ARC votes to seek control of Watercare

Mike Lee

The Auckland Regional Council has voted to push the Government to return bulk water and sewerage provider Auckland Watercare Services to its control.

The Government has signalled it will review ownership of Watercare, and regional chairman Mike Lee said yesterday that the ARC vote was a direct response to Auckland City Council questions as to where it stood on ownership.

"Since we have been asked, we will certainly put our hands up."

Mr Lee believes Watercare belongs to the regional authority, rather than to its present board of shareholder representatives from the councils of Auckland, Manukau, Waitakere, Papakura, Rodney and North Shore.

Watercare provides freshwater and wastewater services to all six local bodies, though North Shore has its own wastewater facility.

Yesterday the council voted 11-2 in favour of Watercare returning to regional ownership and governance under the ARC.

Councillors were told there would be benefits to the region and environment from a more integrated approach to water services and expensive waste and stormwater cleanup projects.

Watercare was created in 1992 by an Auckland Regional Council merger of the Auckland Regional Authority bulk-water department, the Mangere wastewater plant and ARA water laboratories near Auckland Airport.

But the National Government of the day had a preference for such businesses to "corporatise, then privatise", and so control of Watercare was taken from the ARC, Mr Lee said.

Watercare ownerships eventually wound up with the six Auckland local authorities in 1998, after opposition to the privatising of public services.

Mr Lee said he would like to see Watercare's responsibilities expanded to "dealing with Auckland's storm-water issues, which are significant and serious".

Long term, he said he would like Watercare services included in the Auckland Regional Growth Strategy, a move that could free up Auckland City Council funds for public transport development.

But his plan is staunchly opposed by two Auckland mayors.

Manukau Mayor Sir Barry Curtis said there was "no reason whatsoever" Watercare should be returned to ARC control. It was a "very efficient and effective organisation".

"For the ARC to claim [Watercare] ought to become a part of their responsibility is a nonsense."

The ARC would be better advised to "desist forthwith", and "get on with the job of funding passenger transport in this region", said Sir Barry.

Waitakere Mayor Bob Harvey said he had "grave concerns" over the prospect of an ARC-owned Watercare.

"As one of the owners, we would be very concerned that the interests of our ratepayers, and our investment, be protected."

The ARC was a "rather heavy and cumbersome machine", he said.

Auckland Deputy Mayor and Watercare shareholder board chairman Bruce Hucker said last night that there was no justification for returning Watercare to the ARC.

"If it ain't broke, don't fix it," Dr Hucker said.

"The ARC is clear that they intend to use Watercare as a cash cow."

The National Party's spokesman for Auckland issues, Richard Worth, said the ARC move was "a threat to the wallets of all Aucklanders".

Watercare ran on a proper business basis, said Dr Worth, and ARC ownership would introduce an unwanted element of politics into its administration.


WATER FIRM

* Annual turnover $166.6 million.

* Assets $1.62 billion.

* Population served: Water 1.94 million and wastewater 911,000.

* Shareholders: Six territorial councils.