Eyes On Wairarapa Council Amalgamation – Again

Tuesday, 1 April 2025, 9:37 pm
Article: Emily Ireland - Local Democracy Reporter

Masterton’s council boss has eyed up amalgamation as “the bigger picture” for Wairarapa post water reform.

In a report to council, which was set to meet Wednesday, chief executive Kym Fell said although staff were mainly focused on Local Water Done Well, “our attention is shifting to what comes next”.

There were currently two options out for consultation for Masterton’s future water services delivery: A Wairarapa-Tararua model, or an enhanced status quo model.

“The two options we’ve put forward will shape the future of local water services in Masterton in very different ways,” Fell said.

“If we retain water services in-house, we need to ensure we can attract and retain the expertise required to meet Taumata Arowai’s standards in an increasingly competitive market.

“This includes both water services staff and contractors to support our development and asset management programmes.

“If we transition to a joint Council-Controlled Organisation (CCO), we’ll need to navigate some tough decisions, including potential role reductions and adjusting current service levels.

“These changes are necessary to keep rates at a sustainable level for our community.”

He said a key challenge under the joint CCO model was reducing council’s stranded overhead costs by approximately $1.7 million.

The council’s executive leadership Team would present a report to council with potential efficiency measures, but these would likely involve trade-offs, particularly regarding nonessential services.

Fell said the bigger picture, should the CCO model be pursued, was council amalgamation.

As local government evolves, amalgamation offers an opportunity to create stronger, more efficient councils that can better serve their communities,“ he said.

“By pooling resources, expertise, and infrastructure, councils can reduce duplication, streamline decision-making, and improve service delivery.”

He said there were clear benefits, including economies of scale, stronger workforce retention, and better financial sustainability.

“The Wairarapa, and potentially Tararua, could see significant advantages from such a move.

“However, it will take bold leadership and a willingness to face the challenges ahead.”

In October 2023, Carterton District Council approved an unbudgeted expenditure of $50,000 to support the investigation into amalgamation, on the condition that equivalent funding commitments were made by Masterton District Council and South Wairarapa District Council.

Although each council remained open to amalgamation talks, Masterton and South Wairarapa would not commit money to any further investigations.

Amalgamation has previously failed to win over the wider public, including a bid for a Greater Wellington regional supercity in 2015 and a unitary authority in 2017 which would have amalgamated Masterton, Carterton, and South Wairarapa councils and provided regional council functions.

-LDR is local body journalism co-funded by RNZ and NZ On Air

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