Kaikōura: The Three Options For Water Reform

Saturday, 22 March 2025, 7:48 pm
Article: David Hill - Local Democracy Reporter

20 March 

Kaikōura residents are being encouraged to have their say on three options for the future of management of water services in the district.

The council’s preferred option is to form a joint water services council controlled organisation (CCO) with the Hurunui District Council.

Other options include the council forming a CCO on its own or beefing up its existing three waters business unit, in line with the Government’s Local Water Done Well legislation.

The proposals are out for consultation until April 23, with the Hurunui council consulting at the same time.

Kaikōura District Council chief executive Will Doughty said it was important they reach as many people as possible so they can get a sense of what the community wants.

‘‘Ultimately councillors will need to make the decision and then it needs to be signed off by central Government.’’

Financial modelling prepared for the council indicates forming a joint CCO will be the most cost effective option of the three options.

In contrast, forming a CCO as the sole shareholder will be the most costly, with all the set up costs falling on the council.

The Kaikōura and Hurunui councils entered into discussions with the Waimakariri District Council last year, with Waimakariri opting to go it alone.

But Mr Doughty said he is keen to continue with shared service arrangements, where Waimakariri has provided technical support to Kaikōura when needed.

‘‘From a size and scale perspective, it would have been good to have Waimakariri involved in a CCO, but the efficiencies are still there with going with Hurunui.

‘‘We are open to shared service arrangements with other councils and particularly Waimakariri and in the future there could be consideration of including other councils in our CCO.’’

Wellington Water has hit the headlines recently for failings in its delivery of water services in the region, and Mr Doughty said he is watching with interest.

‘‘Wellington Water is a different model. This is more about maintenance and operations, but there will definitely be some learnings to come out from it.

‘‘It is all about how things are set up and the clarity in the letter of expectations from the shareholding councils.’’

Councils need to submit water services delivery plans for review by September 3 under the Local Water Done Well reforms.

The Government’s new legislation aims to address the country's water infrastructure challenges and replaced the previous Government’s Three Waters Reform.

Under the Government reforms, council-controlled organisations will be able to borrow for water infrastructure through the Local Government Funding Agency.

The policy aims to ensure financial sustainability for water services.

Public drop in sessions are being planned in the council chambers on Monday, March 24, and on Wednesday evening, March 26, in the Kekerengu Community Hall on Monday evening, March 24, and in the memorial gardens on April 11.

Hearings will be held on May 7, with the council due to make a final decision on May 28.

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

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