By TONY GEE
KAIKOHE - Private enterprise has been invited to show what it can do with a poorly performing water supply in a Far North town - but there is a catch.
The Kaeo system on offer serves just 28 customers and is not in a "fit for purpose" state. The
drinking water does not meet New Zealand standards, even after treatment, and there will be price constraints.
Nevertheless, the Far North District Council has had about 10 responses to its nationwide advertising looking for companies interested in taking over the scheme.
The council has been told that $114,000 in upgrading, including $60,000 for new filtration, is needed to improve the quality of the water, which is drawn from streams and rivers.
The scheme, which also suffers from flow and pressure problems at times, has a book value of $123,000 but runs with an average deficit of $38,000 a year.
An established local company further north, Doubtless Bay Water Supply, has offered to run the Kaeo system with alternative non-chemical treatment systems, a bore water source, upgraded reticulation and lower charges for users.
But some councillors are unhappy that the proposal would cost the council $1800 per customer to transfer the connections to the company's scheme.
That means the council might at some stage ask the company to recover the $50,400 on its behalf from the town's water users.
The Doubtless Bay proposal is now on hold while council general manager Clive Manley seeks alternative expressions of interest.
There were some well-known names among the companies which had asked for more information, but no formal responses, said Mr Manley, who expects to report further on the issue next month.
