Confirmation that the Government is pushing ahead with Three Waters Reform has sparked disgust, disappointment and concern from the Tauranga and Western Bay community.
Local Government Minister Nanaia Mahuta announced yesterday that the Government was planning to take control of local fresh, storm and wastewater assets from local councils and place them into the hands of separate, regional entities, operational by July 2024.
Mahuta also confirmed that councils could no longer opt out of the scheme, something concerned Tauranga ratepayers had called for.
"This is an all-in approach that will require legislation, and it will require every council to be a part of a quantum shift in the way water services are delivered," she said.
Mahuta said the case for change was too compelling to ignore and any delay would only "push the problem on, increase future household costs and put livelihoods at risk".
It was expected that the Government would work in good faith with councils to refine outstanding details of the reform.
Three technical reference groups including iwi, industry and local government experts will be established to help refine the reform proposals.
Read more: Three Waters Reform complex, with conflicting incentives - advice
Mahuta said Kiwis could not afford the status quo, and under reform proposals the cost to households would reduce from between $1,900 and $9,000 over the next 30 years to between $800 and $1,640.
"Local councils are trying to deal with the upkeep of ageing infrastructure, which is literally crumbling in some of our biggest cities. They face the additional strains of growing population, climate-change resilience and extreme weather events, as well as competing for a limited number of skilled workers to do the job."
In Tauranga, work is already underway to rebuild some of the city's water infrastructure, including 100-year-old pipes under Cameron Rd.
Mahuta said staying with the status quo would be "irresponsible".
The entities were expected to remain in public ownership and the Government would "continue to work with councils and ensure that local participation is evident in the critical next phase".
Earlier this month, Tauranga City Council submitted feedback reflecting deep community and council concerns.
Commission chairwoman Anne Tolley said removing the council's ability to opt out did not address those concerns.
"Our feedback to Minister Mahuta hasn't changed, except to acknowledge the concern that our communities will be feeling, knowing the reforms will be mandated rather than allowing voluntary participation, as had been indicated previously," she said.
There was a lot of time and effort put into the feedback and the council would be seeking clarity through the new working group to have those concerns addressed, Tolley said.
"There are still many details to discuss about local control, ownership of assets, mana whenua involvement, and the efficiency and cost of services under the proposed new model," Tolley said.
She acknowledged that reform could help the council's financial position "but the actual proposition from the Government is still incomplete.
"We just don't have enough factual information to have meaningful discussions with our communities or our staff about the proposal."
Tolley said the council would take time "to look at this carefully" and keep the community informed, "while ensuring their concerns are acknowledged and considered".
She said if things did not change it was likely that future costs of the three waters services would become unaffordable. It was important, she added, to take part in the reform but also ensure "our local interests and concerns are adequately addressed".
Western Bay of Plenty mayor Garry Webber said he accepted change was necessary but he was concerned at how local voices would be heard in the new entity. He feared the new entity may prioritise other areas while the Western Bay, which has had higher rates for years as part of its investment in its infrastructure, would lose out.
"Because we are in such a good space - our assets are really good - are we going to be able to have funding for the growth coming through?"
Tauranga resident Lynne Moore said she was "absolutely disgusted" that the reform was being pushed through and she believed there had been a lack of consultation.
"It's absolutely despicable ... We are supposed to have democracy in this country. It's shocking.
"You can't just mandate things and push them through. You've got to listen to the people."
Moore said she was concerned that her rates would go up as a result of the council losing revenue from the water assets.
Tauranga resident Ross Steele, who took part in a protest against the reform earlier this month, said he was also "totally disgusted".
"I see it as a blatant theft of assets paid for by ratepayers for generations," he said, in his view.
"The feedback was very, very clear. We do not want Three Waters. Period. I'm just so angry. Democracy has gone out the window. It's a very sad day for democracy. I'm appalled."
Tauranga Ratepayers' Alliance spokesman Michael O'Neill said the group regularly surveyed its 2,000 subscribers and there was widespread concern about the reform.
"It's a heist. It had not been well canvassed and the ads on TV are a total sham, with slime coming out of the pipes. That's not reality.
"To ignore democracy and to ignore the frustrations and feedback from the local community is totally unacceptable to this organisation."
Tauranga MP Simon Bridges said he was "gutted".
"I had hoped Labour might listen to the many voices against [the] Three Waters changes but instead she [Mahuta] has ignored local mayors and New Zealanders."
Bridges said he did not believe the changes would achieve any of the gains expected.
Local Government New Zealand president Stuart Crosby said it was disappointing that the Government mandated the reform but the promise that it would be refined was a good sign.
"What the decision does do is give councils and communities some certainty about the path of reform ahead," he said.
Despite the disappointment, the choice "is now out of councils' hands".
"While the announcement stings for councils who have been good stewards of their infrastructure, ultimately the nationwide affordability challenge in the water space needed to be answered," Crosby said.
"While we know the option on the table has not been accepted by the sector, it has created a foundation to move forward."
In response to the criticisms, Mahuta said the feedback from councils prompted plans for the working group and showed consensus "that our water services are at a crisis point".
"This is a long-term challenge that no one has been prepared to tackle across government. No council was able to provide an alternative option that worked for every community."
Public consultation on Three Waters will be held nationally, with the chances for public involvement and feedback through the Select Committee process and the working group, Mahuta said.
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