Wayne Bradshaw: Advisers suggest tapping water

Wayne Bradshaw

Big council changes planned?

-Water meters?

-Water and Wastewater charges?

-Privatisation of water?

-New local taxes?

-New regional GST?

-New regional fuel taxes?

Is this all part of our future in Hawke's Bay?

Back in late 2012, the Minister of Local Government appointed a group to advise the Government on local government infrastructure for the future.

The "Local Government Infrastructure Efficiency Expert Advisory Group" was chaired by the Wellington Regional Council chairwoman, Fran Wilde.

In March 2013, this group reported back to the Government with a large number of recommendations, which included:

1/ "Volumetric charging for water should be implemented and variable charging for waste water should also be implemented." (Recommendation No 37 )

2/ "Introduction of water metering should be accompanied by robust educational campaigns to highlight the benefits of water conservation and how to achieve it."

( Recommendation No 38 )

3/"Moving delivery of potable water and wastewater to regional level with the management and implementation of such delivery at arms length from political decisions through either a joint-owned or regional council- owned CCO or a business unit ... (Recommendation No 59 )

Simply put, what this means is:

Every house having a meter that records the amount of water and wastewater used and being charged accordingly.

(Just like Auckland )

That the water and wastewater services would not be the responsibility of the council or the elected representatives, but a third party body of appointed persons.

(Just like Auckland )

Some may say that this is the beginning of privatisation of public assets and increases the ability to sell these assets if required.

Last month, Local Government NZ launched its Local Government Funding Review paper. This was to "review the future adequacy of existing funding sources available to local government."

There is a concern in LGNZ that - and I quote - "There is currently a significant shortfall between revenue and expenditure" of local councils.

"Councils spend approximately 10.5 per cent of all public expenditure, yet raise only 8.3 per cent of all public revenue."

The World Bank calls this "a mismatch between revenue means and expenditure needs".

Therefore, to balance the councils' books, LGNZ is calling for new revenue sources to be considered in the review.

These new revenue sources include:

-Local income taxes

-Local expenditure taxes

-An increase in GST

-Selective new taxes

-Regional fuel tax

In all the LGNZ review documents, there appeared to be no mention about councils addressing internal efficiencies or "living within their means."

In fact the PM was quoted as saying "There does not appear to be excessive levels of debt in local government and that councils have a range of assets they own."

This may signal that the PM believes the solution may be to borrow more or sell/privatise some assets.

It is interesting to note that both the LGNZ president and Fran Wilde are strong, leading supporters of amalgamation in Wellington and Hawke's Bay.

Is this what will be imposed on the regions, if amalgamation happens?

-Wayne Bradshaw is a Hastings District councillor

-Business and civic leaders, organisers, experts in their field and interest groups can contribute opinions. The views expressed here are the writer's personal opinion, and not the newspaper's. Email: editor@hbtoday.co.nz.