As part of the Government’s LocalWater Done Well legislation, all councils have until September 3 to present a Water Services Delivery Plan.
Public submissions on Whanganui’s delivery of storm, waste and drinking water numbered 222, with more than 75% preferring the council retain an in-house business model - the status quo.
Other options were a multi-council controlled organisation (CCO) model (with Rangitīkei and Ruapehu), a single council CCO model, the status quo or a CCO featuring numerous councils in the Horizons region.
During hearings this week, former civil engineer Colin Anderson said joining with the other two authorities could mean Whanganui subsidised their water infrastructure costs.
He said the submissions - a key part of the process - showed concerns about costs and the loss of local control.
“Most people believed Whanganui had been prudent over previous years in upgrading its facilities, and didn’t want to pay for others who had not been so prudent.
“It is now up to you, councillors. Put aside any personal preferences, support your ratepayers and vote as instructed by your community.”
According to the council’s consultation document, Whanganui’s water services user costs were similar for all models in the first few years of operation.
However, the three-council option became cheaper over time compared with going it alone.
“In all the models, water charges as a percentage of median household income remain at approximately 2.4%-2.6%.”
The document said any CCO model could borrow up to five times its revenue for water construction projects, with the status quo able to borrow only up to 2.8 times.
With the status quo, the 2.8 figure included borrowing for all council projects, not just water.
Whanganui resident Russell Bell said he supported the council’s preferred option, and the status quo could be seen as “not politically astute” by the Government, which wanted to reduce the number of authorities managing water services.
“Three district councils are coming together to form some kind of council-controlled organisation and I think that’s gone very well,” he said.
Whanganui Mayor Andrew Tripe says there is "nervousness" in the community about joining with other councils. Photo / NZME
The consultation document said that, while the status quo was the riskiest option for the council’s balance sheet, it meant existing jobs could be retained in Whanganui, there would a be sole focus on the district, and the connection between water and other council services that had to comply with the Te Awa Tupua Act would be maintained.
Whanganui Residents and Ratepayers Association members Tim Stubbs and Graham Holloway spoke at the hearings. Both supported retaining an in-house business model.
In his submission, Holloway said no one had helped Whanganui with its water delivery.
“Why should the ratepayers support parasites of other districts who haven’t maintained or upgraded their waters as well as we have, or as expected?”
Whanganui resident Renee Zyp-Vanderlaan said in her submission that she trusted the council and was happy with its preference.
“Ultimately, I am happy with the way things run now, but I see the benefit in working with other councils because of the potential to support each other.
“I am also on board with keeping costs down as we are a relatively low-decile city and our rates may already be hard for some to pay.”
Whanganui Mayor Andrew Tripe told the Chronicle the submissions and hearings showed there was “nervousness” about the costs of setting up a CCO and joining with Ruapehu and Rangitīkei in a harmonised model, meaning costs being shared equally.
At present, the preferred option involved harmonisation, but that was up for discussion.
“Another option is a non-harmonised model, where the cost of Three Waters infrastructure is ring-fenced within each council.
“The delivery model is regional or sub-regional, but the costs to do it are contained within each district.”
During the hearings, Tripe said water delivery was one of the biggest decisions the council would make for years.
“This is a listening day, and an understanding day.”
He told the Chronicle he understood submitters’ concerns.
“Ultimately, we are in a fortunate position where we can revert back to status quo, but all options are still on the table.
“We are doing the basics well, we are heading for the lowest rates increase in the country [2.2% for 2025-26] and people don’t want that to increase because we have to help others out.”
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present, his focus is local government, primarily the Whanganui District Council.
