The Government has delivered on its election promise to provide a financially sustainable model for Auckland under its Local Water Done Well plan. The plan, which has been unanimously endorsed by Auckland Council’s Governing Body, will see Aucklanders avoid the previously projected 25.8 per cent water rates increases while retaining local control of water assets.
The announcement was made at a joint press conference at Watercare’s Central Interceptor construction site in Māngere this afternoon by Prime Minister Christopher Luxon, Local Government Minister Simeon Brown, and Auckland Mayor Wayne Brown.
“Under the Local Water Done Well solution we have announced today, Aucklanders will avoid the 25.8 per cent water rate increases previously proposed by Watercare. We have worked closely with Mayor Brown and Auckland Council, and are thrilled to announce that Watercare’s more financially sustainable model will ensure water rates remain affordable both now and into the future,” Mr Brown says.
“The previous government wasted $1.2 billion over several years to deliver a water reform plan that was wasteful, took away local control, and was divisive. It was resoundingly rejected by voters.
“Some said that Local Water Done Well could not be done. But within the space of just six months, the Coalition Government has worked with Auckland Council on designing a new model for Watercare.”
The new model means Watercare will be able to borrow more money for long-term investment in water infrastructure and spread the borrowing over a longer period rather than front-loading the cost on to current ratepayers.
It’s fairer to share the cost of multi-generation infrastructure rather than forcing present users to fund those in the future.
Auckland Mayor Wayne Brown says he has been working closely with central government to provide a simple, affordable water solution for Aucklanders, and that hard work paid off when the Council’s Governing Body unanimously voted for their preferred option at Thursday’s meeting.
“This outcome is exactly what we’ve been looking to achieve. The new government asked us to come up with a preferred model, and they’ve agreed to implement it, which is good. I want to thank the Minister and the Prime Minister for the way they have handled this,” Mayor Wayne Brown says.
“The idea of water rates increasing by more than a quarter in the year ahead was unacceptable. There had to be a better way, and by working in partnership with central government we have found one.
“I have long said that this was a balance sheet issue and needed to be treated like one. Councils should have more say about how we manage and deliver our water systems. The Government have taken this feedback seriously and worked closely with me to come up with this solution which will put water rates on a much more sustainable footing for the infrastructure we need.”
International credit ratings agency S&P Global Ratings has determined the model would mean Watercare’s borrowing is considered separate from Auckland Council for credit rating purposes.
This is a far better approach to handling the delivery and dispersal of water than Labour’s top-down approach.
The government has worked with the council rather than imposing its policy on it.
What works in Auckland might not work in other areas, but involving locals in working out what will work for them will work better than Labour’s overly-bureaucratic, multi-layered and undemocratic approach.
Ele Ludemann is a North Otago farmer and journalist, who blogs HERE - where this article was sourced.
1 comment:
Labours reform was a power grab pure and simple. The sooner people wake up to this the better.
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