Episode description
Episode description
While National's solution to the Three Waters problem may please the councils steadfastly opposed to the government's plan, it remains plagued by a financial fishhook. But, as journalist Bernard Hickey warns, Labour's plan is no done deal either, and still faces some complex political and monetary hurdles. In this week's Focus on Politics, Deputy Political Editor Craig McCulloch and Political Editor Jane Patterson tally the relative merits of each policy, and hear from Hickey what a middle ground could look like.
"Let's be honest here: the magical thinking doesn't work. Someone has to pay in the long run" - Bernard Hickey
The National Party has long promised to "repeal and replace" the government's Three Waters policy, and until last Saturday it was vague on the specifics.
While their new solution may please the councils steadfastly opposed to Labour's plan, it remains plagued by a financial fishhook.
But - as journalist Bernard Hickey warns - Labour's plan, under review again by Chris Hipkins' new administration, is no done deal and still faces some complex political and monetary hurdles.
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With the devastation of Cyclone Gabrielle still fresh, leader Christopher Luxon has unveiled their alternate plan to bring New Zealand's so-called Three Waters - drinking, storm and wastewater - infrastructure up to scratch.
Labour's plan would see councils' assets combined under four regional mega-entities, far enough removed from council control that they could borrow more, and more cheaply, than councils could alone.
These new organisations would be governed by boards, appointed by groups with a 50-50 split of Māori and council representatives: "co-governance".
National's proposal does away with that split, and leaves the assets under council control. Instead, councils would be required to ring-fence revenue for water services, meeting New Zealand's recently improved water quality standards while remaining financially sustainable.
National leader Christopher Luxon at Parliament. (file photo)
Luxon says the government would step in where councils fail to achieve this, although exactly what this looks like is unclear - including any bail-out solution which would only see taxpayers forking out, and at the proverbial bottom of the cliff.
And while councils are in control, their options are limited: higher rates would mean eye-watering costs for ratepayers, and many councils are already near their borrowing limits. …