Mayor Dr Jason Smith (second from left) and elected member Peter Wethey (third from left) with wastewater engineers and technicians from Broadspectrum and WSP.
By Jonathan Killick
news@localmatters.co.nz
Central government is holding backroom discussions with northern councils about amalgamating their services with Auckland and northern mayors have deep concerns.
Last month Prime minister Jacinda Ardern and Local Government Minister Nanaia Mahuta announced $761 million for local councils to upgrade infrastructure, but it came with a catch.
“Financial investment from Government is contingent on local councils opting in to wider water reform programme. Current arrangements for water are not sustainable and consolidation is required,” the government said in a statement.
Kaipara District Mayor Jason Smith says the government has briefed northern mayors last week that it will not be a choice, and amalgamation of water services into a single upper north island organisation is inevitable.
“It’s happening very fast and it’s the largest structural reform in local government in a century.”
The government wants to ink a memorandum of understand with councils before the end of August about amalgamation of three water services to be implemented in June 2021.
“The community is completely unaware of the wide-ranging reform that is about to happen, because even Council hasn’t been briefed by government about exactly what is on the table.”
Mayor Smith says between a third and a half of the balance sheet of northern councils will be completely wiped off.
“This is going to present challenges for councils and ratepayers which we are currently working through.”
Domination from Auckland
The interpretation of northern mayors is that the new amalgamated water services provider would be dominated by Auckland Council’s Watercare.
“Small communities will have to find money for substantial new costs to comply with a new water regulatory body that has no local intelligence, awareness or sensitivity,” Mayor Smith says.
“Towns like Te Koporu are going to be completely ignored and possibly have to bear the costs of urban infrastructure upgrades.”
Last month, Auckland’s Watercare took over the water services of the Waikato District in an historic million-dollar deal that appears to be the first domino in north island amalgamation.
Maraes and churches will bear the cost
Both Mayor Smith and Far North District Council Mayor John Carter say the urban regulatory model that is being communicated to them would be disastrous for rural communities.
“Anything that supplies more than two houses would be considered a public water supply, so maraes, rugby clubs, churches and community halls will be affected,” Mayor Carter says.
For example, a marae with a papakainga housing block would have to be chlorinated, fluoridated and licensed each year.
“The cost of these reforms is going to be carried by the local community in one form or another,” Mayor Smith says.
Mayor Smith says the government wants all houses to be connected to a reticulated supply.
“70 per cent of houses in the Kaipara District are on tank supply. How is that going to work?”
Northland mayors united
Mayor Carter doesn’t disagree that more funding is needed from central government for water services upgrades.
“But, I have confidence in the ability of northern district councils to implement the upgrades if provided with proper resources.”
Along with Whangarei District Council Mayor Sheryl Mai, Mayor Smith and Mayor Carter are all calling for managed amalgamation between the three northern councils rather than amalgamation with Auckland.
“Northland Councils are keen to continue working together, and given Watercare’s scenario this year, we would resist being forced to look at the option of joining with an authority that has very different conditions and challenges to those our region faces,” Mayor Mai says.
So far, the Northland Regional Council has kept out of the debate.
‘The [NRC] has not formed a position on the potential amalgamation of three water services throughout New Zealand or what changes would result in the best outcome in the delivery of those services,” chair Penny Smart says.
Still taking the money
Both the Kaipara District Council and Far North Council will still be applying for money from the government’s water reform programme to be used for projects before July 2021.
Both Mayor Smith and Mayor Carter say investment is needed and the money might as well be accessed if amalgamation is a fait accompli.
“The question is ‘do we want some money now’, not whether amalgamation is going to happen. It is patently clear it will happen,” Mayor Smith says.
