Friday, March 29, 2024

Mixed reactions to Three Waters shakeup

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Rural and urban councils across New Zealand are mulling over the implications of the Government’s proposal to take responsibility of drinking water, wastewater and stormwater infrastructure out of local governments’ hands and give it to four new entities.
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Local Government Minister Nanaia Mahuta says the proposal would save ratepayers thousands of dollars. It would also ensure the $120-$185 billion the Government is investing in services can be made.

At present, 67 councils provide most of the country’s Three Waters services, a system that is in too many cases ineffective, inefficient and not fit for purpose.

The four entities would encompass: Northland and Auckland; the centre of the North Island, including Tauranga and the Bay of Plenty; the east coast down to Wellington and the top of the South Island; and the final entity covers the rest of the South Island.

Local Government New Zealand (LGNZ) president Stuart Crosby says it supported amalgamation of water entities provided it was voluntary.

If it proceeds, the four new entities would be put in place next year, but they would not be operational until July 1, 2024.

He says the reaction among the country’s councils was varied.

“Some have said ‘yes, we understand it’ and are prepared to be part of that, others want more information and some have been opposed to it from the get-go,” Crosby said.

“LGNZ’s position is that we do accept there is a case for change, but we also respect from each individual 67 authorities that their view could be yes or could be no.”

That variance also ran along urban and rural lines. Urban councils – with the exception of Auckland mayor Phil Goff – were generally supportive of it.

Smaller rural councils have a range of issues to consider from the proposal.

Some questioned whether it meant the end of their councils, given the three waters services and rates generated 30% of its income. Others wondered what, if any, influence it would have in being part of one of the four new entities.

“How can I have any influence over these big authorities when I’m a Clutha of the world? Having influence is a big concern,” he said.

Crosby says ensuring iwi voices are properly heard in this proposal will also be a major challenge for the Government.

Kāpiti Coast District Mayor K Gurunathan labelled it a possible “turd degree burn for ratepayers”.

“My main concern with the proposal is that ratepayers who have invested heavily and proactively in our water services and are well-positioned for the future because of it will end up bearing the costs of an entity that will need to prioritise failing infrastructure in other areas over work in our communities,” Gurunathan said.

Waimate Mayor Craig Rowley questioned the accuracy of the data being used by the Government to justify the proposal.

“We firmly believe the data in their model is not suitable particularly for rural New Zealand,” Rowley said.

He was also concerned about the proposal’s costs. Waimate ratepayers currently paid around $430 a year for water delivery.

“Under the new proposal this would go up to $1640,” Rowley said.

He says the council will go over the data more closely in the next few weeks and eventually be in a position to present options to the district’s ratepayers.

Christchurch mayor Lianne Dalziel was lukewarm towards the proposal, saying it was difficult to yet see a compelling case for change.

“Until we get the full package and have all the pieces of the puzzle in front of us, it is difficult to judge whether it is in Christchurch’s best interests to be part of the new entity,’’ Dalziel said.

Auckland Mayor Phil Goff also questioned what value the proposal had for Aucklanders.

Far North District Mayor John Carter says the Government makes a strong case for reorganising three waters services.  However, the council needed time to do due diligence on it.

“We need to understand the data and our position, including what is best for the people we are elected to represent,” Carter said.

Likewise, Marlborough Mayor John Leggett says councillors will look closely at the proposal.

“From what we have seen so far there appears to be economies of scale and benefits for ratepayers and residents in the proposals. The numbers presented by the Government look appealing from a cost-to-ratepayer and infrastructure investment point of view,” Leggett said.

“But it’s important that our council thinks hard about what is best for our community for the long-term – that is the priority.”

Waikato District Council Mayor Allan Sanson welcomed it, given that long-term plan modelling had shown the future unaffordability of Three Waters services.

“Our council has received a pack of information about the proposals, which we will be working through to form a view,” Sanson said.

Further details on the proposal are due to be released in mid-July.

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