Local Government Minister Nanaia Mahuta today confirmed the Government will create four publicly owned water entities to ensure every New Zealander has access to affordable, longlasting drinking, waste and storm water infrastructure without ballooning costs to households and families.

Mayor Tracy Hicks says the announcement means New Zealand councils now have certainty around the future delivery of water services.

For more details read our latest press release.

This week, the Gore District Council sent a letter to the Minister for Local Government, the Hon Nanaia Mahuta, outlining out position on the 3 Waters Reform.

The decision to provide feedback does not commit the Council to a particular stance on the reform or continued involvement in the programme.

Here’s a summary of some key issues we raise in the letter:

• We call on the Government to give serious consideration to a genuine funding partnership with local government for 3 Waters, similar to the successful roading model with Waka Kotahi NZTA. The fiscal challenges of ageing infrastructure and rising environment standards would be far less imposing if the Government recognized the importance of 3 Waters infrastructure to the overall wellbeing of communities and enter into a genuine partnership with councils.

• We agree with government analysis that the status quo is not a viable option, given the changing regulatory and financial landscape.

• We challenge the accuracy of the Government’s financial data e.g. the Council’s 3 Waters rate put out by the Government doesn’t match what we know to be fact. The inaccuracy of assumptions and source material in the 3 Waters forecasts undermines the integrity of the entire process.

• There needs to be legislation to prevent any future privatization of 3 Waters assets.

• Mechanisms need to be put in place to ensure a local voice is retained. The Government needs to say how it sees councils working with the new entities to ensure they have a meaningful influence on investment priorities and service standards in their districts.

• We need a minimum guarantee on future capital investment in the Gore District.
  

3 Waters Reform background

In July 2020, the Government launched a three-year programme to reform the way local government delivers its 3 Waters services - drinking water, wastewater and stormwater.

The Government’s starting intention is to reform local government’s three waters services into a small number of multi-regional entities with a bottom line of public ownership.

Local authorities throughout New Zealand are facing urgent challenges in providing their 3 Waters services. These include:

• funding infrastructure deficits,
• complying with safety standards and environmental expectations,
• building resilience to natural hazards and climate change into three waters networks, and
• supporting growth.

We are among those councils facing the prospect of significant investment in our 3 Waters infrastructure. Over the next 10 years, we estimate we will spend $53.5 million on replacing and improving our 3 Waters infrastructure.

We appreciate you are keen to learn what the reform means for you. However, we are still looking for more information from the Government to understand how the reform will impact our District.

The reform is one of the most significant issues facing our community since local government amalgamation in 1989. We are committed to keeping the public informed and will provide updates as more information is received.

Please take the time to read some FAQs from the Department of Internal Affairs (at right). There's also a lot of information on its website.

What's happened so far

When Central Government announced the Three Waters Reform in 2020, councils were asked to participate in tranche one of the reform. This involved signing a non-binding Memorandum of Understanding (MoU) with the Crown.

All councils, including Gore District Council, signed a MoU. As a result, we received $2.7million in Government funding, which we have used for water supply and wastewater projects, such as replacing water and wastewater pipelines in Wigan Street.

A Request for Information (RfI) process was also required through the MoU.

The RfI collected the information necessary to undertake detailed analysis to support advice on the options for reform to the Steering Committee, local government elected members and Ministers over the coming months.

What the programme could mean for Gore District

Mid-July: The Government announced a $2.5 billion package for councils. Of the $2 billion set aside to support councils investing in their communities’ wellbeing, the Gore District was allocated $9,153,141. Allocations were determined by population (75 per cent), deprivation (20 per cent) and land area (5 per cent).

This package was aimed at ensuring local authorities were supported through the transition process, the financial impacts of reform were managed and importantly, all councils and communities would transition to the new system for delivering three waters services in a better position than where they are now.

June: The Government announced it intends to transfer the management of drinking water, wastewater, and stormwater from 67 independent councils to four large publicly-owned entities governed by an independent board.

The Gore District would be part of an entity covering the entire South Island, except for Marlborough and Nelson/Tasman regions.

There will be regional representative groups for each entity with local authorities and mana whenua from the region nominating about half of up to 10-12 representatives who will serve limited terms.

Councils in each entity’s region will be the legislated owners on behalf of their communities, although not ‘shareholders’ and will not derive dividends from that ownership status.

Boundaries will be confirmed in September 2021, following further discussion with councils and iwi. The change will not occur until 2024. Councils will continue to manage their three waters assets until then.

Privatisation of any part of a water entity may only occur after the Representative Board agrees by 75% majority and a regional citizen’s referendum subsequently agrees by 75% vote.

What are the next steps?

During the eight weeks following the July announcement, councils are taking a close look at the reform proposals and assessing the impact on them and their community. There are still many questions to be answered by the Government to assist councils in providing effective feedback to the proposed reform.

Councils are not expected to make any formal decisions, but are expected to provide feedback by 1 October on the potential impacts and how it could be improved.

The Government will consider the next steps after receiving feedback, including the process and revised timing for decision-making.

There is a commitment from all parties for the need to spend more time working through some issues important to all of us.

These are:

• Ensuring all communities have both a voice in the system and influence over local decisions. This means being sure the water entities understand and act on communities’ needs and wants, including responding to localised concerns like a desire for chlorine-free water.
• Effective representation on the new water entities’ oversight boards so there is strong accountability to the communities they serve. This includes effective assurance that entities, which will remain in public ownership, cannot be privatised in the future.
• Making sure councils’ plans for growth are appropriately integrated with water services planning.