Watercare may reduce firefighting capacity to NZ’s biggest new supermarket if terms not met

Auckland Council’s water utility has revealed the terms of a firefighting capacity deal with the owners of New Zealand’s biggest new supermarket, saying it may reduce supply if terms are not met within two years.

Priyan Perera, Watercare’s chief executive, said today that if the owners of href="https://www.nzherald.co.nz/business/100m-paknsave-highland-park-opens-this-month/DIXNM3MBJRF7PLYSSIJB3KWZV4/" target="_blank">Pak’nSave Highland Park do not comply within that time, it may reduce supply or impose financial penalties.

But it has given Foodstuffs North Island (FSNI) double the amount of time it had previously to act.

Pak'nSave Highland Park customers experienced hour-long queues on the store's opening day.

“The supermarket is now connected to our network and has access to water for firefighting purposes for up to 24 months,” Perera said.

That is a change from the one year Watercare wanted, before the February 25 opening date.

Watercare also has penalties in the deal which include a fine if FSNI doesn’t fulfil its terms.

“If the two parties do not agree on an appropriate permanent solution, the agreement allows us to either reduce our supply to the site to 25 litres per second when the 24 months is up or negotiate terms, including an annual payment, for the continued availability of water to the site for firefighting purposes,” he said.

The store opened last month when more than 5700 people poured in and more trolleys were needed.

Wade Brown at the new Pak'nSave Highland Park. Photo / Foodstuffs

Watercare wanted FSNI to build a massive on-site storage tank so it would not strain the system if a big fire broke out at the massive new store.

Watercare also backed down from barring the $100 million store from opening last month unless FSNI agreed to install a giant new water storage tank beneath its loading dock, which FSNI complained could cost it $1m.

The utility provider will also ascertain alleviating the potential lack of water supply.

“We are also reviewing our water network to assess whether we can provide more than 25 litres per second of water flow for firefighting purposes on a long-term, permanent basis, without compromising our ability to service existing and future communities,” Perera said today.

The new $100 million Pak'nSave Highland Park, opened on February 25, 2025. Photo / Foodstuffs North Island

Perera said all this was in the terms of an agreement to allow what he called “temporary access” to the water network for firefighting purposes.

Last month, Lindsay Rowles, FSNI general manager of retail and property, said the opening would go ahead as scheduled and was no longer endangered.

That is despite Watercare seeking that Foodstuffs sign an agreement before opening that it would install a 250,000-litre water holding tank for fire-fighting water supplies, otherwise, it would put too much strain on the system.

Lindsay Rowles of Foodstuffs North Island inside a new store, New World Mt Albert, which opened in October last year. Photo / Michael Craig

Pre-opening, it appeared the two parties were still negotiating over that tank yet the parties agreed so the store was granted a water connection to enable it to open on time.

“We’ve worked closely with Watercare, with support from local MP Simeon Brown and councillor Maurice Williamson, to agree on a way forward. As a result, the store has been granted a water connection, enabling us to open on time. The next step is to determine a permanent solution, which we will work on together in the coming months,” Rowles said last month.

“This milestone marks a significant achievement for our team and we’re incredibly excited to welcome our first customers and become part of the local community. I’d like to extend my thanks to everyone involved in making this opening possible,” he added.

Pak’nSave Highland Park:

• Anticipated land, building valuations on completion: $100m;
• Store owner/operators Wade and Diana Brown;
• Property owner Foodstuffs North Island;
• Address: 503 Pakuranga Rd, east Auckland;
• The site, building is owned by Foodstuffs North Island subsidiary Wai-iti Developments;
• Builder: Legacy Construction;
• Staff: around 250;
• Car parks: 329;
• Extra shops: up to five in an extra retail area of 450sq m;
• Opened 7.30am, Tuesday, February 25.

Anne Gibson has been the Herald’s property editor for 25 years, written books and covered property extensively here and overseas.