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Water bills are rising by 9.1 per cent to round off a 33 per cent household rates rise and 19.5 per cent rise in water charges in the first term of Auckland City Mayor Dick Hubbard and his City Vision-Labour-controlled council.
The council's water company, Metrowater, will today announce the 9.1 per cent increase, which comes on top of a 9.6 per cent rise in water bills last year. Metrowater's 142,000 customers will not be consulted about the increase, which has been negotiated behind closed doors between the company and council.
The main reason for the higher water bills is to pour more money into Auckland City's coffers in what Green Party councillors last year labelled a "smoke and mirrors" exercise amounting to a hidden rates rise.
Stung by criticism at household rates rises of 11.1 per cent and 13.4 per cent in the first two years, Mr Hubbard and City Vision-Labour councillors have been looking at ways of keeping down household rates in election year.
Demanding more money from Metrowater and borrowing are being used to reduce this year's projected household rates increase of 9 per cent to 5.4 per cent. Even at this figure, it is about 100 per cent above inflation.
Mr Hubbard could not be reached last night, but Dr Hucker defended City Vision's promise at the 2004 election to keep water bills "fairly priced".
Dr Hucker said the council was getting Metrowater to borrow more - so it can increase its charitable payment to the council from $18 million to $24 million - so some of the servicing charges would be reflected in water and wastewater charges.
Dr Hucker, who promised at the last election to hold rates rises to no more than 2 per cent above inflation, said Metrowater customers (and voters) could expect more price increases under City Vision-Labour.
Meanwhile, health officials say Metrowater is ignoring the Health Act by restricting water to bad debtors.
The water business has come under fire from health officials and a protest group for refusing to accept any obligations under the act when restricting water supplies.
In a series of emails last month, the Auckland Regional Public Health Service said it appeared the main water companies had failed to consistently accept that their obligations under law were the same as those of councils.
Dr Denise Barnfather, an Auckland medical officer of health, said the issue was of national importance and management wanted the Ministry of Health to obtain a written legal opinion detailing water companies' obligations to an important piece of public health legislation.
This followed a letter from Metrowater to Dr Barnfather stating that "section 23 of the Health Act does not apply to it [Metrowater]".
Metrowater general manager of service operations Tim Hammond said the act applied only to local authorities. Metrowater came under the Local Government Act, which empowered it to restrict water flows, he said.
Penny Bright of the Water Pressure Group yesterday said Metrowater was behaving as if it were beyond the law and the council was failing in its duties to monitor the water company.
