Local Government Minister Nanaia Mahuta. Photo / NZME
Tauranga and Western Bay councils are not yet opting out of the controversial proposed Three Waters Reform programme, despite some other councils doing so amid concerns that locals would lose control and their voice on local assets.
Today sees the end of an eight-week consultation period in which territorial authorities throughout New Zealand, including Tauranga City Council and Western Bay of Plenty District Council, were to consider the proposal and provide its feedback to the Government.
Under Local Government Minister Nanaia Mahuta, the Government plans to shift control of drinking, waste and stormwater infrastructure from local government and into the hands of four regional entities, which are yet to be established.
Several councils have already expressed strong reluctance, if not complete opposition. Whangārei District Council opted out early and Auckland mayor Phil Goff said the proposed benefits would not apply to the supercity.
On Tuesday, Taupō District Council tabled a call for an "immediate stop" to the reform.
Tauranga resident Lynne Moore said she wanted local councils to also opt out. She was concerned that the transfer of water assets would result in a loss of control.
Moore said, in her view: "We are going to lose control. We are going to have no say. The price of water is going to go through the roof."
But Western Bay mayor Garry Webber said there was the potential for the finalised proposal to offer significant benefits, "so why would you say 'no' now?".
However, there were "significant issues" which the council outlined in a letter sent to the Government on Wednesday.
These included concerns about what local influence there would be on entity decisions; lack of clarity on the status of asset ownership and control; and how debt and funding mechanisms would be treated.
The letter also expressed strong disappointment with the Government's lack of meaningful communication.
"We've voiced our concerns ... Sometime later we will see their [finalised] proposal and we will weigh it up on its merits. As a council we focus on evidence, not supposition and rumour."
Webber said, in his view, the status quo was not sustainable. Many councils were up against their debt limits and would struggle to find the funding needed to fix their water infrastructure.
Western Bay was not one of them.
"Western Bay has always met its obligations. We are really proud of what we have got," Webber said.
"My personal concern is that central Government will bail out those who haven't performed and not compensate Western Bay for paying high rates all these years, that they will reward the poor performers."
Tauranga commission chairwoman Anne Tolley said the council would only consider opting out after formal consultation, which would only happen once more details were known.
However, the council sought community feedback to include in its letter detailing the council's and community's concerns, which was sent this week. Tolley said the council was still receiving community feedback.
"There's a fear of privatisation, fear that assets are taken away from ratepayers, what the local input is going to be like, how we ensure that our growth needs are met, etc," she said.
Tolley said a lack of information and communication had become significant factors regarding the proposal. Often, people were getting concerned about things that were not necessarily the case, she said.
"That's the biggest thing; the community by and large just do not understand what is proposed. That's because the Government hasn't explained it well.
"I shouldn't have to defend a Government proposal."
The Tauranga Ratepayers' Alliance spokesman Michael O'Neill said he encouraged people to "swamp" the council with demands that it opts out of the reform.
In his view, the proposed Three Waters reform would see Tauranga community assets expropriated to an "unelected and co-governed 'super water entity'."
"The new entity wouldn't even be based in the Bay of Plenty, and would make community control of local assets impossible."
National spokesman for local government Christopher Luxon said he was concerned the Government would push the reform through despite council and community concerns.
He said it was clear the Government had no real interest in working with councils and was ignoring their "pleas for the process to be paused".
Luxon said the Three Waters Reform was "deeply flawed" and the party was holding a petition to "Stop the Three Waters Asset Grab".
Asked about the overwhelming opposition from councils, Mahuta told Radio New Zealand that it was a "challenge for councils to try and, I guess, get their own thoughts over the line and they're asking ratepayers to do it on much less information".
Mahuta said she'd signalled to councils "prior to the eight-week consultation and throughout ... that governance arrangements are an area that we can continue to work on within the context of the reform.
"The real criticism that councils have made is that they lose direct control of water infrastructure within their own area, and that is true.
"However, they claim they are assets but these water infrastructure networks have been underfunded for a long period of time," she said.
Mahuta will now take on the feedback before presenting to Cabinet on how to proceed.
Something else in the water
The Three Waters Reform comes at a time when the Government is also introducing a new body, Taumata Arowai, which on Wednesday was given legal authority to act as the nation's dedicated water regulator.
The appointment was prompted by the 2016 Havelock North drinking water contamination event which resulted in 5000 ill people, four deaths related to it, and a $21 million bill.
Q: Who will control New Zealand's water infrastructure under the reform?
A: There would be four regional representative groups - one for each entity - with a 50-50 split between local councils and mana whenua. Bay of Plenty councils are pooled in Entity B.
Q: How?
A: They would appoint an independent selection committee, that would in turn appoint the boards to govern the entities.
Q: Can individual members veto decisions?
A: No single local government or mana whenua representative would have a veto right or ability to exert negative control over decisions.
Q: Does the reform make privatisation of water assets more likely?
A: Water services would be more difficult to privatise. The reform proposals combine a series of measures that together help safeguard against future privatisation, including: no shareholding structure and a prohibition on dividends; councils constitute that each entity will be owners of that entity; statutory restrictions on the sale or transfer of material, strategic water assets; and proposal for privatisation will have to be endorsed by the Regional Representative Group with 75 per cent majority, put to public referendum (70 per cent majority) and put through the legislative and select committee process.
Q: How will the proposed entities be funded?
A: Like now, an entity would fund its operations from user payments and borrowing. Entities will be able to borrow more money than councils, due to debt level restrictions that adhere to local government.
Q: When can the public have their say?
A: Some councils have already collected feedback and communicated this to the Government at the end of an eight-week consideration period. Formal consultation won't be triggered until the proposed reform is amended, in light of council feedback, and finalised.
- Some information sourced from Local Government New Zealand
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