The Government announced changes to its Three Waters reform on Thursday. Photo / Laura Smith
The Government announced changes to its Three Waters reform on Thursday. Photo / Laura Smith
Tauranga ratepayers could save $3350 a year and Western Bay households $4200 by 2054 under the Government’s revised “once-in-a-generation” Three Waters plans.
Western Bay of Plenty mayor James Denyer welcomed the changes, saying they had “the potential to create greater acceptance nationwide”.
The Government today scrapped a major part of its Three Waters reforms, ditching the four mega-entities that would have delivered freshwater, wastewater, and stormwater services to households.
These four entities will become 10 under the revamped and renamed Affordable Water Reform, with their boundaries established roughly along the lines of New Zealand’s 16 regional councils.
It means the Bay of Plenty will have its own entity, covering Tauranga City, Western Bay of Plenty, Rotorua Lakes, Whakatāne, Kawerau and Ōpōtiki.
The Three Waters reforms were meant to help local councils deal with the cost of investment in water infrastructure - estimated to be between $130 billion and $185b over the next 30 years.
Local Government Minister Kieran McAnulty said the new changes would deliver big cost savings to households.
In the Western Bay of Plenty, the average cost in 2054 would be $6980 a year if reform did not occur. Under the revised model, the average cost for each household in the Bay of Plenty region would be $2780.
This equates to a saving of $3350 in Tauranga and $4200 for Western Bay homes.
Whakatāne ratepayers would save $8620 and in Ōpōtiki $9970, representing a 78 per cent reduction.
The new water services entities would start delivering water services from July 1, 2026, at the latest with entities able to start before this if they were ready.
In announcing the reforms, McAnulty said: “These reforms are absolutely essential. Leaving things as they are will mean unaffordable rate bills.”
He said by extending the number of publicly owned water entities to 10, every council will have a say over their local water services through regional representative groups. A partnership between council representatives and iwi/Māori will be formed to provide strategic oversight.
“These groups will continue to sit below the governance board, in which each member will be appointed on merit and qualification but by increasing the number of entities we will be able to ensure the needs of every community, especially small rural towns, are heard and met.”
He said the proposals would address long-running problems that resulted in rapidly rising rates, poor health and environmental outcomes, deteriorating infrastructure and variation in service quality.
The water services entities will start delivering water services in July 2026. Entities are able to proceed before this if ready.
“These are once-in-a-generation reforms, and it’s important that we get it right.”
Western Bay of Plenty District Council mayor James Denyer. Photo / Alan Gibson
Denyer said he was pleased the Government listened to councils and the community.
“It’s clear these changes reflect some criticism of the original proposal and that the mega-entities would not be close enough to the communities they serve.
“Providing every mayor of every local authority with a seat at the table of their respective entity will guarantee the priorities of local communities are heard and make it easier to retain a local workforce.”
Tauranga City Council was approached for comment and a spokesperson responded: “Tauranga City Council commissioners and staff are taking some time to consider the changes announced and their ramifications in terms of the Three Waters reform process.”
But National leader Christopher Luxon was unimpressed. He said the Government had simply rebranded Three Waters by changing the name of the reforms and switching from four to 10 entities.
“It’s a dumb policy and we’re going to repeal it,” Luxon said.
“As my mum and dad would say, change the label on a Lada, it’s still a Lada.
“All this Government has done is essentially rebrand Three Waters with a different name. It’s gone from four entities to 10 with the same structure and hasn’t changed the divisive co-governance.
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