In-house water delivery service preferred by district council
Photo: RNZ
Any chance of Waitaki setting up a regional water company with neighbouring South Canterbury authorities has been scuppered, with Waimate district preferring to go it alone.
Waimate District Council chief executive Stuart Duncan confirmed the council's preferred choice was to operate in-house.
"The government's Local Water Done Well legislation mandates council to have a preferred option.
"After weighing all risks and supposed benefits of the joint-council WSO [water services organisation], the council is of the opinion that the Waimate district would be better served by in-house water delivery services. The final decision will rest with elected members and the people of our district. Public consultation will begin on May 15."
Waitaki District Mayor Gary Kircher said the decision was not unexpected.
The government's new Local Waters Done Well legislation requires the Waitaki District Council to present the Department of Internal Affairs with a costed water services plan by September.
The options presented are continuing to deliver water services in-house or forming a council water services organisation to deliver water services.
The Waitaki council last year approved further investigation and development of Otago and Southland joint council options.
It noted the Clutha, Gore and Central Otago District Councils and the Dunedin City Council had already resolved to support this work. They had also supported and assisted in the Timaru District Council-led investigation and development of North Otago, South and Mid-Canterbury joint options, relying on Waitaki, Waimate, Timaru and Mackenzie to proactively participate.
The Canterbury option was now "highly unlikely", Mr Kircher said.
"While that was an option, it wasn't the council's preferred option," he said.
"We're still very focused on getting the best deal for our ratepayers and doing our best to manage the increasing costs of water.
"That remains our focus and we know that still remains the focus of Central Otago, Clutha and Gore, the other members of the southern group."
Consultation with the Waitaki community starts on May 9.
Asked if Waimate District Council felt it was unappealing to work with Waitaki, Mr Duncan responded, saying:
"Waitaki are consulting on three options ... The South Canterbury CCO model will leave the door open for Waitaki to join. It should be understood that we are consulting on the immediate future, and all future in-house arrangements can join a CCO in the future, and CCOs can join with other CCOs at a later date."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Otago Daily Times
12 hours ago
- Otago Daily Times
Economist backs new water services model
One of New Zealand's best-known economists is backing the maths behind a move to shift control of Waitaki's water services and assets to a new company, jointly-formed by four Otago district councils. With water charges due to come off rates bills from the 2027 financial year because of changes to government regulations, Infometrics chief economist Brad Olsen has voiced strong support for Southern Water Done Well's preferred water services delivery model, saying it offered the "best pathway" to safe, reliable water services and long-term financial benefits for the districts involved. SWDW's four partner councils — Waitaki, Gore, Central Otago, and Clutha district councils — are consulting on options for the future delivery of water services to meet the government's Local Water Done Well legislation. Their preferred delivery model is a jointly owned council-controlled organisation (CCO) covering all four districts. The other three options being consulted on are a standalone Waitaki CCO, an in-house business unit, and in the case of WDC only, a joint CCO with Mackenzie, Timaru and Waimate districts. At a recent meeting of Southern Water Done Well (SWDW) elected politicians and senior staff, Mr Olsen outlined what he felt were the positives of the joint CCO option. Mr Olsen said one of the "most compelling" advantages was the leap in bargaining power, a media statement issued by the SWDW group said. Individually, the four councils each represent just 1% to 2% of the South Island's population. However, by forming a jointly owned council controlled organisation, they collectively represent 6.6% of the South Island's population. "That shift in scale is transformative. "In a tight infrastructure market, scale gives you options and leverage." SWDW, through Wellington-based consultants Morrison Low, has modelled all of the options, for water charges in 2027-28 and 2033-34 years in the Waitaki district. Mr Olsen noted SWDW's deliberately conservative approach to financial modelling for the jointly owned CCO. While short-term financial gains might be modest, water assets were long-term (20 years+) and by year 20, modelling for other joint water services delivery entities showed potential savings of up to 20% compared with going it alone. "Even under these conservative assumptions, the numbers still stack up." The conservative modelling projects 15% to 16% operating and capital efficiencies being achieved over "roughly a decade, which is a similar timeframe to achieve efficiencies as seen in other spaces". WDC's public consultation on the four options ends today at 5pm. Water options Water options considered (prices per year) Joint ''Southern Water Done Well'' 2027-28 2033-34 Joint council CCO (SWDW) $2168 $2894 Stand-alone CCO $2466 $3754 In-house business unit $2269 $3093 The South Canterbury council's model 2027-28 2033-34 In-house business unit $2041 $2924 Joint council $2269 $3093
Scoop
3 days ago
- Scoop
Porirua Backs Regional Approach To Water Services Delivery
Press Release – Porirua City Council They voted unanimously to recommend that Council should jointly establish and co-own a new water organisation with Upper Hutt City Council, Hutt City Council, Wellington City Council and Greater Wellington Regional Council. Porirua City Council's Te Puna Kōrero committee has endorsed a joint regional approach for water services delivery. As part of the Local Water Done Well reform, the Government has mandated that councils must review how water services are delivered. Te Puna Kōrero met this morning to deliberate and made a recommendation to Council, after consulting on two options for a future water services delivery model – a new water services organisation, or a modified version of the status quo. They voted unanimously to recommend that Council should jointly establish and co-own a new water organisation with Upper Hutt City Council, Hutt City Council, Wellington City Council and Greater Wellington Regional Council. Under this model, a multi-council-owned water organisation will take ownership of public water assets. The alternative was a modified version of the current Wellington Water model, where councils retain ownership while Wellington Water manages water services. That recommendation will need to be endorsed at the full Council meeting on 26 June. All five councils are independently making decisions by the end of June on how to proceed. Officers will then develop a joint Water Services Delivery Plan and foundation documents for the new organisation, which must be lodged with the Department of Internal Affairs by 3 September 2025. The intention is that Council will transfer its assets, debt, liabilities and services in relation to drinking water, wastewater and stormwater to the new organisation by1 July 2026. In making today's decision, the committee unanimously supported an amendment from Councillor Geoff Hayward, setting out the principles Porirua City wants reflected in the new organisation's foundation documents. These include recognising water as a public good, safeguarding households from disconnection, value for money, fair pricing, supporting local employment, and upholding Te Mana o te Wai. Porirua Mayor Anita Baker said like many parts of the country, Porirua's water networks faced significant challenges. 'We have old pipes that cause water leaks, contribute to water shortages and are a main contributor to pollution in the harbour. 'While we've poured all the money we can into funding water assets, we simply can't address these challenges on our own. Doing nothing is not an option, and we believe the new model is the best way forward for Porirua.'
Scoop
3 days ago
- Scoop
Porirua Backs Regional Approach To Water Services Delivery
Porirua City Council's Te Puna Kōrero committee has endorsed a joint regional approach for water services delivery. As part of the Local Water Done Well reform, the Government has mandated that councils must review how water services are delivered. Te Puna Kōrero met this morning to deliberate and made a recommendation to Council, after consulting on two options for a future water services delivery model - a new water services organisation, or a modified version of the status quo. They voted unanimously to recommend that Council should jointly establish and co-own a new water organisation with Upper Hutt City Council, Hutt City Council, Wellington City Council and Greater Wellington Regional Council. Under this model, a multi-council-owned water organisation will take ownership of public water assets. The alternative was a modified version of the current Wellington Water model, where councils retain ownership while Wellington Water manages water services. That recommendation will need to be endorsed at the full Council meeting on 26 June. All five councils are independently making decisions by the end of June on how to proceed. Officers will then develop a joint Water Services Delivery Plan and foundation documents for the new organisation, which must be lodged with the Department of Internal Affairs by 3 September 2025. The intention is that Council will transfer its assets, debt, liabilities and services in relation to drinking water, wastewater and stormwater to the new organisation by1 July 2026. In making today's decision, the committee unanimously supported an amendment from Councillor Geoff Hayward, setting out the principles Porirua City wants reflected in the new organisation's foundation documents. These include recognising water as a public good, safeguarding households from disconnection, value for money, fair pricing, supporting local employment, and upholding Te Mana o te Wai. Porirua Mayor Anita Baker said like many parts of the country, Porirua's water networks faced significant challenges. "We have old pipes that cause water leaks, contribute to water shortages and are a main contributor to pollution in the harbour. "While we've poured all the money we can into funding water assets, we simply can't address these challenges on our own. Doing nothing is not an option, and we believe the new model is the best way forward for Porirua."
