Nasty surprise
The late expansion of Three Waters to Five by Minister Nanaia Mahuta seems to have caught her own Cabinet colleagues out, with even the Prime Minister's office taking a while to get its spin straight on this one.
If passed, the Water Services Entities Bill would see the set up of new entities and transfer council management of water services to four water services entities. In return, councils would be made the sole shareholders in the entities, possessing one share per 50,000 people in their area.
A delegation from Manawatū District Council (MDC), led by Deputy Mayor Michael Ford, presented their opposition on Monday.
They expressed concerns around property rights and fair compensation for the investment made by residents, claiming there was a possibility that the transfer of Three Waters services into the proposed entities would stifle economic development.
“When approached by a development that involves an extension to three waters networks, MDC is able to negotiate directly with the developer to reach a mutually acceptable solution… The transfer of decision-making from local government to Entity C will remove MDC’s ability to work directly with customers to develop customised solutions,” Ford told the committee.
The delegation also questioned the proposed entities ability to cater for land use planning without local knowledge at a decision-making level and highlighted that decision-making around three waters assets needs to be made in conjunction with roading, district planning and economic development.
Speaking as the chair of Communities 4 Local Democracy (C4LD), Manawatū District Mayor Helen Worboys said the organisation had commissioned its own modelling which demonstrated the transition costs of setting up the new entities were wasteful.
“Castalia’s modelling for us shows that capital expenditure in the sector is actually financeable for the next 20 years, and beyond that with only the most modest of price increases. Accordingly, the four mega entity, “balance sheet separation” is simply not necessary. Other structural alternatives do exist and would effectively address the core problem,” she said.
Taupō District Council also spoke to Select Committee, with Mayor David Trewavas and councillor Kevin Taylor stating that the Council didn’t agree with the Government’s approach to the reforms.
“There is a need for our communities to have a greater voice on the management of three waters infrastructure, and our associated ability to shape the growth and wellbeing within our district,” Trewavas and Taylor said.
The select committee report on the Waters Services Entities Bill is due on 11 November and may include recommended amendments on the bill based on the submissions received. Government expects to push it through second and third readings to Royal Assent by the end of this year.
