District councils are questioning the lack of detail with the Government’s Three Waters reforms, but are so far reserving judgement.
Its proposal creates four publicly-owned water companies to manage drinking, waste and stormwater assets, along with debt appropriated from 67 councils.
Mayors are frustrated the Government is not listening to their concerns, evident by being given just eight weeks to provide feedback on the proposals.
Other concerns included consultation, the speed of the reforms, local input into the new entity’s decisions, asset valuation, what happens to councils who decline to join the new entities and how communities decide whether or not to be involved.
The Government estimates councils face costs of between $120 billion and $185b over the next 30 years to maintain, replace and upgrade aging water assets.
It claims the new entities can use economies of scale and operational efficiencies to fund that work, warning ratepayers could face future water costs four times current levels without reforms.
Waimate Mayor Craig Rowley questions the reform pace set by the Government.
“I’m certainly of the opinion these are public-owned assets and I’m certainly not going to do anything without a clear view and steer from my ratepayers,” Rowley said.
Rowley also questions whether the Government is listening.
“At the end of the Local Government NZ conference the minister (Nanaia Mahuta) told us we have got eight weeks to say whether we are in or out,” he said.
“Realistically I don’t believe eight weeks is long enough to get data required let alone consult our communities.”
His other concerns include the consequences for seven council-owned rural water schemes and what happens if a large urban centre, such as Christchurch, opts out of the new entity.
Mackenzie Mayor Graham Smith says there are 120,000 rural water schemes around the country, a mix of council and privately-owned.
The Three Waters proposal transfers all council water assets to the new entities, but Smith says many rural schemes were built and are maintained by users and he questions what the reforms mean.
Smith believes a referendum of ratepayers should decide if they join the proposed entity, especially given his council has managed its debt while investing in infrastructure.
Waitaki Mayor Gary Kircher disputes Government estimates that his council faces $1.5B in upgrade costs.
“I can’t see how they got to that because we are very close to the required standards,” Kircher said.
“We are a bit cynical about the financials, which we need to get sorted.”
Waitaki also faces uncertainty over its shareholding in the Lower Waitaki Irrigation Company from which it sources domestic water.
Gore Mayor Tracy Hicks says the current system of funding is failing, with his council alone facing $330 million in upgrade and maintenance costs in the next 30 years.
Hicks says Three Waters is complicated, has generated a mountain of data and raises many questions.
“It’s not just about opting in or out but also a question that if you do opt out, what does that look like and what risks that poses?” Hicks asked.
Masterton Mayor Lyn Patterson says her council is reserving judegment, but agrees some reform is needed.
She questions how her community interests can be catered for when competing with the requirements of councils from Gisborne to Palmerston, south to Tasman and Nelson.
“At the end of the day for my community I want the best water that meets the drinking and environmental standards at an affordable price,” Patterson said.
“I don’t know if this model will deliver that.”
Hauraki Mayor Toby Adams says it is an affordability issue for some councils.
“In the long run, we know it is an affordability issue for rural communities and with compliance and any growth, it will trigger an upgrade of networks that will become unaffordable without government assistance.”
Hauraki has between 22,000 and 24,000 ratepayers, but faces $45m in upgrades over the next decade, with Adams saying it will be taxing for his community.
He also questions the speed of the reforms, estimating he needs six months and up to $100,000 to fully consult his community.
Horowhenua Mayor Bernie Wanden accepts change is needed, but says the process is being rushed and the uncertainty is frustrating.
