Analysis: How Kieran McAnulty might just save 'Three Waters'

April 13, 2023
Keiran McAnulty in Greytown.

Here's the guts of it - new Local Government Minister Kieran McAnulty might just have what it takes to take the steam out of Three Waters reform.

Sorry - that's Affordable Water Reform - what Prime Minister Chris Hipkins confirmed its new name is today.

The website calls it Water Services Reform - 1News understands the title is, indeed, officially Affordable Water Reform, but the Government had already bought the WaterServicesReform.govt.nz website and wanted to avoid further cost.

Calling it Affordable Water Reform is a clever trick - who can say they're against "affordable water reform"?

Whatever Three Waters reform is called now, it's a rebranded and rejigged version of the same thing - an attempt by the Government to address the safety, reliability and affordability of three waters services. Which is what this all comes back to - councils and indeed the National Party agree the status quo needs to change.

It was always about the way it was communicated and sold to the public. The Government failed on that in the first round, and it cannot afford to fail again.

Today, McAnulty and Hipkins wandered somewhat awkwardly around an otherwise non-descript carpark in Greytown, as representatives from Wellington Water showed them around the Memorial Water Treatment Plant. The two then announced the Government's revamp of the scheme.

"Here's the guts of it," McAnulty said as he took the podium in the carpark.

Instead of the formerly proposed four water services entities, there will be 10, and every local council will get a seat on the strategic oversight and direction bodies of the entities.

"Up to $180 billion - local councils need to find, and they can't do it by themselves, because councils are, individually, they're at their debt cap or if they're not, their communities can't afford to pay any higher rates. That's causing the problem."

Notice that? He spoke like a regular person. He got straight to the point. No Wellington-speak here.

Later, when asked if he was worried water reform would be a challenge in the election, McAnulty said: "I think we've nailed it".

Whether or not making one attempt that appeared to have failed miserably - disastrously, even - and make a reattempt counts as nailing it is up for discussion, but that may be splitting hairs.

Hipkins said he believed the Government had now struck the right balance between "ensuring cost savings in the delivery of water infrastructure while also ensuring that those water entities are strongly grounded in their local communities".

The measure of nailing it will be in how much heat is now taken out of the debate around three waters - sorry - affordable water reform from this point on.

McAnulty seems confident more councils are on board this time round.

Communities 4 Local Democracy - a group of about 30 councils leading the charge in opposition to the reform - said today it was the "same plan with a different name" and didn't "answer concerns around community property rights and meaningful local voice".

A group press release from the mayors of Mackenzie, Timaru and Waimate echoed those sentiments.

The National Party's local government spokesman Simon Watts said it was Labour's "desperate attempt" to rebrand its "toxic Three Waters reforms" and wouldn't fool New Zealanders nor fix water infrastructure.

National's Simon Watts speaks to Q+A's Jack Tame.

“[Kiwis] want local water assets in local hands, and with no divisive co-governance structures imposed on them.

“Today’s rebrand from the tired and incompetent Labour Government shows they just don’t get it. These are the same broken reforms, just with a new coat of paint."

The Greens were also unimpressed, albeit in a different way, with water services spokeswoman Eugenie Sage saying it was a "rebrand" and significant concerns - around the guarantee of public ownership and protection of nature - remained.

South Wairarapa mayor Martin Connelly with Local Government Minister Keiran McAnulty.

She said increasing the number of water entities would go "some way" to upholding the right of access to clean affordable water, but not enough had changed.

Te Kura Taka Pini (the Ngāi Tahu freshwater group) co-chairperson Professor Te Maire Tau said Ngāi Tahu had supported the four-entity model but would work with its local councils to ensure the success of the reform in its rohe (area).

Back in the carpark in Greytown, South Wairarapa Mayor Martin Connelly said he was on board with the changes and felt since McAnulty had taken charge he had felt there had been more facetime with the minister and local government.

The subtext there of course is that perhaps under the former Local Government Minister, Nanaia Mahuta, that had not happened.

"In the previous four entity model, I think it was very difficult for a council like ours - or Carterton, or Masterton - to see that we would ever have any influence."

He believed the Government had indeed "nailed it".

If McAnulty has managed to begin to build a constructive, genuine relationship with the sector, that will help cool councils down.

His laconic Kiwi everyman approach - remininscent of John Key and more relatable and relaxed than even his boss Hipkins - will go well with so-called middle New Zealand.

Talking like a regular person - not a beltway boffin - will help build trust with New Zealanders who might have become suspicious this Government's almost-too-smooth messaging.

Garnering more favour with councils and the public on this hot topic may allow the reform to slip back to page three and - as McAnulty would say - get it sorted.

McAnulty - and indeed the Government - doesn't appear to shy away from the fact this is a rethink on an unpopular policy.

Whether or not its different enough to quell the angst and address real concerns with the reform will remain to be seen.

But to admit when you've got it wrong - that takes guts.

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