Metrowater's return on public investment remains

AUCKLAND CITY COUNCIL MEDIA RELEASE

23 May 2007

Metrowater's return on public investment remains

Auckland City Council has agreed not to change Metrowater's Statement of Intent.

The council's Finance and Corporate Business Committee today approved Metrowater's draft SOI for the three year period from 1 July 2007.

Metrowater's board will now consider any comments made by the council on the draft SOI before it delivers the final document by 30 June.

Metrowater's SOI defines the business goals and focus for the coming three-year period. Metrowater's board is held accountable for the performance of the company against this document.

The SOI includes a return on public investment objective. The return on public investment is delivered in the form of a charitable payment. There are a number of reasons this is considered appropriate. One of these is that if the council's return is too low then ratepayers are effectively subsidising Metrowater's customers.

The charitable payments are currently tagged for stormwater and the council considers this appropriate because significant investment is required to improve Auckland's drainage network in order to deal with growth and to reduce pollution.

Councillors today requested a specific report to the council's Annual Plan Direction Setting meeting in November. The report will provide further analysis on Metrowater's SOI, particularly the return on public investment section.

Committee chairperson Cr Vern Walsh says this is the most appropriate way of progressing this matter, particularly given the potential impact of any changes over the next eight years of the Long Term Council Community Plan (LTCCP).

"This matter was discussed and consulted on in detail last year for the LTCCP. It should be reviewed in detail again and go through the appropriate consultation process next year."

ENDS

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