4 days ago
- Business
- Otago Daily Times
CCO preferred option for Three Waters
A recommendation for a council-controlled organisation (CCO) to deliver Three Waters services in the Queenstown Lakes district will go out for public consultation on Monday.
Councillors voted 8-2 in favour of the recommendation at a full council meeting in Arrowtown yesterday, taking another step in revamping Three Waters delivery in line with the government's 'Local Water Done Well' reforms.
In her report for councillors, council strategy and reform manager Pennie Pearce said compared to an "in-house" model, a CCO would provide
the "greatest opportunity to deliver high-quality, resilient, sustainable and reliable water services".
The council would transfer the district's drinking water, wastewater and stormwater assets — and associated liabilities — to the CCO, but would be its sole shareholder.
The CCO would operate independently from the council, with its own specialist board and management.
It would not need to consult with the community, but the council would set its expectations and priorities through a statement of expectations.
The report said average annual water charges for households would increase significantly under either model, but were estimated to be 10% lower under a CCO in the long-term.
The council's debt would significantly decrease, giving it more "headroom" for non-Three Waters capital spending.
Mayor Glyn Lewers said he strongly backed a CCO, saying the litany of Three Waters failures the current council had been forced to deal with were the outcome of poor decisions by previous councils.
The 2023 Cryptosporidium outbreak, the Shotover wastewater disposal field failure, and the need to truck waste out of Hawea were all the result of "political interference", and had led to households having to pay more for water services.
The council was investing nearly $1.5 billion on Three Waters infrastructure over the next 10 years, and he wanted a professional board overseeing that, Mr Lewers said.
Cr Gavin Bartlett said the projected reduction in council debt under a CCO would allow the council to "focus on the other services we provide".
The two councillors to vote against the recommendation expressed scepticism that a CCO would result in better decision-making.
Cr Quentin Smith said it did not guarantee a higher level of expertise, and he favoured an in-house model.
Cr Niki Gladding said keeping Three Waters delivery inside the council ensured transparency and accountability.
"I think we're going to lose something with a technical board that meets quarterly."
The four-week consultation period will end on June 29, with the council expected to make a final decision on July 31.
