1 Jun 2012

Iwi expects to lose money if water bill becomes law

6:33 am on 1 June 2012

A Maori incorporation heavily involved in farming in Taranaki says if a local water scheme is privatised - it will lose money.

The Cold Creek Rural Water Supply Bill, which has passed its first reading, was examined by a

select committee on Thursday.

The incorporation, PKW, says it would have to lease its land for less money because the network of pipes would no longer be part of the value of its whenua.

Parininihi ki Waitotara Lands Assets portfolio executive Ranald Gordon says if the bill is passed its land rental income would drop.

He says current legislation means the unimproved value of its lands also includes the value of infrastructures such as the water supply pipes just outside of its boundaries.

Four South Taranaki iwi are against the bill because if it becomes law the water network running from a stream to about 400 people will be privately owned by a group of farmers.