Hon NANAIA MAHUTA: No. Scale is important for improving the financing capacity of water entities for achieving improvements and operating in capital efficiency and for helping to make the cost of infrastructure upgrades in small communities affordable. However, the full benefits of reform cannot be achieved by scale alone. The ability of new water service entities to perform effectively and efficiently also requires effective, professional, independent governance arrangements and the ability to attract and retain appropriately skilled management and workforce; the establishment of an economic and consumer protection regulation; clear, ongoing national policy direction for the three waters sector, aligning Te Mana o te Wai aspirations and water services entities with access to the necessary finance to make the required investments over time. The model that we've settled upon as a Government will deliver on these goals whilst striking a balance on scale, which delivers increased efficiencies while keeping the entities responsive.