Hamilton City Council has expressed its ‘bitter disappointment’ at the Government’s decision to mandate the creation of four publicly-owned entities to manage water, wastewater and stormwater services in New Zealand.

Council had already rejected the Government’s proposed model at its meeting in September. Today it restated its opposition and raised further concerns.

Specifically it said Council did not support the Government’s preferred ownership model and wanted consideration of other models in consultation with the local government sector.

Council had always made it clear it did not support any form of privatisation.

Mayor Paula Southgate says today’s Council discussion clearly illustrated Hamilton’s frustration with the Government process and the lack of opportunities for Hamiltonians to truly have a voice in the reform process.

“Our Council is adamant the model as it stands is not right for Hamilton, it doesn’t certainly provide us the certainty we need for strategic planning. Importantly, all Councillors want our community to have an effective voice – not just in any new structure but in the fundamental shaping of it,” she said.

“If Government can deliver a proposal that delivers better outcomes for ratepayers, Hamilton will be happy to see it. Until then, we’ll reserve judgement.”

The reform, as currently proposed, would see Hamilton City Council part of a central North Island entity involving 22 councils in the greater Waikato, Bay of Plenty, Taranaki, and parts of Manawatu-Whanganui. The structural changes are part of a wider waters reform programme which includes the establishment of a new water regulator, new compliance requirements, and a new economic regulator.

Council will write to Government to express its opposition to the current plan, and instead ask for other options be considered, including options which include explicit council control. The resolution from today’s Council meeting also wants councils to retain planning and financial control over the new water entities to support the city’s strategic planning.

Council has requested Government clearly set out the financial benefits of the reform proposal in the medium term and seeks support for councils to undertake and fund proper consultation with the community before any select committee process.

As part of the earlier Government announcements, Minister Nanaia Mahuta announced the establishment of a working group made up of local government and iwi representatives to recommend strengthened governance and accountability arrangements for the Three Waters Reform Programme.

The Working Group will report back in March 2022.

Council’s resolution today stated it is prepared to engage with that working group provided its Terms of Reference give Council confidence that meaningful changes will be possible and can deliver a model that works for Hamilton.

Implementation of the reform requires several pieces of new legislation, some expected to be announced in late 2021. People can give their views on the draft legislation through the Government’s Select Committee process.

The transition to the new entity structure to manage water, wastewater and stormwater services across New Zealand is planned for July 2024.

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