Local governments in Wellington, Hawke's Bay react to water reform decision

Wednesday, 27 October 2021

The Government’s decision on the Three Waters Reform has sparked relief and outrage among local councils around the Wellington region. (File photo)

The news the Government will push on with the Three Waters Reform has divided councils across the Wellington region.

Porirua Mayor Anita Baker says without reform Porirua City Council will not have the resources or borrowing capacity to deliver water services to an acceptable standard.

“Porirua City has already put aside $800 million over the next 30 years - and that's not even half of what's needed,” she said. “We have 19,000 ratepayers and 59,000 residents - they just can’t foot that bill.”

Local Government Minister Nanaia Mahuta on Wednesday announced the Government would legislate in early December to create four water entities to take on water assets owned by councils to ensure ongoing access to drinking water, wastewater and stormwater infrastructure without ballooning costs to New Zealanders.

Porirua Mayor Anita Baker says without reform, the council will not have the resources or borrowing capacity to deliver water services to an acceptable standard. (File photo)

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Wellington Water workers fixing a pipe between the Aotea turnoff and Paremata, which leaked sewage into Porirua Harbour. (File photo)

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The $700 million RiverLink upgrade is the most significant infrastructure project in Lower Hutt's history. (File photo)

Porirua was in dire need of water infrastructure work. Work on a sewage treatment plant was on hold, and stormwater issues plagued Plimmerton during heavy rain. “There’s sewage leaking into the harbour, and pipes to be repaired,' Baker said.

“We can’t keep having a 7 per cent increase in rates each year,” Baker said.

Greater Wellington Regional Council Chair Daran Ponter agreed that the decision was the right one.

Kāpiti Coast District Council Mayor K Gurunathan is concerned the reform will mean Kāpiti ends up paying the way for those who weren’t as well prepared. (File photo)

“This is a bold step, but precisely what is required to address chronic under-investment and looming requirements across the sector. The mandatory all-in approach will provide greater certainty to New Zealanders.”

Lower Hutt Mayor Campbell Barry said the city would face significant challenges to support population growth and, without this reform, the pressure would be on ratepayers to foot the bill.

Wellington Mayor Andy Foster, centre, says the lack of consultation on the reform

However, the proposed model might increase competition for funding, and decrease autonomy of local government when it came to developments and city planning.

The $700 million RiverLink project would see 2000 new apartments in the central city, requiring a “significant upgrade of the water infrastructure”.

But under the reform, that project would be pitted against others in the region; no funding was guaranteed, potentially stalling development.

Central Hawke’s Bay Mayor Alex Walker supports a regional aggregation of water infrastructure, but does not agree with the model proposed. (File photo)

On the other side of the fence is Kāpiti Coast District Mayor K Gurunathan, who is disappointed with the decision.

The council had “a good track record” with water service provision, introducing water meters in 2014 and investing around $90m over the past decade in water infrastructure.

“We crunched our own numbers, and we will lose out. Ratepayers will end up paying more,” he said. “We are being penalised for having the outcomes the reform is looking for.”

Wellington Mayor Andy Foster was concerned at the lack of consultation on the reform. The council had not consulted with the public on the proposal, as it was under the impression it would have the chance to do so later.

Wellington has had its share of burst pipes and sewage leaks; “We have significant investment to make, and we were on the trajectory to do that.”

“We completely agree with the need for change, but there were significant aspects of the proposal we didn’t agree with.”

With such a large area all vying for the same pool of funding, there was concern the provision of water infrastructure might hamstring development goals.

Hawke’s Bay councils were united in their disappointment. Central Hawke’s Bay Mayor Alex Walker said she supported a regional aggregation of water infrastructure ownership, management and delivery, but did not agree with the model proposed.

Napier Mayor Kirsten Wise agreed it was unacceptable that the choice was taken out of community hands.

“We have paved the way for managing Three Waters as a region working together. We have put in place the planning and the resources for our significant work programme.

Hastings Mayor Sandra Hazlehurst said the community had made it “very clear that they do not want to be part of an entity that controls water assets for 21 councils, 23 iwi groups and around a million people spanning from the East Coast of the North Island to the top of the South Island and the Chatham Islands”.

Masterton Mayor Lyn Patterson was also disappointed. “I have real concerns about how our community will have any say in how they are managed. We are a district that has invested in infrastructure and maintained excellent standards around Three Waters for our ratepayers,” she said.

“I understand the Government’s responsibility is to all New Zealand, but mine is to our district.”

South Wairarapa Mayor Alex Beijen echoed concerns around a lack of consultation. “I think there was very little intention for the Government to engage with local government,.