New water pumps and electronic controllers at Ruapehu District Council's Matapuna Water Treatment Plant. Photo / Supplied
New water pumps and electronic controllers at Ruapehu District Council's Matapuna Water Treatment Plant. Photo / Supplied
Concerns about how the Government's water reforms could negatively impact rural communities have been raised by the Ruapehu District Council in its submission on the bill.
Submissions on the Water Services Entities Bill, with the Finance and Expenditure select committee, close this Friday.
The bill will create new multi-regional entities for delivering water services from July 1, 2024, as part of the Government's Three Waters reforms.
Ruapehu Mayor Don Cameron said his council accepted reform was needed and supported the bill's objectives.
But he said the council was uncomfortable with the reform process continuing while gaps that would affect rural councils existed in the bill.
Cameron said the most constructive approach to address this was to remind the Government of the unique challenges rural councils like Ruapehu have in meeting the required water standards with small rating bases and funding issues.
"Although solving funding challenges is a key reform outcome we highlighted the need for further interim Government investment to maintain Three Waters investment between now and when the new entities take control."
"The Three Waters reform is the largest change local government have faced in a long time, and is creating additional work for councils who are already under strain from staff shortages, winter illness, and Covid."
The Ruapehu District Council has signed off on a submission to the Water Service Entities Bill, concerned about how the proposed legislation could impact Ruapehu in the future. Photo / Bevan Conley
The council also noted future affordability concerns for small Ruapehu communities with no guarantee of price harmonisation written into the bill.
Cameron said another major concern raised was the potential lack of future influence over local development or service needs.
According to Cameron, in the current bill, the council will only have one share in Entity B alongside 21 other councils.
He said this risked Ruapehu District Council's voice and considerations being drowned out by other councils who have larger shareholdings.
"We feel that under the proposed structure our small communities may not be well-placed to be heard by a large multi-regional entity."
Cameron said other issues the council submitted on included ownership rights, protection of community wellbeing, iwi-Māori partnerships, governance and future legislative impacts.
He noted that besides these issues, there were a number of aspects to the bill the council supported.
Those aspects included the statement around performance expectations, the upholding of the principles of Te Mana o te Wai, the protections against privatisation and the focus on climate change.
"Unfortunately, the 'devil is in the detail' and much of the desired detail was either not in the bill or still unclear," Cameron said.
He said the council have requested the Government allow time for a revised approach to be reflected in the draft legislation which specifically addresses the council's concerns.
Associate Minister of Local Government Kieran McAnulty announced each council would get at least $350,000 to help cover the water reforms.
"This funding will allow local authorities to draw in expertise to support councils through the Three Waters transition period, and continue business as usual," McAnulty said.
"Each council, regardless of their size, will receive $350,000 over 12 months with top ups allocated based on the 'Better Off' funding method."
Without the reform, ratepayers around the country would be facing a $185 billion bill to maintain and upgrade infrastructure over the next 30 years, McAnulty said.
"Without reform, a household would face water costs of up to $9,000 per year, or the prospect of services that fail to meet their needs."
