“Ruapehu has the highest levels of deprivation in the country. Continuing with the current model will drive unacceptable and unnecessary financial hardship.”
He has formally asked councillors to revoke the July resolution and instead join a four or five-council option with the Palmerston North, Horowhenua and Rangitīkei councils and Whanganui, if it wished to join.
The larger groupings would deliver significantly lower water charges for ratepayers, Kirton said.
The council voted 6-4 on July 9 to reject the officer-recommended four-council model. Kirton and three councillors were in favour.
The bid to overturn the decision comes after new affordability guidance from the Department of Internal Affairs (DIA).
Kirton said the advice showed the decision would increase all Ruapehu water bills well above what was considered affordable.
In the first year of the two-council entity, charges would be nearly $2500 per household – almost $1000 more than under a five-council model.
For affordability, the DIA recommends water charges stay under 2.5% of median household income. Updated financial modelling shows Ruapehu would breach that benchmark under the two-council arrangement.
‘Totally unaffordable’
For the poorest households, particularly in northern Ruapehu, water charges could climb to nearly 6% of median household income within 10 years – more than double the threshold.
“These costs are totally unaffordable for many of our people and will be especially severe for Māori communities.”
New regulatory requirements would further increase cost pressures, Kirton said.
National water regulator Taumata Arowai has told the council to bring forward upgrades to its non-compliant wastewater plants sooner than planned.
This meant water charges under the two-council model were forecast to rise to $2800 per connection within a few years and reach more than $4000 by 2033/34.
The estimated cost for the upgrades ranged from $66 million for wastewater dispersed to water, to more than $200m if dispersed to land.
River protection
Kirton said he was not rejecting Whanganui or the many constructive partnerships between the two districts.
“We have strong and ongoing collaboration with Whanganui across multiple areas, such as the Mountains to Sea cycle trail and economic development, which will continue regardless of our water services structure.”
A five-council model would deliver the lowest possible user charges for all water users, the greatest operational efficiencies, and align the Whangaehu and Whanganui river catchments under a single regulator and service provider.
Existing commitments to river protection and shared services would not be compromised by moving to a larger model.
Kirton said some councillors had downplayed financial concerns, arguing that affordability could be addressed by the new entity or the Commerce Commission.
“At our workshop this week, the only proposed solution to unaffordable charges was ‘writing a letter to the Minister’. That’s not good enough.
“I’m not prepared to defer responsibility and hope someone else sorts it out. This is our chance to act decisively and protect the people of Ruapehu from excessive costs.”
‘Blood out of a stone’
Councillor Fiona Kahukura Hadley-Chase told Local Democracy Reporting she thought it unlikely the decision would be overturned.
She was unconvinced by the cost projections.
“There’s no clear data, information or evidence. The modelling, the forecasting and the legislation keeps changing. They’re plucking figures out of the sky.
“Because of that, I’m going to say the relationship with Whanganui must stay strong. If we don’t have that, then we’re paddling upstream.”
Hadley-Chase said the district’s 5500 ratepayers could not afford upcoming water costs and the council should seek a partnership with the DIA to pay for water.
“Dumping us in a bigger pool is not going to help. Our people can’t afford to pay for water, full-stop.
“We cannot afford to build this infrastructure. It shouldn’t mean we should go into millions worth of debt. It’s unreasonable for the Government to put that on us.
“The DIA should develop a unique solution to help those [councils] who are struggling. You cannot get blood out of a stone.”
Decision looms on water plan U-turn
The council will consider the motion to overturn the two-council decision on August 13.
Kirton is encouraging the public to contact their elected members or speak in the public forum before the vote.
Whanganui Mayor Andrew Tripe said he was surprised to learn that the decision was being reconsidered.
“It was disappointing to learn of this without direct contact to me – fortunately, I was advised informally.
“I am confident that when this matter goes to vote next week, the majority will continue to support the two-council water services CCO.”
Tripe said the councils were to consider a joint water services delivery plan (WSDP) for adoption next week to make sure they meet the September 3 deadline.
“It’s a strong model, which balances local voice, and the benefits of scale and consolidation. A majority of Ruapehu councillors recognised this when they also adopted it as their preferred model.”
Tripe said if Whanganui’s preferred model became unavailable, the council would have to reconsider its remaining options, revise its WSDP and work to meet its legislative obligations.
LDR is local body journalism co-funded by RNZ and NZ On Air.
