Leaders open to council merger
A "mega merger" of the West Coast's four councils into a unitary structure is not off the cards, local government leaders say.
Southland District Mayor Rob Scott has just backed a full-scale merger in the Deep South.
On the West Coast, an attempt in 2015 to merge the four councils through a citizens-initiated referendum resulted in the Local Government Commission ordering a combined district plan instead — Te Tai o Poutini Plan (TTPP).
Greymouth Mayor Tania Gibson said the region's leaders were always talking about ways of working more closely but much of that had yet to move beyond discussion.
"I'm not opposed to it ... it has to come as far as I'm concerned, and it will come eventually."
However, merging councils could also effectively mean "throwing out the baby with the bath water" and ending in "bureaucratic excess," Mrs Gibson said.
Buller Mayor Jamie Cleine said he did not believe the current government had an appetite to impose amalgamations on the West Coast, "but I wouldn't be surprised".
"I honestly think Local Water Done Well will be a bit of a test as to how councils work together," he said.
Buller, Grey and Westland district councils are considering forming a joint company or CCO (council-controlled organisation) to take over three waters (drinking water, wastewater and stormwater) functions throughout the region.
West Coast Regional Council chairman Peter Haddock said he believed a restructure had to come, based on the need for "rates affordability".
It would have to be on the basis of "fair representation" across the whole region.
He could foresee that, bringing about at least a two-council unitary authority structure that absorbed the current environmental functions of the regional council and combined with the current Westland and Grey district councils into a southern West Coast unitary council.
"There's got to be a way forward in the future. That's a question for the new council.
"However, the one plan [TTPP] is the key to it," Cr Haddock said.
The TTPP provided a model for collaboration by implementing a regime "run by the same set of planning rules" regardless of local authority boundaries in the region.
"That will be the founding document for it going forward.
"[But] I still believe there has to be some form of service centre in Buller, Grey and Westland."
Mr Cleine said he could definitely see a merger coming but he did not sense any real groundswell yet to formally instigate it.
"There isn't an appetite I don't think for a full governance merger-type scenario — just because of our geography."
He had "no fixed views" on the possibility, apart from not wanting Buller district swallowed up by a mega council administering the whole region.
"We shouldn't rule out some form of closer working together on the West Coast ... apart from not having one structure."
He agreed the Local Water Done Well reform was an important step and a tangible foretaste for wider restructure.
The joint CCO proposal was a "no-brainer to access cheaper capital" for asset provision, given the Westland, Grey and Buller councils faced a combined bill of $250 million to upgrade three-waters infrastructure.
If that got runs on the board it might give more impetus to other efforts to come together, Mr Cleine said.
"Seeing how that lands and getting that up and running could be a good vehicle to look at other areas."
Westland Mayor Helen Lash was not available for comment. — Greymouth Star
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Otago Daily Times
15 hours ago
- Otago Daily Times
Residents in for ‘heck of a shock' over cost of water delivery
PHOTO: ISTOCKPHOTO Dunedin residents are in for a "heck of a shock" when they see the cost of delivering water services, councillors say. At yesterday's Dunedin City Council meeting, councillors voted to adopt a draft water services delivery plan as part of the central government-led infrastructure reform Local Water Done Well. Cr Jim O'Malley said he was pleased the plan included ring-fenced finances so the cost of water services would be set apart from residents' wider rates bills. "It is often the driver of what is causing rates to change and when you're trying to do the right thing with water, you can end up being lambasted for doing the wrong thing with rates." The council could demonstrate Dunedin had one of the lowest — "if not the lowest" — water bills in Otago, he said. Cr Christine Garey said residents were in for a "heck of a shock" when they saw the cost of water services. "We can't say, 'oh, we need the infrastructure', and then say we've got too much debt and we can't afford to do this — we are required to do this," she said. Cr Brent Weatherall said, for too long councils nationwide had borrowed rather than pass on the "true cost" of delivering water services. "Our city's debt has continued to rise at an alarming rate," he said. "Yet, thankfully, it's enabled our water department to take a proactive approach to bringing our water services up to standard for the envy of many of our neighbouring councils." The government's legislation would address the "true cost of supply", he said. In their report to council, Three Waters and transition general manager David Ward and chief financial officer Carolyn Allan said increasing water service-targeted rates by 15% annually for the 2025-26 and 2026-27 years would contribute towards the requirement to fully fund water services. The council was also required to identify a proposed model for the delivery of water services and, in May, voted to back an in-house model. The council signed a memorandum of understanding with the Christchurch City Council in February to consider sharing a "wide range of functions or services", including procurement, infrastructure planning and delivery and monitoring. Mr Ward said communication between the two councils would "gain momentum" once both their water services delivery plans were signed off. Councillors voted 14-1 to adopt the plan, Cr Lee Vandervis voting against.
NZ Herald
2 days ago
- NZ Herald
Mayor's water services affordability plea rejected by Ruapehu District Council
Ruapehu was among the most economically disadvantaged districts in New Zealand, with many households 'already stretched to breaking point by the cost-of-living crisis'. 'All of this term we've acknowledged this reality, especially for Māori communities. Yet today, some are still prepared to back the most expensive option on the table, a position I cannot understand.' Kirton said the two-council model would almost double the Department of Internal Affairs' (DIA) affordability benchmark that water costs should not exceed 2.5% of median household income. He also cited new information since the original July 9 decision, including a requirement from the Water Services Authority - Taumata Arowai to bring forward costly wastewater treatment upgrades previously delayed for affordability reasons. The Whanganui council had rejected price harmonisation, which would have shared costs evenly across both councils. 'There is nothing in the two-council arrangement for Ruapehu except ability to increase our debt headroom to borrow more for upgrades our people cannot afford.' In the public forum, Ngāti Hāua Iwi Trust spokesman Kuru Ketu said the council's role was to make decisions about water services and infrastructure, not water itself. Making a decision on the basis of 'keeping the catchment together' was 'statutory overreach'. 'The relationship and union of the catchment is whakapapa-based and now protected and provided for by Te Awa Tupua legislation. The catchment will remain together regardless of Local Water Done Well arrangements.' Ketu said 70% of Māori in northern Taumarunui ranked among the most deprived in the country. If people could not pay their bills, the council controlled organisation (CCO) could not function. The trust backed a larger multi-council entity for its greater borrowing capacity, cheaper debt and stronger buying power. Deana Wilson, representing Ngāti Rangi, supported the two-council decision, highlighting iwi connection to waterways and the link between water health and community wellbeing. She said collaboration was key to finding solutions to the region's wastewater treatment challenges. Ratepayer Marama Laurensen urged councillors to focus on practical realities such as cost and community impact rather than personal or emotive views about the river. 'I don't expect councillors to be carrying that particular responsibility. People elect you to deliver service to the community, not to use this table as a platform for your point of view or your feelings.' Laurensen said affordability was critical in a deprived community. Without it, 'you don't have the luxury of having wellbeing', she said. Kirton said the decision came down to a moral and financial duty. 'Do we protect our people from costs they can't afford, or do we lock them into a model that will take money they simply don't have?' Councillors Brenda Ralph and Janelle Hinch backed Kirton's position. Ralph warned higher charges would hit tenants, homeowners and businesses alike, forcing some residents to move away. Hinch said expert advice showed larger multi-council models were the most cost-effective, and warned the two-council option could be unviable for Ruapehu and risk being overturned. River protections were enshrined in legislation, and whakapapa to the rivers would not be severed, she said. Continuing with the two-council model would cause unnecessary hardship. Councillor Robyn Gram originally voted to join a larger model but on Wednesday withdrew her support. Deputy Mayor Viv Hoeta stood by her original vote for the two-council CCO. She said she valued the democratic decision already made and the partnership agreed to by both councils. The case for affordability was based on assumptions rather than facts, she said. Councillor Lyn Neeson said she struggled to see how $1000 extra would be imposed on ratepayers. 'I'm deeply concerned that the conversation over the past fortnight has put serious fear into our ratepayers that it is going to be unaffordable to live in Ruapehu.' Neeson said all councils' water rates would rise. 'The water improvements have to be made. They were unaffordable, that's the reason they weren't made. Now we have to make them.' A higher borrowing cap, cheaper debt and more buying power were not exclusive to the larger multi-council model, she said. LDR is local body journalism co-funded by RNZ and NZ On Air.
Otago Daily Times
2 days ago
- Otago Daily Times
Specialist may aid water plan set-up
The looming threat of a government "specialist" being parachuted in to decide how to set up Waitaki's water services has been labelled a case of "local democracy done poorly". That was the take of Cr John McCone at this week's Waitaki District Council (WDC) workshop, which heard feedback from the Department of Internal Affairs (DIA) on the council's recently-submitted draft water services delivery plan, a mandated part of the government's new Local Water Done Well legislation. DIA representative Warren Ulusele told councillors the gap between the council's draft plan and the government's assessment criteria was so significant, if it was to be assessed today, the most likely outcome would be that Minister for Local Government Simon Watts would appoint a specialist with decision-making powers to ensure the plan could meet the criteria, whether that was as a stand-alone council or in conjunction with others. "What we've identified here is a pretty significant gap. This is not a scenario of being quite close with a little bit more work to get it across the line ... in that scenario what you look at is somebody who comes in with the mandate and direction to develop a financial statement in the most expedient way they can." Mr Ulusele said the key criteria being assessed were around financial sustainability, investment sufficiency, financing sufficiency and environmental compliance. "We've got some issues with all those," he said. DIA issued its full feedback on the draft plan before the meeting. That document noted particular concerns around a proposed 61% increase in water charges (by targeted rate per household) in the 2026-27 financial year as it "may not be sustainable and affordable for the community". Over the next decade, the cost of water services is set to increase by 114%, a rise that would see charges consume 3.3% of median household income by 2034. DIA also pointed out concerns the council's plan relied on it gaining a credit rating, stating "we do not have confidence that this is achievable". It also stated concerns about a lack of investment in the first few years of the plan. Mr Ulusele said the council might be having challenges addressing long-term integrity of infrastructure "because there's been insignificant or a lack of appropriate levels of investment today". Council staff will now work out how to address the concerns of the DIA before next week's workshop, which is likely the last one before the September 3 deadline for all councils to provide the department with a final Water Services Delivery Plan (WSDP). It is required under the government's Local Water Done Well reforms. The council last month voted to follow an in-house (ring-fenced) model, after public consultation showed it was the most popular, but against DIA advice, which had previously advised that a joint venture with Central Otago, Clutha and Gore district councils was the only viable option.
