Mid Canterbury’s Three Waters Future In The Pipeline

Tuesday, 11 March 2025, 6:30 am
Article: Jonathan Leask - Local Democracy Reporter

Mid Canterbury will have its say on two options for future water service delivery under the Government's water reforms, but Ashburton's council is being tight-lipped on the finer details.

Ashburton District Council is preparing to release its options for public consultation after the councillors narrowed the options to two behind closed doors.

The remaining options for water services delivery are a stand-alone business unit of Council or creating a new Water Services Council Controlled Organisation (WSCCO).

Ashburton Mayor Neil Brown said the option of transferring water services to an existing council CCO - EA Networks, has been removed and “no more time and resources will be spent investigating this option.”

Other Canterbury councils are also working through their plans, including Selwyn, which is proposing to set up a Water Services Council Controlled Organisation.

The council announced in October it was focusing on three local options, ruling out working with other councils.

It shapes as one of the biggest decisions the community will make but there was no community engagement on the three options before the councillors voted for the two options last week.

The process played out behind closed doors because the discussion was considered commercial negotiations under the Local Government Official Information and Meetings Act 1987.

Democracy and engagement group manager Toni Durham said the council will present its proposed model for consultation at the March 19 council meeting.

“Due to the detailed nature of the consultation material, officers required immediate direction from council on its proposal, and any alternative options for consultation.”

There was a majority agreement to remove the EA Networks option she said.

The community views will determine which model the council will proceed with.

“The community are free to express their views in the consultation.”

She said ratepayers will then be asked to provide feedback on their preferred model over four weeks from March 27

Brown said time is of the essence for the council to make a decision and get its plan together.

All councils need to have an approved Water Services Delivery Plan to the Minister of Local Government by September 3.

Councils have acknowledged that regardless of the service delivery model they go with, it is highly likely rates for water services will need to increase to meet the requirements set down by the Government.

Selwyn’s is currently consulting on its proposal to set up a Water Services Council Controlled Organisation.

It deferred answering questions to its consultation document.

The document states “a WSCCO provides greater borrowing capacity than council alone, allowing for essential infrastructure investment without sudden rate hikes”.

The rates the council takes for drinking and waste water would be removed from its balance sheet and shifted to the WSCCO, along with any debt.

An independent board would handle the governance, “reducing the risk of political decision-making and interference”, while the council remains the sole shareholder to ensure local ownership and accountability.

The other option is an in-house model.

Selwyn already hired Murray Strong to a short-term contract as the establishment chairperson of its Local Water Done Well Programme which it stated “does not mean a final decision has been made”.

The council stated his appointment ensures if WSCCO goes ahead, it can move forward smoothly and quickly or be absorbed into an in-house model.

Elsewhere in Canterbury, Christchurch City Council opted to keep water services under total council control rather than spend millions of dollars on an independent entity in February.

It has also linked up with Dunedin City Councils to investigate working together on aspects of delivering water services.

In North Canterbury, Waimakariri District Council is proposing to establish an internal business unit while the Hurunui and Kaikōura councils are looking to create a joint water services council-controlled organisation.

To the south, Timaru District Council is looking to join with Central Otago, Gore, Clutha and Waitaki councils to establish a joint water services organisation.

Mackenzie District Council is looking at a standalone internal business unit or a CCO

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

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