Local Government Minister Simon Watts responds to blistering letter from Wellington mayor Andrew Little
Friday, 27 March 2026
Local Government Minister Simon Watts is pouring cold water on the Wellington mayor’s hot takes about the Government’s water reforms.
But he does agree with Andrew Little that the Commerce Commission should get involved to stop water bills getting out of control.
On Thursday, The Post revealed a letter from Little’s office to Watts expressing “surprise” over the minister’s public statements about him.
That was related to Tiaki Wai - the organisation taking over Wellington Water - and its draft water strategy.
It showed the average household across Wellington City, Porirua and Hutt Valley now pays about $2100 a year for water, albeit via rates. Come July 1, it would be a standalone bill and an average of $310 would be added.
In his response, Watts stood by concerns he’d raised earlier in the week that proposed costs for Wellington ratepayers set out in the strategy exceeded what he had been briefed on by officials.
“The additional increases now being proposed will further exacerbate cost of living pressures across the region and compound long standing concerns about value for money from water services.”
Watts acknowledged cost pressures came from decades of under investment and that Tiaki Wai was a new organisation.
He said this provided opportunities to reset efficiency, accountability and better outcomes for the community.
“Against that backdrop, it is disappointing to see price increases of this scale being signalled so soon after establishment, and at a level that risks undermining those objectives.”
Little’s letter took aim at the Government’s water reforms Local Water Done Well, which Tiaki Wai was being set up under.
“I have previously raised with you the fact there are insufficient tools in the Local Water Done Well policy for councils or regulators to prevent runaway price increases by water organisations.”
Watts disagreed with his assessment and said there was an economic regulation under the rules.
Commerce Commission regulation
Both leaders agreed the Commerce Commission should come on board to address the costs put forward in Tiaki Wai’s draft strategy, Watts said.
“In doing so, the Commission should take into account the region’s significant infrastructure deficit and Tiaki Wai’s stage of development as a newly established entity.”
Watts said he expected to be kept informed about the outcomes of engagement with the Commerce Commission and refinements to the proposals in the water strategy.
He also noted he was willing to meet with the region’s mayors on the matter.
Following Watts’ letter Andrew Little told The Post he appreciated that there was the need for better checks and balances on the water organisation’s ability to set prices.
“So specifically acknowledging that the Commerce Commission should get involved. It’s helpful and I'm looking forward to getting a meeting between myself and other mayors and the Commerce Commission next week.”