Govt brings in Commerce Commission to keep an eye on Wellington Water

• The government has tasked the Commerce Commission with monitoring Wellington Water due to financial concerns.
• Local Government Minister Simon Watts cited “high costs and unsound financial management” as reasons for the intervention.
• Commerce and Consumer Affairs Minister Scott Simpson said the move promotes transparency and better value for ratepayers.

By RNZ

The Government is bringing in the Commerce Commission to keep an eye on Wellington Water.

Local Government Minister Simon Watts said the move comes after recent reports about “high costs and unsound financial management” at the entity.

“Over the last few months, I have had serious concerns around Wellington’s water services,” Watts said.

He said there was “clear evidence suggesting the ratepayers are not getting good value for money”.

“I am not satisfied by the progress made to address these glaring problems and without clear and decisive action, Wellingtonians face a decade of hefty rate increases with little to show for it.”

Water gushing from a burst pipe on The Terrace, Wellington. Photo / Mark Mitchell

The change means Wellington will have economic regulation and Commerce Commission scrutiny, as part of the wider Local Water Done Well programme, imposed on it sooner than other places.

Watts said the business watchdog will require the water company to report key performance and financial management measures.

Scott Simpson, Commerce and Consumer Affairs Minister, said the government agency will bring greater transparency at Wellington Water and ensure better value for ratepayers.

“Given the current issues, Wellingtonians shouldn’t have to wait for the full economic regulation regime to be in place to have greater visibility over how their money is spent on water services,” Simpson said.

“The Commission will impose foundational information disclosure requirements on Wellington Water.

“This will require it to report to the public and the Commission on key delivery performance and financial management measures.

“While the precise disclosure requirements will be set by the Commission, we anticipate it will include indicators that provide a view of value for money, procurement practices, and plans to address the shortcomings outlined in the published reports.”

The Local Water Done Well legislation was passed by the Coalition Government last year.

RNZ has approached Wellington Water for comment.

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