“Rangitīkei residents can rest assured this partnership with Horowhenua and Palmerston North is a good one. It will be able to deliver the critical balance of affordability and local influence.”
The councils say the partnership will mean water assets remain locally owned, enable them to meet tougher government regulations, keep costs more affordable and deliver safe, resilient and sustainable water services.
Horowhenua Mayor Bernie Wanden said there was no doubt the three councils could deliver water services “better together”.
“But it’s important to note that we will retain a strong local voice and decision-making power in the new water services organisation.”
Palmerston North Mayor Grant Smith said partnering with Horowhenua and Rangitīkei District councils to create a joint water services organisation would bring significant short and long-term cost savings.
“This decision is about being smart with resources, meeting tougher regulations, retaining an important skilled workforce and planning long term.
“Working with our neighbouring councils means we can deliver better services and better value with more scale, while keeping local control.”
Before adopting the plan, the three councils sought initial feedback from the Department of Internal Affairs, which is overseeing water reforms, to “give us the highest chance possible that the Government will sign off on our plan”.
“We expect to hear back from Government by mid-December,” a joint statement from the councils said.
Palmerston North City Council deputy chief executive Chris Dyhrberg has been appointed by the three councils as executive director until the transition board for the new organisation is set up.
Local Government Minister Simon Watts said on Wednesday the Government was receiving strong water services delivery plans from councils, including multi-council arrangements.
“Multi-council arrangements provide a good option for financial sustainability, and we are already seeing instances of these as more councils submit plans.
“Ultimately, Local Water Done Well is about the quality of water services and, provided they meet the requirements, we are ensuring councils have flexibility to make arrangements best-suited for their communities.”
Watts said the introduction of the Local Government (Water Services) Act and Local Government (Water Services) (Repeals and Amendments) Act would provide councils with the framework, delivery models and tools to tackle specific challenges in ways that best serve their ratepayers.
“This Government knows that the unavoidable solution to years of underinvestment in water infrastructure comes at a cost to everyday Kiwis, and that is why this legislation focuses on financial sustainability,” Watts said.
“Local Water Done Well also provides for monitoring of progress and finances, and oversight for the public.”
Commerce and Consumer Affairs Minister Scott Simpson said the Commerce Commission would oversee the economic regulation regime. This would initially apply to local government drinking water supply and wastewater services.
“This oversight will ensure that ratepayers are getting the quality infrastructure they deserve, at a price that is fair and reasonable.
“Kiwis should be getting a fair deal on water, and Local Water Done Well delivers on this,” Simpson said.
LDR is local body journalism co-funded by RNZ and NZ On Air.
