Hon NANAIA MAHUTA: I've not received any advice to indicate the Government's preferred model is inconsistent with the Public Finance Act. Treasury has been regularly consulted as the reform processes unfolded and have not raised any concerns to this end. The reforms will create entities that are structurally separated from local councils and the New Zealand Government, have financial and operational autonomy, and borrow in their own right. As such, there would be no explicit liability for the debt of the water services entities recorded on the Crown's or the local authorities' balance sheets. The Government has not committed to providing a Crown guarantee to the water service entities. However, it has agreed to make available to water service entities a liquidity facility, accessible under certain conditions on similar terms to the liquidity facility enjoyed by the Local Government Funding Agency (LGFA). Standard and Poor's advise there would be no changes to their credit ratings or outlooks for the New Zealand sovereign or the LGFA under the proposed reform scenarios.