5 Where We Want to Get To and the Mix of Policy Tools
There was agreement across the Group that environmental baselines (including ecological and social considerations) should be determined first before identifying priorities for allocation and/or the volume of water available for allocation for commercial use. The suggestion for a sustainability assessment process to be incorporated into an allocation process was made. The allocation system should bring national and local interests together in a single process.
Developing a flexible system to deal with change was also raised as important. The use of transferability would enhance flexibility. The existing Resource Management Act requirement for a review of plans after 10 years was regarded as appropriate.
The need to recognise existing rights (including instream rights such as water conservation orders and social rights) was raised, and to provide certainty by defining rights that can be transferred, and by developing a clear and transparent framework for transfer.
The mix of instruments needed for an effective allocation system included regulatory instruments to protect instream values by establishing environmental baselines for flow, water quality and ecosystem health; and market instruments to achieve efficient allocation above the environmental baselines. There was general agreement amongst the Group that market instruments could provide greater flexibility for an allocation system. The transitional problems when moving to a market-based approach were recognised but thought to be addressable. There was also a question raised on how a marked-based approach could provide for equity and reversibility. One solution raised was to provide for reversibility and future change in the design, and to clarify the equity issues the community wants to see reflected in the system.
Education was raised as an integral part of any mix of policy instruments. The need for funding for science and monitoring the effectiveness of a system was also mentioned.
The importance of out-of-stream storage of winter flood flows as a tool for managing water allocation in water short areas with the least adverse environmental effect was also identified.
