5 days ago
- Business
- 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.
