The auditor-general's submission on three waters legislation is a "constructive suggestion", the minister says, and a normal part of the Parliamentary process.
Associate Minister of Local Government Kieran McAnulty has been playing second fiddle to Nanaia Mahuta since his elevation to minister outside Cabinet.
With Mahuta visiting Asia as Minister of Foreign Affairs, he stepped in as acting minister at Question Time to answer the criticisms of National and ACT on the three waters reforms.
The reforms shift management of water services from 67 councils to four large entities, and the first of at least two pieces of legislation to make that happen is before the select committee.
Yesterday, Auditor-General John Ryan - an independent public servant whose job is to assess the functioning of the public sectorurged the government to ensure the new water entities would be regularly audited.
National and ACT - who in a poll last night were pegged to be able to form the next government - have both promised to repeal the law, which is set to take effect on 1 July 2024.
The parties' local government spokespeople - Simon Watts for National, and Simon Court - seized upon the auditor-general's submission, which warned the current bill could have an adverse effect on the accountability, transparency and organisational performance of water services.
McAnulty played down the submission, saying it was exactly what the select committee process was for.
"We always take seriously comments that the auditor-general makes on legislation and we are prepared to consider all constructive suggestions for improvements. This is exactly what the select committee process is for," he said.
"The auditor-general in his submission noted the need for water services reform and I agree with him. He has also provided constructive suggestions on how the arrangements for reporting and transparency can be improved, and the select committee is considering these."
He said there were a number of proposed mechanisms by which the entities would remain accountable to the communities, which would - he said - retain ownership over them.
"If we do not reform as every single council in the country is calling for and as the auditor-general is calling for in their submission, if we stay as the status quo like the National Party and the ACT party are proposing, $185 billion costs will be borne by ratepayers and ratepayers alone."
Watts asked him to apologise, saying the government had failed to listen to the problems raised about accountability and transparency by local communities.
"I would consider apologising if after four years of considering reforms of water services, not having a single alternative proposal to put to the country. That's the situation the National Party are in and that's the situation the ACT Party are in," McAnulty said.
"We after four years of looking into this issue ... have a way forward and throughout that process ... we have listened to the concerns of ratepayers and local councils."