New Zealand’s Sustainable Water Programme of Action - Water and Agriculture: Sustainability, Markets and Policies - page 326

matters as environmental baselines and how water will be shared between users. Water is
allocated between uses (beyond environmental baselines) under the resource consent
process which operates under a first-in first-served system. 11 In considering an
application for a resource consent the focus is on avoiding, remedying or mitigating
adverse environmental effects and the potential impact on existing permit holders. In
circumstances where there is competition for water, there is no ability to compare the
merits of different applications for resource consent.
New Zealanders increasingly understand that water has a value, and that the current
system is not always able to meet all demands for water and sustain the important values
of water resources. Processes for water allocation need to be able to establish an
appropriate balance between the competing values society has for water. Some regional
plans do not clearly specify an upper limit on the amount of water that can be allocated,
with the result that there is a risk of an unacceptable loss of in-stream values. There is
potential also for conflict between those wanting protection of in-stream values and those
seeking further abstraction. While New Zealand has so far largely avoided the need for
claw-back of allocations, this is likely to change with increasing demand.
In international and historical terms, growth and intensification has happened very
quickly in New Zealand. Given New Zealand's abundant (albeit variable in location)
rainfall, the current allocation and use system, and attitudes to water, have grown out of a
situation where there was very little scarcity. The current allocation and use system has
failed to keep up with this growth and change is required — in particular situations there
will not be enough water to meet all desired uses or demands. A flexible allocation and
use system would encourage more careful consideration of environmental, social, cultural
and economic values and assist in achieving the difficult balance of optimising economic
wealth while ensuring a quality environment for New Zealand (Ministry for the
Environment 2004c).

Consultation on the sustainable water programme of action

Public discussion
To help explore these issues in greater detail the WPoA released a public discussion
document for consultation on ideas for improving the freshwater management framework
(Ministry for the Environment 2004d). 12 Four groups of potential actions were presented:

providing national direction for water management;

central government being more involved in regional water issues;

providing more tools for regional councils; and

working together.
11. The first-in, first-served system means that resource consent applications are considered in the

order that they are received by the resource consent processing authority (typically a regional
council). If someone puts in an application on Monday, and then someone else lodges an
application on the Tuesday the applications will not be considered together — the Monday
application is considered first, and then the Tuesday application is considered afterwards.

12. Available at www.mfe.govt.nz/issues/water/prog-action/index.html.