North Canterbury News: July 29, 2021

NC councils seek information
By ROBYN BRISTOWAND DAVID HILL
The Hurunui District Council willnot be
joiningthe Government’s3Waters
Reformprogramme based on the
information it hastodate.
It is thelatest council to express
concern about thelackofinformation, the
haste withwhich the Government is
drivingthe reform, andthe tighttimetable
to consult withtheir communities.
The Waimakaririand Kaikoura District
Councilshave also expressedsimilar
concerns.
HurunuiMayor Marie Black saysthere
are aspectsofthe analysisreleased by
Government in support of thereforms,
thatare not directly applicable in thethe
HurunuiDistrict.
‘‘It(theanalysis) does not fairlyreflect
our current position, andsecondly it
included an underlyingmessage that
council’shistoricallyhaveunder­invested
in basic infrastructureassets.
Mrs Blacksays thecouncilhas intimate
knowledgeofits infrastructure, and had
invested heavily in these critical assets
overrecent years.
‘‘Itwouldappear on thefactsinfront of
us thatthe compellingcase forchange is
unfounded, and we areunlikely to
considerthatthis ReformProgramme
willbring thebestoutcomefor our
district.
She assuresratepayersthe council
teamisscrutinisingall theinformation it
has received.
‘‘Itisseriously disappointingtohear
thatwehave onlyeight weeks to apply
thisscrutiny and undertakecommunity
engagement, prior to making thefinal
decision,’’ she says
‘‘Itismy opinion, theinformationthat
the government hasprovided is not robust
enoughtoconvince me that the proposed
benefits of reform will be realised.
‘‘Based on theinformation receivedto
date and thecomparative datathatwe
have available, ourcouncil willnot be
preparedtoparticipate withthisReform
Programme.’’
She says engagementwith theHurunui
communityiscritical and shewants the
community’sinvolvement.
Meanwhile the Waimakariri District
Council has sent LocalGovernment
MinisterNanaia Mahutaalistof28
questionsitwants answerstoonthe
reformssoitcan take ‘‘meaningful
consultation to its community’’.
MayorDan Gordon says in the letterthe
council wantsconstructive and
informative engagement on the reforms
proposedtobetter understand thebasis
of theinformationand assumptions sent
to thecouncil.
‘‘This willhelp us fulfilour statutory
and partnershiprequirementsunderthe
LocalGovernment Act2002.
‘‘Similarlyitwill enable the council to
fullyunderstandthe proposal and consult
effectivelywith ourcommunity,’’ Mr
Gordon says.
He says thecouncilisdisappointed the
timeline for consultation haschanged
from December to September,withno
date finalised.
‘‘Theproposedreform is asignificant
issuefor our community,and it is
important thatweunderstandall the
information in detailbeforeweseek the
viewsofour residents.
‘‘Based on thelimited information
presented so far, the viewofthe
councillors, and my own, would be thatwe
do not jointhe Government’s 3Waters
Reform programme.
‘‘Atthispoint we arenot convinced
thereare benefitsfor the Waimakariri
community,’’ Mr Gordon says.
Kaikoura chief executiveWillDoughty
is seekinganexplanation after
Department of Internal Affairsfigures
suggestedthe council wouldneed to
invest $280million on its3Waters
infrastructureover the next30years.
‘‘Wehaven’t made afinal decision as
yet, andweare waiting formore
information, but we are questioningthe
informationthey have provided.
‘‘The governmenthas said it is still a
choice forlocal councilsonwhetherto
optinor opt out,but we are seeing aslight
change in thelanguage.’’
Mr Doughtysaysthere was
considerableinvestmentinthe district’s3
Waters infrastructureaspart of the $38
million earthquake rebuild, which was
completed last year.
‘‘If we compareittoour infrastructure
strategy, we estimate thatwewill needto
spend just over $28 million.
‘‘The totalvalueofour 3Waters
network is $57 million.
‘‘Weunderstandthe numbers have
beendoneatanational macro economic
level, but when it’s broughtdown to a
local level for asmall, localcouncil, how
real are thosenumbers forour
community.’’
With the prospect of change on the
horizon, with3Waters, Resource
Management Act and local government
reformbeingproposed, Mr Doughtysays
thecouncilisnot opposed to change.
‘‘Fromwhat we have seen to date, we
can’t seethe casefor change at alocal
level. But the voice of local government
hastobeabout what’s bestfor ourrate
payers, ratherthan what’sbestfor the
entity, so if thecase forchange can be
made then we oweittoour community to
support it. One thingisfor certain is this
community understandshow to respond
to change and we willdealwith these
reforms as it becomesclearer.’’
NEWS
The North Canterbury News, July 29, 2021
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Councils’ underestimating water costs
Councils such as Kaikoura are
underestimating the future cost of
maintaining their 3Waters
infrastructure, the Department of
Internal Affairs (DIA) says.
The DIA estimates it will cost up to
$280 million over the next 30 to 50 years
to maintain and upgrade Kaikoura’s 3
Waters infrastructure, while the
Kaikoura District Council estimates the
required investment to be $28 million.
‘‘TheDepartment of Internal Affairs
believes the figures providedto
Kaikoura and other councils are robust
and well founded,’’ ADIA spokesperson
says.
‘‘Theseprojectedcosts need to be
considered in the contextofahistoryof
under investment in water infrastructure
in New Zealand and the need to take a
long­term (30 to 50 year)
intergenerational view in providing safe
and environmentally appropriatewater
services.
‘‘There is avery low probability that
Kaikoura could deliver three waters
services at alower cost on its own than
what might be expected throughreform,
and even in that scenariothere wouldbe
worse service, health and environmental
outcomes for residentsassociated with
the lower level of investment.’’
The DIA’s figures are basedonthe
experiences of local councils operating
underthe Water Industry Commission of
Scotland, following3Watersreforms in
the United Kingdom.
The UK reforms led to much higher
costs than wereinitially expected, which
helps to explain why the DIA’sestimate
is significantly higherthan local council
estimates,the spokesperson says.
The DIA says under­estimating the
costs of consumer expectations, a
changing regulatory environment,
meeting iwi/Maoriaspirations, and
building resilience to climate change
and future seismic events are reasonsfor
the differences.
‘‘Thechallengeofestimating future
investment requirements can be
compounded by some councils’
imperfectand incomplete information
on the condition of theirassets, a
situation that has been highlighted by
theauditor­general on several
occasions.’’ The DIA’s analysis has been
independentlyreviewed by both Beca
Ltd and Farrier Swier Consulting Pty
Ltd, the spokespersonsays.
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