Our 2011 election manifesto - Labour Party

A fair price, in the form of a resource rental, should be charged to major users of water.
Expert advice would be sought on this, including from Treasury. The resource rental would
be both an economic and environmental tool that would encourage wise use of water and its
allocation for higher value uses. A charge per cubic metre may vary from region to region,
and would be reviewed periodically.
There may also be variable charges within a region. For example, hydro electricity
generation where water is immediately returned to a river would be charged at a
substantially lower rate than where permanent extraction occurs. The charge may, however,
need to take account of lost opportunities for alternative uses upstream, or more changeable
flows downstream.
Interested parties should be consulted on the appropriate manner and level of charging, on
the basis that all the revenue raised within a region goes back into the region. This would
fund water management and delivery, new storage and irrigation schemes, safe rural
drinking water supplies, and projects such as the restoration of degraded waterways.
Labour will engage with representatives across all aspects of farming to
develop water allocation models on the basis of best use rather than „first-come-firstserved‟,
in order to ensure we encourage and maintain a mix of farming and land
uses across regions.
Labour will implement a resource rental mechanism and seek expert advice on its
design parameters, with details to be developed in partnership with industry, local
government, Māori, rural and urban communities and other relevant stakeholders.
Labour will ensure that the revenue from any such rental will be used to improve New
Zealand‟s water management systems for the future.
Transitional issues are certain to arise and need to be managed fairly.
Privatisation
New Zealanders are strongly opposed to privatising essential services such as water. We
want to own our future. Yet the National/ACT government has effectively given councils the
right to „privatise‟ water supplies by allowing management/ownership contracts for up to 35
years, without any reference to communities.
Labour is opposed to privatising water supplies, be they rural or urban. We uphold that water
is a common good, owned by us all. Moreover, international experience shows strong risks
to water quality and public health when water is taken out of public ownership.
Foreign investors should not be allowed to „own‟ water storage projects or local water supply
schemes.
Labour will ensure that water supplies remain in public ownership.
470