Water reform: Millions in business opportunities

Millions in new business opportunities will result from concerted push for early water reform

Business leaders are welcoming the Government's leadership to improve the pace of water use reform.

Commenting on a speech made last night by Environment Minister Hon Nick Smith, the New Zealand Business Council for Sustainable Development says the move to achieve quick reform is important because the country is only three years away from facing major issues in every significant catchment.

Business Council Chief Executive Peter Neilson, told delegates to an EDS Reform in Paradise conference at Auckland this morning: "We cannot afford to lose the next three years. New Government moves to speed up agreement on answers are of massive economic and environmental importance to the country."

The Business Council last year published a report called the "Best Use Solution for New Zealand's Water Problems", arising from a $300,000 two-year research project involving pan water sector interests.

The Business Council, whose 74 member companies' include major industrial, agricultural and energy firms with significant interests in water allocation and quality, says reform needs to be in place in time for the 2010 triennial local government elections.

Mr Peter Neilson told the conference today:
"By then stressed catchments will be imposing moratoria and rationing water, stopping new water related investment. Without reform, hundreds of millions in economic growth will be foregone."

The country needed a pan-water interests agreement by the end of 2009 to feed into the RMA Stage II reform legislation.

All significant water interests needed to be involved: iwi, agriculture, horticulture, forestry, urban water, generators, regional councils, science providers, environmental and recreational users.
Mr Neilson said some progress was being made, including:

• The Government's announcement last night that it supports the Land and Water Forum and proposal for a comprehensive solution embracing all aspects of freshwater, which needs to be achieved by April 2010. The process reflects Business Council recommendations

• The appointment of Terry Heiler, CE, Irrigation NZ, to the Infrastructure Council which is to develop a 20-year National Infrastructure Plan by the end of the year - with water storage a key priority area

• Government indicating that, in establishing its working relationship with the Maori Party, issues around water governance and kaitiakitanga will be addressed at this level, including "water trading"

• Government indicating that phase 2 of the RMA reform process will include aspects of water management reform.

Mr Neilson said a pan sector plan was needed before December this year to stay with the Best Solution timetable - "and this is entirely achievable."

"We welcome the fact that groups, traditionally antagonistic, are now working together on fresh water issues. A wider group has been needed to cover all the significant water issues. The new group is aware of all the work that's been done before. All significant interests in the water sector should have an opportunity to be heard if we are to develop sustainable solutions," Mr Neilson said.

500,000 million cubic meters of water fall onto New Zealand each year as rain or snow (enough to fill Lake Taupo from empty eight times over).

Of this 5% is abstracted for commercial use.

However, the country was facing an over allocation of water in every significant economic catchment by 2012.

However, Business Council research found up to 80% of the allocated water was not used at any time.

"We need to set minimum volumes to protect the environment, municipal and recreational use, also govern discharge quality, and make it easier to transfer the remaining water, allocated for commercial use and not being used, from one user to another," Mr Neilson said.

Failure to achieve this would result in:

• a needless and significant drop in potential production and economic growth ($180 to $330 million per year) (Source: Aqualinc, 2008)

• water quality continuing to be at risk, while tax and ratepayers pumped hundreds of millions into catchment clean up schemes, like those governing the Taupo and Rotorua lakes

• an escalating the "gold-rush" of applications for water rights to the remaining available water, and

• increased litigation and conflict as shortages occur.

"People will be delighted at the strong new focus on finding the right answers in time to deliver effective, agreed, reform before we face an horrendous crisis imposing huge unnecessary costs on the environment, taxpayers, water users and economic growth," Mr Neilson said.

The Business Council's Best Use Solution report is here http://www.nzbcsd.org.nz/water/content.asp?id=444

ENDS

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