Hastings is back to the drawing board after the 'Three Waters' programme was replaced by 'Local Water Done Well'.
Hastings is back to the drawing board after the 'Three Waters' programme was replaced by 'Local Water Done Well'.
OPINION
Community discussions around managing our three water networks — drinking, waste, and stormwater — have been a rollercoaster over the past few years. Now, we’re preparing to revisit this crucial issue once again.
In 2021, our Hawke’s Bay councils received government funding to explore a Hawke’s Bay water delivery model.
Just as we were nearing completion, the Labour Government introduced the Three Waters programme that would have created a large water services organisation covering Hawke’s Bay, the East Coast, Wairarapa, the top of the South Island, and the Chatham Islands.
The new government repealed Three Waters, and now we’re back to the drawing board under the new Local Water Done Well legislation, which became law on September 5.
Hastings Mayor Sandra Hazlehurst.
What does it mean for us?
Under Local Water, all councils must submit a new water services delivery plan for drinking water and wastewater by September next year. Stormwater management may be included in that plan or remain separately managed by councils, though the details on that are still being worked out.
The Government is encouraging councils to collaborate for economies of scale, and all of New Zealand’s councils must present their communities with at least two options for consideration. The three realistic options we have are:
Status quo - each council manages its own three waters as a business unit;
Single CCO - a council-controlled organisation manages one council’s water services;
Multi-council CCO - a body owned by multiple councils manages water services for those councils, which could involve all or some of the four Hawke’s Bay councils.
Each option has its pros and cons, and Hastings District Council and our partner councils are approaching this with open minds.
The Hawke’s Bay councils have decided to proceed with a business case to analyse these options. This will outline key considerations, including borrowing limits, regulatory standards, and financial impacts.
Rising costs are unavoidable
The reality is that delivering drinking water, wastewater disposal, and stormwater management will be more expensive, no matter the option we choose.
We have significantly invested in providing and delivering safe drinking water to our people, including the construction of major and small community treatment and storage facilities, but there is a great deal more to do.
Much of it is underground across all three of the council’s water services: replacing ageing pipes and pumps and bringing assets up to modern and new standards, including new technology to improve the management and performance of all three systems, and major renewals at the Clive wastewater treatment plant.
The new legislation requires councils to plan long-term for infrastructure renewals, upgrades, and expansions, with oversight from a new economic regulator – the Commerce Commission.
The economic regulator’s role is to ensure councils are investing enough, can finance investment and have sufficient revenue. Funding for these capital works will come directly from water service charges, meaning other council priorities cannot influence water service decisions.
Once the business case is ready, we will share the information widely and seek your feedback. We expect public consultation to take place in February or March. Dates and ways to provide feedback will be communicated as soon as they’re set.
This is a complex issue, but we are committed to keeping it as clear and straightforward as possible while providing the detail you need to give meaningful input.
Together, let’s make sure we are doing local water well.
