Wairoa District Council opts for independent water service model

Wairoa District Council has voted for a single Council Controlled Organisation for its future water service delivery, with Mayor Craig Little saying Minister for Local Government Simon Watts agreed it was a viable option.

Wairoa District Council has chosen to go it alone for its future water service delivery.

After adjourning its Local Waters Done Well decision-making last week to give councillors time to discuss and process information, this week they voted unanimously to deliver water services through a local standalone council-controlled organisation (CCO).

Wairoa Mayor Craig Little said in the meeting before the decision he had spoken to Minister for Local Government Simon Watts about a Wairoa standalone CCO model, and the Minister agreed it was a viable option.

Wairoa’s other option was a Hawke’s Bay Regional model, which could include Central Hawke’s Bay District Council, Napier City Council and Hastings District Council.

The mayors of those councils said in response to Wairoa’s decision that councils have a responsibility to act in the best interests of their communities.

“So while respecting Wairoa’s decision, we remain confident in our belief that a jointly owned regional CCO remains the best option for delivering water services to our communities in the future,” the mayors said in a joint statement.

“While a Hawke’s Bay Regional CCO may not solve all of our challenges, it meets those expectations.

“It will also enable us to work together to improve efficiency in water service delivery across the three council areas, access more borrowing capacity to fund necessary infrastructure upgrades and importantly, give us the best chance of securing the most cost-effective pathway for communities into the future.”

Local Water Done Well is the Government’s replacement to the controversial Three Waters policy.

All councils have to submit a plan to the Government by September 3.

A Wairoa council spokesperson said two hours of robust discussion, focused on what was best for the community, preceded the decision.

“Councillors acknowledged that the Government’s reform of water services represents a fundamental shift in how future water services are delivered to communities.

“In weighing up the pros and cons between the local and regional options, we agreed both models had affordability issues, but the best choice for the Wairoa community is to develop a localised plan and deliver it smartly, utilising Wairoa’s nimbleness and drawing on specialised expertise where needed.”

Council said it would have been easier to have selected a regional model and say, ‘this is out of our control’, but they wanted the best option for Wairoa.

“We have seen the detrimental impacts removing services from Wairoa has historically had on the district.

“Wairoa already knows what its three waters infrastructure and liabilities are, whereas a regional model bears the additional risk of unforeseen costs arising within any of the participating councils’ networks.”

Other key factors in their decision-making were the protection of localised arrangements, such as the water partnership with local processing plant Affco, improved social benefits through a local model, and a lack of confidence in regional partners to provide and deliver a better alternative.

“A single CCO would give Wairoa more flexibility as the master of its own destiny and would have the ability to meet our unique needs.”

The Water Services Delivery Plan, which is already under way, needs to be confirmed by September 3, with the expectation that the new entity will be operational within two years.

Central Hawke’s Bay District Council unanimously voted to progress with the Regional CCO in early July, while Hastings District and Napier City councils are meeting tomorrow, Thursday, July 31 to decide their water services delivery model.

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