A burst pipe shut off water across a large chunk of Wellington’s CBD earlier this month, with some office workers being sent home. Photo / Mark Mitchell
A burst pipe shut off water across a large chunk of Wellington’s CBD earlier this month, with some office workers being sent home. Photo / Mark Mitchell
Opinion by Georgina Campbell
Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.
It’s appalling Kiwis again appear to be getting sick from their drinking water supply while our politicians dither over water reforms and argue about co-governance.
Yet Three Waters is not really a talking point on the Election 2023 campaign trail, despite it being emblematic of a much larger crisisfacing this country- the future of local government.
The rubber is hitting the road for many councils and it is not a pretty sight.
They desperately need alternative revenue sources rather than being forced to hike rates year after year.
The cost of living is front and centre of Labour leader Chris Hipkins’ “bread-and-butter” campaign.
The GST off fruit and vegetables policy will save an average household $5 a week and the removal of prescription fees means people also save $5 when they need medication.
These savings will do little against a backdrop of sky-high rates increases.
Wellington City Council, for example, confirmed an average 12.3 per cent rates increase in June. One resident said the increase has pushed their fortnightly rates bill up by $33 to $203.
In 2022 it was an 8 per cent increase for the capital and the year before that it was 13.5 per cent.
These kinds of increases would also eat into National’s promised tax cuts.
There are at least 30 cases of infection from Cryptosporidium in Queenstown. Photo / Mark Mitchell
Councils across the country are running out of money for their own bread-and-butter issues.
There are more than 30 cases of infection from Cryptosporidium in Queenstown which could have been prevented if the main water supply had a filter protecting it from the parasite (noting there is no confirmed link to the supply yet).
Newstalk ZB Drive host Heather du Plessis-Allan asked Mayor Glyn Lewers if it was true the council hadn’t installed the barrier earlier because it was too expensive.
“There is a cost element to it but there is a progressive programme of work and we try to manage those costs as it is expensive,” Lewers said.
“The rate burden on our ratepayers- we also take that into account.”
Meanwhile in Wellington, the cost of major upgrades to the rail network has blown out by $50 million and the project has been delayed by four years, with no guarantee the Government will meet the shortfall.
The work is crucial for the arrival of 18 new hybrid-electric passenger trains in 2028, which will boost capacity on a network that is already cramming commuters into carriages like sardines.
This is a regional council problem but Wellington City Council has plenty of its own issues.
A city councillor has sought legal advice to reveal the council had been told behind closed doors it needs to cut capital expenditure by “tens of millions of dollars if not hundreds of millions of dollars” in the coming years.
Cr Diane Calvert labelled it a “financial crisis”.
Collectively, councils across the Wellington region are also grappling with the prospect they will run out of water this summer.
Water meters, a new water source, and more money for fixing leaks are needed to fight the grim reality and all will require more spending.
Auckland mayor Wayne Brown in his office wants an annual transfer of tax revenue equal to GST charged on Auckland Council rates. Photo / Michael Craig
Both he and Wellington Mayor Tory Whanau have now pushed political parties to provide a fairer share of tax revenue for their respective councils.
Brown’s suggestions included an annual transfer of tax revenue equal to GST charged on Auckland Council rates, a nationally-funded solution to managed retreat, and rates to be paid on Crown properties.
Reading his requests is like reading the Future for Local Government review’s report, He piki tūranga, he piki kōtuku, which was released in June this year.
Many people have suggested local government’s finance system is “broken” and that we have reached “peak rates”, the report said.
It recommended an annual transfer of funds from central government to councils starting at $1 billion, which is roughly equivalent to the amount property owners paid in GST on their rates during 2021/22.
Another recommendation was to establish a fund for climate change adaptation efforts across the country which could be funded through the likes of the Emissions Trading Scheme, specific levies, or general taxation.
Incredibly, central government agencies pay limited or no rates and charges on their properties.
The report said there is nothing to stop this from being changed now - all that is needed is the political will to do so.
“Central government paying rates would be a signal of good faith and a sign of central government commitment to a more equitable funding model.”
This is not to say councils have been perfect angels and have always spent their money wisely.
But they deserve a fairer share to address their growing list of unfunded mandates.
The trade-offs will only become more stark if they don’t have a sustainable funding model that allows them to make necessary and good decisions.
• Senior Wellington journalist Georgina Campbell’s fortnightly column looks closely at issues in the capital.
