KEY POINTS:
A planned 9.1 per cent increase in Auckland City water bills will be decided by Citizens & Ratepayers Now councillors, who hold the casting votes on whether to proceed with the rise.
The ticket leader, Scott Milne, last night refused to say which way C&R Now would vote on a move by City Vision councillor Glenda Fryer to halve the increase.
The rise follows a 9.6 per cent rise just 10 months ago.
Together, the rises from the council-owned water company Metrowater have taken the average household water bill from $800 to $1000 a year.
Mr Milne, who has criticised the "left" for introducing large rate increases, would not rule out using the votes of three C&R Now councillors to push through the 9.1 per cent increase at a finance committee meeting tomorrow.
But he said there was a chance C&R Now would support Ms Fryer.
However, the centre-right ticket was seeking more information from officers, particularly on the effect of forecast price increases from the region's bulk water supplier, Watercare.
Watercare is due to start increasing prices next year by a total of 37 per cent between then and 2012 after six years of holding prices to the level of inflation, less 3 per cent.
Metrowater chief executive Jim Bentley and council finance general manager Andrew McKenzie have said the council's hunger for bigger dividends is the main reason for the 9.1 per cent rise.
Last year, the council ordered Metrowater to increase dividends in what Green Party councillor Neil Abel labelled a "smoke and mirrors" exercise amounting to a hidden rates rise.
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 in the rise include increased capital works and operating costs.
"I don't believe it is right for the council to put additional costs on those people who need water as a basic human right," Ms Fryer said.
She said she had the backing of Mr Abel and Labour councillor Richard Northey on the finance committee.
Action Hobson councillors Christine Caughey and Richard Simpson are considering backing her.
Finance chairman Vern Walsh, City Vision leader Dr Bruce Hucker and Mayor Dick Hubbard are in favour of the increase and continuing with the policy of squeezing a dividend of $280 million from Metrowater in the next 10 years.
Even if Ms Caughey and Mr Simpson vote together for or against the increase, C&R Now's three votes will determine the outcome.
Mayor Hubbard did not return calls yesterday.
But last week, he said the flipside of reducing water bills would be an extra 1.5 per cent increase in rates this year.
That would take the overall rates rise to 5.1 per cent and to 6.9 per cent for households.
He has defended the right of the council to run Metrowater like a commercial business, even it means higher water bills.
Ms Fryer acknowledged that lower water bills would lead to higher rates or spending cuts. She favoured spending cuts.
YES, NO, MAYBE
For a 9.1 per cent increase:
Mayor Dick Hubbard
Bruce Hucker (City Vision)
Vern Walsh (City Vision)
Against the increase:
Neil Abel (Green Party)
Glenda Fryer (City Vision)
Richard Northey (Labour)
Sitting on the fence:
Doug Armstrong (C&R Now)
Christine Caughey (Action Hobson)
Toni Millar (C&R Now)
Scott Milne (C&R Now)
Richard Simpson (Action Hobson)
