Politics
Q and A

'Rates will not increase' more under National's 3 waters model - MP

February 26, 2023

National's Three Waters spokesperson says "rates will not increase" under the party's water infrastructure reform policy as much as they will under the Government's proposed model.

However, one Labour-aligned mayor is questioning the claim.

National's local government spokesperson Simon Watts told Q+A, "our policy position will be cheaper than Labour's, which has "conga line of consultants and bureaucrats".

"Our view is, definitely, under our model, rates are not going to increase."

When asked if it meant rates wouldn't increase as compared to the Government's reforms, Watts said: "Are not going to increase in comparison to Labour's Three Waters model and the status quo."

Watts said National would make sure this happened because it would have the oversight to ensure councils had "financially sustainable plans" and access to long-term borrowing.

The proposed policy also requires councils to ringfence money for water infrastructure.

The party's "Local Water Done Well" policy document states that could mean councils could choose to introduce charges based on the volume of a household's water use, or include water service costs within rates.

National is proposing a backstop that will allow a Government to step in if a local authority is unable to provide "a viable plan that can deliver on outcomes for water quality, infrastructure investment and financial sustainability."

Watts said, under National's model, a Government could work with councils to help them meet the funding they need for their water assets.

He said councils could also choose to link up their water services under larger regional council-controlled organisations. This essentially allows councils to separate their balance sheets from their water entities, potentially allowing them to borrow more.

Party leader Christopher Luxon has pledged to instead enforce stricter water regulations on local councils. (Source: 1News)

As for privatisation, including public-private partnerships, Watts said it was "off the table".

"Our model is absolutely categoric - there will be no privatisation of water assets. These water assets belong in local community control and ownership.

"That is a bottom line… there will be absolutely no room or conversation around that."

National's policy also scraps the co-governance elements of the Government's reforms.

Watts said it was not up to the Government to "dictate the relationship" between mana whenua and councils.

Instead, Watts said National would empower councils to work with iwi and hapu "to make sure they're as involved and engaged as they need to be to make sure these water services are delivered appropriately."

The Department of Internal Affairs (DIA) estimates households could be looking at additional costs of between $1900 to $9000 a year if the maintenance of three waters infrastructure isn't reformed.

With the Government's reform programme, the DIA has said the costs would instead be between $800 to $1640 a year.

Councils and opposition parties have questioned the figures.

'A tsunami of costs'

Lower Hutt Mayor Campbell Barry said National's policy failed to address a fundamental issue that has prompted the reform of three waters infrastructure: cost.

Labour-affiliated Barry is part of the Government's Three Waters reform working group.

He is also the chair of the Wellington Water Committee.

"There is a tsunami of costs on the way when it comes to the investment needed in water infrastructure in this country," Barry said.

"Unless you change or address the funding issue, it will mean massive rates bill increases or water bills increases for residents."

Meanwhile, other mayors are welcoming National's policy.

Waimakariri Mayor Dan Gordon is the co-chair of the Communities for Local Democracy group, which formed in opposition to the Government's Three Waters reforms.

The mayor said National's policy would return decision-making power back to local councils. Gordon said local authorities could be trusted with their water assets.

As for the Government's figures over how much future investment in water would cost, Gordon said: "The numbers are just shonky and don't add up."

Q+A is Public Interest Journalism funded through NZ On Air

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