KEY POINTS:
Auckland City councillors are having a change of heart about the policy of higher water bills to raise $280 million for the council over 10 years.
After a long-running internal spat over water, City Vision-Labour yesterday said the policy was not financially sustainable or fair for households.
The centre-left ticket unveiled a new policy to take to voters at October's local body elections promising to stop the council-owned water company, Metrowater, being used as a cash cow.
In the meantime, at a finance committee meeting today, four Citizens & Ratepayers Now and Action Hobson councillors will move to cut this year's planned 9.1 per cent rise in water bills to about 5 per cent.
The councillors - Doug Armstrong, Christine Caughey, Toni Millar and Scott Milne - voted against a similar move last month to halve the 9.1 per cent increase.
Although today's committee move is unlikely to succeed, at least 13 of the 20 councillors have indicated they are backing away from the policy.
One thing councillors of all political leanings agree on is the need for a comprehensive review of Metrowater in November at the first budget-setting meeting for next year.
Under the new City Vision policy, water bills would be set at the "minimum" level necessary to fund the cost of providing water and wastewater services in a financially and environmentally sustainable way "but not to subsidise the costs of other council activities".
Last year Metrowater began a series of big price rises to pour $280 million into council coffers over 10 years.
The increased dividends were earmarked for stormwater, which freed up money for spending on other council activities.
Critics, including Green Party councillor Neil Abel, called it a "smoke and mirrors exercise" amounting to a hidden rates rise.
City Vision co-leader Richard Northey said the ticket wanted to clearly identify which water and wastewater costs were generated by water users and which costs were generated by stormwater falling from the sky. After that work was done in November, water and wastewater charges would be paid through water bills and stormwater costs paid through rates, he said.
"That is the principle we will apply to our water charging," Mr Northey said.
He said the new policy would result in lower than anticipated water bills over 10 years. Water bills have gone up 9.6 per cent and 9.1 per cent in the first two years of the policy and are expected to rise between 9 and 10 per cent over the next eight years.
Bruce Hucker, who was dumped as City Vision leader last week over his hard line on higher water bills, did not return calls yesterday.
Asked if Dr Hucker "supported" the new policy, Mr Northey said: "I have spoken to Bruce about it and I understand that he accepts it."
Mr Abel said he was pleased with the new policy but doubted Dr Hucker would change his support for higher water bills.
C&R Now finance spokesman Doug Armstrong said today's move to cut this year's rise in water bills to about 5 per cent would maintain this year's dividend of $18 million for a year while a comprehensive review of Metrowater took place.
"Future price increases will depend on the election results and decisions taken in light of the findings of the review," Mr Armstrong said.
C&R Now politicians are deeply divided on water policy. Leader Scott Milne has sided with Dr Hucker and Action Hobson to push through higher water bills.
Former C&R Now deputy mayor David Hay has called on the party to dump the policy of using Metrowater as a "cash cow" and go back to the original policy of providing water at the "minimum price".
Mr Armstrong said the review needed to examine whether the council should receive a capital return from Metrowater and factors influencing the price of water.
