The report said ECan's performance on water policy and management required "comprehensive and rapid intervention" by the Government "to protect and enhance both regional and national wellbeing".
It recommended replacing the elected council with commissioners, to be chaired by public servant Dame Margaret Bazley, to manage change at ECan and setting up a separate specialist Canterbury Regional Water AuthorityThe Government did not go as far as a separate water authority, because of the difficulty in separating that function away from other regional functions.
However, the legislation will give legal status to the Canterbury Water Management Strategy, developed jointly by the Canterbury mayors, supported by their councils and ECan.
The strategy, Dr Smith said, provided commissioners with a clear framework for managing Canterbury's water.
The two ministers said there would be no additional cost to Canterbury ratepayers.
Governance by commissioners will be no more than the present cost of the council.
The commissioners will be required to work with the Canterbury mayors and people and will be subject to the Resource Management and Local Government Acts.
The Government rejected an alternative proposal by ECan to appoint an adviser-commissioner to work with the council, because some councillors disagreed with the approach, it would not address the loss of community confidence and there could be real difficulties maintaining it after local body elections in October.
The special powers which will be granted by legislation to the commissioners speed up the Resource Management Act processes, particularly water management.
Effectively, the commissioners will be given the power of an Environment Court to fast-track regional plans, with any appeals limited to the High Court, on points of law.
The commissioners will have the power to implement targeted moratoriums on water-take consents in areas that are fully allocated, or near to it, subject to the Environment Minister's approval.
The commissioners will also have the power to determine water conservation orders in Canterbury, rather than a special tribunal with appeals to the Environment Court.
Final decisions will remain with the minister.
Dr Smith said Canterbury, with about 70% of New Zealand's freshwater resources, was strategically important.
"Government leadership is needed to address Canterbury's lack of a proper allocation plan, increasing problems with water quality and the failure to progress opportunities for water storage," he said.
The two ministers said Dame Margaret would be joined by a further four to six commissioners, to be appointed within the next month.
Dame Margaret met ECan senior executives yesterday, to ensure a smooth transition to the new governance arrangements.
The commission's terms of reference and commissioners would be finalised after the Environment Canterbury Temporary Commissioners and Improved Water Management Bill was passed by Parliament this week.
Main decisions:
- 14 councillors sacked.
- No election this year.
- Next election on or before October 2013.
- Up to seven commissioners to take over.
- Dame Margaret Bazley designated chairwoman.
- Special powers for commissioners.
- No additional cost to ratepayers.
- Urgent legislation this week to implement.
- Commissioners take over within a month.
