Water debt debate for Waitomo as reforms loom
Waitomo District mayor John Robertson is challenging the Department of Internal Affairs to acknowledge the council’s water debt as national water reform accelerates.
The mayor’s call comes as public submissions are made on the Water Services Entities Bill which is currently being scrutinised by MPs.
The bill is the first of a suite of Three Waters bills to reform New Zealand’s drinking water, wastewater and stormwater services.
Robertson said the Department of Internal Affairs had not acknowledged the extent of the council’s water debt.
‘‘Our debt related to water is around $23 million,’’ he said. ‘‘[The] Government says the new entities will take over waterrelated debt. But the problem in our case is that the DIA (Department of Internal Affairs) analysis claims we have no water related debt. They are wrong but won’t acknowledge this,’’ he said.
‘‘Councils have been promised that the Government would pay off water-related debt. Agreeing what the debt is, is critical to resolving this.’’
If the water debt was not settled, it would remain on ‘‘council books’’ and fall back on ratepayers, Robertson said.
The council’s water debt accumulated when it borrowed to build a drinking water and wastewater plant for Te Kū iti.
However, the Department of Internal Affairs told Local Democracy Reporting, it had never ‘‘concluded that the district has no water debt’’.
‘‘Information provided by the council indicates the council has $26 million in water debt. This is reflected in the financial impact tool provided by the Department of Internal Affairs to all councils, including Waitomo, last year.’’
The bill will create four publicly owned water services entities that will provide safe, reliable and efficient water services in place of local authorities.
Each water services entity will take on responsibility for delivering water services to a specific geographical area, from July 1, 2024.
Robertson confirmed council was seeking consultation before it applied for the $3.5 million available as part of the first tranche of the Three Waters ‘‘Better Off’’ funding.
Local Democracy Reporting is Public Interest Journalism funded through NZ On Air.