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Reflecting on Our Work About Water Management B.29[20a] Reflecting on our work about water management Office of the Auditor-General PO Box 3928, Wellington 6140 Telephone: (04) 917 1500 Email: [email protected] Website: www.oag.govt.nz About our publications All available on our website The Auditor-General’s reports are available in HTML and PDF format on our website – www.oag.govt.nz. We also group reports (for example, by sector, by topic, and by year) to make it easier for you to find content of interest to you. Our staff are also blogging about our work – see blog.oag.govt.nz. Notification of new reports We offer facilities on our website for people to be notified when new reports and public statements are added to the website. The home page has links to our RSS feed, Twitter account, Facebook page, and email subscribers service. Sustainable publishing The Office of the Auditor-General has a policy of sustainable publishing practices. This report is printed on environmentally responsible paper stocks manufactured under the environmental management system standard AS/NZS ISO 14001:2004 using Elemental Chlorine Free (ECF) pulp sourced from sustainable well-managed forests. Processes for manufacture include use of vegetable-based inks and water-based sealants, with disposal and/or recycling of waste materials according to best business practices. Photo acknowledgement: Michal Klajban B.29[20a] Reflecting on our work about water management Presented to the House of Representatives under section 20 of the Public Audit Act 2001. February 2020 ISBN 978-0-9951321-0-8 Contents Auditor-General’s introduction 3 Part 1 – Our work on water management 6 Part 2 – A more strategic and integrated approach to water management is needed 8 The Government is responding to the need for a more strategic and integrated approach to water management 9 A strategic and integrated approach would support targeting of investment decisions 10 A stronger focus on implementation is needed when setting strategy 10 Long-term thinking is needed when setting a strategic and integrated approach 11 Part 3 – Understanding of water resources needs to improve 13 A national picture of the state of freshwater quality would support a more strategic and integrated approach 14 Information gaps can limit the ability to make well-informed decisions 15 Information needs to be understandable both to decision-makers and to those holding them to account 15 Good information depends on collecting quality data 16 There will always be some uncertainty 17 Part 4 – Water management challenges require adaptive ways of working 19 Balancing different views and values requires flexible frameworks 19 Collaboration needs to translate into action 20 More can be done to involve Māori in water management 21 Water management challenges require both central and local government response 22 2 Auditor-General’s introduction E ngā mana, e ngā reo, e ngā karangarangatanga maha o te motu, tēnā koutou. Managing New Zealand’s water resources is, by their nature, challenging. It includes providing safe and secure drinking water, providing effective wastewater and stormwater services, allocating and managing freshwater resources, and balancing the wide range of interests in our marine environment. As we said when we introduced our programme of work on water management: The interconnectedness of the water cycle, the relationship between land use and water quality, and the place that water plays in our physical, economic, social, and cultural well-being are at the heart of the challenges associated with water management.1 To manage water resources, public organisations in central and local government need to work in the short and long term with competing interests, often with limited information and resourcing. These challenges will become only more difficult as climate change and other pressures on our water resources become more significant. The management of the country’s water resources is of deep significance and concern to New Zealanders. People expect the water from their taps to be clean and safe, wastewater and stormwater to not pollute the environment, and our rivers, lakes, and oceans to be healthy ecosystems that are safe to swim in and to gather kai moana from. Failure to meet these expectations can cause lasting damage to the public’s trust and confidence in public organisations. For that reason, the work under our water theme during the last two years looked at how well public organisations are managing water resources and delivering water- related services for the benefit of New Zealanders now and in the years to come. Given the significance of water issues, we expected to find: • clear national strategies, objectives, and priorities that are reflected in regional and local strategies and planning documents; • coherent work programmes that logically and consistently prioritise resources and activities, and improve collaboration between local and central government and non-governmental organisations; • robust systems at national, regional, and local levels for gathering information and reporting on water management issues that are used to deliver continuous improvement; • resourcing, planning, and strategic risk management that reflect the complexity, scale, and time frame of the issues that need to be addressed; and • strong engagement models with communities of interest and, in particular, Māori. 1 Office of theuditor-General A (2017), Introducing our work programme – Water management, page 8. 3 Auditor-General’s introduction We found that, although much good work is being done, all of these elements were not in place. What we saw were public organisations trying to do the right thing while working with the resources they have, within the limits of their own roles and responsibilities, and in a context of increasing complexity and uncertainty. What we did not see was clear agreement across central and local government about the vision for New Zealand’s water resources – the issues, objectives, and priorities for water management over the long term that all organisations, public and private, should seek to address. For public organisations to manage water well, they need to know what they are trying to achieve and to monitor progress towards those goals. The lack of clarity about what the issues are, how to address them, and who will deliver programmes of work increases the risk that public organisations are not directing their efforts towards the same outcomes. It also means that some organisations might carry out work that conflicts with or duplicates that of other organisations, and that investment and policy decisions are not targeted to address the greatest risks or achieve the greatest benefits. We found that public organisations sometimes make decisions without reliable information about water resources and the infrastructure that delivers water-related services. This is consistent with findings in a recent report by the Parliamentary Commissioner for the Environment about New Zealand’s environmental reporting system. That report noted that “Ours has been a passive system that has harvested whatever data is there and done the best it can to navigate what’s missing … when we try to find out what’s happening on our land or what’s happening to our water, there are huge gaps.”2 For some time, we have reported that public organisations need better information about the condition and performance of assets, including water, wastewater, and stormwater assets. Because of gaps in this information, those responsible for managing the assets that deliver water-related services are often limited in their ability to make well-informed decisions. It also limits the ability to have informed conversations with communities about the risks they are willing to accept, such as the level of flood risk they might be exposed to. I acknowledge the work under way to address water management challenges – in particular, the Action for Healthy Waterways and the Three Waters Review. However, my overall view is that, outside of those two work programmes, there remains a need for greater national leadership. What is required is agreement on a shared vision that sets out the strategic objectives and priorities for water management more generally and how public organisations and others will collectively deliver this. This is particularly important when multiple and 2 Parliamentary Commissioner for the Environment (2019), Focusing Aotearoa New Zealand’s environmental 4 reporting system, Wellington, page 4. Auditor-General’s introduction competing economic, environmental, social, and cultural outcomes are sought. Developing a vision also requires considering the capacity of public organisations that will be involved in its delivery, particularly in local government, and how to build community agreement in an often contested area. I thank the many organisations and individuals involved in supporting this report and our work on water. Nāku noa, nā John Ryan Controller and Auditor-General 12 February 2020 5 1 Our work on water management 1.1 New Zealanders have a right to expect that the public sector – local and central government – is managing the country’s water resources well, both now and into the future. 1.2 How public organisations carry out their governance and management responsibilities, how transparently they make decisions about water, and the reliability of the information that they use to make their decisions, significantly influence the future state of our water resources and the public’s trust and confidence that the public sector is managing water well. 1.3 In our October 2017 report Introducing our work programme – Water management, we said that we would consider how well organisations are carrying out their water management responsibilities to understand how New Zealand is positioned for the future. 1.4 During 2018 and 2019, we looked at elements of the management of drinking water, freshwater, stormwater, and the marine environment. 1.5 Our water management work focused on: We intend to provide independent • the role of information; assurance to Parliament, the • innovation and good practice; organisations that we audit, and New • how organisations balance competing Zealanders about the state of water interests and priorities; management.
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