Palmerston North’s list of potential water partners shrinks

Thursday, 17 April 2025

Palmerston North’s proposed $480 million Nature Calls wastewater colours consideration of future Local Waters Done Well options.

Palmerston North residents are overwhelmingly in favour of creating a four-council water services entity, an option that would cost them the least, but which looks unlikely to happen.

Thousands of people have joined council sessions to discuss the options for Local Water Done Well, with 292 making submissions, and seven speaking to the city council’s sustainability committee hearing on Wednesday.

But the option of working with Kāpiti, Manawatū and Horowhenua district councils, which in 10 years would see residential ratepayers paying $2100 a year for water services, would seem to be off the table, with Manawatū and Kāpiti opting out.

Three waters transition manager Julie Keane said during the last couple of weeks of engagement, people were asking a lot of questions about what that meant for Palmerston North.

Many chose not to rank their preferred options because of that confusion.

Speaking to his submission, Brett Hill described the four-council choice as “the best of the worst”.

He said households were already struggling, including the working poor, people caring for those with disabilities, and people on fixed incomes.

He could not see how people could magically find what would be about an extra $40 a week to pay for water services.

Hill said with elections coming up, people would be paying close attention to council spending on anything beyond what was absolutely essential, such as rubbish, water and basic services.

“As a ratepayer, I’m bloody concerned.”

Palmerston North’s public have had their say on the city’s future water services management. (file photo)

Many people were interested in the city council retaining control of its own water assets and services, but were put off by the estimated cost of $3800 a year per ratepayer.

Former city councillor Chris Teo-Sherrell said he would not support having a combined council-controlled organisation (CCO) running water services.

He said it would be unlikely to deliver the economies of scale assumed, and took democratic control away from ratepayers.

“It is hard enough exerting control on a single-council CCO, never mind on one shared with other councils.”

Despite that misgiving, he said he would support a single Palmerston North CCO, an option that had not been canvassed during consultation.

He thought it “far-fetched” to imagine ratepayers from surrounding districts would want to subsidise the city’s delayed investment in water services, particularly its wastewater.

The council is budgeting $480 million for its Nature Calls wastewater management project.

An option for the future delivery of Palmerston North’s water services is due to be selected on May 7.

Submitter Christine Staples said the process was frustrating, with the council being forced to make such an important decision when the legislation about water services had not even been passed yet.

She opposed any arrangement that put the people in charge another step away from those paying the bills.

Staples said she would prefer for the council to retain its own water services, but she recognised that meant spending on water had to take top priority, cutting back on other projects like the Te Motu o Poutoa civic and cultural centre and a new Awapuni Library.

Councillor Leonie Hapeta said she was disappointed there were not more submissions on an issue of such importance, and Councillor Kaydee Zabelin said her main concern was how rushed the process was.

Mayor Grant Smith said the council needed to keep an open mind about working with other councils, and he was also concerned about the timeframes and whether ratepayers of the four councils shared the same understanding of the options.

The council will consider a detailed analysis of the submissions and decide on its way forward on May 7.