Kate Hawkesby: Three Waters cost blow out speaks volumes about this Govt's ability to read the room

If we ever needed proof this Government was one giant overlord of bureaucratic blow outs, it’s the estimated $1 billion blowout on establishment costs for Three Waters.

It’s been reported now that “the cost of creating 10 new Water Services Entities over a transition period that now stretches to July 1st, 2026 is expected to reach $2 to $3 billion. The estimate before recent revisions to the plan was $1 to $2 billion.”

But wait, there’s more.

“The Crown is expected to foot additional costs in the first instance, costing taxpayers, but costs might ultimately be charged back to the new Water Services Entities, costing ratepayers,” it was reported.

Ratepayers, that’s you and me. Us mugs who’re already facing rising rates. But there could be even more.

“Official documents also showed further costs to the Crown would likely be required to operate the drinking water regulator, Taumata Arowai,” it says. “An extra $200 million in Crown costs is expected due to the later establishment date. And the fixed costs of establishing 10 Water Service Entities is anticipated to be higher than for four,” the report also said.  

Here’s the thing. I’m glad Three Waters is back in the news making headlines again because it got forgotten for a while there as the news cycle moved onto other things, and we all stopped being exercised about it.

We were instead busy being exercised by ram raids, youth crime, truancy rates, violent offending and government minister side shows.

But now that Three Waters has reared its head back into the news, it makes for sobering reading. It’s a story of cost blowouts, budget over runs and bureaucratic heavyweights raking in large sums of cash. It’s a story of more costs being sheeted our way.

The Nat’s Local Government spokesperson said it’s “an extravagant example of this government spending money to set up a mega bureaucracy.. instead of using money to fund needed water infrastructure.”  

He said New Zealanders had been promised a plan that would cost less, but which is not panning out that way. Why are we not surprised?

I think we are potentially so punch-drunk by this Government’s ineptitude now that we just shrug our shoulders when we hear figures like millions and billions being doled out.

It’s par for the course, sadly. But you have to ask the question – why is this government so adamant on this?

Why are they progressing on something so expensive, so controversial, so divisive and so flawed? Something that’s not likely to start until they’re potentially not even in government anymore, anyway? Something that potentially only fills consultants wallets, but alienates voters?

It speaks volumes about how much this Government has lost its ability to read the room. It has all the hallmarks of a government in a death spiral frantically trying to throw everything at it before the doors close on them.

It smacks of the arrogance we’ve come to expect from them, and their disregard for the voter.

The crying shame here is that few would argue our water infrastructure doesn’t need upgrading, but the way this entire process has been painfully dragged out has left a bad taste.

The cost of it now is making the taste even worse.

Kate Hawkesby is a political broadcaster on Newstalk ZB - her articles can be seen HERE.