Mayors and iwi consider major water services savings

Tuesday, 23 July 2024

Keeping things flowing efficiently - co-operation on water services could save hundreds of millions of dollars over ten years in Waikato, says a new report.

Achieving collective water services savings of $340 million or more over ten years through a joined up approach is set to be considered by Waikato councils.

The Waikato Mayoral Forum agreed to that at a meeting on Monday morning which considered a new “Waikato Water Done Well” report.

A joint mayors and iwi chairs forum in the afternoon also agreed councils would now look at what’s proposed.

The report recommended each of the region’s councils formally consider co-designing a joint waters entity, with “stage 1” involving “functional services”.

That would include asset management, capital works delivery, consenting, planning and design, and procurement.

The eventual end point “is an aggregated, fully regulated water services entity” for those who want to participate, the report said.

Matamata Piako District Council chief executive Don McLeod says councils are between a rock and a hard place when it comes to affording water services.

The moves come against the background of the Government pushing its joined-up approach to water services delivery after it scrapped Labour’s three waters plans.

Matamata Piako District Council chief executive Don McLeod, who led work on Waikato waters cooperation, said each council needed to separately consider what’s suggested.

They’re due to report back by mid-September on whether they want to participate in forming a joint body. Those who do would look to formalise a non-binding agreement by October.

No final decisions on any regional entity can be made until there’s more clarity on the Government’s exact intentions.

A new 1.5 million litre capacity wastewater storage tank in Hamilton’s Peacocke area illustrates the type of infrastructure needed.

A “very conservative” estimate was that a fully joined up approach could save $338 million over a decade, with most savings coming from combined capital planning works and delivery, the report said.

Councils had budgeted $5 billion for capital works over 10 years, with total water services costs set to be $7.5 billion.

A table in the report indicated Thames-Coromandel and Waitomo average water household charges currently exceeded international affordability indicators. They were set to be joined by Hamilton, Hauraki and Waikato district by 2035.

Hamilton’s water treatment station is an example of the major infrastructure used to provide services in the region.

By 2035, the charges could range from $1652 in Ōtorohanga to $7921 in Waikato district. Differences reflect the varying infrastructure needs of districts.

“Councils are between a rock and a hard place,” McLeod said.

“Our ratepayers simply cannot afford to pay for the water infrastructure we need to build, yet we must build it.”

On estimated 2035 charges, he said: ”We cannot expect ratepayers to stump up with that sort of cash and not consider more cost-effective ways of providing services.“

Mayoral forum chairperson and Hauraki mayor Toby Adams says co-operation could help address both economic and environmental compliance issues.

Councils’ faced considerable uncertainties over having suitable waters staff and contractors for building infrastructure, McLeod added. A single body could help the construction industry by consolidating client numbers.

A collective approach could also help better manage water takes from rivers. “We’re all looking at our little bit…aggregation can establish a more strategic opportunity for the way we collectively use our waterways.”

While acknowledging councils can’t make a firm commitment on a combined water services entity until Government legislation is clearer, the report recommended councils get on with work now.

Not all councils may need a fully joined up entity but it was “highly likely” all “will need and benefit from one at some point”.

The report noted that without strong political leadership communities may be reluctant to agree to co-operate, despite the benefits.

In April, mayors from a number of smaller councils questioned what they’d gain from joining a “one Waikato” or sub-regional approach.

“Low-growth rural has very different needs to urban high growth,” Waitomo’s John Robertson said then.

However, mayoral forum chairperson and Hauraki mayor Toby Adams said on Monday co-operation could potentially help in dealing with economic issues and complying with various regulations.