Proposed national environmental standard for on-site wastewater systems
The Proposed National Environmental Standard for On-site Wastewater Systems has been withdrawn.
Following analysis of consultation responses and a reassessment of the costs and benefits of the proposed National Environmental Standard for On-site Wastewater Systems (NES), Cabinet has decided that it is not appropriate to progress the proposal into regulation.
Further analysis concluded that the proposed NES, as consulted on, would add another layer of regulation and increase compliance costs without the guarantee of a significant level of health and/or environmental benefits. Revised analysis of costs and benefits indicate the estimated annual benefits are far outweighed by estimated annual costs by a factor of approximately 3:1.
The proposed NES would create inefficient and essentially ineffective regulation. This is inconsistent with the Government’s commitment to better and less regulation as outlined in the Government Statement on Regulation.
Revised estimates of costs and benefits
Revised estimates (using figures provided by submitters, through the public consultation process) suggest that total annual costs could be $11.8 million per year for the first three years. Total inspection costs would be approximately $3 million per year. In addition, ongoing administrative costs would be around $800,000 per year and initial set-up costs were estimated to be approximately $260,000. Compliance costs would be up to $7.7 million per year for the initial three year period, and $2 million to $3.1 million for each subsequent year.
Taken together, these figures suggest average annual costs of the proposed NES would be $5.9m to $7.7m and far outweigh the estimated annual benefits of $0.75m to $3m. Table 1. Provides a summary comparison of the revised costs and the original assumptions.
Table 1. Costs information
| Option | Systems affected (estimated) | Average annual total costs ($ million) | Potential annual public health benefits ($ million) | Annual environmental benefits | Benefit:Cost ratio (excluding environmental benefits) |
|---|---|---|---|---|---|
| Targeted application of NES | 42,000 | $3.4–$5.2 | $0.75–$3 | Unquantified |
0.20–0.52 |
| Everyone everywhere (DISCARDED) | 255,000 | $21–$31 | $1.5–$6 | Unquantified |
0.064–0.17 |
| Revised Targeted option (new cost data from submitters) |
42,000 | $5.9-$7.7 | $0.75–$3 | Unquantified |
0.12-0.39 |
It is also uncertain whether the proposed NES would bring about improved environmental and health outcomes (benefits). The proposed NES, in itself, is purely an inspection regime. It would identify problems, but further action would be required to remedy those problems. The Resource Management Act and the Health Act contain existing mechanisms that allow councils to deal with environmental and health problems resulting from failing on-site wastewater systems. The proposed NES would duplicate those mechanisms.
Background information including links to associated documents can be found on the following archived pages:
Last updated: 8 December 2010
