Timaru council poised to drop 3 Waters legal action

Saturday, 27 January 2024

A report from Timaru District Council chief executive Nigel Trainor is recommending council halt its appeal over a High Court decision relating to the 3 Waters reforms. (File photo)

The Timaru District Council is on the verge of withdrawing its court action against the Government over the 3 Waters Reforms.

Approval to halt the Court of Appeal action is expected to be given at an extraordinary meeting of council on Tuesday, following a report from new chief executive Nigel Trainor.

'There will be modest legal costs associated with the withdrawal of the appeal … these will be substantially less than continuing with the appeal,' Trainor's report says.

The withdrawal proposal was a result of the 'new Government’s commitment to repeal the previous Government’s 3 Waters legislation'.

In 2022, the Timaru council, along with the Waimakariri and Whangarei district councils, initiated the legal action in the High Court, seeking declarations that the Crown was taking property without compensation to local authorities

Trainor's report says the High Court declined to make the declarations on February 21, 2023. The High Court did state that what the then Government was proposing did amount to expropriation. However, it added that the matter of compensation was for Parliament.

Timaru and Waimakariri appealed the decision not to make the declarations and that is due to be heard by the Court of Appeal in April 2024.

Minister of Local Government, Simeon Brown, says legislation to change the 3 Waters Reform will be introduced to Parliament in early 2024 as part of the new Government’s 100 day programme. (File photo)

Since the High Court decision, the Government changed in the October 14, 2023, General Election.

'The coalition agreements underpinning the new Government, committed to a repeal of the previous Government’s decision to expropriate council 3 Waters assets,' Trainor's report says.

'On December 14, 2023, the Minister of Local Government, Simeon Brown, publicly announced that appeal legislation would be introduced to Parliament in early 2024 as part of the new Government’s 100 day programme.

'We understand that this is scheduled for mid-February 2024.

'Given the new Government’s policies, legal advice is that it would be appropriate now to withdraw the scheduled Court of Appeal action as the policy matter it concerns is now redundant.

'This will avoid also incurring further unnecessary legal costs.

'Although repeal legislation has not been introduced, this is imminent.

'It is considered that the risk of the new Government not proceeding is very low.

'Waiting longer to withdraw the appeal would incur unnecessary legal costs as submissions are required to be prepared and filed with the court well before April.'

The Waimakariri council has been approached for comment.