‘Crippling' bills likely in South Wairarapa with water reform

RNZ News

28-07-2025

Local Government Minister Simon Watts.
Photo:
RNZ / Samuel Rillstone
South Wairarapa Deputy Mayor Melissa Sadler-Futter says the government needs to step up and offer more support for smaller councils to undergo water reform.
Water reform will "cripple" South Wairarapa ratepayers, unless urgent financial support is delivered by central government, the council's deputy mayor says.
On behalf of her council, Melissa Sadler-Futter has written to Local Government Minister Simon Watts urging him to support small and rural councils grappling with the growing scale and cost of water infrastructure reform.
The letter was in support of a plea from Central Hawke's Bay Mayor Alex Walker whose ratepayers could face annual costs of $7000 per household under water reform by 2034.
Modelling for South Wairarapa showed that ratepayers could face annual costs of almost $5000 per household under the proposed Wairarapa-Tararua joint entity.
"Like Central Hawke's Bay, we're a small rural council doing everything we can to plan ahead, invest wisely, and collaborate with our neighbours - but the scale of the challenge is now beyond what small communities can carry alone," Sadler-Futter said.
"Councils are now overwhelmed by compliance, unfunded mandates and escalating financial impacts of decades of underinvestment."
Both leaders had called for government-funded capital injections for small and rural councils to help address the backlog of investment, especially for wastewater compliance.
South Wairarapa District Council.
Photo:
LDR
The leaders also want a national definition of what "affordable" meant and how the Commerce Commission would intervene in small rural situations.
Sadler-Futter said the Wairarapa-Tararua model offered "a sound approach to rural reform".
"However, without government support, the cost of transition, compliance, and service delivery under this new model will simply cripple our community."
"Whilst we are extremely grateful for the transition funding received at the end of June, the continued financial pressures that are already being felt by our ratepayers will become untenable in the future."
She said many rural and provincial councils were facing similar pressures and were "doing the right things" regarding investment and planning.
"But the scale of the challenge now far exceeds the capacity of small districts to carry alone."
South Wairarapa District Council was responsible for operating four wastewater treatment plants, four freshwater treatment plants, and an extensive rural road network - all with just 7,500 rateable units.
Two of the district's wastewater plants were currently under abatement notices, limiting new housing connections despite growing demand.
The council was working with Carterton, Masterton, and Tararua district councils to develop a regional water services model, under the government's Local Water Done Well framework.
Sadler-Futter said the regional model offered a "sound approach" to rural water reform, "but we need central Government to work alongside us to share the load".
"Without targeted funding and a fair approach to affordability, our ratepayers will face costs that are simply unsustainable."
In a response to Walker, Watts said affordability was up for councils to determine, and that the Government was working to reduce costs and regulatory burdens for wastewater plants in particular.
A recent government study into proposed changes to environmental standards for water treatment plants could result in 40 percent to 60 percent cost savings, he said.
- LDR is local body journalism co-funded by RNZ and NZ On Air