitate the privatisation of public services.
LABOUR: NO
NZ FIRST: Not necessarily.

b) Does your Party agree that public services such as water services should be “liberalised” ie: opened up to takeover by multinational water corporations?
 
WATER PRESSURE GROUP: NO
ALLIANCE:   NO
GREENS:    NO
LABOUR:    See response to question 3
NZ FIRST:   NO

c) Does your party agree that it will NOT sign any GATS commitments for Environmental Services?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:    YES

  (Pg 7 of 8 )

LABOUR: Labour will continue to harmonise its objectives for trade and for the environment, with both serving the overall goals of sustainable development.  It is important to note that Article 20 of the General Agreement on Tariffs and Trade allows countries to take actions to protect human, animal or plant life or health, and to conserve exhaustible natural resources.
NZ FIRST: NO
 
d) Does your party acknowledge that if the supply of water is entrenched as a commercial activity under the Commerce Act that makes it easier for water services to be privatised under the GATS?

WATER PRESSURE GROUP: YES
ALLIANCE:   YES
GREENS:    YES
LABOUR:    See response to question 2
NZ FIRST:   YES

e) Does your Party agree that municipalities (local authorities) should be bound by international legal agreements entered into by the New Zealand Government that are not enacted as NZ  domestic law?

WATER PRESSURE GROUP: NO
ALLIANCE:  Of  course the Government has the right to negotiate treaties.  The Alliance’s position, however, is that all treaties should be brought before Parliament so that there can be public debate whether to ratify them.  This is what we did with the Singapore Free Trade deal. Treaties therefore would have to go through the same process as legislation and of course local authorities would have the right to oppose them.  After ratification there is the further question of how the treaties are to be enforced.  Again, if there are legislative changes to be made that we do not agree with of course we would oppose them and support any other groups opposing them.
GREENS:  NO – and the Green Party campaigned in the local body election campaign in 2001 against the GATS and other provisions in the Singapore Free Trade Agreement being binding on local authorities.
LABOUR: International treaties and conventions have no standing and are not enforceable in domestic law, unless adopted by an Act of Parliament
NZ FIRST: NO

23. Is your Party prepared to initiate and/or support legislation that will make it illegal for politicians (both at central and local government level) to knowingly misrepresent their policies to the public at any time during an election campaign?

WATER PRESSURE GROUP: YES
ALLIANCE:  We feel voters are able to make the judgment about the veracity of politicians’ claims, if they take the trouble to inform themselves properly before exercising their civic duty to choose their representatives. If politicians do knowingly mislead the public, they will be caught out and punished either at the next polls or by civil disobedience. So we do not think special legislation has been proved to be necessary.  There are far more important things for Parliament to spend its scarce time on.
GREENS:  NO – because such legislation would be as unenforceable as the Electoral Integrity Act Act has proven to be.  We believe it is better to let voters discipline political liars.
LABOUR: Politicians are bound by the same laws as everyone else.
NZ FIRST: YES

24. Does your Party agree that those responsible for conducting elections at both central and local government level should have to be knowledgeable of the law and the duties that it is their statutory responsibility to enact?
WATER PRESSURE GROUP: YES
ALLIANCE:   Of Course.
GREENS:    OBVIOUSLY YES
LABOUR: The process for conducting central and local government elections are defined by statute.
NZ FIRST: Cannot be answered YES / NO.
   (Pg 8 of 8 )