This paper sets out the Government’s approach to reforming New Zealand’s freshwater management system. The approach is based on extensive discussions and engagement with stakeholders. Your views are welcomed on the intended actions.
Purpose of this document
Fresh water matters to New Zealand
Fresh water matters to all New Zealanders. It is central to the environment, the economy and our identity. It is a key aspect of who New Zealanders are and what they bring to the world. For Māori, it is a taonga, essential to life and identity.
Fresh water is one of New Zealand’s key economic assets. Directly and indirectly, rivers, lakes and groundwater resources support the creation of wealth, whether growing crops and livestock, generating electricity, thrilling jet boating tourists, allowing minerals to be mined, or through a host of other activities. In 2012, primary industries that depend on fresh water – such as livestock farming, horticulture and forestry – delivered more than 12 per cent of our GDP and over 52 per cent of overall exports (70 per cent of merchandise exports). Tourism, which also draws on the beauty of New Zealand’s fresh water, accounts for a further 10 per cent of GDP and 15 per cent of overall exports. Approximately 58 per cent of New Zealand’s electricity comes from hydro-power stations, with other power stations dependent on fresh water for cooling.
A plentiful supply of fresh water is one of New Zealand’s major advantages in a world that is becoming increasingly resource-constrained. That advantage can be enhanced through innovation and skills, good governance and environmental stewardship.
Because water is so precious, it is vital that it is looked after and used sustainably – for today and future generations.
The path to reform
These reforms are the result of a four-year endeavour initiated in 2009, when the Government set its strategic direction for freshwater reform and initiated the Fresh Start for Fresh Water programme.
This paper presents the Government’s intended actions. These actions reflect substantial discussions and engagement with stakeholders over the past four years, including advice sought from the Iwi Leaders Group and its advisors.
Advice has also been sought from the Land and Water Forum, which included a range of primary industries, electricity generators, recreational groups, environmental organisations, and iwi, and active observers from regional councils and central government. With its first report released in 2010 and two subsequent reports in 2012, it succeeded in building a wide consensus on a way forward for reform, based on more active and effective management of fresh water and stronger national direction.
The Government responded in 2011, delivering the first foundations of a more efficient and effective freshwater management system. The National Policy Statement for Freshwater Management 2011 was gazetted and the Government also created two new funds: to facilitate beneficial irrigation infrastructure and to clean up iconic lakes and rivers. The Government has recently taken further steps to enable the development of rural freshwater infrastructure for irrigation, including capital investment. Irrigation infrastructure designed and operated within the reformed freshwater management system outlined here will bring important economic benefits, as well as provide for more sustainable management of freshwater bodies.
In just a short time, greater progress has been achieved in freshwater management than during the first 20 years following the adoption of the Resource Management Act 1991 (RMA).
The National Policy Statement for Freshwater Management 2011 requires that councils set freshwater objectives for freshwater bodies that reflect national and local aspirations, and to set flow, allocation and water quality limits to ensure those objectives are achieved. It also requires councils to manage efficiently within those limits, avoid over-allocation and address existing over-allocation. Councils must manage land use and water in an integrated way and involve iwi and hapū in freshwater decision-making.
The freshwater reform package presented in this paper is based on and consistent with the Land and Water Forum’s recommendations. The Forum’s core proposals (collaborative planning and the national objectives framework) will be progressed immediately, while others will be integrated in the Government’s direction and guidance in the next few years, or will be developed as part of the Government’s longer term programme of reforms.
The Government is currently proposing a range of reforms across a number of inter-linked areas including housing affordability, business growth and regulatory efficiency. There are strong links between these freshwater reform proposals and wider resource management and local government reforms, particularly around national priorities, and planning and consenting improvements. These links are being coordinated across a number of government agencies.
The Government is committed to recognising Māori rights and interests in water in appropriate ways. Iwi/Māori rights and interests in fresh water are multifaceted. There is no one reform we could introduce now that would resolve all rights and interests at once. This resolution will need to be woven through different aspects of the reform.
The water reform package proposed for 2013 prioritises foundation measures: water planning mechanisms and setting of freshwater objectives and limits. The resolution of rights and interests related to other aspects of freshwater management will need to run alongside further reforms, built on those foundations, over the next few years.
These further reforms involve complex issues that need to be discussed at both the national and local level. It is important to take the time to develop appropriate outcomes that are workable and sustainable, and have broad support.
A ‘once in a generation’ opportunity
The National Policy Statement for Freshwater Management 2011 was the first foundational step towards reforming New Zealand’s freshwater management system. This paper describes what happens next, and signals what still needs to be done. The scale of the reforms make this a ‘once in a generation’ opportunity. The process of making changes and improvements to New Zealand’s freshwater management system is going to unfold over the next few years and take a generation to fully bed in. Its economic and environmental benefits will build up progressively.
Water reform is a priority. There is a clear path of reform ahead that will be addressed through a comprehensive and measured approach, starting in 2013. The immediate steps will provide a suite of changes to strengthen and enhance the foundations of our freshwater management system. Building on these will be an ongoing process over the next few years and will involve monitoring and review to ensure the reform’s objectives are achieved on the ground, and adjustments and further instruments are introduced as needed.
Water users and managers working together, with greater government leadership
The Government is committed to playing its part to improve freshwater management in New Zealand by providing regulation, guidance and support. All users and managers of fresh water also have to play their part – councils, iwi/Māori, city dwellers, farmers, businesses, scientists, recreationists, and the community.
Many are already doing just that, and have committed to continue to do so, in particular through their involvement in the Land and Water Forum, industry programmes, community-based initiatives, and council planning processes. At regional and catchment level, users must come together with councils and iwi and achieve a common understanding of the uses, values and challenges around local water bodies, and agree on common aspirations and actions.
Regional and unitary councils will continue to play a fundamental role in freshwater management. And, the Government will work closely with them to provide direction, guidance and support.
Sector organisations acknowledge the need to improve the way our land and water is used and managed. They have begun to develop a suite of good management practice (GMP) schemes and other tools, with assistance from scientists and the Government, to help resource users adjust and improve their practices, both in economic and environmental terms. The Land and Water Forum rightly emphasised the critical role of GMP’s for achieving our environmental objectives on the ground while maintaining and enhancing economic profitability and growth.
On-going national and local partnerships between the Crown, councils, iwi/Māori, scientists, and resource users will be key to successfully implementing this water reform strategy. All parties are to be involved in: planning; setting freshwater objectives and deciding on the tools to achieve them; monitoring progress and assessing decisions; and building the knowledge, techniques and skills needed to meet New Zealanders’ aspirations for fresh water.
The planned package of reforms
The tables below contain the freshwater reform actions the Government intends to progress, beginning this year. Actions are grouped according to the key reform areas:
- Planning as a community – immediate reforms and next step reforms
- A National Objectives Framework – immediate reforms and next step reforms
- Managing within quantity and quality limits – immediate reforms and next step reforms
The actions are described and discussed in chapters 4, 5 and 6 of this paper.
Your views on freshwater reforms are important, particularly those which require amendments to the Resource Management Act 1991. This is your opportunity to comment before the Government introduces the 2013 Resource Management Reform Bill later this year.
There will be further opportunities to engage and comment on all other elements proposed in this paper. For example, there will be a consultation process as part of considering a regulation to implement the National Objectives Framework.
The statutory review of the National Policy Statement for Freshwater Management 2011, scheduled for 2016, will be an opportunity to assess the reforms and their results, including the case for moving from guidance to regulation on some elements of the freshwater management system. It will also provide an opportunity for further review of the role of Water Conservation Orders in a reformed water management system.
Planning as a community
| Immediate reforms | How |
|---|---|
| Include an optional collaborative planning process in the RMA, covering plan development, independent hearing panels, and limited appeal rights | Included in a Resource Management Reform Bill, to be introduced in 2013 |
| Formalise a role for iwi in providing advice and formal recommendations, with a requirement for a council to consider that advice before making decisions on submissions, both for the new collaborative process and on Schedule 1 decisions relating to fresh water in a proposed plan | Included in Resource Management Reform Bill |
| Next step reforms | How |
| Provide national guidance and a support package on implementing the collaborative planning process | Guidance |
A National Objectives Framework
| Immediate reforms | How |
|---|---|
| Make consequential changes to the National Policy Statement and/or other regulation making powers to facilitate a National Objectives Framework and consequential amendments to section 69 and schedule 3 of the RMA | Included in Resource Management Reform Bill |
| Develop regulation to implement the National Objectives Framework including national bottom lines | Regulation (national policy statement or other national instrument) |
| Next step reforms | How |
| Provide guidance and regulations to set clear national expectations and support limit setting under the National Objectives Framework, including managing outstanding water bodies and wetlands | Guidance and regulation |
Managing within quality and quantity limits
| Immediate reforms | How |
|---|---|
| Amend the RMA to ensure that councils can obtain information needed for accounting systems | Included in Resource Management Reform Bill |
| To account for all freshwater takes: make amendments to ensure the Government can require councils to collect data from all water users and share data with central government; use any standard accounting system developed; and adopt defined methods for estimating water takes | Included in Resource Management Reform Bill plus guidance |
| To account for all contaminants (for regional decision-making): make amendments to ensure the Government can require councils to collect data on all sources of contaminants and share data with central government; and adopt defined methods for estimating discharges | Included in Resource Management Reform Bill |
| Provide national guidance and direction on the setting of allocation limits covering all water takes | Regulation (national policy statement) and guidance |
| Develop sector good management practice toolkits | Guidance |
| Develop national guidance on implementing the national policy statement provisions on water efficiency | Guidance |
| Develop national guidance on the specification of water permits | Guidance |
| Review the Water Research Strategy | Refreshed Water Research Strategy |
| Provide national direction on accounting for sources of contaminants | Regulation |
| Provide national guidance on the use of models for managing freshwater quality | Guidance |
| Next step reforms | How |
| Provide national guidance on dealing with over-allocation | Guidance |
| Provide national guidance and/or direction on dealing with transition issues (quantity) | Guidance and/or regulation |
| Provide national guidance and/or direction on managing takes that do not need consents | Guidance and/or regulation |
| Provide national guidance and/or regulation on compliance and enforcement (quantity) | Guidance and/or regulation |
| Provide national guidance and/or direction on the choice of methods and tools to manage water quality | Guidance and/or regulation |
| Review the duration of permits | Policy to be developed |
| Develop alternative tools for initial allocation of fresh water | Policy to be developed |
| Develop options for allocating permits on expiry | Policy to be developed |
| Facilitate transfer and trade for quantity | Policy to be developed |
| Develop new transfer or offsetting mechanisms for water quality | Policy to be developed |
| Develop incentives for efficient water use (both for quality and quantity): for example, pricing and standards | Policy to be developed |
1. Introducing freshwater reform
March 2013
© Ministry for the Environment