Small rural councils unsure of shared water benefits
Smaller Waikato councils are questioning what they would gain from joining a “one Waikato” approach to water services.
Now that plans for Labour’s Three Waters regional mega-entity have been scrapped, different models of council co-operation are on the table.
However, Waitomo mayor John Robertson isn’t sure a regional or sub-regional grouping would suit areas like his and neighbouring Ōtorohanga.
“Low-growth rural has very different needs to urban high-growth,” the former MP said.
The doubt is echoed by other mayors of smaller districts, with one saying it’s a numbers game and they don’t want to be “subsidising Hamilton”, while another is “sitting back and assessing”.
The comments follow revelations Waikato councils are now officially facing an almost doubled $5.4 billion in water services-related costs over the next decade.
A regional or sub-regional council-controlled organisation (CCO) has been mooted and the merits of a united approach on water services under a Waikato Water Done Well banner are being considered by a joint mayors and iwi chairs forum.
Councils are due to deliver future waters plans to the Government by next year.
Waikato Mayoral Forum chairperson Toby Adams said recently that economies of scale through a joint approach could be substantial but nothing was certain.
However, a joint forum report said: “The status quo, where individual councils operate water services independently and do not have the benefits of scale, is simply not an option.” Robertson said of the discussions: ”It’s so much up in the air at the moment this thing ... we’re still at a high-level, early stage of discussion.”
Robertson said bigger urban centres, such as Hamilton and Waipā, had a growth-oriented development model for water services. The likes of Waitomo and Ōtorohanga used much smaller scale plant.
For example, Waitomo and Ōtorohanga may need to invest from $20 million-$30 million at Mōkau and Kāwhia respectively to move from septic tanks to treatment plants.
That was a lower outlay, possibly involving different technology, than for bigger areas. Waitomo would need to do a lot more detailed work before deciding on the best way ahead.
Robertson said Hamilton was talking to Tauranga about water services co-operation. “If it’s not part of a Waikato model ... where are the other options?”
He also questioned whether involvement in a Waikato CCO was suitable for
Thames-Coromandel and Taupō at the region’s eastern and southern extremities.
Ōtorohanga’s mayor Max Baxter also has reservations about being part of a CCO.
“If the figures looked like we were simply subsiding Hamilton we may not be interested”, in the short-term, he said.
However, his council would also need to look at the longer-term benefits of co-operation.
“At the end of the day it’s always going to be a numbers game. If there’s sound evidence to show a collaborative approach would benefit all then we’d look at it.”
Taupō mayor David Trewavas said last week his council was also looking hard at the value of being part of a CCO.
He noted the district hadn’t generally deferred maintenance on its waters networks so may not gain a lot financially from hooking up with others.