To date the entire 3 Waters debate has been dominated by ‘da maris is stealing da water’ level of sophistication, yet no one has considered the geopolitical ramifications.
In 2017, Infrastructure NZ led a delegation of 33 senior New Zealand public and private representatives to the UK. The purpose of the all expenses paid delegation was to investigate Scotland’s infrastructure innovations since devolution, especially their water system which ended up being the structural basis for 3 Waters.
Criticism of the financial structure of 3 Waters raises serious questions about the ease with which a failing water entity could be privatized.
Under the current 3 Waters legislation, the new water entities cannot be ‘bailed’ out by their council ‘owners’, and the entities are also empowered to sell assets if they can retain the capacity to exercise their duties functions and powers. The ‘owners’ can’t prevent this, nor can the Regional Representative Group or the appointment board.
Infrastructure NZ comprises of the China Construction Bank, Industrial and Commercial Bank of China and the Bank of China. These are the domestic pimps for China’s Belt and Road project, why are we allowing Chinese interests to influence our infrastructure?
Wouldn’t it be a tad outrageous for Chinese Business interests to push our officials into adopting a water infrastructure system that could lead to privatization which those Chinese Business interests might ultimately be the benefactor of?
I ask, because that is what has happened and no one seems to have noticed!
The question politically is would any Iwi attempt to maximise the new powers they’ve gained under 3 Waters to cut deals with Chinese water interests instead of local interests because that would be seen by many Kiwis as treason.
The romanticisation of Māori Capitalism is that it is less venal than Pakeha Capitalism, but that romanticism is a double edged sword, because if Māori are using The Te Mana o Te Wai statements, (these are buried buried deep within the Water Services Entities Bill), they gain a veto power no one else has, and with that veto power they could choose to not work with NZ, they could work with Chinese water interests and that would generate a backlash explosion of anger far greater than ‘da Māoris is stealing da water’.
Interestingly the preamble of 3 Waters is all about the obligation of the State to protect Iwi expressing their interest in water – which includes their ‘right’ to sell their interests to who they want.
Ultimately if China Construction Bank, Industrial and Commercial Bank of China or the Bank of China offer to fund 3 Waters, a system they influenced, should we accept?
We have been so easily distracted by ‘da Māoris is stealing da water’ we have not realised the corporate Chinese banking interests who are actually directing our infrastructure plans!
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Who else is going to build the infrastructure? We sure as well can’t based of the nature of our roads…..
Thats BS. Bro NZ during the last 150 years when it was a poorer but possibly more soverign (owned some of its banks) country was perfectly cabable of building its own infrastructure railways,roads,hydrodams,electricity grid,oil&gas wells, steel mills, water dams & piping. There is absolutely no reason NZ cannot fund and build any water supply infrastructure it needs today.
The expertise we had in earlier times has all gone and it will be hard to get back together again.Knowledge was past on as one person retired and another took their place and grew into the role he took on . I was amazed when 2 years ago I went to hear Marama Davidson at a local WEA.
Someone mentioned M.O.W. asnd she had no idea what they were talking about or what they did .
We need to have an educated younger generation to take on all these roles but we will not get it when teachers need to go on strike to get better conditions .
Martyn misdiagnoses the basic problem hanging over the public ownership and management of drinking water, waste water and storm drains – which is that nobody wants to pay the full cost of providing them.
This financial and political fact leads to having to borrow the money because today’s ratepayers and/or taxpayers don’t want to pay – so the vast sums of money has to be borrowed.
The investment world is smart enough to recognise that local councillors can’t be trusted to be part of the management/governance of the assets – because they will always undercharge, under-rate, or under invest in maintenance (looking at you, Wellington). So local councils can’t be part of managing/governing the water assets if outside money is borrowed.
So who do we blame for this mess – a) the finance industry, b) local politicians, c) central government politicians for having no water regulator or enforcing adequate maintenance and building new assets over the past decades, d) iwi (nope), or most uncomfortably e) ordinary ratepayers who didn’t/don’t want to pay for what they are provided?
I pick group b, c and e as being at fault.
And there I was thinking that was what I did every time I handed my hard earned money willingly to the council after paying my tax.
Well, what you pay may not be covering the full cost of the water services.
Or, like here in Wellington, the Council diverted a part of the maintenance and depreciation Budget into other, more sexy, expenditure…
I can assure you of one thing. Council officers may be devious but they are not stupid.
By my count that is one thing as the other is an insinuation.
The Councillors did it, not the staff.
I think we should be realistic. Despite the lies from CIA employees like Anne-Marie Brady about ‘debt trap diplomacy’, China has never actually seized control of any of the third-world infrastructure it funds, unlike the US and its IMF puppets.
If we’re going to allow privatization, the Chinese are the least bad international partners.
Of course, in a civilized country, advocating privatization of New Zealand infrastructure would be a capital crime, imposed retrospectively.
China is the least bad international partner? I think that is completely the wrong assessment. You somehow let your anti US sentiment cloud your judgement of China
People are rightly concerned about privatisation, including to Iwi. I remember hiking up Mt Tarawera for a $2 koha – its currently $189 per person and no entry otherwise. Urawera National Park has been inhospitable to anyone other than a few for a long time. In Auckland the Tupuna Maori Authority wants to clearfell Maunga with no local consultation and will spend $1M in court to establish that right (failed), and prevents people entering to watch Guy Fawkes night (with Security Guards funded by Rates of course). There is no consultation or accountability for these decisions.
Apart from the Tribal elite who feed at the public trough, everyone else’s rights and opportunities are reduced.
Try getting access to any private home in Remuera (or other areas) & see how long your attempt lasts. While I can appreciate the sadness at being denied access to areas that were accessible in the past (mainly due to the rights we denied to the rightful owners) the Iwi are just doing what (almost) every other private land owner does.
Si your opinions are yours alone. When Local Maori get involved in conjunction with council management of resources like Maunga’s, Rivers, lakes, Native forest etc there is a clause in these agreements that guarantee public access. Its a form of nationalism that let NZers regardless of race use these resources for their enjoyment. Maori and non Maori NZers need to insist on nationalizing our resources for all NZers.
Yes, had a peruse of the membership of Infrastructure N Z, all the big boys are there including employer lobby groups…strange no unions represented….CTU?…suppose all the labour will be fly in fly out or the preferred method these day just fly in and stay & add to the infrastructure problem we are trying to solve!
3 Waters, the contracting out of the services needed isnt going to fix it with 15 year contracts!
Take at what worked, historically and then what hasnt.
1900 onwards we had basically the Ministry of Works that built everything that has worked up until the 1990s when the free market took over because of Lange and Douglas’s selling out of NZ 1984-1989.
Since then, everything has become disproportionately extortionately more expensive and failed to deliver decent infrastructure.
In short, the moral of the story is, bring back the MoW’s now!!
Totes!!
Too right
PS: Whilst China may have their fingers in the pie, we are at just as much risk from the Blackrock’s and Serco’s of this world.
Its interesting that you mention Black Rock Fantail. Theyre already plugged into the NZ Superfund.
So if you think about it. All they have to do is buy a few board members off to assist them winning the contract(s) that would be pretty much guaranteed to be rolled over indefinitely. And, the NZ Superfund, our own money that they ‘manage’, which is about $1b-$3b at the moment, would be funding all of this and they’ll clip the ticket without having any skin in the game! Their skin!!
However, if the water entity becomes insolvent, the debt falls back on the councils.
Seems like lose-lose to me.
It’s complete dog shit whatever way you look at it.
I think the wording in the amendment actually says it comes back on us as ratepayers unless I am mistaken.
“The romanticisation of Māori Capitalism is that it is less venal than Pakeha Capitalism,”
Yes its romantic. The reality is the maori capitalist elite sold the land to the english and the current maori capitalist elite might think twice but would ultimately have no qualms about selling the water to the chinese.
They will not make the same mistake…..
Thanks Martin.
Now I feel secure…..
On then have a drink,jenny said,waid,Jenny,come waid,and swim,with us,then shower,our wai drink.John Key,said,Jenny,wis his insperation.
Question,how come Auckland became so large,question.
Should i bomber.
Easter,maybee,a new rise.