OIA24 347 Appendix A.pdf

. . ... .............
Document 1
From:
Andreas Heuser
To:
Francesca AJgie
Subject:
Weekly update from TAG - update 1, 9 February 2024
Date:
Friday. 9 February 2024 2:08:41 pm
Attachments:
AIJOOOOJ png
AIJ00002Jpg
Dear Francesca
I realise this is now past your 1 0am deadline, but just in case you wanted an update:
LWDW TAG update for the week 5 February 2024
• TAG members received formal notice of appointment and met with Minister Brown on 5
February. Initial members are Andreas Heuser, Raveen Jaduram, Mark Reese and Wendy
Walker. Simon Weston's appointment was confirmed on Thursday 8 February
• We arranged our first substantive meeting for Monday 12 February, and a second
meeting on 19 February to prepare for the in-person Beehive meeting with Minister
Brown on 19 February at 6:30pm
• We received briefing materials from the Department on Thursday 8 and Friday 9 February
• We requested that the Department provide us with the Briefing to the Incoming Minister
and all briefings on LWDW since formation of the government
Is this email format OK, or would you like a separate document?
Kind regards
Andreas
■
Andreas Heuser II
I
i,,..m ....
under the Official Information Act 1982
Released

under the Official Information Act 1982
Released

– Mark noted that he declared a potential conflict of interest when invited to the TAG
relating to another Chapman Tripp partner’s work for Local Government New
Zealand. He also noted his acceptance included a condition that Chapman Tripp may
advise water sector clients during the term of the TAG which would be led by other
partners of the firm.
– Raveen noted his directorship of Auckland Transport and board membership of
Infrastructure Commission. He will avoid conflicts of interest by recusing himself
from any discussions or decisions that could present a conflict in respect of those
organisations.
– Wendy and Simon are both CEOs of local authorities. They do not expect commercial
conflicts of interest to arise.
– Andreas said he has discussed potential conflicts of interest with DIA, and is advised
that DIA will prepare a protocol on how it may commission any external advice that
could include organisations/entities related to TAG members.
2. Overview of the New Zealand water sector reform
▪ We agreed that the TAG and DIA should have a shared perspective on the objectives of
the water sector reforms, and to work with DIA to shape these. We agreed on the need
for this shared understanding to be clearly set out in advice to the Minister, ensuring
that there is a common goal and direction for the reforms. This approach is critical for
aligning the efforts of all parties involved and for achieving the intended outcomes of
the reform process. The lack of a clear policy objectives in the materials supplied by
DIA could be because earlier advice outlined these.
9(2)(g)(i)
under the Official Information Act 1982
3. Establishment of working protocols
▪ We agreed on the importance of consensus. The group may express a majority view on
Released
some issues, in which case minority views can be documented and communicated.
3

▪ Andreas outlined the outputs of the group would be determined by the needs of the
reform agenda. Outputs could include short papers, workshops and discussions with
the Minister of Local Government, DIA and other agencies.
▪ Andreas confirmed a principle of transparency: outputs (including meeting agendas
and minutes) would be provided to members in draft for comment before being
finalised.
4. Review of material received from DIA since last meeting and identification of key issues
and priorities (standing item):
▪ We discussed three of the several papers provided in detail:
– Council plans for water services slide deck (dated 8 February)
– Implementing Local Water Done Well: Three-stage legislation plan (A3 format)
– LGFA and Financing Advice.
9(2)(g)(i)
under the Official Information Act 1982
Released
4

Implementing Local Water Done Well: Three-stage legislation plan
▪ We agreed a key issue with Bill 2 will be the balance between prescribing specific
requirements and allowing councils the freedom to choose corporate forms, financing
solutions and approaches to meet regulatory minimum standards. The TAG agreed it
should have a role in shaping these aspects, and the development of Bill 2 will be
important to ensure it supports the reforms' objectives without unnecessarily
constraining councils' flexibility in implementation.
LGFA and Financing Advice:
▪ Members noted that this advice was clear about Treasury’s expectations for financing
aversion to Crown balance sheet support, and how the corporatised model supports
financing with clarity of the revenue streams.
5. TAG’s work programme (standing item):
▪ Discussion on the TAG's work programme was intertwined with concerns about the
timeline for reforms, the clarity of objectives, and the need for a proactive role in
shaping reforms.
▪ Specific focus areas identified include legal settings for financial sustainability, options
for Watercare, and transitional and future economic regulatory environments.
6. Any other business:
▪ Members raised the issue of recording time and accounting for costs. Andreas
highlighted the Minister’s expectation set out in the appointment letter of days per
month, and that invoices should be sent to DIA. All time spent reading, preparing for
meetings, and developing ideas, as well as the meetings and workshops should be
covered by fees.
7. Conclusion and actions:
▪ Key topics for future discussion:
– Clarification of the TAG and DIA's shared objectives: Establishing a clear and shared
understanding of the reform objectives between the TAG and the Department of
Internal Affairs, to be reflected in advice to the Minister. This will ideally be resolved
in the meeting with the Minister on 19 February.
– Scope and content of Bill 2: Deciding on the balance between prescriptive
requirements and allowing councils the autonomy to choose their approaches to
meet regulatory standards, including the TAG's role in shaping this balance.
under the Official Information Act 1982
– Inclusion of stormwater in the reforms: Resolving whether the reforms will cover
"two waters" (drinking water and wastewater) or "three waters" (including
stormwater), which affects the scope and implementation strategies of the reform
process.
▪ Actions:
– Andreas to confirm the process for invoicing with DIA and advise members.
Released
– Andreas to provide these minutes (once commented on by TAG members) to DIA
and then request a joint working session with DIA officials
5

– Andreas to request all other background information that underpin the
development of LWDW options (eg, Briefing to Incoming Minister and other advice
provided since formation of Government).
▪ Next steps:
– We expect additional documents from DIA to be provided on Thursday 15 February
2024
– The next meeting is TAG-only at Castalia on 19 February 2024 at 4:30pm
– Meeting with Minister and DIA on 19 February 2024 at 6:30pm
under the Official Information Act 1982
Released
6

under the Official Information Act 1982
Released

Availability for discussion with Minister
▪ We understand the Minister will be considering key policy decisions over the next few
days (including the weekend). TAG members are happy to discuss any aspect of the
advice the Minister has received:
– Andreas Heuser (chair): 9(2)(a)
– Raveen Jaduram: 9(2)(a)
– Mark Reese: 9(2)(a)
– Wendy Walker: 9(2)(a)
– Simon Weston: 9(2)(a)
Upcoming meetings and outputs
The TAG and DIA have agreed to implement more formalised working protocols (standing
weekly meetings) to ensure TAG inputs to DIA’s advice is timely and useful
TAG expects to provide feedback during the week of 4 March where necessary to finalise the
draft Cabinet paper for the Minister.
under the Official Information Act 1982
Released
2

under the Official Information Act 1982
Released

▪ DIA/Taumata Arowai briefing paper on Authorisation for water
service professionals—repeal of statutory timeframes
Upcoming meetings and outputs
The TAG and DIA will have regular meetings with DIA each Friday to discuss drafts of DIA’s
briefings and discuss any outstanding issues.
The next such meeting is planned for 15 March 2025, 1-2:30pm. The agenda will include final
matters on Bill 2 policy (WSDPs) and categorising Bill 3 issues as priorities and noting which
TAG members are best placed to inform different issues.
under the Official Information Act 1982
Released
2

under the Official Information Act 1982
Released

-
TAG only meeting – 9 April 2024, 11am
-
TAG/DIA workshop 12 April 2024 at 1:30-3:30pm
under the Official Information Act 1982
Released
2

under the Official Information Act 1982
Released

Upcoming meetings and outputs
-
Full day workshop TAG/officials 22 April 2024
-
Meeting with Minister 4pm, 22 April 2024
-
TAG/officials workshop, 1:30pm-3pm, 24 April 2024
9(2)(g)(i)

under the Official Information Act 1982
Released
2

under the Official Information Act 1982
Released

Kia ora Hamiora

You asked me to provide my brief feedback on the MBIE briefing of 3 May.

Overall, the briefing is clearer and better written than the earlier draft the TAG gave
feedback on. It has been wholly re-written. MBIE should be commended for this. We
should have had this clarity some weeks ago, but at least we have a basis to structure
sensible discussions between TAG, DIA, MBIE and the Commission this week.

Here are my detailed comments:

The timeframes for when regulation is binding could be made clearer. They seem to
say information disclosure of forward-looking plans, and annual reporting against
those plans will apply from day 1, which is good
The flexible toolkit approach is a good idea, given the uncertainty at this stage about
the number and sophistication of future water service providers (WSPs)
MBIE has picked up my idea that WSPs should prepare forward-looking plans that
incorporate all capex and opex estimates, and have those elements ‘verified’ by an
independent engineer:
I would like MBIE to ensure the verification goes to the least cost, which
appears to be what they are suggesting, but should be confirmed
Needs clarity that the forward-looking plans are periodic: 3 or 5 yearly
MBIE suggests that the Commission could require disclosure of backwards
looking information—we should ensure this is an Annual Report, part of
standard reporting by a l WSPs, and the Annual Report must include reporting
against the forward-looking 3-5 year plan. We don’t want duplication of a
special report that the Commission requires
Minimum and maximum revenue thresholds: MBIE’s proposal is that the
Commission set these—however, if WSPs are preparing their forward-looking plans,
and reporting against them, the thresholds will be relatively clear already. There is a
risk the Commission believes it must undertake its own review of all forward-looking
plans, which would probably require significant resourcing at the Commission (ie,
high fiscal cost)
under the Official Information Act 1982
Grouping of providers is a good idea. Small, medium and large is a sensible start.
It is good MBIE has declined to try and apply Input Methodologies (IMs) from the
start. They propose a graduated approach where IMs are progressively developed
I would like to explore the “quality only” regulation proposal:
I am a bit concerned that MBIE and Commerce Commission are not yet clear
on what quality metrics the Commission will regulate and how.
For instance, MBIE has previously confused reliability (is the WSP delivering
Released water services at an acceptable level) with efficiency (is the WSP delivering at
lowest possible cost).
Stormwater regulation approach needs to be articulated better. Where SW services
are undertaken by a separate WSP, the services are delivered to a customer (the
council) for a ring-fenced fee, using assets under the WSP’s control that require

under the Official Information Act 1982
Released

I am working to ensure officials consider these issues and incorporate these into the advice to
Minister of Commerce and you. I have advised DIA that they may need to expand on these
issues independently of MBIE and articulate draft principles for Bill 3 to guide the Commission
in its regulatory decisions, so that this can be incorporated into the 16 May 2024 advice if
needed.
under the Official Information Act 1982
Released
3

under the Official Information Act 1982
Released

3

1:30-3:30pm
- Water service delivery plans – update
- Stormwater management and planning – scoping discussion

Issues of note
No significant issues of note.
Upcoming meetings
Regular weekly workshop scheduled for 31 May 2024, 1:30-3:30pm.

under the Official Information Act 1982
Released

2

Issues of note
No significant issues of note.
Upcoming meetings
Regular weekly workshop scheduled for 7 June 2024, 1:30-3:30pm.

under the Official Information Act 1982
Released

2

under the Official Information Act 1982
Released

o  TAG should receive an update on Watercare, particularly any lessons learnt for
the wider reforms around engagement with the rating agencies and LGFA. This
includes:
  The advice from Treasury and DIA on any institutional changes
required at LGFA to enable lending to CCOs and if LGFA can enable
lending when it wil  be needed in future
  Framework for the Watercare Crown monitor and how any lessons for
economic regulation can be applied more broadly
o  Future of local government after water services are corporatised or separated
out

under the Official Information Act 1982
Released

2

under the Official Information Act 1982
Released

Document 28
Local Water Done Wel Technical Advisory Group
Twenty-fourth weekly update for the Minister of Local Government
Friday 19 July 2024, 8:40am
This is the twenty-fourth weekly update provided by the Local Water Done Well Technical
Advisory Group (TAG) covering the week Monday 15 July to Friday 19 July 2024.
Key activities of the TAG this week
There was no correspondence of note or meetings with the Department this week.
Upcoming meetings
- TAG/DIA workshop on Friday 19 July cancelled due to DIA team being away
- TAG/DIA workshop on Friday 24 July will cover:
o End to end programme / roadmap for phases of water reform (to be aligned
with overall comms strategy)
o ComCom and Economic Regulation
o WSDPs and Bill 2 comms materials
o WSDPs - guidance and templates
o Watercare reform model
under the Official Information Act 1982
Released

under the Official Information Act 1982
Released