Hawke's Bay councils dubious about Three Waters reforms: 'Makes amalgamation look like a tea party'

Further detail has been released about the proposed Three Waters reforms which would transfer management of drinking, storm and wastewater to four centralised entities. Photo / Warren Buckland

Proposed Government reforms to water infrastructure have been described as an upheaval that would make Hawke's Bay's amalgamation debate look "like a quaint and cosy tea party".

More details about the reforms were revealed by Local Government Minister Nanaia Mahuta on Wednesday, but Hawke's Bay's mayors say they're still on the fence about whether to opt in to the "inevitable" scheme or not.

Under the reforms, responsibility for the region's drinking, waste and stormwater would be removed from local councils and management transferred to one of four national entities, spanning from the East Coast, through Wellington and Marlborough.

Additional information also offered greater clarity about the role mana whenua would play, and provided assurances the entities would remain publicly owned.

Central Hawke's Bay Mayor Alex Walker said there could be significant cost savings through the reforms for ratepayers in her district currently grappling with "aged, deteriorating and poor-performing water assets".

But she was unsure how local "place-making" decisions would work in the context of the reforms - for example, where or how a town grows, or how a stormwater catchment is managed in a way that's consistent with other council-owned infrastructure like roads and parks.

Central Hawke's Bay Mayor Alex Walker said their could be significant savings for ratepayers through the reforms. Photo / NZME

"This is particularly challenging when the current Resource Management Act (RMA) – which provides some planning and structural direction on this – is also under reform."

Hawke's Bay Regional Council chief executive James Palmer said it was clear a vast amount of investment and work was required, with aggregation "inevitable" to get the scale of capability to manage these assets into the future.

"The reforms, if they achieve their objectives, should reduce the expected increases in costs for ratepayers through scale and efficiencies, and cross-subsidies from our bigger cities to our smaller towns."

Palmer said the reforms of the resource management system presented an opportunity.

"The Government is undertaking significant renovations in various rooms in the home of local government with different interior decorators so it would be nice to see the overall plans for the finished house."

A proactive attempt to develop a regional Three Waters delivery model had not gained traction in Wellington, Hawke's Bay Regional councillor Martin Williams said. Photo / NZME

Regional councillor Martin Williams said an amalgamation of 100 local authority plans to just 14 – one for each region – would simplify the overcomplicated planning and regulatory environment.

But he said a proactive attempt to seize the initiative by shaping and sizing a regional Three Waters delivery model designed "by us and for us" had not gained traction in Wellington.

"We are facing change at a scale and pace which would make the Hawke's Bay amalgamation debate in recent years, look like a quaint and cosy tea party."

"The only realistic option now is to do what we can to ensure effective representation or voice on the governing board of the new entity, so that localised solutions such as the aspiration for chlorine free water in Napier, can still be promoted."

Wairoa Mayor Craig Little said he had "no confidence" in the review, saying it would bring significant costs on his community and further bureaucratic inefficiencies.

He said assets owned by council on behalf of the community which could be transferred to another identity would need to be compensated for to avoid being seen as confiscation.

"I personally am not convinced this is the right option for Wairoa," he said.

"If the future of the Three Waters is going to be like the review process so far, Wairoa would have to consider opting out."

Wairoa Mayor Craig Little is not yet convinced the reforms are 'right' for Wairoa. Photo / NZME

He said he also had concerns the district could be "left out in the cold" if it did opt out.

Hastings Mayor Sandra Hazlehurst said it was disappointing but understandable the region's Three Waters review model hadn't been picked up by central government.

"The government has advised that without reform, costs per household will be greater, than with reform.

"It's not surprising that the proposal was for four entities, given the previously released national level data."

She said safe drinking water and spatial planning for Hastings' growth remained top priorities.

"Our council needs to take time to work through the significant amount of information that has been released, in order to understand nuances and provide feedback to government."

Napier Mayor Kirsten Wise said council would seek the views of the community before any decision was made on whether to opt in or out. Photo / NZME

Napier Mayor Kirsten Wise said she remained on the fence about the reforms as there were still "many unknowns".

"Until there is further clarity, I am not prepared to put my support behind either remaining in the new water entity or opting out."

Wise wanted further assurance that Napier would have a voice on its water entity's governing board and would not be financially disadvantaged by remaining in the new water entity.

"We have low debt compared to many local authorities around the country. I would be hesitant to support any change to our three waters arrangements if that disadvantages Napier."

She supported the co-design approach with mana whenua and said community views would be sought before any decision was made.