Rates will rise if Auckland stops work on Three Waters - Ardern

October 18, 2022

In response to Auckland's new mayor, the PM said 'not engaging in Three Waters means rate rises'. (Source: 1News)

Jacinda Ardern has today responded to the Auckland mayor seeking to stop all work on Three Waters, saying if the council disengages with the proposal it would mean a rise in rates.

Wayne Brown said in a statement yesterday that he has written to the chairperson of Watercare, Margaret Devlin, advising that all work on Three Waters should stop. He has issued similar advice to Auckland Council chief executive officer Jim Stabback.

“Auckland households are heading into an economic and fiscal storm and Watercare and Auckland Council must keep water charges and rates as low as possible,” Brown said.

“Central government’s Three Waters proposal was opposed by the previous mayor and Auckland Council governing body and is opposed by the new ones – and I promised in the election campaign to stop it.

Brown says people won't choose to forgo driving until public transport improves.

“The proposal has not been passed by Parliament and after last weekend’s local government elections throughout the country has no chance of proceeding this side of next year’s general election,” Brown said.

Jacinda Ardern told media today that she hopes there will be areas “of shared ambition and shared concern” when the pair meet on Thursday.

She said the big focus for the Government is that there won’t be a “significant rates increase because we have not managed water infrastructure”.

“Three Waters, ultimately, is about keeping costs down for ratepayers. I would hope he would be concerned about that too.

“The modelling shows, that without this water reform, Auckland rate payers will pay more. I would hope there would be a shared ambition to prevent that,” Ardern said.

She said she wanted to start out on a positive footing and find areas of common ground between herself and Brown.

In his letter to Devlin, Brown said Auckland households were "heading into an economic and fiscal storm" and costs needed to be trimmed.

"A major issue for you is central government’s so-called Three Waters proposal. Auckland Council does not support the Three Waters reforms. Previous Councillors voted overwhelmingly for that position, as did each of Auckland’s 21 local boards. The incoming Mayor and governing body are opposed to the reforms. In more than 300 campaign events, I detected no support for it at all among Aucklanders. I promised in the election campaign to stop it.

"The proposal has not been passed by Parliament and after last weekend’s local government elections throughout the country I judge it has no chance of proceeding this side of next year’s general election.

"It is therefore not in the best interests of Watercare, its shareholder or its customers for it to spend any more money on those reforms. As Mayor, I expect that you will not be unnecessarily spending your resources on assisting or preparing for Three Waters reforms that are unlikely to happen. That is also true of Auckland Council to which I have given the same advice.

"Any money that might have been spent on Three Waters can be better spent or be returned to Auckland households in the form of lower water charges."

Brown thanked Devlin for her services to the city, saying "in general, Aucklanders appear satisfied with the essential services Watercare offers".

Watercare's Efficiency Plan marks the final stage of its commitment to the Auckland Three Waters Strategic Plan (2008) which requires Auckland to reduce its gross per capita consumption by 15% by 2025 (from 2004 levels).

A Watercare spokesperson told 1News Devlin has received Mayor Brown’s letter and will respond to it in depth by the end of the week.

"Watercare’s board and management look forward to engaging with Mayor Brown and the council’s governing body regarding expectations for our company.

"We have been working with our colleagues at Auckland Council to prepare for water reform. We have also been supporting the process by providing information and expertise to the Department of Internal Affairs (DIA) as requested, for which we have been reimbursed."

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