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Home / Rotorua Daily Post

Three Waters: Rotorua Lakes Council refuses support for controversial reform

Felix Desmarais
By Felix Desmarais
Local Democracy Reporter ·Rotorua Daily Post·
30 Jun, 2022 05:30 AM5 mins to read

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Rotorua Lakes Council infrastructure and environmental solutions deputy chief executive Stavros Michael. Photo / Andrew Warner

Rotorua Lakes Council infrastructure and environmental solutions deputy chief executive Stavros Michael. Photo / Andrew Warner

LDR_STRAP

Rotorua Lakes Council has sent an overwhelming message to the Government it does not support Three Waters reform, with just one councillor disagreeing.

And a council staff member "pulled no punches" in his critique of the reforms, saying he believed the Government "overstated" water service issues.

It comes as part of a bumper full council meeting on Thursday, where the council agreed to adopt the 2022-23 Annual Plan and, with it, a 5.7 per cent average rates increase.

The council has now joined at least 31 other councils which have voiced their dissent with the reform programme, which would create four new water entities responsible for the Three Waters – drinking, waste and stormwater.

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It also comes just 24 hours after a protest through the city's streets – part of a nationwide campaign - calling for the Government to halt the reforms.

Tractors were part of a Three Waters protest in Rotorua on Wednesday. Photo / Andrew Warner
Tractors were part of a Three Waters protest in Rotorua on Wednesday. Photo / Andrew Warner

The council also voted to apply for $8.05m in the first tranche of the Three Waters Be Better Off Fund, noting application for the funding did not compel councils to support the reform.

Under the proposal, Rotorua would fall into Water Entity B, which would comprise 22 territorial local authorities, including Rotorua Lakes Council.

In September, the council reserved its position on the reform, except for raising concerns and pleading for more detail from the Government. In October, the Government announced the reform would be mandatory for councils, after originally saying it would be optional.

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In the meeting, council infrastructure and environmental solutions deputy chief executive Stavros Michael conveyed several issues with the proposed reform.

He said, in his view, some of the issues with New Zealand's water services were "overstated" by the Government and some of its rationales had been "misleading".

Michael said he did not believe his view was "infallible" but it was based on his qualifications and years of experience in the sector.

He said the Government's advertising and communications implied the health of the community was "under imminent threat", a claim he did not think there was "substantial evidence to support".

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He said the proposed governance and accountability structures for the proposed four water entities were "extremely complicated".

He also believed there was still "a lot of work to be done" and a "plethora" of legislation to be developed to provide clarity on how the handover from territorial local authorities to the new water entities would work.

There was also a significant demand on council resources already for the transition, saying the national transition unit was "harvesting" staff time, he said.

Michael said the unit was only accountable to the Minister for Local Government so in effect his time and his staff's time was serving the government's - not ratepayers' - interests.

"It's a danger.

"A couple of weeks ago they decided to have an Entity B meeting … in Taupō for two days.

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"I said 'no I'm not coming'. They said 'well you have to' and I said, 'what are you going to do about it?'

Rotorua district councillor Trevor Maxwell. Photo / Andrew Warner
Rotorua district councillor Trevor Maxwell. Photo / Andrew Warner

"I would give away my responsibilities here … [there's a saying] that if you're a priest that serves two churches, you're cheating on one."

Michael said some of the objectives of the reform were aligned with the council's but he believed there were "overhyped efficiencies" from the proposed reform.

He also believed the reform demonstrated a lack of trust from the Government towards territorial local authorities, saying underinvestment in some areas from successive governments meant council resources – such as in three waters infrastructure - were stretched.

The Government's implication that councils had not sufficiently resourced three waters maintenance was, therefore "disingenuous", Michael said.

A motion was then drafted to convey the council's position it did not support the reform and listing the reasons why to be sent to the Government.

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The motion also stated the council believed there was a lack of consultation with the Rotorua community, a lack of clarity on future costs and a loss of flexibility to deal with local and mana whenua needs.

Deputy mayor Dave Donaldson, chairing the meeting while mayor Steve Chadwick was in Melbourne on bereavement leave, said Michael had "pulled no punches".

Councillor Merepeka Raukawa-Tait said she believed the Government was "railroading" councils with the reform.

She said there was a lack of clarity and trust in the reform proposals.

Councillor Tania Tapsell said the reform programme needed to be clear about how and why it was a fair deal and would ensure a local voice.

Rotorua district councillor Tania Tapsell. Photo / Andrew Warner
Rotorua district councillor Tania Tapsell. Photo / Andrew Warner

Tapsell said she had been advocating for community consultation but now believed there was a lack of information to provide to the public to consult on and "we should be pushing back on the Government".

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The motion against the reform passed with all but one counsellor's vote.

Councillor Trevor Maxwell said the issues could be remedied and that he believed Local Government Minister Nanaia Mahuta was "showing leadership and courage".

The Department of Internal Affairs and Mahuta were approached for comment.

The Water Services Entities Bill is currently before the Finance and Expenditure Committee.

Local Democracy Reporting is public interest journalism funded by NZ On Air.

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