New Zealand's water allocation system ready for a shake-up

Wednesday 17 October 2007

The sustainable management of New Zealand's water is becoming a critical issue, says Bell Gully senior partner David McGregor.

The country's current water allocation system, particularly the "first-in, first-served" procedure under the Resource Management Act (RMA) is inflexible and inefficient, he says, and needs reforming.

The New Zealand Government is now working on ways to address the system's inadequacies and the challenge for policymakers will be ensuring fair distribution to competing users while preserving the sustainable management premise of the RMA.

David, who has been advising on resource management law issues for over 30 years, says an alternative to the current system is the establishment of a market for trading water rights, an unwelcome concept for many New Zealanders concerned it may lead to the privatisation of water.

Nonetheless, he says, the issue must be resolved to allow New Zealand's economy to grow, including the valuable wine industry which typically relies on water at times of shortage.

"Gaining a secure supply of water is one of the most critical elements for the development of a vineyard, and the New Zealand wine industry as a whole."

In a paper on water allocation and trading, David explains the existing water management statute and discusses key judicial developments in the approach to water allocation in New Zealand, focussing on New Zealand's wine industry. He also examines some of the mechanisms the Government might consider to enhance efficiency and balance economic, social and environmental issues.

David presented his paper at the International Wine Law Association's 2007 Australasian conference, held in South Australia's Clare Valley from 17-19 August.

Click here to read the paper

For more information, please contact:

David McGregor
Senior Partner

Marija Batistich
Senior Associate