KEY POINTS:
City Vision leader Bruce Hucker says water bills will rise 9 to 10 per cent every year for a decade and is confident of political support to push through the increases.
The policy will see a "medium" family water bill increase from about $920 to $2180 by 2015. This figure is based on confirmed increases of 9.6 per cent and 9.1 per cent in the first two years and a 9 per cent increase for the next eight years.
Dr Hucker told Radio New Zealand yesterday that there would be "small increases of about that rate" (9.6 per cent and 9.1 per cent) over the life of the council's 10-year plan.
Asked if that was doubling water prices, Dr Hucker said: "Yes, but from a relatively small base, and also people's incomes grow over those years."
He acknowledged that most incomes would not rise by 10 per cent but said the council was investing $2.3 billion in the next decade through a combination of policies to transform Auckland "in a way that is affordable for everyone".
The council had given 6500 households $500 cash in their hands in rates and water relief in the past year so no family needed to be disadvantaged, he said.
Speaking the day after being re-selected by City Vision to stand in the Western Bays ward, Dr Hucker said he believed his colleagues would adopt a "sensible [water] policy for the benefit of the people".
City Vision is holding discussions with Dr Hucker, a Labour Party member, about his hard line on water prices and the potential damage to the centre-left ticket at October's local body elections. A new water policy is due to be finalised next week.
Dr Hucker said Mayor Dick Hubbard was with him: "He and I are quite united on this and the policy we have in place at the moment is actually a sensible [one]."
City Vision councillor Glenda Fryer said she did not think anyone, including herself, would regard 9 or 10 per cent as a "small" increase.
It was time to ask Aucklanders if they wanted higher water bills or higher rates to pay for infrastructure or the council to cut its cloth according to its means, she said.
Dr Hucker's comments are the first time a politician or council officer has said water bills will rise 9 to 10 per cent over each of the next 10 years.
Last year, the council told ratepayers during consultation on the new water policy that increases would be "small in the first 10 years".
At the time, Metrowater was predicting a 4.3 per cent increase in year one. Three months later, the council-owned water company announced a 9.6 per cent rise.
About the same time, Metrowater issued a 20-year plan showing water bills rising by 52.6 per cent in the first 10 years, including a 3.85 per cent increase this year. Last month it announced a 9.1 per cent increase.
Dr Hucker's forecasts point to a rise of nearly 140 per cent over 10 years.
When the Herald forecast a 140 per cent price increase two weeks ago, council finance manager Andrew McKenzie said the figure was "much higher than any projections contained in information held by the council".
He also took exception last week to the Herald's saying "the council issued figures to show the increase was 65.8 per cent".
Mr McKenzie said the council issued no such figures and the figure was a complete fabrication by the Herald based on last year's numbers.
A spokeswoman for Mr Hubbard yesterday said the mayor had no comment to make on water or on whether he was "united" with Dr Hucker to push through higher water bills.
Last Friday, Mr Hubbard said he would look at a "fairer way of pricing water" if he was re-elected for a second term in October. He was responding to calls from the Green Party to give Auckland households a minimum amount of cheap water so families on tight budgets could afford the "necessity of life".
Last night, Mr McKenzie said "Dr Hucker was talking in general terms and did not claim that water prices would increase by 140 per cent over 10 years".
He said the increase would be less but the detail would not be disclosed until after June 22 when Metrowater's board approved the latest funding plan and statement of intent, which lays the ground rules for managers.
Rising tide
* Increases from 0 to 10 per cent in 18 months
* 2005: No increase in water bills.
* December 2005: Auckland City Council finance committee calls for bigger dividends from Metrowater.
* March 2006: Metrowater warns council higher bulk water prices will affect dividends.
* April 2006: Council says water bill increases will be "small" in consultation documents.
* July 2006: Metrowater announces 9.6 per cent increase.
* May 2007: Metrowater announces 9.1 per cent increase.
* June 10: Bruce Hucker reselected as City Vision candidate despite opposing the ticket's water policy.
* June 11: Dr Hucker announces water price increases of 9 to 10 per cent over 10 years.
