Dearth of Three Waters info
Western Bay of Plenty has reasonably good Three Waters infrastructure
We feel it is very difficult to know how the Three Waters scheme will work as there is very little information available. We agree with Sandra Goudie and TCDC'S concerns as outlined and are also concerned about the unknown costs to ratepayers.
Jean Mccann
Tairua Ratepayers and Residents Association
Flawed methodology
Katikati-waihi Beach Residents and Ratepayers Association understands that Three Waters infrastructure and delivery needs to be improved in many districts of New Zealand. But Local Government Minister Nanaia Mahuta's proposal is not the way to do it. A much better way to improve Three Waters infrastructure and delivery would be improvements similar to the “Third Option” proposed by Waitomo Mayor John Robertson published in the HC Post on September 2.
We believe it will be unacceptable to the vast majority of New Zealanders to have the water infrastructure they have paid for confiscated by the Government without any compensation, and given to four huge “Entities” that have no responsibilities to ratepayers. Ms Mahuta's proposal is supported by a report by the Water Industry Commission of Scotland (WICS) that predicts cost reductions for most ratepayers if the proposal is adopted and huge cost increases if not adopted. A number of councils such as Whangarei and Queenstown Lakes commissioned their own studies and found the WICS results and recommendations are based on unreliable data or faulty assumptions. WICS has been operating Three Waters for about 20 years in Scotland where the demographics are much more favourable for water reticulation than New Zealand. Even so, WICS has a very poor record, with the BBC reporting they had 12,725 “spill events” last year. You could say they appear to be out of their depth in trying to propose an environmentally secure, economically acceptable Three Waters reform programme for New Zealand. The reform appears to be aimed more at surreptitiously transferring ownership of Three Waters than to finding a better way of providing them for New Zealanders. While most councils appear to either be opposed to the proposal, want more information or time to consult with their ratepayers, Western Bay of Plenty District Council has taken the “we know best” approach. On September 23 council was to consider a staff report on the proposal. The CEO says they won't decide whether to opt in or opt out at this meeting but the tone of the report strongly favours the opt-in option. Council's strategy appears to be to convince ratepayers they are genuinely considering the options while conveying to government that they support the proposal and hope Minister Mahuta makes it compulsory. Councillors can then avoid being blamed by ratepayers for the sellout of their assets.
Part of the recommendation councillors were to consider on September 23 is “That Council approves the feedback generally as drafted . . .” and that the CEO be delegated power to make editorial changes “that may result from collaboration with other local authorities in Entity B and Mana Whenua”. We believe this is a gross abrogation of councillors' responsibilities to their ratepayers. If they approve this recommendation they allow the CEO to make whatever changes he wants to the feedback to Government. The “editorial” requirement [seems to] allow the CEO to make changes to the submission without the approval of councillors or scrutiny by ratepayers.
Western Bay of Plenty has reasonably good Three Waters infrastructure because our rates have been among the highest in New Zealand for many years. It is worth $323 million. The reform proposal would confiscate that infrastructure and give it to an entity comprised of 22 districts in the western and central part of the North Island and run by the Government and iwi appointees. WBOPDC will lose 39 per cent of its total rates income. This will have serious consequences for ratepayers and residents. Ratepayers will be stripped of their jointly owned infrastructure assets but will still have to pay water rates to the new entity. A large proportion of water rates pay for council overheads so this will mean either increased rates or cuts to services and facilities that are not selffunding such as swimming pools, parks and reserves.
WBOPDC provides another example of the flawed methods used by WICS. The long-term plan states that council's total rates income in 2031 will be $113.4 million. If the current ratio (water rates to total rates) of 39 per cent stays the same as it is at present, council's estimate of water rates in 2031 is $44.2 million. WICS estimates that if there is no reform total water rates in 2031 will be $90.3 million, more than twice the estimate made by council staff. WICS estimates the cost of Three Waters in WBOPDC in 2031 if there is reform will be $27.2 million, less than two-thirds what it is costing now. The large disparities between WBOPDC'S 2031 costs and those estimated by WICS are similar to those noted by Whangarei and Queenstown Lakes district councils' consultants.