Phil Goff calls for bespoke Auckland option for water reforms

Finance Minister Grant Robertson and Auckland Mayor Phil Goff discuss the future of Auckland and the city’s growth prospects.

Auckland Mayor Phil Goff appears unmoved by the Government’s $508 million sweetener to encourage the council to merge more than a quarter of its total assets into one of the Government’s new water entities.

He called on the Government to look at a bespoke solution for Auckland, recognising that it was “a head and shoulders” above the rest of the country when it came to water.

Goff pointed out that the Government’s plan would effectively strip the council of control over 28 per cent of its assets and 25 per cent of its expenditure.

His continued scepticism is in the face of a massive sweetener from the Government, equating to $2.5b across the 67 councils being asked to merge their water assets into four massive entities.

But Goff said Auckland needed greater assurances about the level of control it would have over the new water entity, and that he had “real concerns” about the current proposal.

“The issue at stake here is about responsiveness and accountability to the people of Auckland through their elected representatives,” Goff said.

“Despite the fact that 92 per cent of the assets of the new entity would come from Auckland, and Auckland would have approximately 90 per cent of the population served by the new entity, Auckland Council could have just 35 per cent of the representation in the governance of the new entity, and would have no direct input into appointing its board,” he said.

The new water entity, while being partly owned by Auckland Council, would be run several steps removed from councillors. The council would have a say into the group of people who appointed the board of the entity, but it would not be able to directly appoint the board itself.

Under the current model, Auckland Council’s water is run by Watercare, a council-controlled organisation, and Goff said the council was able to control who was elected to the board of Watercare and had some level of control over its strategic direction, as Watercare had a mandate to give effect to the council’s strategic plan and long term plan.

“Under the new model there is no accountability and responsiveness to us,” Goff said.

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Goff accepted the overall thrust of the water reforms, saying that the Government could not make the changes it needed to make to water with 67 separate councils controlling water infrastructure.

But he said he hoped that a different model could be worked out for Auckland, which would belong to a water entity stretching from Auckland to Northland.

Goff said Watercare was “a head and shoulders” above other water providers in New Zealand. Goff said Auckland could be a “centre of excellence” that showed the other four entities the way forward.

“We are the one water services entity already in place. There are three others that need to be set up.

“Auckland could be the centre of excellence that provides advice and assistance to the other water entities,” Goff said.

Local Government Minister Nanaia Mahuta’s announcement of the incentive programme included a subtle reference for all councils big and small to join up with the Government’s reform.

“The reforms are about acting for the greater good, with significant benefits to all communities. But they will have the best chance of success if all councils participate.

“We are working with the sector to ensure everyone understands the reform-related information, and to explain the policy proposals, the benefits of reform, and the details of the support package,” Mahuta said.

The Government has been overseeing a reform of New Zealand’s stormwater, wastewater and freshwater infrastructure since it took office. It responds to concerns that the councils that own water assets have not been spending enough to maintain them, leading to leaks and contamination.

The reforms would see 67 councils merge their water assets like pipes and reservoirs into four large water entities. Councils would collectively own those entities, which would be in charge of maintaining water infrastructure on behalf of the councils.

The Government estimates that without reform the average household bill for water services could be as high as $1900 to $9000 by 2051.