A much better water reform model

Andreas Heuser writes:

Castalia has developed a constructive alternative reform model for Communities 4 Local Democracy. The alternative model requires both central government and local government to step up.

Central government would set regulatory benchmarks on water quality, economic performance and environmental outcomes. Councils would then act to comply with those regulatory benchmarks within a strict five-year timeframe.

During that period, we would expect locally and regionally-appropriate models to be developed in response to incentives.

A similar process was used when regional power boards were transferred to electricity lines companies in the early 1990s. The process could be supported by a commissioner, for example the Infrastructure Commission, to resolve any disputes and help facilitate agreement. This facilitation role has worked very well in recent municipal mergers in Portugal, for example.

A target end-state will emerge after the five years. Smaller councils will likely merge their water services into a proportionately-owned regional public water company.

Localities that can reach compliance may opt to stay standalone. Councils will be held to account to ensure water quality, financial performance and environmental outcomes are met.

The result is reform where local and regional differences are accommodated.

Community accountability is retained, management and governance incentives are enhanced, access to finance is improved, scale and scope efficiencies are exploited and the model is flexible for future developments such as climate or demographic change.

This is a vastly superior model to both the status quo and the unaccountable Three Waters regime the Government wants to implement.

It is a false dichotomy to claim it is a choice between the status quo and the terrible model the Government has devised.

The model above should be the basis for reform.

You can also read Andreas’ article on the Castilia site.