Infrastructure News

NZ Labour government entrenches Māori tribal “co-governance” of water infrastructure

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During the last parliamentary sitting of 2022, New Zealand’s Labour-led government introduced legislation to drastically restructure the management of water infrastructure. The “Three Waters Reform” will take the running of wastewater, stormwater and drinking water out of the hands of 67 local councils and turn them over to four new regional Water Services Entities (WSEs).

The government claims that this centralisation will enable investment in the badly rundown water systems that have been neglected for decades. In 2021, for example, Wellington Water found that 31 percent of the capital city’s drinking water pipes were in a poor or very poor condition. Across the country, one third of wastewater treatment plants are in need of upgrades, and one in five people do not have tap water that is safe to drink.

Waikato River, which supplies water for hundreds of thousands of people in Auckland, seen here running through the town of Huntly. [Photo by Johnragla, Wikipedia, 24 January 2012 / CC BY-SA 4.0]

Despite the restructure, however, Labour has refused to allocate the funding required to fix the crisis—estimated at $120 to $185 billion over the next three decades. Successive Labour and National Party governments have overseen decades of under-investment in water infrastructure, along with other vital services, in order to satisfy demands for tax cuts for big business.

Moreover, the new WSEs are being structured to make ‘cost recovery’ a key part of their operations. More user-pays mechanisms will be devised, with the burden falling disproportionately on working people. At present, only Auckland residents are charged for water use, but according to the New Zealand Herald, this system is now likely to be rolled out nationwide.

The most contentious element of the Three Waters legislation, however, is that it gives Māori tribes “co-governance” of water assets. The four WSEs will be directed by “Regional Representative Groups,” half controlled by elected council representatives and half controlled by unelected tribal representatives.

Although the Labour government claims that it will never privatise water assets, the indigenous tribes, known as iwi, are essentially private businesses, with significant economic and political power. The NZ Māori Council estimates that the “Māorieconomy,” now worth $60 to $70 billion, will grow to $100 billion within 10 years. Māori businesses own 50 percent of New Zealand’s fishing quota and have significant assets in dairy, beef, kiwifruit, forestry, honey, tourism and commercial property.

The National Iwi Chairs Forum, which represents this corporate layer, says the “co-governance” measure is to ensure that the Crown meets its obligations as a “Treaty partner.” This refers to the Treaty of Waitangi, signed between a group of tribal chiefs and the representatives of the British Empire in 1840. The treaty made false promises that the British would respect Māori sovereignty over their land. By the end of the century, however, following the bitter 1845–1872 New Zealand Wars, most land had been confiscated by the colonial power.

The Treaty has since the mid-1980s been elevated to the status of the country’s founding document, supposedly to address the historical crimes of colonisation. In fact, under a “Treaty settlements” process, tribes received multi-million dollar payments from the state, which they have used to establish lucrative business operations through the exploitation of workers of all races. A privileged layer has been created, consisting of Māori entrepreneurs, academics, lawyers, politicians and state sector leaders, dedicated to the defence of the profit system.

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