More South Island mayors join call for minister to halt water reforms

Wednesday, 25 August 2021

A South Island mayor has raised questions about the Government using Scotland as a model for water reform.

Westland mayor Bruce Smith said recent reports by the BBC showed the number of sewage spills recorded in Scotland's rivers and seas had increased by 40 per cent over the last five years.

Scottish Water, a publicly-owned water firm, was established in 2003 and was only required to monitor 3 per cent of overflow sewers that discharge into seas or rivers after heavy rain.

The BBC reported there were 12,725 “spill events” last year and 654 of the sewers did not have adequate screening.

The New Zealand Government has proposed significant long-term investment to ensure water meets public health and environmental standards by transferring water responsibilities from 67 councils nationwide into four entities, including one for the South Island.

It used analysis by the Water Industry Commission for Scotland to estimate that up to $185 billion* investment would be required.

An analysis by Deloitte suggested the proposal would create up to 9300 jobs.

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Smith said he had serious questions about the Scottish model being held up as an example to follow.

“The Scottish model is not working and that information has not been given to mayors. If the Government is really set on following that model it seems very unwise to me.”

Under the proposed $2.5b reforms, control of drinking water, wastewater and stormwater infrastructure would transfer from 67 councils to four new independent entities.

Councils across New Zealand have already expressed concern about the reforms and the pace at which they are being pushed through.

On Monday, 10 Canterbury mayors and the chairwoman of the regional council issued a statement saying they had “serious concerns” about the timeframe of the reforms and feared residents may not have enough time for meaningful engagement.

Local Government Minister Nanaia Mahuta accused the group of “playing political games”.

A spokesperson for Mahuta’s office said the Water Industry Commission for Scotland had not been asked to provide recommendations for reform, but an economic analysis of water services aggregation and its economic benefits compared with one in which local authorities continue to deliver water services.

The Government was aware of the rise in sewage spills in Scotland. The spokesperson said this emphasised that the level of investment the Scotland commission believed was necessary to bring New Zealand’s water services to an acceptable standard – far higher than current council investment plans – was not excessive.

Grey mayor Tania Gibson, Smith and West Coast Regional Council chairman Allan Birchfield wrote to Mahuta to show their support to the Canterbury mayors calling for the Government to pause the proposals.

The letter said the mayors and chairman were concerned with the pace of the reforms and wanted time to engage properly with their communities and rūnanga.

“It is clear at this stage our communities are anxious and unhappy with the current proposals.”

The information the Government had provided about the proposals was complex and difficult to come to grips with, they said.

The mayors and chairs of Otago and Southland councils also wrote to Mahuta to ask for a pause to the reforms, which they described as rushed.

“We also seek the Government to significantly up its game in providing information to the public on why it believes the reforms need to happen and what the effects of the reforms on councils and communities will be,” they said in a joint statement.

Meanwhile, the Christchurch City Council is surveying its community on the proposed changes.

Chief executive Dawn Baxendale said the council wanted to gauge what was important to people.

Councils have until the end of September to provide feedback to the Government, but the public were not expected to be consulted until October.

“The implications of these reforms will be felt for generations, so we need to consider them carefully and weigh all the issues,” Baxendale said.

“We want residents to be part of our decision-making process.”

The water reforms are currently voluntary and councils can decide to opt out before December, but there are fears the voluntary nature might change.

People have until September 12 to complete the Christchurch council’s survey.

Mahuta said the reforms had been worked on over the last four years to rectify gaps in the current system that had led to contamination, infrastructure breakdown, and stormwater overflows.

“Pausing the reform programme will not change the reality that the status quo is simply not working.”

The duplication of services among 67 councils was not financially sustainable either, she said.

“Small rural councils like those on the West Coast stand to benefit the most from these reforms and it’s been disappointing to see mayors … playing political games with their communities’ futures.”

Government officials had been engaging with councils and iwi, she said.

• Correction: An earlier version of this story incorrectly stated the Water Industry Commission for Scotland’s estimates indicated up to $185 billion in savings. In fact this is the estimated cost of investment. Nor was the Scottish body’s analysis used “to ensure water met public health and environmental standards” but only the cost of doing so. (6.37am, August 26, 2021)