Council baulks at Watercare gag bid

Auckland's water wholesaler wants a "confidentiality agreement" to cover work on the transition of council water and wastewater services into one regional operation under the Super City.

Watercare Services says the deal is necessary to cover council employees who are working with it on transferring the councils' businesses to Watercare. The company is owned by the seven councils.

But the North Shore City Council voted yesterday against signing the agreement after some councillors suggested it would gag "whistleblowers" about any move to privatisation.

One of the suspicious councillors, Grant Gillon, said the proposal confirmed his support for the strategy and finance committee's resolution in March to strongly oppose any form of privatisation of the city's water supply and wastewater treatment operation.

If staff learned about any such move, the confidentiality agreement would stop them from expressing their concerns to the council, said Mr Gillon.

"What is behind this agreement? I am concerned that before the Super City is an entity we would have lost public ownership of water in the region. It's being set up for sale at a time when politicians are distracted."

Council chief executive John Brockies said Watercare did not have authority to lead the transition because the empowering legislation was before a parliamentary committee, which is hearing public views next week.

In the meantime, nine council staff were working with Watercare on planning the transfer, for example, on determining debt levels of the combined operation and on harmonising pay between the various water operations' staff.

The agreement would release council staff from their obligations to the council so they could work with Watercare.

Council solicitors Simpson Grierson had advised on reducing concerns about restrictions placed on North Shore employees and the council's proper interest in using some information internally.

Waitakere City Council's EcoWater operation will transfer to Watercare and it also opposes privatisation of the region's water services.

A council spokesman said the council was reviewing the confidentiality agreement but did not have concerns.

Its advice was the agreement was normal business practice when two concerns shared information and did not want it passed to a third party.