‘Sense of urgency’ as Lower North Island mayors begin work on mega water entity

Friday, 10 May 2024

The mega entity promises lower rates rises and will be able to borrow more over a longer period at good rates.

A group of mayors covering Greater Wellington and surrounding areas have officially promised to work together on a water services plan to replace Three Waters.

Dame Kerry Prendergast, who is chairing the oversight advisory group for the new entity, confirmed a memorandum of understanding was signed on Friday by 10 participating councils across Greater Wellington, Wairarapa and Horowhenua.

“They’ve all agreed to work together to get work done and understand what a delivery model for [drinking] water, waste water and storm water will look like,” Prendergast said.

While it was early days, “the whole 10 are in the tent — that’s momentum,” she said.

“They want to be part of their own destiny and don’t want anything imposed on their communities again that they haven’t had input in.”

It was the first meeting and three more were scheduled till August.

The entity promises lower rates rises and will be able to borrow more over a longer period at good rates. It intends to have “balance sheet separation” from councils – meaning its finances were not tied to councils and visa-versa.

“We want to work to get ultimately the best outcome for ratepayers,” Lower Hutt mayor Campbell Barry, also chairperson of Wellington Water, said.

A group of leaders from across Wellington sign a memorandum of understanding on the new water entity. Top from left, Carterton Mayor Ron Mark, Horowhenua Mayor Bernie Wanden, Wellington Mayor Tory Whanau, Kāpiti Mayor Janet Holborow, Upper Hutt Mayor Wayne Guppy. Bottom from left, Masterton district councillor David Holmes, South Wairarapa district councillor Colin Olds, Greater Wellington regional councillor Ros Connelly, Dame Kerry Prendergast, Lower Hutt Mayor Campbell Barry and Porirua Mayor Anita Baker.

The entity would not be in place to stop this years’s proposed rates increases – 16.9% in Hutt City and 16.4% in Wellington City (or 18% including a sludge levy)– but would mean future rates increases could be lessened because pipe fixes could be paid back over a longer period.

The entity must be financially sustainable to meet the coalition Government’s requirements, Barry said.

Public documents presented to Hutt City Council indicate the entity’s first phase will have a budget of $600,000, the cost of which will be shared by all involved councils.

Prendergast said the final cost of sustainable three waters solution had not yet been worked out.

Barry said there was a “clear sense of urgency across all councils to come up with a new model”.

“We know the status quo is simply not sustainable.”

Barry said it take both central and local government working at pace to address the issues facing each region.

Wellington mayor Tory Whanau said councils were facing similar challenges and needed to work towards a new model to make funding and delivery of water infrastructure more sustainable and efficient long-term.

“We are committed to working with other regional councils to provide resilient water networks and deal with population growth.”

Earlier this week, Whanau came out of a meeting with Prime Minister Christopher Luxon saying he had made his position clear that he wanted rapid action on water reform.

A decision yet to made included whether the entity will be council owned or a council controlled organisation.