City’s hefty rates increase watered down
A deal done by the government and Auckland Council will allow Watercare to borrow money to sidestep the hefty cost increases it needs to build badly needed infrastructure.
In February, Auckland’s councillors approved a budget consultation document that included a 25.8% rise for Watercare fees that would have come into effect in July.
But at a joint press conference with Prime Minister Christopher Luxon and Auckland Mayor Wayne Brown, local government minister Simeon Brown said a new plan endorsed by Auckland Council will avoid that hefty increase.
“Under the Local Water Done Well solution we have announced ... Aucklanders will avoid the 25.8% water rate increases previously proposed by Watercare.
“We have worked closely with Mayor Brown and Auckland Council, and are thrilled to announce that Watercare’s more financially sustainable model will ensure water rates remain affordable both now and into the future,” Brown said.
The new model means Watercare will be able to borrow more money for longterm investment in water infrastructure and spread the borrowing over a longer period rather than front-loading the cost on to current ratepayers.
Auckland Mayor Wayne Brown said the plan was exactly what the council had been trying to achieve.
“The idea of water rates increasing by more than a quarter in the year ahead was unacceptable. There had to be a better way, and by working in partnership with central government we have found one,” Brown said.
“I have long said that this was a balance sheet issue and needed to be treated like one. Councils should have more say about how we manage and deliver our water systems. The Government has taken this feedback seriously and worked closely with me to come up with this solution which will put water rates on a much more sustainable footing for the infrastructure we need.”
Brown said: “We need to invest in water without massive price hikes. I have always said this was a balance sheet issues and there was a simple fix.
“Wellington didn’t need to create complicated new structures that deluded the democratic accountability for water services and they didn’t need to merge us with other councils.
“As an engineer and from a practical point of view I knew Three Waters wasn’t going to work for Auckland right from the start. We didn’t like it.”
He said the new government asked Auckland Council to come up with a new model and they agreed to implement it.
Brown said it was a simple solution to someone else’s bad planning.
Luxon said that last year the government committed to fixing the water “debacle.”
In partnership with Auckland mayor Wayne Brown and Auckland council they have delivered on that promise, the Prime Minister said.
“Where the last government spent $1.2 billion and years trying to deliver water reform – and failed, our government by working together with Auckland council has delivered water reform for Auckland in a matter of months.”
Labour’s local government minister Kieran McAnulty said the new plan will cost Aucklanders more than if the new government hadn’t repealed the Affordable Water Reforms.
Water charges in Auckland will increase by 7% as a result of this,” McAnulty said.
“They would have only increased by 2% if they had followed through with affordable water.”