Executive Summary

All New Zealanders have a common interest in ensuring the country’s freshwater resources are managed wisely in order to provide for future generations and the environmental, cultural, social and economic well-being of New Zealand. Our freshwater resources are some of the best in the world in terms of quality and availability. In recent years regional councils have improved the management of point-source (traced to a particular outlet) discharges of polluted water. In some cases this has resulted in improved water quality. However, there have been fewer improvements in the management of land and the control of diffuse (non-point source) discharges into waterways. As a result, there are alarming trends in the degradation of water quality. A number of councils have made good progress in this area, but overall insufficient progress is being made.

The demand for water is increasing in many parts of the country. If too much water is used it may degrade the quality of freshwater ecosystems and reduce the environmental, social, economic and cultural value of ecosystems. The potential impacts of climate change on our freshwater systems are, as yet, largely unknown, but it is expected that the frequency and intensity of severe weather events may increase. Therefore, increasing our resilience to the impacts of climate change on freshwater systems makes sense.

Within this approach there must be a recognition and understanding of the relationship Māori have with fresh water and the values associated with it. This is a special relationship that reflects both the principles of the Treaty of Waitangi and the close connection tangata whenua have with their taonga through the ties of whakapapa.²

The significance of these issues to New Zealanders prompted the Government to establish the Sustainable Water Programme of Action in 2004. This programme seeks three key outcomes in relation to fresh water:

• to improve the quality and efficient use of fresh water by building and enhancing partnerships with local government, industry, Māori, science agencies and providers, and rural and urban communities

• to improve the management of the undesirable effects of land use on water quality through increased national direction and partnerships with communities and resource users

• to provide for increasing demands on water resources and encourage efficient water management through increased national direction, working with local government on options to support and enhance local decision-making, and developing best practice.

There are a number of ways in which the outcomes sought by the Government can be achieved. The Resource Management Act 1991 (RMA), and its framework of policy and regulatory tools to manage discharges and land use, is the key instrument. At present the main means of achieving these outcomes is through regional and district plans. In combination these plans regulate discharges to waterways, water flows, land use and land intensification, and seek to manage the demand for water. Most regional councils around the country have plans in place that attempt to achieve the sustainable management of freshwater resources. Evidence suggests, however, that water quality is continuing to decline and there are no easy solutions to resolving conflicts over water use and allocation. It is clear that we are not planning for the future of fresh water as well as we could be.

The development of a National Policy Statement (NPS) for Freshwater Management has been identified as a key way to deliver improved environmental outcomes for fresh water, and to recognise the management of fresh water as matter of national significance. This document provides an assessment of the proposed NPS, which seeks to state objectives and policies on the:

• quality of fresh water in New Zealand’s rivers, lakes, wetlands and groundwater systems, including effects on the quality of fresh water arising from land-use intensification and land-use change

• demand for fresh water

• flows and levels of fresh water in rivers, lakes, wetlands and groundwater systems.

The RMA requires an evaluation of any policy or regulatory instrument to assess the extent to which:

• the proposed objectives are the most appropriate to achieve the purpose of the Act

• the proposed policies, methods and rules are the most appropriate for achieving the objectives, having regard to their likely efficiency and effectiveness.

This assessment takes account of the potential costs and benefits associated with introducing the specific provisions of the proposed NPS, over and above the existing planning framework. This evaluation is known as a section 32 evaluation, as the requirements are set out in section 32 of the RMA.

This section 32 evaluation concludes that the proposed NPS is the most appropriate approach to achieving the outcomes sought by the Government in relation to freshwater management. A review of the objectives concludes that each of the nine objectives is the most appropriate way to achieve the purpose of the Act – the sustainable management of natural and physical resources. Each of the policies proposed also provides an efficient and effective means for implementing the objectives.

The NPS provides a platform from which tangata whenua and the Crown (and their agents) can begin discussions on the values and interests that Māori have in fresh water. It provides a vehicle to begin to incorporate tangata whenua in decisions on fresh water, and provides some recognition of Māori values and interests in this important taonga. The NPS is thus consistent with the requirements under sections 6(e), 7(a) and 8 of the RMA.

There are clearly a number of ways to achieve improved management of freshwater resources. Following a detailed section 32 evaluation, it is concluded that an NPS is a critical element of the policy framework. The NPS is needed to provide greater national guidance both to water users and to regional and district councils. The NPS must also aim to 'raise the bar' in terms of the water quality outcomes we expect as a nation, and set a timeframe for achieving those outcomes.

The proposed NPS will be publicly notified by a board of inquiry, and submissions called for. The Board will hear submitters and report to the Minister for the Environment on the proposed NPS. Further modification to the proposed NPS is possible before a final NPS is issued. Importantly, the inquiry process will help to inform the board as to whether the proposed NPS adequately articulates and protects the freshwater values that are important to New Zealanders.