Latest news with #LocalGovernment(WaterServices)Bill
Otago Daily Times
31-07-2025
- Business
- Otago Daily Times
Mayor's vote seals decision to go with CCO
Queenstown mayor Glyn Lewers. PHOTO: ODT FILES A mayoral casting vote was needed to decide how Three Waters services will be delivered in the Queenstown Lakes district. After nearly three hours' debate at a full council meeting yesterday, Mayor Glyn Lewers used his vote to ensure council staff's recommended option of a council-controlled organisation (CCO) won the day. Councillors were evenly split on the issue, despite 77% of the 118 submissions received during community consultation favouring the retention of Three Waters services in house. In her report for councillors, strategy and reform manager Pennie Pearce said submitters' main concerns about a CCO had either already been addressed by her original analysis, or would be dealt with by amendments to the government's "Local Water Done Well" reforms. Since submissions had opened in June, amendments had been made to the Local Government (Water Services) Bill that strengthened the case for a CCO, Ms Pearce said. Asked by Cr Esther Whitehead whether the council's recommendation showed a disregard for the consultation process, chief executive Mike Theelen said it was not a "game of numbers". He urged councillors to make their decisions "based on the information and evidence before you". The decision means the council will transfer the district's drinking water, wastewater and stormwater assets — and associated liabilities — to a CCO, but will be its sole shareholder. Ms Pearce's analysis projects average annual water charges for households to be 10% lower under a CCO in the long term, compared with the in-house model. The CCO will operate independently from the council, with its own specialist board and management, although amendments to the Bill will require CCOs to consult with the community on matters of significance. The council's debt is expected to significantly decrease, giving it more headroom for other capital spending. Property and infrastructure general manager Tony Avery told councillors a CCO would be "singular in its purpose", faster to respond to changing circumstances and better placed to secure debt and expertise. Cr Lisa Guy said the small number of submissions — about 100 from a population of more than 50,000 — did not represent a mandate for keeping the status quo. Many submitters had opposed a CCO, but also criticised the existing model for its delivery of Three Waters services. "If we're in agreement the status quo isn't delivering, how can we not be open to a model that might provide us with hope of doing it better?" Cr Niki Gladding said they were making their decision in a "fear and pressure environment" arising from repeated staff warnings of how central government might react if they chose the in-house model. "Neither option is the status quo. Both are an improvement. "I don't see why we can't achieve the benefits of a CCO — bar losing the debt — with an excellent in-house model." Cr Matt Wong said he was wary of basing his decision on cost, because he was sceptical about the accuracy of financial projections over such a long time period. They were under pressure from the government to make a decision based on highly complex information and a great deal of uncertainty, and he joked he would "need a coin" to make his. "I hope the public listening today is not going to judge any one of us on which way we vote."
Scoop
14-07-2025
- Business
- Scoop
Refocusing Local Government To Deliver For Kiwis
Hon Simon Watts Minister of Local Government The Government's plan to refocus councils on core services, such as roading, core infrastructure, water, and rubbish, has taken a major step forward with the introduction of the Local Government (System Improvements) Amendment Bill to Parliament. Local Government Minister Simon Watts says the Bill will help restore discipline, transparency and performance across the sector, to the benefit of ratepayers. 'Kiwis are frustrated with rising rates, expanding bureaucracy, and poor value for money. This Bill puts councils back to work on the basics, their core services, so ratepayers see real results for what they pay.' The Bill is part of the Government's System Improvements programme, first announced by the Prime Minister in August 2024, and responds directly to public frustration over deteriorating infrastructure, rising rates, and lack of financial focus. Key reforms in the Bill include: · A renewed focus on core services in the statutory purpose of local government by removing the four 'well-beings' · A requirement to prioritise core services when managing finances and setting rates · New financial performance measures for councils, with a requirement for regular public reporting · Mandatory disclosure of contractor and consultant spending · Stronger transparency and accountability requirements · Regulatory relief to reduce unnecessary compliance burdens 'Local government has drifted from their core responsibilities. This Bill draws a line in the sand – focus on the essentials and deliver value for your community,' Mr Watts says. 'This refocusing of our councils will help to deliver better value for money, and ultimately help address the number one issue people are dealing with right now, which is cost of living. Mr Watts says the Bill is another major milestone in a significant period for local government reform. Other key developments this week include the second reading of the Local Government (Water Services) Bill, and Ministerial attendance at the Local Government New Zealand conference, where Mr Watts will outline the vision for local government. In recent weeks, Mr Watts announced the first City and Regional Deal agreements which will boost local investment and development in three regions, and the establishment of the first water services entity, Selwyn Water Ltd. 'These changes show we're not just talking about reform – we're delivering it. Stronger accountability, clear priorities, better infrastructure delivery – these are central to our vision for local government,' Mr Watts says. The Government intends to pass the System Improvements Bill, the Local Government (Water Services) Bill, and have the first regional deal in place by the end of 2025.
Otago Daily Times
26-05-2025
- Business
- Otago Daily Times
Council to decide on setting up water CCO
Queenstown Lakes households may face higher water charges for the next nine years if the district council agrees to establish a new council-controlled organisation to deal with Three Waters. However, council property and infrastructure general manager Tony Avery said, based on modelling, the proposed water services council-controlled organisation (WSCCO) would lead in the long term to "lower charges on average" for the 10 years from 2034. At a full council meeting in Arrowtown on Thursday, elected members will be asked to agree to consult on the proposal to establish the WSCCO. If they agree, consultation would begin on Monday. Mr Avery said as part of central government's Local Water Done Well Plan, to address New Zealand's water infrastructure challenges, the council had carefully assessed options for the future delivery of water services. The other shortlisted option evaluated was for the council to continue to deliver water services in-house, which would be subject to the Commerce Commission's regulatory requirements. Mr Avery said the council needed to be confident the model chosen would be capable of delivering financially sustainable water services to meet the increased financial requirements in legislation intended to be passed by central government. "Under all scenarios, including council's current long-term plan, water charges are projected to increase substantially." If agreed, the WSCCO would manage and deliver drinking water, wastewater and stormwater services in the district, and own the council's current water assets and their associated debt and liabilities. The proposed organisation would operate independently from the council. The Local Water Done Well reforms are underpinned by the Local Government (Water Services) Bill, expected to come into force later this year, which will require councils to transition to a separation of water charges from their general rates. At a workshop early this month, council strategy and reform manager Pennie Pearce told councillors the internal assessment found the district's households would face slightly cheaper annual Three Waters charges for the first 10 years under the in-house model, but those costs were projected to be lower under a CCO after that. — APL
Scoop
09-05-2025
- Business
- Scoop
South Wairarapa Council Puts Its Faith In Wai+T Water Model
South Wairarapa is the first council to take the plunge into a proposed Wairarapa-Tararua water services entity, locking it in as its preferred option. All eyes are now on partner councils Masterton, Carterton, and Tararua to see whether they too will lock in the option. South Wairarapa deputy mayor Melissa Sadler-Futter said Local Water Done Well reform was a huge piece of work for the council and community. 'The next piece of action we will watch very carefully are the votes of our neighbours over the coming weeks.' South Wairarapa councillors were unanimously in favour of progressing the Wairarapa-Tararua council-controlled organisation, but this united front was unlikely to be seen at the table in Masterton where concerns around price standardisation were still being raised. Without standardisation, the Wairarapa-Tararua option was the cheapest for Masterton customers. With standardisation, it was more expensive than the 'Masterton-only' option. Although price standardisation was not a requirement of Local Water Done Well, some Masterton councillors have previously questioned what measures would be put in place to prevent it once the new entity was set up and whether these could be overridden by the entity's directors or the Commerce Commission. The Local Government (Water Services) Bill said councils can provide a statement of expectations to the water services entity, but 'the statement of expectations must not include any requirements or expectations that would compromise that financial independence'. It further said that 'if a water organisation receives a statement of expectations that is inconsistent with a direction or requirement imposed by a regulator, the regulatory direction or requirement prevails to the extent of the inconsistency.' The Commerce Commission, which would be the regulator, said it would be able to 'consider whether prices are efficient – for example, whether they appropriately signal the cost of service and support efficient demand management'. 'Generally, setting prices at a level that reflects local network costs is more efficient than harmonising prices across a water organisation. 'Once the Local Government (Water Services) Bill has been finalised and enacted the Commission will be able to make related decisions.' The Commerce Commission's water implementation director presented to Masterton District Council in a closed workshop on Tuesday. Price harmonisation was one of the topics covered. A fact sheet from the Department of Internal Affairs said price harmonisation and cross-subsidisation was not a requirement of Local Water Done Well. 'Concerns about potential cross-subsidisation of neighbouring councils' infrastructure, and harmonisation of pricing for consumers, should not be barrier to councils' discussions about joint arrangements,' the document said. 'Councils entering multi-council arrangements will have a lot of flexibility in deciding among themselves if, when, and to what extent prices are harmonised across districts, services, or groups of consumers. 'They may choose to begin price harmonisations immediately, on an accelerated path, or allow prices to align naturally over time as infrastructure needs are addressed, considering the specific infrastructure and service needs of different groups and areas.' Masterton and Carterton had hearings scheduled for next week and deliberations scheduled for the week after. Tararua would lock in its option on June 11. Each council must submit its Water Service Delivery Plans to the Department of Internal Affairs by September 3 and must demonstrate financial sustainability.
Otago Daily Times
25-04-2025
- Politics
- Otago Daily Times
Fears waterways at risk from wastewater plans
A government plan for national wastewater disposal standards is being met with local concern it could harm waterways. The plan, proposed in a Water Services Authority — Taumata Arowai consultation that ended yesterday, could end regional councils' ability to issue disposal consents with higher standards that are considerate of local environmental impacts. An official response from the Otago Regional Council is expected to flag that the plan risks a "one-size-fits-all approach". A draft response from the Dunedin City Council, which has been given an extension to May 1 to respond, has expressed concern that resource management instruments, prepared with mana whenua and communities, would be "over-ridden" and result in a "more permissive" approach to discharges to water rather than land. There needed to be a "backstop" opportunity for community engagement, it said. The Environmental Law Initiative (ELI), a charity run by environmental lawyers, said the proposed standards risked further decades of sub-standard wastewater disposal to water bodies. The charity flagged the Local Government (Water Services) Bill, which is progressing concurrent to the development of the standards, would give the power to set the standards to ministers rather than Taumata Arowai. ELI legal adviser Reto Blattner de-Vries described the proposed changes as having "massive implications" that would "entrench" lower-cost wastewater treatment plants that would be given 35-year consents. The changes would "allow councils to put their hands up and absolve themselves from pursuing culturally-appropriate discharge solutions which differ from the status quo, such as changing a discharge to water to a land-based discharge." Councils would not be able to decline an application for a discharge consent for a wastewater treatment plant that met the standards even if it contributed to various adverse effects listed in s107 of the Resource Management Act, he said. "A proposal of this gravity should be highlighted more by government ... The proposals take away localised discretion by councils which will mean councils won't have incentives to work with communities to find local solutions." ORC deputy chairman Cr Lloyd McCall said the ORC had submitted a comprehensive submission on the proposed wastewater standards and councillors had been given opportunity to input. The submission had, overall, supported a drive for efficiency in dealing with wastewater, but also outlined concerns around the protection of coastal and freshwater environments. "A proposed definition of pristine in its current form would not protect our highly valued lakes and their tributaries from degradation. The submission highlights this unintended consequence of a one-size-fits-all approach to water quality expectations." He said there was a need for rationalisation of wastewater management and regulation and it was also "essential that there is the ability for significant local community input into the receiving environment's water quality visions and outcomes." Cr Alan Somerville said: "The whole drive is to come up with standardised solutions that don't take into account environmental conditions and community aspirations for environmental protection. "This doesn't allow for particular local circumstances." He called for consideration of disposal to land, as a more mana whenua culturally appropriate response, and an end to an acceptance that wastewater could be dumped in the ocean without treatment if there was an overflow situation. The DCC has four resource consents that allow it to discharge wastewater overflows to freshwater and the ocean. Overflows can occur when wastewater pipes get inundated with stormwater. In South Dunedin, overflows have been channelled down a pipe called the "contamination vector" leading into the harbour and have sometimes flowed out on to Surrey St. Cr Andrew Noone said the government needed to now "set the bar high enough to ensure it was environmentally sustainable and doesn't cause greater degradation than we have currently got".
