New Zealand Acts

WATER SERVICES ENTITIES AMENDMENT ACT 2023 - SECT 16

16 New subpart 2A of Part 4 inserted

After section 137 , insert:

2A - Directions for shared services

137A Directions for shared services

1 The Minister may direct water services entities to comply with specified requirements to share services provided to those entities and that are requirements for all or any of the following purposes:

a) to improve (directly or indirectly) the provision of water services:

b) to develop expertise and capability:

c) to ensure business continuity:

d) to manage risks to the water services entities’ financial position, the Government’s financial position, or both.

2 The direction may be given only to 2 or more entities each of which is—

a) a water services entity; or

b) a subsidiary of a water services entity.

3 The direction must not be inconsistent with the operating principles of water services entities set out in section 14 .

4 The direction may direct 2 or more entities to which it may be given about how to give effect to it, but only in respect of any 1 or more specified periods—

a) after it comes into force; and

b) before 1 July 2026.

5 The direction must be limited to all or any of the following activities:

a) debt funding and management (for example, through the Water Services Entities Funding Agency):

b) information and communication technology, and digital infrastructure procurement and management:

c) other procurement, and supply chain management:

d) risk management and insurance:

e) workforce development and employment relations.

6 However, a direction to which subsection (5)(a) applies may only be given (despite subsection (1)) jointly by the Minister and the Minister of Finance.

7 A direction given under this section must include the reasons why it is given and a statement of its purposes.

8 A direction given under this section comes into force on the commencement date stated in it (which must be not earlier than the day after the date on which it is given).

9 Directions given under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Note: 2004 No 115 s 107

137B Process for giving directions under section 137A

1 The Minister must, before giving a direction under section 137A , engage in accordance with section 206 in relation to the proposed direction with—

a) the water services entities; and

b) the regional representative group of each water services entity; and

c) Taumata Arowai–the Water Services Regulator; and

d) the Commission; and

e) other persons, and representative groups of persons, who have an interest in water services in New Zealand.

2 The Minister must, in giving a direction under section 137A , consider—

a) the input or feedback provided through the engagement in accordance with section 206 in relation to the proposed direction; and

b) whether and how the proposed direction should respond to any issues or concerns raised by that input or feedback.

3 Subsection (2) does not limit or affect section 206A .

4 The Minister must, as soon as practicable after giving a direction under section 137A , notify the entities to which the direction will apply that the direction—

a) has been given; and

b) will come into force on the commencement date stated in it.

5 However, for a direction to which section 137A(5)(a) applies, references in this section to the Minister are to be treated as references to the Minister acting jointly with the Minister of Finance (and section 206 , as applied by this section, applies accordingly).

6 Subsections (1) and (4) do not apply to any amendment or replacement of the direction (see section 48 of the Legislation Act 2019 ) if that amendment or replacement has only a minor effect and does not adversely and substantially affect the interests of any person.

Note: 2004 No 115 s 108

137C Obligation to give effect to direction

1 This section applies to an entity to which a direction under section 137A is given, but only while the direction is in force.

2 The entity must give effect to the direction when performing its functions.

Note: 2004 No 115 s 110

137D Certain arrangements or agreements exempt from specified sections of Commerce Act 1986

Any arrangement or agreement is exempt from sections 27, 30, 30C, 36, and 36A of the Commerce Act 1986 if the arrangement or agreement is—

a) entered into by parties that are or include 1 or more entities to which a direction under section 137A is given; and

b) entered into by those 1 or more entities in order to give effect to the direction when performing their functions (in accordance with section 137C ).