6 Key Components of an Effective and Efficient Water Allocation System
Nine key components or factors for an effective and efficient water allocation system have been distilled from the ideas raised at the workshop. The components reflect the major themes which appeared to have general agreement from the Group.
1 Establish environmental bottom lines using science
Environmental baselines should be established as a matter of priority and with default formulas and national standards as an interim measure, before transferability is introduced and before the quantity of water available for allocation is identified. This could be achieved by establishing minimum flow regimes and standards for water quality and ecosystem health for all surface water bodies, and allocation limits and water quality standards for ground water.
2 Protect existing instream and out-of stream rights
Existing instream and out-of stream rights within the current allocation system including customer investment, should be recognised and protected in a modified regime. The value of existing investment in water infrastructure also needs to be protected. Existing investment in infrastructure and land use activities would lose value if existing rights were not protected.
3 Provide greater certainty of rights and greater certainty within the allocation process
Clearly defined water rights that are consistent across the country were regarded as a key factor for an effective water management allocation process. Some believe that the allocation framework should not extend to controlling the interception of rain water before it enters water bodies. Certainty of allocation and planning processes could be improved by developing a National Policy Statement for fresh water and/or setting National Environmental Standards, however new legislation may produce the greatest certainty without impacting on other important objectives. Certainty could also be improved by establishing a national body independent of the Ministry for the Environment to provide a policy framework and/or oversight of water management. Establishing allocation limits for water bodies within a nationally determined framework could provide improved certainty for all water users.
4 Provide greater flexibility
Greater flexibility of allocation could be achieved by using market instruments. The issues of tradeable permits, establishing water markets, and resource rentals were considered by the Group. The benefit of flexibility should be sought in a policy context which can also resolve the associated issues of addressing externalities, social equity, transitioning to a new system and reversibility. Government direction and support is likely to be needed to ensure the uptake of market instruments by regional councils.
5 Strengthen governance
Improved governance of the existing system or a modified system is regarded by the Group as essential for achieving an efficient and effective system. A national framework should include an independent monitoring and review component to identify failures of implementation of the framework at the national, regional and local levels, and to identify outcomes from environmental, social or economic perspectives. The monitoring and review function should be funded and administered by central government.
6 Improve decision making
Regional decision-makers need to have sufficient knowledge of water issues, and be guided by the principles of transparency, equity and efficiency, and the principles contained in the Resource Management Act.
7 Identify barriers to Maori engagement
The current water allocation system provides opportunities for Maori to participate, however the barriers to effective use of these opportunities need to be identified and considered.
8 Increase education
The fact that water is a finite resource needs to be recognised by all interests in fresh water. This can be achieved by providing education on the efficiency of use, the value of freshwater ecosystems and means of protecting them, and the sharing of best practice. Greater co-operation between users can facilitate the sharing of knowledge.
9 The role of local government (or the Local Government Act) in the water programme of action
The Group sought clarification on the role of local government and the weight to be afforded that sector relative to the Stakeholder Reference Group.
Overall, the Group was impressed with the degree of consensus that it developed around its recommended approach to water allocation issues, and would welcome the opportunity to contribute further to the more detailed design of policy.
