Taupō District Council has expressed its strong opposition to the Government’s latest three waters reform bills currently before Parliament.

With local government submissions on the two bills closing today, the council has prepared two submissions that continue to reiterate its view that the reform is flawed.

The Government is moving at pace to progress the three waters reforms; and Council’s submissions on the Water Services Legislation Bill and the Water Service Economic Efficiency and Consumer Protection Bill repeat the council’s previously-stated view that this reform model is not fit for purpose.

The Water Services Legislation Bill makes changes to the Water Services Entities Act via an amendment, and rather than addressing Council’s previous concerns, it provides the four huge new water services entities with more powers and rules.

Taupō District Mayor David Trewavas says the council is still concerned that Taupō’s unique challenges and opportunities will be lost in a massive water services entity that is attempting to combine the needs of 22 councils and 96 Government-recognised iwi authorities under one roof.

“Water is a lifeline utility and the risks of getting it wrong are great, especially at a time when any obstacles to growth risk worsening the housing crisis, which has already been compounded by Cyclone Gabrielle.”

One of Taupō District Council’s key concerns is that the new water services entities can deliver water services through subsidiaries and up to half of any subsidiary can be privately owned.

“The Government has previously stated that it will not allow for privatisation of water services but we have serious concerns that the ability to establish subsidiaries is the first step down the privatisation route. The Bill states that subsidiaries are to deliver shareholders’ objectives, including ‘commercial and non-commercial’. What is this, if not privatisation by stealth?” Mr Trewavas said.

Council’s submission also raised concerns that the cost of delivering three waters services is being hidden.

“This Bill amendment is materially unfair; it writes its own rulebook, giving water services entities privileges no other utilities have, like rates exemptions. Water services entities should have to pay their own way, like everyone else,” Mr Trewavas said.

Mr Trewavas said that while the council acknowledges that change is necessary, it believes the reform is being rammed through without properly considering the consequences.

“We know there needs to be changes to three waters funding models in order to meet the demands of urban growth and better environmental outcomes. However this reform is rushed and it creates complex decision-making processes that distance local voices from key decisions in our communities. These reforms still aren’t well-connected with the other areas of reform. Frankly, the Government is trying to do too much, too fast and in the wrong order.

“These are just the start of the major issues with the reform process. Our submission also discusses other troublesome ones, like the bureaucratic three-stage approval process that customers will have to follow to make new water and wastewater connections. We look forward to expressing our frustration when we meet face to face with the Select Committee.”

© Scoop Media