Stormy waters for proposed Wellington regional water entity

Friday, 11 October 2024

There appear to be major doubts about the involvement of the three Wairarapa councils, as well as Horowhenua and Kāpiti, in a proposed Wellington mega water entity involving 10 councils.

An advisory group headed by Dame Kerry Prendergast earlier this week issued a statement supporting a “regional approach” involving 10 councils.

However, Carterton mayor Ron Mark describes Local Water Done Well as a “pig with lipstick” and he does not support a regional approach to fixing water woes.

Without the Wairarapa, Horowhenua and Kāpiti councils, that would leave the four metropolitan councils ‒ Upper and Lower Hutt, Porirua and Wellington City ‒ plus Greater Wellington.

New funding arrangements announced by the Government on August 8 for water organisations through the Local Government Funding Agency mean that if councils set up a new delivery organisation these will have access to additional debt funding.

Upper Hutt mayor Wayne Guppy said he would not be surprised if the three Wairarapa councils, Kāpiti and Horowhenua end up heading in different directions.

Mark described any proposal to create an entity involving Wellington City as a “dog” and he doubts his ratepayers would want to be exposed to the cost of fixing Wellington’s underground pipes.

Both the Kāpiti and Horowhenua mayors confirmed that their councils have a number of options on the table, including going it alone or a joint entity.

The situation is complicated by the need for Kāpiti to hold a referendum and to get 75% of councillors to agree.

Mayor Janet Holborow said Kāpiti was “fully engaged” with the advisory group but ultimately any decision would have to be made on the basis of what is in the best interest of ratepayers.

The need for a referendum results from the decision to introduce water meters.

Masterton mayor Gary Caffell said Masterton was looking at four options, including joining with neighbouring Tararua.

“As far as my council is concerned we have not made any decision. It is bloody complex and it is just such a big decision.”

Horowhenua mayor Bernie Walden said his district was also weighing up options, including joining councils to the north.

Horowhenua was in the fortunate position that it was growing and over the next five to 10 years, it would have to decide what the best mechanism was to fund the necessary infrastructure, he said.

Although he agreed that joining with Wellington City would massively increase how much could be borrowed, he was concerned that the new entity would be Wellington City-focused, given the scale of its problems.

South Wairarapa mayor Martin Connelly believed his council would look at options that excluded Wellington.

“I would say it is unlikely [joining with Wellington] but we do need to do the final analysis, which we are about to do.”

He noted the report by the advisory group said Wairarapa residents faced a potential water bill of $3000 to $4000 a year, on top of rates, and he said joining with Masterton was probably a better option.

Mark said the real issue was that Local Water Done Well was forcing councils to make decisions they do not want to make.

“The option we team up with Wellington is unattractive … let’s be blunt, Local Water Well Done is a pig with lipstick.”

Carterton is a rural council and he said his ratepayers do not want to be forced to work with Green-leaning councillors that he claims are anti-farming.

“The option of us going alone, by ourselves, is a real option.”

Greater Wellington chair Daran Ponter predicted the four metropolitan councils would create a new entity, which would initially include his council.

It was important, however, that the door was left open so councils like Carterton and Horowhenua could join at a later date, he said.

Greater Wellington is the regional supplier of bulk water. It also has regulatory responsibilities that put it in conflict with councils.

In Lower Hutt, the recent odour issues and effluent discharges into the Waiwhetū Stream from the Seaview Wastewater Treatment Plant have put the regional council in conflict with residents. Those residents, he said, are claiming it has a conflict of interest because it and Hutt City are both part of Wellington Water.

Last May, he wrote to Prendergast signalling Greater Wellington would like to exit many of its responsibilities once a new entity is created.

On Friday, he said, Wellington Water would probably join a Wellington entity but would look to withdraw over four or five years.

Prendergast said all the mayors had worked well together to produce a report outlining the benefits of a regional approach.

“Here [the report they produced] is the case for a regional network and now they have to go away and do their own work.”

She was aware that some councils were looking at other options and said it was up to each council to weigh up what the best option was for their ratepayers.

Once they have done that, the councils would then have to consult with ratepayers.

The councils have to be able to show the Government they have a financially sustainable three waters plan.

One of the big pluses of the 10 council proposal is the advantage of scale it offers.

The new entity will be able to borrow against the assets that are transferred to it.

The bigger its base, the more it could borrow, as well as being able to employ better people with the skills to manage complex projects.

Having an independent entity would also ensure that decisions about future investment were made on the basis of need, rather than politics.

In a statement earlier this week Prendergast emphasised the need to address the backlog of investment needed in three waters infrastructure.

'There are no quick fixes. This is why it’s imperative that councils work together, despite each facing different issues. Some councils have challenges now, some have challenges to come in the future. This is a long game, and working together, at scale, gives us the best chance to turn the tide.'

There is some good news for supporters of the regional entity. Guppy, who has been a staunch critic of Wellington Water, said Upper Hutt supports a regional approach.

“The more in (councils) the better it will be.”