Labour will: 1. Introduce a new NPS for Freshwater Management based on the principles in the 2010 Sheppard version.

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1 Water Introduction Freshwater is a precious and finite public resource. It is a taonga of paramount importance to all New Zealanders. Whether we live in town or country, we are its stewards. 1 Labour says New Zealanders have a birthright to swim safely in our rivers and lakes and at our beaches. If each of our local rivers is clean enough to swim in, then all of our rivers will be clean. Currently the quality of our freshwater is being badly degraded, with many lowland lakes and rivers now polluted. We need urgently to protect the life-supporting capacity of our water, ensure as a basic human right access to safe drinking water, and provide the public with a fair return when large quantities of water are used commercially. Labour will ensure central government plays an effective leadership role on water issues, while retaining appropriate decision-making at local government. Labour agrees with the Waitangi Tribunal and the Land and Water Forum that the issue of Māori rights and interests in freshwater needs to be resolved with the Crown. Labour s 12 Point Plan for Freshwater Quality 1. Introduce a new NPS for Freshwater Management based on the principles in the 2010 Sheppard version. 2. Require via the NPS that rivers and lakes be clean enough for people to swim in during summer without getting sick, while achieving aquatic ecosystem health. 3. Require via the NPS that significant increases in the intensity of land use for livestock are no longer a permitted activity as of right under the Resource Management Act 1991 (RMA). A resource consent would be required. This point of control will be used to stop rivers and lakes getting dirtier, without delay. Within 5 years water quality should be improving. Even the most grossly polluted rivers and lakes must be cleaned up over a generation. This will also protect aquifers. 4. Adopt strong nationwide freshwater quality standards, including for pathogens, dissolved oxygen, nutrients, periphyton a.k.a. slime, and macroinvertebrate health. These bottom lines will reduce diffuse pollution of freshwater, with dates by which progress towards the standards has to be achieved. 1 Water and freshwater are used interchangeably in this policy, and include surface water, groundwater and aquifers. Waterways covers streams, rivers and lakes. 1

2 5. Take action to protect waterways, wetlands and estuaries from excessive sedimentation caused by erosion and land use practices (including spray and pray ) that lead to soil loss. 6. Require fencing within 5 years of all intensively stocked land near waterways, with setbacks for riparian planting to filter and absorb silt and nutrients. 7. Fund either the Ministry for the Environment (MFE) or the Environmental Protection Authority to enforce the law by prosecuting breaches of the RMA through local Crown solicitors, including the right to reclaim costs from the guilty party and the regional council. 8. Work with Māori to restore the mauri to waterways subjected to pollution and practices that have compromised the relationship iwi and hapū have traditionally had with these taonga. 9. Prevent the extinction of freshwater species; and in particular consider all options for saving the longfin eel (tuna) from extinction, including whether the Parliamentary Commissioner for the Environment s recommended moratorium on commercial fishing is needed. 10. Support regional councils in implementing the new standards and bottom lines, in setting minimum flow regimes on named waterways, and in overseeing the separation of stormwater and sewage systems in urban areas. 11. Require each regional council to report annually to MFE on whether, and how, city or district council rules within the region are adequate to protect waterways. 12. Require the Audit Office to audit annually every regional council as to whether they are properly carrying out their legal responsibilities to protect freshwater. Background to Labour s 12 Point Plan for Freshwater Quality Improving water quality The scale of the challenge Pollution of rural waterways has been caused mainly by agricultural intensification, and the runoff or leaching of effluent, nitrate, phosphate and sediment. Over 60% of monitored river sites are graded poor or very poor for swimming. 2 The Parliamentary Commissioner for the Environment (PCE) says: 3 On land, nitrogen and phosphorus are valuable nutrients; above certain concentrations in water, they are pollutants. Much, if not most, of the phosphorus that has accumulated, and continues to accumulate, in waterways is the result of the erosion that has followed many decades of forest clearance for sheep farming. But the influx of nitrogen in highly soluble form 2 Parliamentary Question for Oral Answer No 5, 3 July PCE, Water quality in New Zealand: Land use and nutrient pollution, November 2013, pages 5, 6 and 10. 2

3 that has accompanied the dairy boom has joined with the phosphorus to foster unwanted plant growth in much of our fresh water. Where declining water quality is attributed to dairy farming, the cause is generally given as intensification defined as putting more cows on each hectare of land... [but] the bigger cause is the scale of the expansion of dairy farming putting cows on more hectares. 4 [There is a] clear link between expanding dairy farming and increasing stress on water quality. Even with best practice mitigation, the large-scale conversion of more land to dairy farming will generally result in more degraded fresh water. Diffuse sources now account for more than 95% of the nutrients that end up in fresh water, although discharge from point sources such as factories and town sewage can be locally significant. 5 The stress from dairy farming has got worse since 2008 with an additional million dairy cows producing waste equivalent to 14 million humans. However, dairy intensification is not the only issue. Increasingly intensive beef production is also problematic, with battery feedlots allowing sediment, nutrient and faecal pollution of streams, rivers and aquifers. New ruthless land practices like spray and pray have led to slopes being denuded of vegetation, replanted in stock crops, and then heavily grazed in winter. Erosion to waterways results. Nitrogen leaching from agricultural soils increased an estimated 29% from 1990 to 2012, and nitrogen levels are getting worse at 55% of monitored river sites across New Zealand. 6 Many freshwater aquifers are also being contaminated. Under the RMA, regional councils are responsible for safeguarding the life-supporting capacity of water. For 25 years most have failed badly in this statutory duty, and many waterways have become dirtier. Councils must do their job properly. Many of our native freshwater species are threatened with, or at risk of, extinction. This includes 72% of fish species including four of our five whitebait species, the ancient lamprey, and tuna (longfin eel) together with 34% of invertebrates and 31% of plants. 7 The plight of the longfin eel (tuna) was highlighted by a 2013 report from the PCE, who recommended a moratorium on the commercial longfin eel fishery until stocks are shown to have recovered. 8 4 From 1996 to 2016 the number of dairy cows in New Zealand increased by 70% to 5 million, and the area of dairy farm land by 45% to 1.75 million hectares. See LIC and DairyNZ, New Zealand Dairy Statistics , 2016, page 7. Most of the increase was in Canterbury and Southland see PCE report above, note 3, page 6. 5 Point source refers to a discharge coming from a single identifiable source, e.g. a pipe whereas a diffuse source is not specifically identifiable, e.g. runoff or leaching through the soil. 6 Ministry for the Environment and Stats NZ, Our fresh water 2017, data to 2016, April 2017, page Our fresh water 2017 above, note 6, pages Note that the freshwater species data covers species about which sufficient information is known, which is most of them. 8 PCE, On a pathway to extinction? An investigation into the status and management of the longfin eel, April 2013, page 69. 3

4 The difficulties facing freshwater fish and invertebrates are not just from excessive nutrients. Phosphorous is introduced to waterways largely by sediment. Sediment itself is a pollutant, which can change the habitat that fish and invertebrates rely on, especially by turbidity reducing water clarity and by fine silt clogging up the gaps between stones on the bottom and killing macroinvertebrates. Wetlands in the high country, the mid-country and the lowlands have been destroyed. Most wetlands have been lost, together with the ecosystem services they provide. Sediment and weed growth are smothering our estuaries and destroying shellfish beds. Effects now extend out to sea, with coastal kelp beds and fisheries being adversely impacted by turbidity and pollution. In urban areas, water pollution is caused by stormwater runoff, sewage and industrial pollution. Achieving a solution National tried and failed to persuade the country that it was a good enough standard for rivers and lakes to be wadeable. Labour will insist that our rivers and lakes are swimmable, fishable and safe for food gathering. Labour will insist that our rivers and lakes are liveable for native freshwater species, trout and salmon. They need healthy habitat to sustain them. We must avoid the deplorable risk of extinction that so many of our native species face in the waterways where they should be thriving. Labour will protect the purity of our freshwater aquifers. Once aquifers are contaminated, they can be very difficult to restore. A stronger national policy statement National Policy Statements (NPSs) are provided for by the RMA. The last Labour government initiated an NPS for Freshwater Management. The resulting 2010 draft NPS, from a tribunal chaired by former Principal Environment Judge Sheppard, required strong action to stop clean rivers being made dirty, especially by agricultural intensification, and to clean up dirty rivers over a generation. National spiked the Sheppard NPS and in 2011 instead produced a woefully inadequate one which National replaced in 2014, is revising again in 2017, and still can t get right. 9 The 2017 revision engaged in trickery that lowered the top swimmable standard and relabeled as swimmable rivers which had previously been wadeable. NIWA found that the revision made 46% of larger river sites swimmable up from 31% previously. 10 The 2017 revision 9 MFE, Clean Water, February NIWA, Technical background for 2017 MfE Clean Water Swimmability Proposals for Rivers, NIWA Report FWWQ1722, May 2017, page 25. 4

5 has poor limits on periphyton a.k.a slime, and nutrient levels. It is too lax in ignoring adverse test results for up to 20% of the time. It still does not properly control increases in livestock intensity. Labour s position is starkly different. We say that in summer, when flows are lower and most swimming happens, you deserve to be highly confident that you can put your head under the water safely, not suffer from toxic algae, and not get out covered in slime. Rivers clean up themselves when you stop polluting them. The new NPS based on the Sheppard version is a key step to achieving this. Requiring better farming practices As the Parliamentary Commissioner for the Environment notes: 11 The majority of dairy farmers now spread their dairy shed effluent on to land, recycling the nutrients it contains. Increasingly, stream banks are being fenced off and planted. But shed effluent accounts for only a small proportion of the urine and dung excreted by cows, and riparian strips are much better at stopping phosphorus than the very soluble and elusive nitrogen. Labour commends those farmers and other land users who strive for excellence in their environmental stewardship, while running profitable businesses. We are committed to promoting best practice land use and the innovation that goes with it. Dairy and other farm systems can be configured to be profitable while operating with a lower footprint on the environment. Precision irrigation minimises losses of nutrients and pathogens to groundwater, as do practices such as stand-off areas, appropriate stocking rates, and planted riparian strips. Along with other industries and businesses in New Zealand, farming should internalise the cost of its pollution rather than it being borne by the community at large and the environment. Promote best practice land use appropriate to soil types, and the innovation that goes with it Require improvements to farm practices to minimise the environmental burden caused by livestock, fertiliser and effluent Require compliance with nutrient budgets Support productive, profitable agriculture that protects ecosystem health and prevents pollution of freshwater by using the latest technology, validated decision support tools NIWA s analysis is based on actual site data, much of which is for polluted lowland sites. Compared with NIWA s 46%, Clean Water says that 72% of larger rivers (4 th order streams/rivers and above) are currently swimmable. The 72% figure results from modelling for all larger rivers rather than those actually sampled. It can be reasonably assumed that the 46% lowland-focused figure more accurately reflects the sites people want to use and swim at which is why they would be sampled. 11 PCE report above, note 3, page 6. 5

6 (such as improved versions of Overseer), farm system modelling and strategy planning, and advanced effects mitigation Work with farmers and the agribusiness sector to apply the latest technology inside the farm gate and make sound decisions Provide opportunities for riparian planting to qualify for carbon credits under the Emissions Trading Scheme Encourage dairy, meat and horticultural processors to take greater responsibility for the environmental performance of their suppliers. Upgrading drinking water Access to safe drinking water is a basic human right and a critical measure of a first-world country s infrastructure. Meeting minimum drinking water standards is a core responsibility of local authorities, but can sometimes be a challenge for smaller communities. New Zealand s drinking water should be free of infections such as campylobacter, giardia and cryptosporidium. Regrettably, contaminated drinking water contributes to our relatively high rates of such diseases. For campylobacter, our rate is twice that of England and three times that of Australia and Canada. 12 It was scandalous that some 5500 Havelock North residents contracted campylobacter from contaminated drinking water in Water treatment costs are increasing as water sources become more degraded. Chlorination and UV treatment may be required where it was not previously, but neither removes nitrates. Nitrate levels are increasing in aquifers and already causing problems in some bores used for drinking water, including the risk of blue baby syndrome. Money spent upgrading a drinking water supply prevents human misery and medical and other costs caused by waterborne infections. It also lifts the general welfare of communities, and protects the reputation of those which are tourist destinations. The now expired subsidies available under the Drinking Water Assistance Programme (DWAP) were designed to assist small communities and their local authorities to meet minimum drinking water standards. Assist small communities and their local authorities to meet minimum drinking water standards. Assistance could be funded through royalty revenue from commercial water users (see A freshwater royalty below). Addressing urban stormwater and sewage treatment Stormwater including runoff from streets and roads introduces sediment and many pollutants into natural waterways, including heavy metals. Uncontained sediment from 12 OECD, OECD Environmental Performance Reviews: New Zealand 2017, OECD 2017, page

7 building sites and roadworks contributes to this. The pollution ends up at our beaches and in the coastal waters where people recreate. To be sustainable, Auckland and other cities must address this problem. This includes exploring infiltration systems such as stormwater wetlands, as alternatives to piped runoff systems. Work with urban local authorities, particularly in the main centres, to improve stormwater management, to separate stormwater from sewage, and to maintain or enhance the health of receiving waterways. While cities and larger provincial towns with large rateable bases generally have adequate sewage treatment, some smaller towns do not. Labour believes these communities should have a standard of sewage treatment that is safe for human and environmental health. Investigate the adequacy of urban sewage treatment plants across New Zealand with a view to identifying towns that may need assistance with planning or implementing cost-effective upgrades. Improving water allocation and management For water use to be sustainable, it must not be over-allocated and extraction must not compromise bottom line environmental requirements. Regional councils are the best vehicle to administer freshwater allocation, in close consultation with their communities, Māori, water users, environmentalists and other stakeholders. Regional councils determine water allocation through water permits lasting up to 35 years. Permits are not a property right and are time-limited. Excluding hydroelectricity use, the largest user of freshwater is irrigation to which 51% is allocated, followed by domestic consumption at 14% and industry at 13%. 13 Ensure that the use of water is environmentally sustainable in both urban and rural areas, and will accordingly support catchment-based integrated land and water management Engage with farming and other stakeholders to develop sustainable water allocation models that encourage and maintain efficient water use, and a mix of farming and land uses across regions that match soil types Investigate the introduction of a national water accounting and registry system to ensure consistency across regions and collection of standardised information about water permits Promote continuing broad stakeholder involvement in the allocation and management of freshwater 13 Our fresh water 2017 above, note 3, page 13. 7

8 Require overseas persons as defined by the Overseas Investment Act 2005 to obtain consent under the conditions of the Act for the transfer of any water permit to them. Introducing a freshwater royalty Water permit holders meet consent and extraction costs and measure quantities (if five or more litres per second) to ensure they stay within their allocations. They do not currently pay for the water itself. The National government says this is appropriate because no-one owns water. Labour says that everyone owns water, although some people have particular interests in it that can be valuable. We say that when a public resource such as this is being used for commercial profit, the public has a right to get a return on it by way of a royalty as we do for oil, gas, coal, silver and gold, and even gravel. 14 It is fair that such a royalty should be paid by large commercial water users such as water bottlers, irrigators, and other industrial users instead of them getting it for free. Also, a royalty would encourage the best and most efficient use of freshwater so would act as both an economic and environmental tool. All domestic uses of water would be exempt from the royalty, as would stock water uses. 15 The freshwater royalty will be set by the government at a fair and affordable level, with expert advice being sought from Treasury and others on its design, and interested parties consulted. The royalty per cubic metre of water used could vary from region to region, or within a region, and depending on the use. The royalty for pristine water good enough to bottle would be higher than for lower value uses. Long-term price signals would be needed to provide investment certainty. Any transitional issues will be managed equitably. The majority of the revenue from the freshwater royalty will be returned to regional councils in the region where it is raised, including for funding the reduction of rates. A freshwater royalty will stop large capital profits being made when water permits are transferred between users. Introduce a freshwater royalty on water bottlers and other large commercial water users, and set the royalty at a fair and affordable level 14 A royalty is also known as a resource rental. 15 Some local authorities charge urban reticulated consumers (residential, commercial and industrial) on a per cubic metre basis for delivering treated water to them, instead of this cost being included in rates. 8

9 Seek expert advice on the design of the royalty, including from Treasury, with details to be developed in consultation with industry, local government, Māori, rural and urban communities, and environmental and other stakeholders Return the majority of royalty revenue to regional councils to fund rates reductions, and the likes of better water management, restoration of waterways and wetlands, and safe drinking water supplies in rural areas. Resolving Māori rights and interests in freshwater Labour agrees with the Waitangi Tribunal and the Land and Water Forum that the Crown, if a system of freshwater management is to be stable and durable. 16 Such a resolution is expected to involve a share of freshwater royalty revenue being allocated to Māori. The resolution would recognise that others also have rights and interests in freshwater. Seek to resolve the issue of Māori rights and interests in freshwater. Approving and funding freshwater storage and irrigation Year-round water availability is key to generating sustainable economic prosperity in drier areas of New Zealand. It adds value to a variety of land production activities, including stock farming, cropping, viticulture and horticulture, as well as providing electricity generation. Water storage options include taking high flows for on-farm storage and damming side-valley catchments. The area of irrigated land in New Zealand has increased by over 50% since 2002, 17 but with poor control of resulting increases in farming intensity and ensuing environmental impacts. Access to stored water must be accompanied by strict environmental standards including the maintenance of water quality and residual minimum flows and penalties for noncompliance. Any water storage or irrigation proposal must be environmentally sustainable, and economically sound; and attract broad consensus from across the wider community, even if the major beneficiaries (and financial contributors) are farmers and electricity generators. Ensure that the processing of consents for proposed water storage and irrigation schemes (via regional councils) and for resulting land use intensification (via district or city councils) are linked Require that any water storage or irrigation proposal be environmentally sustainable and attract broad consensus from across the wider community. In its Irrigation Acceleration Fund, National has committed $60 million of taxpayers money towards investigating new water storage and irrigation schemes and has offered up to $400 million (from electricity SOE sales) through Crown Irrigation Investments to help build them. 16 Third Report of the Land and Water Forum, Managing Water Quality and Allocating Water, October 2012, page 8; Stage 1 Report on the National Freshwater and Geothermal Resources Claim, WAI 2358, Waitangi Tribunal, 2012, pages Fast Facts on Irrigation New Zealand website. 9

10 Labour says these costs should not come from, or be subsidised by, taxation or SOE sale proceeds. Honour existing commitments, but remove Crown subsidies for the funding of further water storage and irrigation schemes, because they should stand on their own economic merits if they are viable. 18 Protecting rivers, wetlands and estuaries Rivers Many of New Zealand s wild rivers have been lost to hydroelectricity development, and the landscape and biodiversity values of such rivers have become scarcer. Water quality in many rivers has been degraded by agricultural intensification. New Zealanders enjoy the free-flowing nature of our remaining wild rivers. We should not keep damming them for hydroelectricity or water storage. Alternative means of generating renewable electricity or providing storage are available. We need to consider all the costs including the environmental costs of damming rivers. We also need to better police encroachment of braided riverbeds by adjoining landowners, in order to protect the valuable habitat they provide. Protect the main stems of our major remaining free-flowing rivers from being dammed Guard against encroachment of braided riverbeds Improve the integration of water conservation orders into resource management processes, and strengthen the water quality provisions of water conservation orders. Wetlands As defined in the RMA, wetlands include permanently or intermittently wet areas, shallow water, and land water margins that support a natural ecosystem of plants and animals that are adapted to wet conditions. Too often in the past, wetlands have been regarded as mere swamps or bogs that should be drained and developed, as 90% of New Zealand s freshwater wetlands have. As well as supporting freshwater birds and fish, wetlands provide flood control, replenish groundwater, reduce erosion and nutrient runoff, and store carbon. They are culturally important to Māori as a source of food and materials such as flax. Some of our wetlands are recognised as internationally significant by the Ramsar Convention. The value of wetlands is now being appreciated in New Zealand, and a number of restoration projects are underway. 18 Existing proposals such as the Waimea Community Dam project which would supply water for irrigation, urban and industrial purposes will be given a reasonable period in which to proceed. 10

11 Work to prevent any further loss of New Zealand s wetlands and will promote wetland restoration. Estuaries Estuaries are an interface between fresh and salt water, include estuarine wetlands, and comprise some of the rarest ecosystems in New Zealand. They are an important filter protecting our inshore fisheries from pollution. They provide crucial whitebait and fish spawning, and juvenile fish habitat. They are a breeding and feeding haven for many birds, and places of recreation. The management of catchments behind estuaries matters because estuarine health depends upon the quality of freshwater flowing into them. Too many of our estuaries are in decline from sediment and other pollution coming from the land. Introduce an NPS to protect our estuaries. Labour s NPS for estuaries will control siltation and eutrophication, and stop the incipient reclamation of the edges of estuaries where fish spawn. It could, for example, require all tidal gates to be reviewed and require the removal of those which are inappropriate. While estuaries are mentioned in the New Zealand Coastal Policy Statement, they are not dealt with there to the degree required. 11