I have heard from a lot of people in our community who are very concerned about government’s Three Waters Reform proposal and I share their concern.
I do not support the proposal before us in its current form.
The infrastructure challenges we are experiencing in Auckland are not unique to our region. Ageing infrastructure, and the financial resources needed for renewals, is an issue throughout New Zealand. From my perspective, I acknowledge that reform is needed to lift the standards of water supply quality and the quality of wastewater treatment across the country. However, that’s not my problem. I am not an MP. My focus is on Auckland and when I look at what the government is proposing to do, I look at that through an Auckland lens. The question I ask myself is, “Is what is being proposed better for Auckland and its communities and residents?” The answer I have to date is NO.
What has concerned me from the very beginning is the real lack of local or regional variation. Auckland’s water services were already amalgamated as part of central government’s legislation that set up Auckland Council in 2010. We are already the most efficient and effective water supplier in New Zealand. In fact, we have already achieved the scale and professionalism in water supply being sought for the rest of the country. Watercare and the way it is governed, already provides a proven model and can provide a centre of excellence for other water service entities.
Watercare has approximately $10 billion in assets, and our 10-year budget includes a further $11 billion in water investment over the next 10 years. If the government’s current plan goes ahead, I cannot guarantee the delivery of that much needed $11 billion of vitally important infrastructure, particularly in the later years of the 10-year Budget, and that really concerns me. In the Government’s modelling, 94% of the assets of the proposed new entity would come from Auckland, and Auckland would have approximately 90% of the population served by that new entity but we only get very much less than 50% of the governance. In my opinion, that in itself doesn’t work for Auckland. Government modelling also suggests that there is an economic benefit for Auckland residents, and a larger economic benefit to residents of smaller councils. Again, it’s not my role to look after smaller councils. It’s about looking at the economic benefit for Auckland. I see flaws in some of the assumptions used and lack confidence in the conclusions drawn. I believe there are alternative models which could meet the Government’s objectives while also delivering benefits to Auckland, but this will require a willingness by government to be open to change and to date I haven’t seen that from the Minister.
My biggest concern is in relation to the governance model that has been proposed. It is overly complex with no direct democratic accountability. In fact, the current reform model effectively removes Auckland Council’s governance authority and influence over a significant portion of Auckland’s infrastructure assets. That means local communities, through their elected representatives, would have no direct control over the proposed services entities, removing the accountability measures we currently have over our CCOs, including Watercare. What Auckland deserves and needs before looking at any proposed reform is a genuine governance role for Auckland Council, and an ownership model that allows for democratic accountability.
Additionally, the inclusion of mana whenua as stated in the recommended governance structure needs more consideration as to why? Again, the proposal does not recognise that Auckland Council is different to other councils in New Zealand. We already have, by set legislation, an Independent Maori Statutory Board tasked with representing the views of Maori at the governance level. Like the position taken by Local Government New Zealand on behalf of its membership, I do not believe that the proposed approach would in any way drive a ‘Better Water for Everyone’ outcome.
So where are we with the three waters proposal and any formal decisions?
It’s important to note that we haven’t been asked to make an opt-in or opt-out decision at this stage. Councils are currently only being asked for initial feedback on the government’s proposal, identify areas of concern, and suggest ways to improve what has been proposed. Unfortunately, we have not been given a ‘status quo’ option, as a water regulator has already been established.
As part of Auckland Council’s formal INITIAL feedback, on Thursday September 23 we agreed in principle with the outcomes being sought nationally in terms of economies of scale, alternative funding arrangements, and the introduction of an economic regulator. We did not agree with the governance structure. I am very concerned the Minister may mandate this, so was keen to keep our discussion going on issues such as representation from and on behalf of mana whenua.
It is important for you to know that I am absolutely committed to asking Aucklanders for their views on the final Three Waters Reform proposal. To that end, I asked the mayor to amend the draft recommendations at our Governing Body meeting on Thursday to reflect that, and he did. Consultation has come through as a major theme in a lot of the feedback I have received. I really feel very strongly that, given the implications of this reform, we must give our communities an opportunity to have their say.
I will watch with interest and keep you informed as to the next steps from central government. These are expected to be announced after 30 September 2021, and I will ensure that they include timeframes and guidelines for community / public consultation.
Meanwhile, here are the resolutions passed yesterday:
Resolution number GB/2021/110
That the Governing Body:
a) note Auckland Council has been asked for initial feedback on the government’s three water reform proposal including identifying areas of concern, and to suggest ways to improve what has been proposed
b) support the following aspects of the government’s Three Water Reform proposal:
i) the need to reform the water sector in Aotearoa to lift the standards of water supply quality and wastewater treatment across New Zealand
ii) the need to genuinely partner with local government to achieve reform of the sector
iii) the need to introduce an economic regulator to improve efficiency and productivity and ensure there is appropriate oversight of the new WSE, but notes that this can apply to Watercare without amalgamation
iv) the need to develop alternative funding and financing arrangements to enable greater investment in water service infrastructure
v) the need outside of Auckland to achieve greater scale and capability in the delivery of water services
c) does not support the government’s proposed ownership and governance arrangements which remove democratic accountability and the loss of direct control by councils over water service entities
d) agree that there are alternative governance and financial models to that proposed which will achieve most of the government’s water reform outcomes
e) agree that Auckland Council continues to work with the government to consider these alternative options that meet both the government’s and council’s objectives and desired outcomes
f) agree that water service entities should have the same accountability mechanisms (e.g. ability to approve and modify Statement of Intents and directly appoint and remove directors) as provided under the Local Government Act 2002 and Local Government (Auckland Council) Act 2009 for council controlled organisations
g) agree that Auckland Council supports a water service entity model, like the CCO Watercare model, where real ownership continues to reside with Councils and where the WSE is required as Watercare is currently, to give effect to the relevant aspects of Councils’ long-term plan and growth strategies
h) agree that the governance arrangements of any Water Service Entity that includes Auckland reflect the proportionate investment in the assets made by the people of Auckland, liabilities, and the proportionate size of Auckland’s population resulting in Aucklanders, through their elected representatives, maintaining majority control over their assets and service delivery
i) agree that the set-up of the new entities should specify the requirements or principles for consultation, for example as they are set out in the Local Government Act 2002
j) seek further engagement and information on the following aspects of the water reform proposals
i) representation from and on behalf of mana whenua
ii) integration with other local government reform processes
iii) integration with spatial and local planning processes and growth
iv) the nature, role and timing of economic regulation
v) process for and decision-making regarding prioritisation of investment
vi) the transfer of benefits and disbenefits of stormwater integration and transfer assets and functions
vii) process for local authority decision-making on ‘opting in or out’ of the Three Waters Reform
viii) conditions associated with the Government’s package of funding for local government
ix) transition arrangements, including for the council group workforce, information sharing and due diligence for asset transfers
k) support local authorities being able to make the final decision on whether to ‘opt-in’ to or to ‘opt-out’ of the government’s final Three Water Reform proposal, and that the Reform is not made mandatory
l) delegate to the Mayor, Deputy Mayor, Environment and Climate Change Committee chair and Watercare liaison councillor, Cr L Cooper to approve Auckland Council’s initial feedback to government based on clauses b) to k) above
m) note that the final letter to the government outlining Auckland Council’s initial feedback will be provided to the Governing Body for information.
n) note these recommendations were formed with the government’s advice on stormwater yet to be received.
o) agree that when Auckland Council has received from Government its final three waters reform proposal, the Council will consult with Aucklanders on this proposal to inform Council’s response.
CARRIED BY OVERWHELMING MAJORITY
The full report and minutes are available on the Auckland Council website.
And here is a media article highlighting my push for Aucklanders to be consulted prior to Auckland Council decision making on the final 3 waters proposal from government
If you have any questions, comments or concerns, Please feel free to contact me
Kind regards
Desley