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A planned 9.1 per cent rise in water bills could be halved after City Vision councillor Glenda Fryer announced plans yesterday to provide relief to 142,000 households and businesses in Auckland City.
Her plans ran into immediate opposition from Mayor Dick Hubbard, who strongly backed the full increase.
Ms Fryer said she had always opposed the council policy of demanding bigger dividends from Metrowater, which will see water bills rise 9.1 per cent in July on top of a 9.6 per cent increase just 10 months ago.
Together, the rises will take the average household water bill from $800 to $1000. Large households, including many large, low-income families, will have to find an extra $400 a year. The increases do not include a planned 33 per cent rise in household rates in the first term of Mayor Dick Hubbard and his City Vision/Labour-controlled council.
Ms Fryer said she planned to reduce the 9.1 per cent increase by the amount making up the council dividend, which was about half. Other factors include increased capital works and operating costs.
Ms Fryer is believed to have the backing of at least three other City Vision/Labour councillors - Neil Abel, Leila Boyle and Cathy Casey. "I will support anything that brings down water prices in Auckland," Dr Casey said.
Other City Vision councillors, particularly leader Bruce Hucker and finance committee chairman Vern Walsh, support the full increase.
Action Hobson councillors Christine Caughey and Richard Simpson are seriously considering backing Ms Fryer.
Citizens & Ratepayers Now finance spokesman Doug Armstrong said the six-strong centre-right ticket would have to "seriously cogitate" on the issue.
Mr Armstrong said C&R Now would be mindful of the burden on consumers.
Mr Hubbard said he backed the increase in water bills because he supported Metrowater being run as a "council-controlled organisation" along commercial lines by directors to get an appropriate rate of return.
"It is appropriate to pay the true cost of water because if you don't pay the true cost the money has to come from somewhere else, and it comes from the general rating policy," Mr Hubbard said.
Council finance general manager Andrew McKenzie said the only way to reduce prices would come over the next month when councillors considered Metrowater's "statement of intent", which sets out the level of dividends payable to the council.
When dividends began in 2003, the council asked for $5 million, kept price increases to no more than inflation and introduced a prompt-payment discount of 10 per cent.
Last year, the council rewrote the rules and demanded Metrowater increase the dividend from $5 million to $18 million and abolished the inflation cap. Next year, Metrowater is being asked for a dividend of $24 million, steadily increasing to $42 million by 2016.
