Rebate call on Metrowater

Auckland City councillors will today try to convince the unelected directors of its council-controlled water organisation to give ratepayers a rebate worth up to $44.

But last night, finance committee chairman Doug Armstrong said the elected representatives could not force Metrowater to give a rebate from a $5.7 million profit in the last six months.

The profit arose from a 5.9 per cent rise in water charges last year and better-than-forecast sales, which Mr Armstrong said warranted a rebate to 130,000 customers.

Metrowater, on the other hand, has suggested putting the profit towards extra expenses associated with creating a mega-water CCO for the Super City.

Mr Armstrong said informal discussions with Metrowater indicated the profit could be divided between CCO costs and giving something back to water users.

"Just how much we do give back depends on what Metrowater thinks is prudent. We have got a fair bit of influence, but in the end the directors of Metrowater make the final call. We can't instruct the directors."

The rebate is an example of the limitations that elected councillors have controlling CCOs - set up at arm's length from politicians and the public to get things done.

The Government is under pressure on a plan to impose seven CCOs on the Super City that will control more than 75 per cent of council services.

Metrowater chairman Ross Keenan could not be reached for comment.