Transferable Water Permits:

Two Case Studies of the Issues

Case Study 1 by Ministry for the Environment

Case Study 2 commissioned by MAF Policy and Tasman District Council

Prepared by:

Mike Kearney, NZ Horticultural Economic Service, Nelson

Jim Sinner, Resource Consultant, Nelson

MAF Policy

Technical Paper 97/12

ISBN: 0478-07460-3

ISSN: 117-4662

December 1997

Foreword

Both MAF Policy and MfE have a role to provide information to those working with or considering the use of economic instruments in resource management. Economic instruments essentially provide a financial incentive to consider the environmental implications of our actions. In certain situations they can be an important tool in the resource manager's "kitbag". Economic instruments can be a useful adjunct to regulation, encouraging efficient use of resources and providing flexibility for users.

There has, however, been little practical experience in New Zealand in the use of economic instruments such as transferable permits under the Resource Management Act 1991.

This report brings together two case studies relating to the implementation of Transferable Water Permits (TWP's) in Manawatu and Tasman regions.

The Oroua study was carried out by the Ministry for the Environment (Feb 1997), and aimed to identify the barriers to putting the Manawatu-Wanganui Regional Council's Oroua Catchment Water Allocation and River Flows Regional Plan in place. Suggestions are made about how these barriers can be overcome, as well as identifying initial problems in implementing such a system along with potential solutions. The study has been previously released as paper no.12 in the Ministry for the Environment Resource Management Ideas series.

The Tasman study was undertaken from May to June 1997 by Mike Kearney (NZ Horticultural Economic Service, Nelson) and Jim Sinner (Resource Management Consultant, Nelson) as part of MAP Policy's Sustainable Agriculture Facilitation Programme. Close cooperation with the Tasman District Council enabled the consultants to engage in two way discussion with the water users involved. It aimed to understand and document a community's views on the concept of TWPs as an option for water management. Like the Oroua study issues of concern to the community have been identified and suggestions made to address these concerns.

 

 

 

Alan Walker

Director, MAF Policy

 

Ray Salter

Manager, Resource Management Directorate

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