Minister turns on cash-flow for northern water 

The Kaipara District Council has been allocated $2.35 million to invest in water assets before mid-2021 but it is unclear exactly what strings are attached.

Local Government Minister Nanaiah Mahuta has not ruled out amalgamation of Northland’s water services with Auckland’s Watercare but insists it will be on an “opt-in basis”.

To qualify for the fund, the KDC has to sign a Memorandum of Understanding (MoU) with the Crown by August 31.

“The stimulatory fund is tied to councils participating in a “good faith’’ opt-in reform conversation,” Ms Mahuta says. “But, signing up to the MoU does not commit councils to structural reform – that commitment will be sought on an opt-in basis some time towards mid-2021.”

Last month, northern mayors attended workshops with the Government and concluded that amalgamation will be forced on northern district councils (MM Aug 5).

All three northern district mayors say a Northland regional approach to three water management would be preferred over amalgamation with Auckland, Waikato and Bay of Plenty.

Ms Mahuta has also allocated $14.13 million to be shared between the KDC, Whangarei District Council and the Far North District Council.

The councils must agree on how this money will be spent before September 30 in order to access it, in what appears to be a test of their capability to cooperate.

Meanwhile, the Northern Regional Council has taken a passive stance on potential amalgamation.

“At this stage, the Northland Regional Council has not formed a position on the potential amalgamation or what changes would result in the best outcome in the delivery of those services,” chair Penny Smart says.

Ms Mahuta sought to address concerns that small community organisations, such as rugby clubs, churches and marae will have to pay to meet the costs associated with new reforms.

“A total of $30 million has been set aside in recognition that many small non-council rural water supplies might struggle to meet aspects of the proposed new regulatory regime,” she says.

Ms Mahuta says how the money will be allocated or precisely how it should be used is yet to be determined by ministers.