Hon KIERAN McANULTY (Associate Minister of Local Government) on behalf of the Minister of Local Government: On behalf of the Minister, yes, because under the reforms territorial authorities would be the owners of the water services entities. The water services entities will be owned by territorial authorities in the services area. Each territorial authority will receive an ownership share in the relevant entity based on the population in the district. Territorial authorities will be the only shareholders in these entities. These arrangements were recommended by the working group that was made up of local council representatives from across New Zealand, some of whom previously expressed concerns about the three waters reforms. Therefore this proposed ownership structure is a direct result of engagement with the local government sector. 