Napier mayor says water deal is ‘amalgamation by stealth’ as councillors push it to next step

Napier Mayor Richard McGrath voted against the adoption of the Hawke’s Bay Water Council-controlled Organisation at a Napier City Council meeting on Thursday, April 9.

Napier mayor Richard McGrath has unsuccessfully tried to get his city to pull out of the Government’s Local Water Done Well reforms, claiming it was the start of “amalgamation by stealth”.

McGrath on Thursday voted against the adoption of a new forum for a combined Hawke’s Bay Water Services Council-Controlled Organisation, which would see Napier working together on three waters infrastructure with the Central Hawke’s Bay District Council and the Hastings District Council.

The Wairoa District Council has already rejected the model, voting unanimously in July 2025 to instead deliver water services through a local, standalone council-controlled organisation.

But other councillors thwarted McGrath’s bid, voting 9-4 to stick to the path recommended by council officers.

McGrath told the meeting he would be voting against the recommendation that “hands our water over to a regional CCO”.

“While I say regional, that no longer includes Wairoa, who pulled out,” McGrath said.

“We consulted on all four regions being in.

“The set-up is not progressing how we envisioned, it’s now planned to take two years longer, surely eating into any proposed savings.”

He said a multi-council CCO would be at arm’s length to the council and the community.

“I’ve read reports like this before at council, with some saying that a velodrome and a $100m aquarium stacked up.

“I believe we could go as a single council CCO. We have a water safety plan, can financially deliver on it, and now have the organisation set up to do so.

“This is the start of amalgamation by stealth, where we become a minority.”

Councillor Keith Price disagreed with the mayor, saying the council needed to listen to the people.

He said in consultation, 660 people responded, and close to 80% favoured a joint entity.

“We have to listen to what people say. The consultation document holds a lot of weight. We did it last year with the library – we listened and changed things.”

Greg Mawson, Te Kira Lawrence and Craig Morley joined McGrath in voting against the progression.

A joint statement from the Napier, Hastings and Central Hawke’s Bay councils said plans to establish a new regional water services had now moved forward with all three councils making decisions on how it would be governed, funded and delivered.

The councils have appointed members to the Shareholder Representative Forum.

The forum is a coordination and advisory body, with no decision-making powers.

Its principal purpose is to bring together the views of Hawke’s Bay’s three shareholder councils (with their 39 councillors) and provide advice as required.

Unlike his counterparts, Mayor Wendy Schollum in Hastings and Mayor Will Foley in Central Hawke’s Bay, McGrath isn’t on the forum. Napier’s third forum member is yet to be confirmed.

The CCO is set to be in place by July 2027.

APPOINTED MEMBERS

Mayor Wendy Schollum (HDC)

Deputy Mayor Michael Fowler (HDC)

Mike Paku (HDC)

Deputy Mayor Graeme Taylor (NCC)

Councillor Keith Price (NCC)

Mayor Will Foley (CHBDC)

Councillor Brent Muggeridge (CHBDC)

Councillor Amiria Nepe-Apatu (CHBDC)

One TBC (NCC)

Ahuriri Investment Management (AIM)

The council also approved the Statement of Intent for AIM, with McGrath saying it marked an important milestone in strengthening Napier’s long-term financial resilience.

The council-controlled trading organisation manages the council’s ringfenced investment portfolio.

“The Statement of Intent sets a clear intergenerational purpose for AIM, which is to build sustainable returns, reduce future reliance on ratepayers, and manage council’s commercial investments in a disciplined and transparent way,” McGrath said.

It covers the period July 1, 2025, to June 30, 2028, and outlines AIM’s objectives, governance approach, investment focus and performance expectations. It also incorporates feedback from elected members.

AIM’s chair, Hamish Bell, said the document provides a strong foundation as the organisation moves through its establishment phase.

“This is AIM’s first formal Statement of Intent, and it sets out how we will manage the portfolio on a commercial, arm’s-length basis while reflecting council’s values and long-term objectives.”

LDR is local body journalism co-funded by RNZ and NZ On Air.