Our four HB territorial authorities have until September 2025 to decide how they plan to pay for, manage and deliver our water services into the future – drinking water, stormwater and wastewater treatment.
Seems far off, but the structure and funding issues are complex, and if they don’t have a plan, the Government will impose one. And the Government under its ‘Local Water Well Done’ framework has clearly signalled its preference for regional solutions around the country. It will not look kindly at a council-by-council status quo approach.
This week, our mayors officially ‘greenlighted’ development of the business case for a regional approach.
Our councils had previously proposed a regional approach, customised for Hawke’s Bay, when confronted by the Labour Government’s proposal for larger-scale consolidation of water services. More recently, they collectively assigned the HB Regional Recovery Agency the task of fashioning a regional approach. The job was passed to the Napier City Council to take the lead in putting a plan together.
Perhaps a redemption assignment, as NCC has not been known for its prescient water infrastructure investments.
In response to BayBuzz, NCC chief executive Louise Miller said: “From mid-October through to the end of the year we are focusing on making sure councillors across the region have a really good understanding of the options ahead of us in terms of future models for delivering water services. This includes looking at the financial impact of each model as well as viaibility and suitability.
“Before the end of the year, councils will make decisions about what model or models to consult the public on. In early 2025 – we’re currently looking at February – we will carry out public consultation. Final decisions will be made around the middle of 2025 to meet central government’s deadline for Water Service Delivery Plans of September 2025.”
Our councils have been assessing the current state of their respective water services, along with their ability to deliver the investments that will be required in the future under what will be much more stringent regulation.
Napier Mayor Kirsten Wise says: “…we continue to work closely together to explore options, including a jointly owned regional water entity which could bring benefits through scale that councils couldn’t achieve alone.”
“This will see the development of a business case detailing what a regional council-owned water services entity could look like financially, including the pricing benefits it could deliver ratepayers compared to other options.”
CHB Mayor, Alex Walker says it’s a given there will be changes to how councils deliver, fund and plan water services. “Whether we act as individual councils or as a region, things will look very different from next year onwards. The status quo will no longer be viable and early indications suggest it will be challenging for councils to continue delivering water services ‘in-house’.”
The costs of ensuring suitability of water operations will require investment levels beyond what current Long Term Plans and borrowing limits provide. And the CHB and Wairoa Councils especially, with their significantly lower ratepayer populations, are simply unable to shoulder the burden.
“There’s a lot of pressure on us to ensure we progress this significant piece of work at pace. This is substantial mahi that will leave a legacy for generations to come,” says Mayor Walker.
Hastings Mayor Sandra Hazlehurst notes that the final piece of Local Water Done Well legislation “is due to be introduced in December and will also bring with it the ability to access new financing options for specific council-controlled organisations focused on water. These financing options will be necessary because there is no sugar coating the fact that as a region, there are significant investment challenges ahead regarding water services delivery.”
Joining the chorus, Wairoa Mayor Craig Little adds: “Ultimately, we know the Government reforms are going to force change one way or another and it’s our job to ensure we navigate this in the most sustainable and cost-effective manner for our ratepayers. Proven cost savings, retaining local and institutional knowledge and service security are key factors as we move forward.”
Yet another reason for amalgamation of all the Councils (including Regional Council) – get a plan in place urgently – we don’t need Central Government interfering with the region – they have no idea about what HB is about (and our MP’s don’t seem to have any idea as well)
Agree right on!
Being one of the most “over governed provinces” in New Zealand. Along with duplication of staff, services etc, etc.
Surely now, with who owns what? and who’s doing what? and how much? it’s going to cost each and every HB ratepayer???!!
Now is the time to roll all of the 5 Hawkes Bay Councils into ONE “Unitary Authority”. A Council ALL on the same page. Common sense at last.
Forgive me if I’m wrong here, but hasn’t Hastings DC recently borrowed squillions, and upgraded our water and bought us up to 2024 standards?? so by amalgamation are the Hastings Ratepayers going to get shafted, and to stump up for all of the other areas?? like the last time I took a glass of water over in Napier it was Brown straight out of the tap, one could almost walk on it!! certainly toooooo thick to drink!! who’s going to be paying for what!?