The new Water Services Consumers Agency would protect vulnerable consumers, rather than exposing them to independent user groups' 'specific agendas'
A select committee law change enables the creation of a Three Waters consumer advocacy group, rather than relying entirely on the Commerce Commission to protect community interests.
When the Three Waters Economic Efficiency and Consumer Protection Bill was announced at the end of last year to provide consumer protections alongside the Water Services Entities Bill it was assumed the Consumer Advocacy Council’s scope would be broadened to cover water customers.
But in its final reported changes, the finance and expenditure select committee has empowered Consumer Affairs Minister Dr Duncan Webb to establish a new agency to represent and advocate for the interests of consumers in the water services industry.
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The committee, chaired by Labour MP Ingrid Leary, says the establishment of a new agency, recognising the importance of water, would protect vulnerable consumers.
It would also ensure the advocacy group was established intentionally and with a clear mandate, rather than organically through user groups “where specific agendas may come into play”.
The amendment would allow the new Water Services Consumers Agency to promote the interests of consumers to relevant public service agencies and Crown entities; and provide evidence-based advocacy on behalf of consumers, whether in response to policy proposals or on its own initiative.
The new agency would otherwise be able to determine its own procedure.
The wider efficiency and consumer protection regime falls under the responsibility of the Commerce Commission, with the creation of a Water Services Commissioner inside ComCom.
The select committee suggested amending the required qualifications include knowledge of Te Tiriti o Waitangi and its principles, the perspectives of Māori and tikanga Māori.
“We consider such knowledge essential to the Commission’s role in supporting Māori-Crown relations.”
As New Zealand’s consumer watchdog it wouldn’t be unreasonable to expect the Commerce Comission to pick up the consumer advocacy position under the regime, but as pointed out by Act Party's committee representatives, ComCom already has a lot on its plate.
Act’s commentary in the final report said the Commission was being ordered to branch into a regulator of Treaty obligations, climate change and supporting development.
“The unfortunate Commerce Commission finds itself, not only in the awkward position of being a market regulator that is not regulating a market but a public service, but now a regulator of infrastructure needs as well, without the competency or tools to carry out that role.”
National also criticised the workload being handed to ComCom. “The extent of the economic oversight is more appropriate to an environment where there are privately owned entities competing in an open market.”
