The Northern Advocate

Whangārei District Council proposes counter plan for region’s water supplies

WDC firm in opting out of Govt reform

- Susan Botting Local Democracy Reporter

"This report has shown that the reform scenario is founded on unsound evidence and faulty analysis. "

Sheryl Mai

Government Three Waters reform plans are in chaos as Whangarei District Council breaks rank with a Northland entity counterpro­posal in a New Zealand-first move.

The move comes after a new report shows the Government’s reform scenario — and it’s costs and benefits for Northland — is based on faulty assumption­s and flawed analysis.

Whangarei Mayor Sheryl Mai said the counter-proposal, combining Whangarei, Far North and Kaipara District Councils, was already being investigat­ed.

The move to investigat­e a

Northland-based counter proposal for three waters delivery is in defiance of Government plans. The Government has proposed Whangarei District Council (WDC), Far North District Council (FNDC), Kaipara District Council (KDC) and Auckland Council are combined into a giant group known as Entity A. This would be one of four nationally, combining 67 councils’ provision of drinking water, wastewater and stormwater.

WDC-lead investigat­ions for Northland’s counter-proposal do not include Auckland Council.

The WDC moves comes after a new WDC-commission­ed report into what three waters restructur­ing might mean for its people, in the wake of Government prediction­s on this count.

WDC in June became the first council in New Zealand to opt out of the Government’s multi-billion dollar Three Waters reform plans.

Council resolve on opting out has intensifie­d with the new report, its investigat­ion into the Northland-based entity the result.

WDC is one of New Zealand’s strongest-placed councils in terms of its three waters infrastruc­ture investment and its financial position around that.

However, the government department playing a key role in the three waters reforms has hit back at WDC and its report.

“We know Whangarei [District Council] believes it is in relatively good shape compared to a lot of councils — at the moment. But we are talking about setting up a system that will safeguard our services for generation­s to come,” a Department of Internal Affairs (DIA) spokespers­on said.

Mai said other councils around New Zealand should make sure they were robustly investigat­ing local implicatio­ns too. They would also soon have access to the WDC-commission­ed report.

WDC’s stance comes despite the council standing to gain $133 million from the Government which includes significan­t deal sweeteners for them to join its Three Waters reform.

Mai said there was more to the reforms than the money.

She said the council’s new report clearly showed the costs and benefits for Whangarei put forward by the Government in its national restructur­ing plans, were not the case locally.

Government figures said under its three waters plans, Whangarei residents would pay $803 annually for their three waters services by 2051 — if WDC joined into amalgamati­on processes. It said if WDC did not join in, that figure would rise to $4055 a year.

Mai said that was not the case. The new WDC-commission­ed report has been done by Castalia, an internatio­nal company with offices in Auckland and Wellington that advises globally on infrastruc­ture, resource management and policy in areas including water.

“The reform scenario is based on faulty assumption­s and flawed analysis. The government has not shown with sufficient certainty to WDC that the claimed benefits of the reform scenario will materialis­e,” the Castalia report said.

Mai said other councils around NZ were considerin­g the matter and urged robust investigat­ions.

“This report has shown that the reform scenario is founded on unsound evidence and faulty

analysis. The promised benefits of reform are unlikely to materialis­e. There are risks to the Whangarei community from losing control of water services, and accountabi­lity of those tasked with governance to local customers,” the report said.

Mai said WDC’s report served only to strengthen council’s resolve around its provisiona­l optout decision.

The DIA spokespers­on has however, in response to the release of the report and the Mayor’s comments, said they were still to understand the basis of the claim in Castalia’s report.

“While we are still working to understand the basis of the claims made by this consultanc­y we can say that their earlier work on the reform proposals commission­ed by Local Government New Zealand was found wanting by the joint central/local steering committee which includes [Local Government New Zealand] LGNZ representa­tives and mayors as well as officials,” a Department of Internal Affairs spokespers­on said.

The Water Industry Commission for Scotland (WICS), which the Government used to put together its future water infrastruc­ture and servicing cost estimates, had done this work using informatio­n provided from New Zealand councils’ own data.

WDC would continue to operate in the best interests of its people through any restructur­ing. That was why it had opted out of the Government’s proposal in June.

Considerin­g its people would also be part of considerat­ions in any Northland-based three waters entity.

She said FNDC and KDC would be doing the same for their people, with financial implicatio­ns for all councils, even with the locally-generated proposal.

Mai said three waters costs would still increase under a Northland-based entity in line with higher expectatio­ns nationally around things like water quality.

It was a matter of looking at how the district and region best approached three waters in the future for the benefit of its people.

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