Water Reforms: Ashburton Weighs Up In-House Option

Thursday, 27 March 2025, 8:40 pm
Article: Jonathan Leask - Local Democracy Reporter

Ashburton ratepayers are set to pay more for water services, but residents can now have a say on how those services are managed.

The Government is introducing changes to the way water is managed under its Water Done Well reforms, which replaced the controversial Three Waters reform.

The Ashburton District Council starts a four-week conversation with the community on Thursday, 27 March on the future of its water services.

Its preferred options is to create a stand-alone business unit model.

Ashburton Mayor Neil Brown said it’s a major financial decision for the community.

“We want people to engage and tell us what they think.

“We think the in house proposal is the better one, but if the community can convince us the CCO is better we will look at that.”

This is the only opportunity for the community to have its say.

After the consultation process, the council will submit its plan to the Government by September 3.

If that is approved, the council will then implement that plan.

Brown said it's evident ratepayers are set to pay more for drinking, waste, and storm water services and what is being considered is a new model to oversee how they operate.

Brown said this week the council has received an around $200,000 bill from the Water Service Authority – Taumata Arowai.

“That’s something we now just have to pay.

“Then we will have the Commerce Commission come in and we will get a bill from them.”

Under the legislation, a new service delivery model must be fit for purpose, be financially sustainable, and meet new economic and water regulations.

The councillors believe keeping the services in-house is the best model to meet the criteria, and adopted that proposal for public consultation at a meeting on March 19.

At the meeting, democracy and engagement general manager Toni Durham described the stand alone business model as the closest thing to keeping the service in house.

This reflected community sentiment from a 2021 survey around Three Waters reform.

“It’s not in-house as we currently know it.

“It will require change and require a different way of thinking about how we deliver three waters services going forward.”

The other option for consideration is for a water services council controlled organisation (WSCCO).

“Neither of these option leaves us at a status quo or seeing a decline in water charges.

“We have run a 25% increase on capital expenditure, over and above what is in the current long-term plan, to make sure that our modelling is testing what could be coming at us in the future.”

Durham outlined the in-house option provides the lowest household charge over 10, 20, and 30 years, and has a greater access to debt but that could come at a potential expense over other council activities.

The WSCCO has debt constraints that may need to be matched by initial increased charges. It will also require the establishment of a board.

Council chief executive Hamish Riach said whatever structure the council chooses “will be dealing with the same regulatory environment”.

“We are confident both these options will deliver the same outcomes in terms of water and the community.”

Of the councils current expenditure, 20% of the operating expenditure and nearly 50% of its capital expenditure is on three waters services.

The council has 10 drinking schemes and currently uses a fixed charge, not related to property value, which remains an option available to either option.

There is currently no regulatory requirement for volumetric charging to be introduced, Riach said.

Upcoming public meetings:
Methven: 8 April, 6pm, Mt Hutt Memorial Hall Theatrette
Ashburton: 9 April, 6pm, Te Whare Whakatere Event Space. (Livestreamed)

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

© Scoop Media

Local Democracy Reporting

Content from the Local Democracy Reporting (LDR) service is published by Scoop as a registered New Zealand Media Outlet LDR Partner.