Local Government Minister Nanaia Mahuta is heading a proposed reform of New Zealand's water infrastructure. Photo / NZME
Sweeping changes poised to overhaul local government and water infrastructure in New Zealand have been deemed the "only solution" by a Bay of Plenty mayor, while another North Island leader describes it as "the end of local democracy as we know it".
The Government is proposing to transform New Zealand'sdrinking, storm and wastewater systems as part of the Three Waters reforms. Management of and investment in water assets have long been a core duty of individual councils, but some say there has been a failure in that duty.
A report by the Water Industry Commission for Scotland released last week showed the bill for water infrastructure in New Zealand over the next 30 years will grow to up to $185 billion.
The report said without reform, the average annual household water bills in 2051 could be up to $13,900. But under a system with just five providers of the three waters services, those figures range from $800 to $1800 and with three providers, the range is $800 to $1600.
The report found a way to make this work was to create one to four providers to take over management of water assets.
Local Government Minister Nanaia Mahuta confirmed to NZME she recently met with Waikato and Bay of Plenty representatives "at their request" to talk about the water reform.
A workshop was also held with Waikato and Bay of Plenty councils and local Māori in Rotorua on March 26.
This was attended by 225 elected members, council staff and Māori representatives. However, details on the local impact of the plans remained unclear, for now.
When asked what was in store for Bay of Plenty councils and when the reforms were likely to affect the councils and their residents, Mahuta said "we anticipate making decisions on the way forward shortly".
"Decisions on proposed number of entities and their boundaries, along with other elements of the reform programme, have not yet been made. Cabinet is expected to make these decisions in the next couple of months."
Mahuta said while the reforms would eventually benefit all communities, it was important to ensure no council was worse-off as a result.
"In part, this will be underpinned by the transfer of councils' three waters assets and their debts to the proposed new entities."
Western Bay of Plenty mayor Garry Webber said councils had no option but to go with what the Government dictated.
"I'm one of the outliers. I believe this should have happened 10 years ago."
Webber said Western Bay ratepayers had been paying "at the top end of the spectrum" but that was because the council had invested in water infrastructure to meet national standards, compared to many other councils that did not - and spent money on other things.
"Unfortunately the hole we are in is a $185b hole because lots of councils and councillors have not made these decisions."
Webber referred to councils in Havelock North, Carterton, and Wellington that had each made headlines due to significant water woes in recent months.
"This is the only solution."
Wairoa mayor Craig Little said the reforms would be the "end of local democracy as we know it".
Little was concerned the small council would be overlooked.
"In a big weather event, or earthquake or anything, we will be the last off the rank to get fixed."
Tauranga City Council commission chairwoman Anne Tolley said it was still unclear what impact three waters reforms would have on individual water authorities and communities.
However, the council was confident and Tauranga had invested heavily in its waters services and continued to do so through the draft 2021-31 Long-term Plan.
"As our performance currently stands, we are amongst the very best service providers in New Zealand, but we acknowledge that by international standards, there is still considerable work to do."
Tolley said the council was working closely with others on potential models for the future delivery of water services.
"In our view, the reform process offers an opportunity to create an effective delivery model, while ensuring that the required national investment is available to build a better water future for New Zealand. Provided that the Government's reform decisions are evidence-based, we believe they will receive general support from the local government sector."
Rotorua mayor Steve Chadwick attended the workshop and "as mayors, we all agree that more investment in three waters infrastructure is needed for the wellbeing of our community, and council is committed to being part of the discussions around the proposed reform".
Councils needed to see specific data and analysis before they could speak to the local implications.
"A one-size-fits-all approach won't necessarily meet specific needs of our community."
There was still a long way to go, she said.
Water New Zealand chief executive Gillian Blythe said the reports showed the extent of the challenges facing the three waters sector.
"We all want to swim in beaches and rivers that are clean and to be able to turn on the tap anywhere in the country and have safe drinking water, but achieving this will come at a big cost."