What do our district's numbers look like?
According to the figures provided by Water Industry Commission of Scotland (the company commissioned by the Government), Waimate ratepayers pay an average of $1200 for water, stormwater and wastewater services. If council continues to deliver those services, the expectation is that the figure in 30 years time will be approximately $9,000 per serviced property, and that is in today’s dollars. If we have an entity which covers most of the South Island, the Government propose that figure will instead be $1640 per annum, per household.
Does Council have faith in the numbers?
Quite simply, no. The figures are based on a number of assumptions, which we believe they have got very wrong. Our water assets are in very good order compared to most councils. Most of our water schemes have had upgrades to bring them up to the new drinking water standards and our wastewater treatment plants operate within their resource consents. In addition to that, we have been carrying out a significant programme of pipe renewals and continue to invest heavily in this space for the district.
Could a referendum be possible?
Council are looking into the legal implications, cost and strength of carrying out a referendum, but hold no position on this as yet. A local referendum would not be binding and therefore it is likely further consultation with the community will continue to help guide Council with their decision-making.
Will there be further consultation?
In the coming months, Council intend to host more public meetings to further inform ratepayers of the facts and the situation at hand.
Will my community get the same level of service under the proposal?
The Government has made an explicit commitment that staff working primarily on water would retain their salary, conditions and – critically – location if they transfer to the new water entities. Individual communities have significant potential gain from the proposal. At the moment, small contracts on an ad hoc basis give contractors no incentive to invest in specialised plant, for example, especially outside cities. At the moment, the supply chain has more market power than your average council. With four entities, the market power would switch around to the buyer.
When does Council consult with ratepayers?
Formal consultation is not required yet. That’s because the proposal from the Government hasn’t been finalised. At the moment, we’re in an 8-week review period so you can investigate the reforms, assess the potential impact on your council and suggest ways the proposal might be strengthened. Only once the reforms are more finalised will consultation obligations be triggered – if at all.
Who will own the water assets under the reform proposal?
Local authorities would be the owners of the entity, on behalf of their communities. The entities will own and operate three waters infrastructure on behalf of territorial authorities – they will hold three waters assets and associated debt. The assets aren’t being sold – the new entities would be collectively owned by councils, on behalf of communities.