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A Best Use Solution for New Zealand's Water Problems

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A Best Use Solution for New Zealand's Water Problems A BEST USE SOLUTION FOR NEW ZEALAND’S WATER PROBLEMS 2008 DEDICATED TO MAKING A DIFFERENCE Our thanks go to the following Briefi ngs: for their invaluable participation Auckland Water Industry Group and/or funding: Ecologic Auckland Regional Council Environment Canterbury Contact Energy Federation of Maori Authorities ECO MAF Engineers for Social Responsibility NZ Recreational Canoeing Environment Waikato NZ Forestry Owner’s Association Fonterra Otago Regional Council Federated Farmers PPCS Fish and Game Primary Sector Reference Group Royal Forest and Bird Protection Society Sustainable Water Programme of Action GHD Te Runanga o Ngai Tahu Horticulture NZ Tuwharetoa Irrigation NZ Waikato Tainui Meridian Energy Additional funding: Mighty River Power MAF MWH Kensington Swan NIWA NZBCSD Lead Consultant: NZWWA Aqualinc URS Watercare No participant was required to endorse any part of the recommendation. CONTENTS Contents Executive Summary 3 THE PROBLEM 4 THE SOLUTION 6 Introduction 8 THE RESOURCE 8 WHY IS THERE A PROBLEM? 10 The Current Management Framework 13 OVERVIEW OF THE CURRENT FRAMEWORK 13 HOW THE CURRENT FRAMEWORK FALLS SHORT 14 Stakeholder Impacts 16 WHO ARE THE STAKEHOLDERS AND HOW ARE THEY AFFECTED? 16 The Vision 18 THE BEST USE SOLUTION 18 STRUCTURE AND FEATURES OF THE BEST USE SOLUTION 19 The Transition 23 IMPROVEMENTS NEEDED TO EFFECT THE BEST USE SOLUTION 23 COSTS AND RISKS 25 Summary 26 THE BEST USE SOLUTION 26 STRUCTURE AND FEATURES OF THE BEST USE SOLUTION 27 THE BEST USE SOLUTION - MAKING IT HAPPEN 28 TAKING THE NEXT STEP 28 THE BEST USE SOLUTION FOR NEW ZEALAND’S WATER PROBLEMS 29 Your Feedback is Welcome 30 Key Reading and Bibliography 31 We have just ten years to effect change... We need to start now. The solution carries a price. It also carries a multi-billion dollar reward over the next decade, while enhancing the environment. 2 EXECUTIVE SUMMARY A Best Use Solution to solve New Zealand’s major water problems New Zealand is fast discovering that with a vital interest in water, including environmental groups, freshwater is not an unlimited resource. Iwi, regional councils, energy generators, water suppliers and primary producers. hile New Zealanders want economic growth, they The outcome of this signifi cant collaboration is the Business Wdo not want it at the expense of our environment Council’s Best Use Solution to New Zealand’s water problems. and quality of life. Each year We believe the project has also 500,000 million cubic meters delivered widespread agreement of water fall onto New Zealand that the proposed solution is a as rain or snow, enough to fi ll good outline of a way which will Lake Taupo from empty eight better address the issues. times over. Despite this, key This solution offers a new areas have major freshwater starting point for practical quality and quantity problems. policy improvement. If we The quest to fi nd the best don’t act, the current system ways to protect our waterways, will see all major catchments allocate what is truly available fully allocated by 2012. and do it more simply, quicker We will see business and at least cost has been opportunities evaporate, subject to extensive desk and the spread of rationing, research and debate within queuing and disputes over policy-making circles for a what remains of the resource. number of years. It might be None of this is necessary. said that the issue of water We have just ten years to allocation, and desired reforms effect change and avert these in particular, have been problems. We need to start acknowledged as being ‘very, very diffi cult’ given the lack of now. The solution carries a price. It also carries a multi-billion consensus for a way forward on the issues. It is against this dollar reward over the next decade, while enhancing the background that the New Zealand Business Council for environment. It is the sort of solution the Business Council Sustainable Development commissioned a collaborative most likes to fi nd – a practical way to make sure we identify research project. the volumes of water needed to protect everything we regard From August 2006, we have been working with 20 (and as precious about our water sources and way of life – while consulting with a further 14) businesses and organisations effi ciently allocating the amount identifi ed as available for use. Nick Main Chair New Zealand Business Council for Sustainable Development July, 2008 3 EXECUTIVE SUMMARY The Problem The cost if we do not act that this water is unavailable for productive An estimated 11% of this water is y 2012 all the available use. This will have serious consequences used in hydroelectricity generation. Bfreshwater resources in our most constraining New Zealand’s economic In many instances this water is used economicaly signifi cant regions will development and resulting in increasing many times for hydrogeneration without be fully allocated to users on what is confl ict between competing demands. abstraction from waterways and is still essentially a fi rst-in, fi rst-served basis. Growth in our urban and main agricultural available to downstream users. Depending upon how individual Regional areas is also going to be constrained. Only a very small percentage (about Councils use the existing tools in the Once full allocation is reached, 5%) of New Zealand’s total rain and 1 Resource Management Act, this could unravelling past mistakes, or putting snow precipitation is abstracted for lead to a situation where people wanting water aside for future requirements, commercial use, mainly for farming. to secure a right to use water after full becomes more challenging as does Greater intensity of use is affecting allocation has been reached, will only allocating water for new uses. water quality. Waterways have a limited be able to practicably obtain that right Demand is being driven by: capacity to assimilate contaminants (nutrients and other discharges such as by buying land that has an existing water more intensive land use and heavy metals). Waste harms fl ora and consent. Additionally, water that has been irrigation, particularly for agriculture allocated to existing users but which is fauna in our waterways. It also means not needed for use could remain largely a growing population, driving demand municipal water plants have to provide unavailable to those who have a need for for electricity and municipal supplies more treatment – at greater cost – to it. This allocated but unused water ranges for human and industrial use. continue producing safe drinking water. between 20-80% of the allocated supply These problems will not correct Growing intensity of use depending on factors such as time of themselves. has wide impacts year and crop type. Currently the RMA has limited provision for the voluntary transfer Most of our water from rain and snowfall fl ows naturally and unimpeded to the sea. of surplus allocated water. This means 1 abstracted: water removed from the source. Surface water allocations 2007 - 2012 by major catchment boundaries, percentage of surface water allocated 2007 2012 Most regions have at least one populated and main agricultural areas, KEY river (surface water) or aquifer the known available water resource is Fully or over allocated (groundwater) that is either fully or expected to be fully allocated by 2012. over allocated, or likely to become Greater than 75%, less than 100% Major economic and environmental so in the next one to fi ve years. gains are possible from allocation Less than 75% allocated Over a signifi cant proportion of New improvement. Zealand and particularly in our highly Unknown (or groundwater zone) Note: maps represent the consultant’s interpretation of survey results. 4 EXECUTIVE SUMMARY Further public concern lakes in the central North Island, at the The system does not always easily New Zealanders are also concerned cost to the taxpayer of $83 million and provide a basis for balancing confl icting about the diminishing quality of our natural $73 million respectively. values for water including: waterways. They perceive intensive environmental needs land use (like that associated with the Allocated water not used growth of agriculture, especially dairying) In New Zealand water is managed by the recreational values is responsible. Some 64% perceive Crown on behalf of all citizens. cultural values agricultural and horticultural run off as the New Zealand has a fi rst-in, fi rst-served municipal supply for households and main cause of freshwater pollution. system of allocating water. Some of this urban businesses, 68% perceive freshwater quality to be water is allocated to those who may not worse or much worse than ten years ago fully use it. But their surplus allocation is other economic needs. and seven out ten believe there is a water not easily made available for others. When there are water shortages, often shortage now or will be within fi ve years. It is diffi cult to transfer rights because the environment pays when the baseline the Resource Management Act (RMA) water flows, needed to preserve the Major local water quality problems states that resource consents grant a right environment, are compromised. While many parts of the country are to use water to the landowner. Regional managing the increasing demands on Councils must also provide for transfer of The consequences of no change water quite well, some areas still face water rights, through their Plans or through If the country does not change the signifi cant water issues relating to quality approval of one off applications. Thus way it allocates both surface and and quantity. those wanting a right to use water may ground water then: In Canterbury, Waikato, Rotorua and need to buy land to access the water right. future water users, who can use Taupo areas, the investment by central, Land with access to water is much more water in more productive ways, could and local government and the private valuable, which is refl ected in farm prices.
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