We have published our submission to the Finance and Expenditure Committee on the Water Services Entities Bill.

Because water services are critical to everyone, our focus is on how the public and Parliament are able to influence the performance of the Water Services Entities (WSEs) and hold them to account for that performance.

Overall, we are concerned that the Bill, as currently drafted, could have an adverse effect on public accountability, transparency, and organisational performance.

We are concerned about whether the planning and reporting mechanisms in the Bill will be sufficient to enable comprehensive and effective public scrutiny of WSEs. We recommend the Committee seeks further information from officials about the effectiveness of these arrangements.

In moving responsibility for water services from councils to WSEs, there is a significant reduction in audit scrutiny proposed in the Bill. We strongly recommend the Committee considers the requirements for independent assurance in all aspects of the operations of these new public entities, and whether WSEs should be required to produce a 10-year plan, similar to councils’ long-term plans, that is also audited.

The submission also sets out our views on the need for further clarity on the WSEs’ governance arrangements, planning and reporting arrangements, and integration with the wider public management system.

You can read our full submission on our website.

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