23 May 2008 Media Statement

Extra $40 million for Sanitary Works Subsidy Scheme

An additional $40 million over five years for the Sanitary Works Subsidy Scheme was announced today by Damien O’Connor, Minister for Rural Affairs and Associate Minister of Health.

Mr O’Connor said the Labour-led government introduced the scheme in 2003, to cover capital costs of both sewerage systems and drinking water fluoridation for small, largely rural, communities who have difficulty funding the necessary upgrades to meet public health and resource consent requirements.

"This money will further assist smaller communities, ensuring they have access to safe, efficient and hygienic sewerage systems," said Mr O'Connor.

“The Minister of Health has, to date, approved 54 separate subsidies amounting to $101 million for communities with a total population of 54,126. Many of these communities have a high deprivation index. Around $30 million of the funding initially provided for the scheme has yet to be allocated.

“There is a very fair and equitable assessment process to determine which communities receive assistance from the scheme and I am pleased with the support that the Sanitary Works Technical Advisory Committee (SAWTAC) provides to the government in this regard. I will be seeking advice from SAWTAC on the best options to allocate the available funds.

“This new funding is in addition to the recently announced $31 million committed by the government to clean up the Rotorua Lakes and improve sewerage infrastructure in the area,” said Mr O’Connor.

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