Thank you for the invitation to address this Bluegreens forum. It’s good to see you all again.

Before I begin, can I acknowledge:

• Bluegreens Co-Chairs – Chris Severine & Scott Simpson
• Bluegreens Treasurer – Andrew von Dadelszen
• Deputy Leader - Nicola Willis
• My fellow caucus colleagues
• Mayors - Nadine Taylor (Marlborough) & Nick Smith (Nelson)
• Environmental NGO CEOs.

I always enjoy the strong sense of conviction of the Bluegreens. You’re people who believe that change that benefits the environment is not something that should wait until there are no options left, but something that we should actively embrace while there are still choices in how to go about it.

Your commitment to practical environmentalism, and your objectives of making New Zealand greener and wealthier, I think appeal to many New Zealanders.

Because many New Zealanders care a great deal about limiting climate change and halting environmental degradation, but don’t think that bankrupting people like farmers is the way to achieve those ends. That’s what National thinks, too. There are other, better ways and I thank you for being an active group in promoting policy ideas.

You are also clear that ignoring environmental problems because they’re technically complex or politically difficult, should not be an option for National. I agree. So today I’m going to talk about how National will address one critical, but complex problem that affects every one of us, and that most of us know needs fixing, but not in the way that Labour proposes.

But first, let me reflect on the past fortnight because the backdrop to this forum is the tragic and horrifying damage of Cyclone Gabrielle which I’ve seen in visits to various parts of the North Island.

Nearly two weeks ago, sometimes in the space of minutes, the lives of some of our fellow New Zealanders were changed irrevocably. They were hit by landslides, or by the rivers and creeks that the cyclone turned into tsunamis. People lost their homes and livelihoods, and some lost family members.

People are continuing to work hard to get support where it’s needed but we all know that for many of those worst affected by this disaster, recovery will take a long time physically, emotionally and financially.

I again thank all those - the professionals and the volunteers - who have given so much of themselves already, yet they continue to give. All the effort is appreciated. As I have said many times in recent weeks, the response of New Zealanders in a crisis makes you proud to call this country home.

However, community resilience is not a substitute for a strong emergency response plan. It’s an addition to it. We owe it to ourselves as a country, and to all those who have suffered, to ensure that some good comes out of this disaster.

While a seismically active, island country will never be immune from natural disasters, there is a need to also work on a long-term strategy for climate adaptation. In other words, what should be built where, and at whose risk? These are complex questions.

As well as a dependable emergency response plan, New Zealanders also want to know that there’s a plan to sustainably fund the construction, maintenance and replacement of resilient infrastructure that will be there when they need it.

It is too easy at present for local and central government to divert money to short-term or populist priorities, neglecting responsibility for the long-term, dependable infrastructure on which we all rely. That infrastructure has economic, social and environmental benefits.

As we saw with the entire population of Gisborne being told not to turn on their taps, or swathes of Napier being without power for days, looking after the things that underpin our standard of living as a First World country needs political priority from central and local government. There will be outages sometimes. No system is infallible. But critical infrastructure needs to be as robust as is practically affordable.

That brings me to climate change, and I want to state clearly and unequivocally that National is committed to New Zealand reaching greenhouse gas emissions reduction targets including Net Zero and the Paris Climate Agreement.

Our country has always tried to be a good global citizen and meeting our emissions reductions commitments is one way of demonstrating our willingness to play our part in global efforts. If each country does the same, global challenges can be met.

In this uncertain world, that message is almost as important as the emissions reductions themselves. The world needs hope and direction right now. New Zealand can demonstrate by its own results, and by encouraging others, that the goal of limiting the impact of climate change is do-able, if countries commit themselves to it.

I would go further and say that in many countries, it’s the people, rather than the politicians who are leading the way. Governments need to catch up, including here at home.

National signed up to Paris when we were in government, and then supported Labour in updating our national commitments, because it’s important that we all unite in meeting this critical challenge.

How we achieve our goal is a matter for debate but committing to it is not. Not within National, anyway. The goal has been set and a National government will take seriously its responsibility to put New Zealand on track to achieving it.

That is why it is disappointing to note that after more than five years of a Labour government, New Zealand’s emissions have actually increased, and the importing and burning of coal has more than doubled. Labour has talked a big game, with former prime minister Jacinda Ardern saying climate change was her generation’s nuclear-free moment but, as usual with Labour, the gap between the rhetoric and results is vast.

Cyclone Gabrielle has only reinforced for New Zealanders that infrastructure is not something we can all ignore and assume it’s okay. It isn’t.

National’s approach to water infrastructure policy acknowledges three things:

First, reform is required.

New Zealand has, for a long time, not invested enough in providing and maintaining its infrastructure, and those short-term financial savings are illusory when they impede long-term growth or cause environmental damage with wastewater failures. A shortage of modern, resilient infrastructure is holding us back.

Secondly, the investment, funding, and maintenance of freshwater, wastewater and stormwater infrastructure is, in too many cases, sub-standard. While some communities operate and maintain efficient, high-quality water services, others struggle to make new investments against the pressures of council debt caps and other service demands.

Add in the need for climate adaptation and resilience planning, and many councils are floundering. We agree on that.

Third, that Labour’s Three Waters scheme is completely wrong. The public do not, will not and should not trust Labour on water policy again.

The public do not want Labour’s centralised and undemocratic asset grab where four mega-entities take control of the assets that have been built up and paid for by generations of local ratepayers.

Public opinion is also clear that most New Zealanders do not want water used as a way for Labour to impose its co-governance agenda, which it has never explained and for which it has no mandate.

But back to my main point – reform is necessary, even though Labour has given it a bad name.

National has consistently said that we will repeal and replace the government’s Three Waters policy. Today I am pleased to announce that we will replace with our Local Water Done Well plan. It will ensure that New Zealanders get safe, reliable drinking water, stormwater and wastewater services, improved water quality in rivers and swimmable beaches – all while restoring council ownership and control.

Ratepayers have always believed they’ve been paying through their rates, or via water meters, for sufficient investment in water infrastructure, but in many cases, for various reasons, that faith has been misplaced. National will restore it.

Our Local Water Done Well plan has four key elements.

One - National will, in its first 100 days, repeal Labour’s Three Waters legislation and scrap the four mega-entities, with prescribed co-governance, that goes with them.

Two - We will restore council ownership and control, but with stronger central government oversight because we’re not simply going back to the old way of doing things that hasn’t worked.

Three - We will set strict rules for water quality, and for investment in infrastructure, so Kiwis don’t have to worry about sewage on their streets, un-swimmable beaches, or having to boil their drinking water.

Four - We will ensure water services are financially sustainable to protect future generations inheriting outdated or failing infrastructure.

Making water services financially sustainable is a bottom line for National because that’s the key to restoring New Zealanders’ confidence that investment will be made when and where it is needed. Financial sustainability means there’s enough money coming in, either from rates or from user-pays, to cover the maintenance and depreciation of infrastructure and investment in new assets.

National’s plan ringfences money for water infrastructure. We have to end the practice of some councils of running down their water assets to build art galleries or cycleways, neglecting their core responsibility for vital services. Conversely, councils should not use money tagged for other services like parks or libraries to backfill revenue shortages for water infrastructure.

Water services should stand on their own two feet, transparently and consistently.

New infrastructure is expensive, it also has a long life.

Debt is therefore an appropriate way to fund the construction of new assets. Councils need to be able to borrow to invest in long-term, resilient infrastructure, with the debt being paid back over time out of rates or user revenues.

The alternative, using cash to pay for new infrastructure, means delays in delivery which leads to delays in building new developments and housing. That is holding New Zealand back. If someone wants to develop new land for housing, the pipes should show up without a fuss, just like the electricity lines do.

Under Labour, Three Waters has become a by-line for the failure of this government to listen to New Zealanders and to instead pursue its ideologically driven path of centralised control and co-governance, when what matters to New Zealanders is the quality of freshwater, and having dependable and environmentally responsible storm water and wastewater systems.

National will focus on what matters to New Zealanders. And that is, outcomes and results.

Here’s how we’ll do it. Within a year of repealing Labour’s Three Water legislation, National will ask councils to deliver their plans for how they will transition their water services to financial sustainability and to comply with strict water quality and infrastructure rules.

Unlike Labour, we won’t tell councils how to do it. We’ll empower councils to provide solutions that fit their communities.

National will establish a new Water Infrastructure Regulator within the Commerce Commission. It will be responsible for overseeing the fair pricing and charging of water services, just like the Commerce Commission does now for broadband and electricity.

The Minister for Local Government will sign off councils’ proposals, after receiving advice from the Water Infrastructure Regulator that councils’ plans will be financially sustainable.

The regulator won’t require councils to follow a particular mechanism. It will focus on the outcomes. So long as councils’ plans meet water quality standards, comply with rules for investment in infrastructure and show they will be financially sustainable, they’ll be approved.

Reporting requirements will be transparent and uniform – setting out clearly a long-term plan for spending on maintenance and investment, as well as reporting on outages.

National will ensure the public get what they pay for.

If councils can’t produce sustainable plans, the Government will be able to step in, but we anticipate that being a last resort. Councils have made clear they want to keep control and they want to do a better job. National will set the framework to help them do exactly that.

I want to acknowledge the work of grassroots organisations like Communities 4 Local Democracy, which comprises over 30 councils from across the country. C4LD has shown that alternative, workable solutions to Labour’s four mega-entities certainly exist.

For many councils, the need to have financially sustainable resourcing of water may mean they choose to form a Regional Council Controlled Organisation with like-minded neighbouring councils. This would enable them to borrow to invest in long-term infrastructure, without it impacting the debt levels of their constituent councils.

For example, the Hawkes Bay region proposed a Regional CCO, involving Central Hawke’s Bay, Hastings, Wairoa and Napier, but the Government rejected it even though it met affordability and capacity issues for Hawke’s Bay, while keeping assets in local hands.

This looks to National like a likely way forward although, as I said, we’re agnostic about the model councils choose. Increasing councils’ borrowing capacity may be another option. National is clear about the outcomes New Zealanders need, but it is up to councils how they get there.

The public ownership of water is not up for debate. We’ve said all along that we want assets returned to their owners; the communities who paid for them.

Importantly, our Local Water Done Well plan allows solutions to be tailored to each local area. The problems in Wellington are very different from those in Gisborne or Nelson. Yet, ridiculously, Labour's plan lumps the three together into one inflexible mega-entity.

National’s priorities for water are New Zealanders’ priorities for water: all services comply with the water quality and consumer protection standards, investment is continuous, and it’s all financially sustainable for councils and ratepayers.

Fixing New Zealand's infrastructure deficit will require a sustained effort over a long

period, but by taking a comprehensive and collaborative approach, it is possible to make progress in addressing this critical challenge.

Cyclone Gabrielle was well forecast, yet the scale of the disaster makes us all realise that, as many people have been saying for a long time, the runway for making good environmental choices, especially in addressing climate change, is rapidly shortening.

National’s Local Water Done Well plan is a pathway to environmental and financial sustainability of quality water services.

National in government will use the best scientific, financial and environmental information available to us to chart a responsible, fair and sustainable way forward on environmental matters. We will not cripple the current generation to do so, and we will leave choices for future generations.

At the core of our commitment is financial and environmental responsibility, sustainability, and local decisions on local issues.

In Government, National will have five priorities and they are:

• Reducing the cost of living
• Lifting incomes for all
• Building resilient infrastructure
• Restoring law and order
• Providing better health and education services.

The Local Water Done Well plan that I’ve outlined to you today is National’s latest policy announcement. Others include Backing Police and Tackling Gangs, Combatting Youth Offending, Welfare that Works and dealing with the cost-of-living crisis. Our policies focus on the things that New Zealanders are concerned about and will deliver results so that all New Zealanders get ahead.

Our policies show that National can find a clear path where Labour simply creates complication and confusion.

We are focused on what matters. We’ll fix what needs fixing so that New Zealand can get ahead, and so that New Zealanders do better.

Finally, let me say that I didn’t come to politics to cut ribbons.

I came to politics from a business background because I could see New Zealand was adrift and going backwards. I feel New Zealand has become more insular, more fearful, and less ambitious under this government.

After more than two years in Parliament, watching Labour up close, I am more convinced than ever of the urgency for New Zealand to have a change of direction and a change of pace. It’s time to stop drifting, take the initiative, set goals and propel ourselves forwards.

We have a great starting point because I think we’re already the best country in the world. But I also think that there’s so much untapped potential. New Zealanders are hard-working, we’re entrepreneurial, we’re ready to learn and all over the country I meet people who are bursting with ideas and ambition.

We need to harness everything that’s good about New Zealand, and super-charge it with confidence and ambition that grows our businesses, strengthens our society, and enhances our environment creating more opportunities for all.

I know it won’t happen without a change of government. National can deliver the change of gear that New Zealand so desperately needs.

To take New Zealand forward, to meet our emissions targets, to focus on what matters, to focus on the frontline instead of the bureaucracy and to end the culture of excuses, New Zealand needs a National government.

Thank you.

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