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RNZ News
2 days ago
- Business
- RNZ News
Southern councils reluctantly agree to jointly deliver water services
Clutha River Mata-Au. Photo: RNZ / Tess Brunton The Clutha District Council has reluctantly agreed to partner with other southern councils to deliver water services with councillors saying they feel backed into a corner. Councils have less than a month to submit their water service delivery plans to the Department of Internal Affairs. Four southern councils had been working towards a jointly owned, council-controlled organisation, but last month, the Waitaki District Council pulled out , leaving the others to work out if they should stick with the plan or strike out on their own. Earlier this week, the Central Otago and Gore district councils both voted to stay the course and continue with the Southern Water Done Well model. On Wednesday, Clutha District councillors met to consider if the updated figures for only three councils stacked up and they should stick with their earlier decision to adopt the Southern Water Done Well model. Analysis by Morrison Low Advisory, that was tabled at the extraordinary meeting, found that ratepayers across the three councils would collectively save approximately $392 million by 2054 through setting up the joint entity. This was $220 million less than the estimated savings if the Waitaki District Council remained in the partnership, but the analysis suggested the figures used conservative assumptions and more savings could be made if other councils joined in the future. The decision was not unanimous, with multiple councillors on both sides of the vote expressing their frustration and concerns. Clutha District Mayor Bryan Cadogan said he was gutted and furious, but the new entity was the only option they had to avoid government intervention as they faced rising debt, costs, rate rises above 20 percent and a looming deadline. It was the worst process that he had ever seen a government push through, he said. "Most councils walk out of this totally enfeebled. There's going to be some ghastly costs and ghastly decisions moving forward." But he urged councillors not to vote against the partnership, saying the council could not afford to go it alone and if it tried, the government would step in and councillors would not have a seat at the decision-making table. Clutha district Mayor Bryan Cadogan Photo: supplied Councillors had a moral and democratic responsibility to protect their ratepayers from having a complete stranger from Wellington intervene and call the shots for their district, he said. Councillor Dane Catherwood said they were being pushed into a corner, but he was worried about ratepayers facing separate rates and water bills and that it would be more expensive if the entity went ahead. Clutha Deputy Mayor Ken Payne said it felt like they only had one option, even if he did not like it. Councillor Gaynor Finch said she did not want to hand over the district's assets, but she thought this option was the only way to avoid government intervention. Councillor Brent Mackie said he resented the feeling their ratepayers were being threatened and their district was being bullied and pushed around. Councillor Jock Martin said he believed if the council backed its own staff and process, they could do a better, cheaper job. The analysis was peer reviewed by Concept Consulting and Infometrics, and considered by the Department of Internal Affairs, with all three noting that this model remained the best and most viable option for the three councils to deliver water services. Councillors also voted to agree that the Timaru District Council and Waitaki District Council might join the partnership and they were willing to explore future opportunities to collaborate with other southern councils. During the meeting, they were told that the Waitaki District Council, which has been hosting weekly workshops on its own water plan, had been advised by the Department of Internal Affairs that its plan had significant gaps. On that basis, the department staff told them a specialist would likely be sent in to take over decision-making and they were expected to get the council to rejoin the southern partnership. Councillor Alison Ludemann said no extra costs should fall on the councils already in the partnership if another council sought to buddy up and any request needed to be discussed by the councils. For Clutha ratepayers, the analysis found that a new joint water services entity would mean three waters debt and revenue no longer impacted the council's borrowing limits and the council would improve its debt to revenue ratio, allowing for an increase of approximately $8 million of additional borrowing capacity. The analysis also found, while this model was the best overall, there was a risk that some local control was eroded and some high value jobs might be lost in some districts as the work was centralised. It also said the benefits of the model would be derived over the long term and the transition to a regional price might increase charges for some customers. Southern Water Done Well chair and Central Otago District Mayor Tamah Alley said the entity would be designed to protect local communities and ensure fair, effective governance. "The model is regionally focused, community-driven, and ensures that decisions about water services remain in local hands," she said. Working together remained the best way for councils to achieve their shared goal to provide the best most efficient services for their communities today and into the future, she said. "We remain committed to collaboration and would welcome future conversations with any council interested in being part of a community-led, regional solution." The new water services entity was due to start operations by July 2027, covering 24 urban water supplies and 10 rural supplies. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
15-07-2025
- Business
- RNZ News
Whanganui backs new water services body with Ruapehu
Whanganui District Council is the last among neighbouring councils to choose a new delivery model for water services. Photo: Tuakana Te Tana Whanganui councillors have voted 8-5 to form a new entity with Ruapehu to manage the delivery of water services. Whanganui and Ruapehu district councils will be the shareholders of the new council-controlled organisation (CCO) that will own the water assets. "This is a big moment in this council's history," Mayor Andrew Tripe said. The entity will include drinking water, wastewater and possibly stormwater assets and services, and operate on non-harmonised or 'local pricing'. This means residents will be charged only for the cost-of-service delivery in their own district, while still benefiting from a share of the savings gained through scale. Whanganui was the last among neighbouring authorities to choose a delivery model. At a meeting on Tuesday, councillors debated balancing cost efficiencies gained in a larger grouping with the opportunity for local voice and the council's obligations to Te Awa Tupua legislation. Following the decisions of other councils, Whanganui weighed up four options: Council staff recommended a joint entity with Ruapehu. The council's Local Water Done Well transition manager Kathryn Stewart said the joint models were projected to outperform an in-house business unit. The two-council model would save water users an estimated $620 a year or $18,000 over a 30-year period. A five-council model would deliver customer savings of $870 a year. Chief executive David Langford told councillors that cost efficiency modelling did not set precise savings but was a mechanism for comparing options. "The numbers are there to help you compare options, they're not predictions for the future. Hanging your hopes on exactly $620 per year for 30 years is an erroneous use of the model." Langford said joining a bigger grouping of councils would likely provide greater savings for households but "bigger is better" was a misnomer. He cautioned councillors against making a decision on cost savings alone. "It's not cost efficiency at any cost. As you get bigger, your ability to influence and the size of your voice gets smaller. [It is] a trade-off between how much you make in savings and how much voice you retain." Much consideration had been given to Te Awa Tupua legislation, Langford said. The two-council model with Ruapehu would create a water service delivery entity that was exclusively focused on the Whanganui catchment. It would ensure governance remained close to the community and was not consumed by a larger entity. Stewart said all joint options would bring opportunity, including increased collaboration, resilience, and staff and technical capacity. But the two-council model would also preserve local voice and influence and put Te Awa Tupua and the wellbeing "of all our connected communities" at the centre of decision-making. The CCO would manage the delivery of water services for about 24,000 connections. The councils would appoint a board of independent, professional directors who would be responsible for making decisions. The board would be informed by expectations set out and agreed upon by the two councils. Advantages included improved ability to fund infrastructure investment, maintenance and compliance costs and improve environmental outcomes, and greater ability to respond to emergencies, manage risks and adapt to future challenges like climate change. In favour of the two-council partnership were: Tripe, Glenda Brown, Josh Chandulal-Mackay, Jenny Duncan, Ross Fallen, Kate Joblin, Charlotte Melser, Peter Oskam. Against were: Deputy mayor Helen Craig, Charlie Anderson, Philippa Baker-Hogan, Michael Law and Rob Vinsen. The Ruapehu council voted 6-4 in favour of the two-council model last week. Chief executive Clive Manley welcomed Whanganui's decision and said it was an important milestone that enabled both councils to begin work on detailed planning and implementation. While Whanganui voted to include stormwater in the new CCO, Ruapehu was still considering whether to transfer its stormwater services or retain them in-house. This decision would not affect setting up the new CCO, Manley said. "We'll make a decision on stormwater in due course, but it doesn't prevent us from moving forward with the rest," Manley said. "Both councils are committed to continuing to explore opportunities that improve efficiency and reduce costs for our communities." Whanganui council officers will now finalise a Water Services Delivery Plan for adoption at the next council meeting in August. The council will then submit its final Water Services Delivery Plan to central government by the early-September deadline. If approved, implementation will begin later this year. The new water services CCO could be established by mid-2026 and fully operational by mid-2027. LDR is local body journalism co-funded by RNZ and NZ On Air
