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Thursday, October 26, 2023

Mike Hosking: Our water problem should be easier to sort


Aside from the ongoing scandal at Three Waters headquarters that we talked about yesterday, is the news from ratings agency S&P, who tell us the real issue around water and what to do about infrastructure is not Government debt but local council debt.

Now at this point Labour will yell "I told you so".

The problem is the Government is not encumbered by debt if you compare it as S&P do to other countries. But at a local level there are no shortage of councils who can borrow no more because they are maxed out.

The fact they are maxed out should be of alarm to us all. For years we have failed to pay attention to the amateurs, well meaning or not, who we elect to run the town or city who then go and borrow to the eyeballs in their mad three year-cycle psychology and we end up where we are; unable to deal with the big picture issues without imposing massive rate increases.

Auckland is a good example, exposed so badly by the summer weather back in January. And Wellington appears to be on course to win the prize for the biggest bunch of dysfunctional buffoons for 2023.

But that doesn’t solve water, so the inference from S&P is Government has to do the heavy lifting.

Fair enough. So can you kill Three Waters without the same mess Labour managed to foist upon us? The answer is yes.

The trouble was never the issue. We all agree water needs to improve. The trouble was the mechanism of taking assets off councils, bribing councils and forcing a Maori lens on councils. These were the problems that made it so toxic.

Dare I suggest water is not a race issue. It's an issue for all of us and as such, a co-governance model is not necessary.

Can I suggest, if some councils want to opt out they can? Leaving the Government and its ability to borrow to help those that do want it, on the understanding that some sort of fiscal arrangement is struck where the lender is not left high and dry if the borrower defaults.

Can I also suggest the model of four bodies made into ten bodies merely goes to prove the number of bodies doesn’t matter, it's how you do it that does. Maybe some of the power at local level needs to be devolved so we don’t end up with endless fiefdoms arguing over what they do and don’t run.

The main point being- if we have agreement at the core of the issue, which we do, …then the rest is doable if there is good will and less ideology.

Three Waters is a business case lesson in how to take a problem and complicate it beyond recognition and leave a bad taste in everyone's mouth.

A problem that, badly mangled, is never that hard to actually sort.

Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.

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