Local Water Done Well: Timaru’s councillors vote for council-controlled organisation
Wednesday, 23 July 2025
Timaru’s councillors have unanimously chosen to establish a council-controlled organisation to deliver water services with the option of joining other councils in the future.
The decision came at a Timaru District Council meeting on Tuesday after much discussion, and not before councillors drilled Department of Internal Affairs’ (DIA) Marlon Bridge, the chief technical advisor for the Government on Local Water Done Well.
The council was forced to change tack after its preferred option — to establish a joint model with neighbouring district councils — was taken out of its hands after Mackenzie, Waimate, and Waitaki voted to keep their operations in-house.
The decision differed from council staff’s recommendation that councillors confirm in principle, support for the preliminary in-house delivery model, with the intention of transitioning to a joint implementation of water services with willing neighbouring councils.
It was also recommended councillors endorsed the continuance of governance and officer engagement with neighbouring councils to progress the possible future establishment and implementation of a joint organisation, including possible governance structure.
However, after weighing up the options, councillors agreed to a resolution change: to approve the establishment of a joint, or a standalone, Timaru District Council water services council-controlled organisation (CCO).
It also agreed to endorse the continuance of governance and officer engagement with other councils through the establishment of a joint governance and management working group to progress future establishment of a joint Water Services CCO.
It resolved to keep ownership of stormwater assets, and management of stormwater services in-house, including in the event of any current or subsequent joint water services CCO.
Officers would be directed to finalise the Water Services Delivery Plan based on the model for adoption at the council’s August 26 meeting.
“So, that gets us on the journey,” mayor Nigel Bowen said.
“It doesn’t say it’s a single council, it just says it’s a council-controlled organisation, and so that continues us on the journey for I think where we were heading anyway.’’
Bowen told councillors “no matter what’’, it was working towards a CCO ”and off to the side we’re working to getting those partners’’.
Bowen said the council had a two-year period to establish partnerships with other councils.
Chief executive Nigel Trainor said if the council wanted scale, an entity with Mackenzie and Waimate, and potentially Waitaki, was “flirting around the edges, to be honest’’.
“And quite frankly if we’re of a mind to have a joint water CCO there’s already one set up in the South Island, in Selwyn,” he said. “We’d have to debate bringing them in the tent and saying, ‘do we actually go bigger?’
“Working with the willing will get you there quicker.’’
Bowen said, without the southern councils, it was Hurunui, Kaikoura, Timaru and Selwyn which would definitely be willing partners for a discussion, “possibly tomorrow’’.
He said with Waimate and Mackenzie, who were unwilling partners but who may be told to join, it would give them a population of “200,000 easily’’.
Bridge told councillors, that of all the country’s councils, 80% would form a council-controlled organisation for water service delivery.
He said the legislation was driven to favour a CCO model.
He commended the council for its efforts in trying to join with neighbouring councils, saying he thought it had done a good job but “unfortunately we are where we are for now’’.
He said the shareholders’ document of a CCO, and its constitution, could include parameters that gave the council security that decisions made would be in the best interest of “this council’’.
Councillor Stu Piddington asked, with Mackenzie and Waimate not joining, was there enough scale for a Timaru CCO to work.
Scale was needed “otherwise we’re just tinkering’’, he said.
Bridge said he had seen the benefits of what scale brought and the benefits of specialisation.
“You get skills you wouldn’t normally have if you were a lot smaller, so what is ideal for New Zealand right now, I would say it’s around the 200,000 population mark.’’
Piddington said even with Mackenzie and Waimate, Timaru would need Ashburton and Waitaki councils to join to “get even near that number’’.
“I guess my concern is I absolutely see the benefits of it but right now on our own, there are costs in us setting it up, putting a board in, doing all those sort of things,’’ Piddington said.
He said he would have liked to have seen the DIA and Government “come in with a stick as well because we seem to be wasting a lot of time and energy with neighbours that are just sitting out and that sometime in the future may have to join us’’.
Bridge said the Super City CCO he had set up in Auckland cost $8m to $12m but that was an entity that had $8 billion worth of assets.
He said if the council chose the CCO option, it would have as much control as it did now over its water service delivery, but there would be another partner in the mix — the Commerce Commission, who were the economic regulators.
“Remember the council still continues to do the planning of water services, this is just a delivery vehicle, that’s all we’re talking about,’’ Bridge said.
Councillor Michelle Pye asked if the council presented a water services delivery plan with a solely-owned Water Services CCO would there be a chance to change the plan.
Bridge said there was a process within the legislation that would allow the council to amend its water services delivery plan.
“What we’re focussed on is what that 10-year plan looks like from now,’’ he said.
Bridge said an amendment could be made with the DIA to join with another council.
Councillor Stacey Scott said she was sick of playing nice with the council’s neighbours in attempting to set up a joint service, and asked if the Government “has any balls to intervene’’.
“We’ve tried to play nice, it hasn’t worked,’’ she said.
Bridge said “yes’’.