Three Waters Reform: Working Group makes 47 recommendations

The feedback on the report of the Government's independent working group has been mixed. Photo / Supplied

Local Government action group Communities for Local Democracy (C4LD) says the report from the independent Three Waters Working Group on the Government's reform draft - which makes 47 recommendations dealing with councils concerns - is "predictably disappointing".

C4LD chair and Manawatū District mayor Helen Worboys says: "There was widespread hope that working party feedback might result in real change to the policy, and our group even commissioned and presented alternative models that we believed meet Government and community objectives."

However, Local Government Minister Nanaia Mahuta welcomed the group's report. "The independent working group has been an important part of the Government's Three Waters Reform Programme ..." she says.

"We are committed to ensuring local councils continue to have a vital Three Waters role by representing the interests of their communities at the highest level of each new water services entity alongside mana whenua, and by owning these entities on behalf of their communities."

Meanwhile, Hamilton City Council says the working group's recommendations show that Hamilton's voice is being heard, but there is still work to be done.

Mayor Paula Southgate says: "It's crucial we continue to advocate strongly for further improvements for the future of our community. We're getting results and we need to keep taking every opportunity in this process."

C4LD wants reform paused

Worboys says C4LD wants to push "the pause button" on the reform.

"The small movement on the ownership side falls short of what is needed.

"The working group has recommended that the sole right that goes with ownership is the right to vote on some future speculative privatisation. All other ownership rights are stripped from councils."

She says there was widespread hope that working party feedback might result in real change to the policy. "And our group even commissioned and presented alternative models that we believed meet government and community objectives."

The Government's Three Waters Reform working group has released its report with 47 recommendations on representation, governance and accountability. Photo / 123rf

C4LD has grown, with now 30 councils being part of the group, including Waipā, Matamata-Piako and South Waikato District Councils.

Waipā mayor Jim Mylchreest says each of the councils in the working group supports the principles of Te Mana o te Wai but continues to be concerned that the four-entity model will not provide the positive outcomes being promised.

"All of us just want the best outcome for New Zealand and our communities. We have 30 councils raising concerns and we need to be heard. We will continue to raise concerns over the lack of community ownership, accountability, and likely increase in costs."

Government considers recommendations for official draft bill

Mahuta said the Cabinet will carefully consider the recommendations in the report from the working group before finalising reform plans and introducing legislation.

"We know it is important to get this reform right for every New Zealander.

"We are committed to ensuring local councils continue to have a vital Three Waters role by representing the interests of their communities at the highest level of each new water services entity alongside mana whenua, and by owning these entities on behalf of their communities."

The working group was established last year in response to the concerns raised by councils and to help develop solutions around representation and accountability.

The official feedback report from the working group says: "[We] heard a range of views from the local government sector about various governance models. We listened to people's frustrations. We engaged in energetic debate and argument and formed our recommendations by consensus."

The recommendations address concerns including ownership, protection against privatisation and local voice.

Local Government Minister Nanaia Mahuta welcomed the independent working group report on the Three Waters Reform Programme. Photo / Mark Mitchell

To protect the Three Water assets against privatisation and to protect community ownership, the working group recommended that the four water service entities would be set up in a public shareholding structure.

This means councils hold shares in the four entities on behalf of their communities and would have the right to vote on any proposal for the entity to be sold or privatised.

To protect the local voice, the working group recommended the establishment of sub-regional representative group committees that would feed into regional representative groups. "This will ensure local voices are always considered," the working group says.

Additionally, the group recommends that council representatives should have a mix of representatives from urban, provincial, and rural councils.

The working group also recommended the establishment of an independent water services Ombudsman who has jurisdiction over all the public-facing activities of the water entities and who, in case of a dispute, works towards a fair and reasonable outcome for the parties involved.

HCC: "Change needs to work for Hamiltonians"

Southgate says the council isn't happy with the proposed model and has made that clear in its feedback to the working group.

"We provided strong feedback around the ownership model, privatisation, government communication and consultation and ensuring local communities had a voice in any future entity. The working group's report considers all these areas and recommends changes to Government to shape the final legislation."

She says with Hamilton being a growth council it was really important the city's strategic plans were considered by any new entity.

"I'm pleased to see recommendations that will give Hamilton a stronger voice in future investment and asset management. We also wanted alignment with resource management reform and other reforms planned by Government, and this is specifically addressed in the report."

Southgate says the current system is not sustainable. "And we won't get the best outcomes for Hamilton and the environment without change. It is clear Government is committed to reform, so we need to continue to be involved in it.

Auckland mayor Phil Goff disagrees with some of the views expressed by the working group - his opinion has been included in a minority report. Photo / Alex Burton

"But any change needs to work for Hamiltonians, and we will continue to work to influence any future reform to get the best outcome for our ratepayers. Some of our feedback has been taken on board by the working party, to some extent, but there is more work to be done."

The draft bill is anticipated mid-2022 and HCC is committed to consult with the public when that bill is available and the select committee process is known.

Official report includes minority feedback

In an appendix to the official report, the working group has included a minority report from Auckland mayor Phil Goff, who was part of the working group and voiced his disagreement with some of the views expressed by the group.

He said he welcomed the process of the working group which had resulted in "constructive discussion of the issues and recommendations for some positive and worthwhile improvements to the Government's original proposals".

"However, these changes still fall short of what Auckland Council and Aucklanders require in the area of governance and accountability ... Our concerns relate to the proposed governance and accountability arrangements which Auckland considers are too far removed from the community and democratic accountability."

He says that in a Cabinet paper on June 14 last year, Mahuta said she considered it would be possible to exclude Watercare, Auckland's water management organisation, from the reforms "on the basis that it already has many of the desired features of the reform".

"This leads to the question, what is the problem the Government is trying to solve in Auckland?" Goff says.

Worboys says Goff makes the point well in his report, saying with ownership come rights, responsibilities and obligations.

"Ownership needs to be reflected in democratic accountability and this proposal would lead to the loss of direct accountability ...," says Worboys.