Wellington Water’s $51 million blunder

Friday, 24 May 2024

Hutt City has been hit the hardest by a Wellington water blunder that has left councils needing to find an extra $51 million over the next three years.

The spreadsheet mistake was acknowledged at a tense meeting of the Wellington Water Committee on Friday.

Hutt City is facing the biggest increase, over the next three years, of $20.1m and Porirua $10.5m . Wellington will have to find another $9.6m, Greater Wellington $9.3m, and Upper Hutt $1.3m.

Wellington Water chief executive Tonia Haskell apologised to the Wellington Water committee, which is the representatives of the councils that own the water agency, and later confirmed that the councils would not need to find the extra cash in their long term plans.

“We have proposed to councils that we will work to mitigate the impact of this within the programme rather than ask ratepayers for additional funding for the impacted period. This means we can adjust the pace of the work over a slightly longer period to account for this oversight.”

An angry Porirua mayor Anita Baker said that, as a long-term supporter of Wellington Water, she was “really, really angry” and she wanted to know how long Wellington Water had known about the error.

“I am trying to be civil but I just want to jump over the table. I am very angry because $10.5m to Porirua is just huge.”

She noted that she had already been grumpy because a sewage tank needed for the city had increased from $48m to $97m.

“I feel like I have had sand kicked in my face.”

A clearly tense member of the board of Wellington Water, Pat Dougherty, issued an unreserved apology at the meeting and said the board would be conducting an independent review to make sure there is no repeat.

He acknowledged Wellington Water had “shot itself” in the foot and damaged its credibility and relationship with councils.

After working hard to make sure Wellington Water was providing “robust” and reliable advice, the board was unhappy about the latest mistake.

“Staff feel a sense of ownership of the information they provide to councils and are just stunned this has happened.”

The board “did not want to conduct a witch hunt” but he said it was important that such a mistake never occurs again.

He would be working over the weekend on the terms of reference for the review. It would be carried out by an independent party and the board would report back, in July, with the findings.

Haskell apologised on behalf of staff.

“I want to echo the board’s apology, we are closer to it, we are feeling it very keenly that we have let ourselves down…we want to be trusted advisors and in this case we have not earned your trust.”

The blunder came to light at a regional council meeting yesterday and was made in a week when cash-strapped councils are making major decisions on long-term plans.

Committee chair and Hutt City mayor Campbell Barry said the mistake undermined public confidence in Wellington Water.

Residents are telling the council they want his council to fix infrastructure but are under financial pressure.

“This type of error really strikes at the heart of confidence that councils, and ultimately residents and ratepayers, have in the work we are doing and that they (ratepayers) support.”

From a council’s point of view it could not have come at a worse time.

“This is the most challenging long term plan councils have ever grappled with, potentially ever, in modern times.”

Upper Hutt mayor Wayne Guppy said he was not surprised by the mistake and it was only the latest of many Wellington Water had made in recent years.

He pointed out that Wellington City had produced a critical report of Wellington Water and there had been other reports but nothing had appeared to change.

“We seem to do that (hold a review) every year.”

Wellington mayor Tory Whanau said she was “disappointed” with the situation and Wellington Water had a lot of work to do re-establish trust.

It was important that the Water Committee had input in to the terms of reference to the inquiry, she said.

Haskell said Wellington Water would work with the councils on possible options to manage the shortfall

Each councils would need to make their own decisions on what works for them and Greater Wellington had already decided to make a late addition to its long term plan..

“I just find it flabbergasting too be honest, but sadly, it's a continuation of more of the same from Wellington Water,“ infrastructure Minister Bishop said ahead of the meeting’s 10am start.

The region was “sick and tired” of the “incompetent mess” facing councils in the region and he said Wellington Water’s blunder reinforces the need for reform.

“The Government is standing alongside Wellingtonians…we will move as quickly as they can to set up a new model.”

Earlier this month, the Government announced it would be creating a new water entity in Wellington.

Former Wellington mayor Dame Kerry Prendergast, is chairing the oversight advisory group for the new entity which will include all the Wairarapa councils, Kāpiti and Horowhenua, as well as the four metropolitan councils.