**Waitaki Mayor Warns of Significant Rate Hikes Following Council’s Departure from Southern Water Done Well**
In a recent development that has stirred debate within the Waitaki District, Mayor Gary Kircher has issued a stark warning regarding potential rate increases following the council’s decision to abandon a collaborative water services model. The council’s move to opt for an independent water plan could see rates increase by approximately 40% over the next two years, a decision that has sparked both support and criticism within the community.
The council’s decision to approve an in-house water services delivery plan, which will now be submitted to the Department of Internal Affairs for approval, marks a significant shift from the previously considered Southern Water Done Well model. This joint delivery arrangement, involving collaboration with other councils, was initially seen as a way to achieve efficiencies in water service management.
In a speech delivered in the council chamber and shared on social media, Mayor Kircher expressed his disappointment with the decision to abandon the joint model. He argued that this move could impose severe financial burdens on the community, potentially forcing some residents out of their homes due to unaffordable rate hikes. Kircher, who voted against leaving the Southern Water Done Well model, believed that the collaborative approach would have resulted in cost savings for ratepayers.
“We had the numbers in front of us regarding the potential cost savings for each household,” Kircher stated. “But for some, it seems those savings were not deemed significant enough.” He emphasised his concern that the decision might lead to financial hardship for many residents, affecting their ability to meet their financial obligations.
Despite the mayor’s concerns, the Waitaki Ratepayers and Residents Association has expressed support for the council’s decision. Ray Henderson, the association’s chair, acknowledged that while a joint model might have brought some efficiencies, it would also have introduced unnecessary administrative expenses. “As soon as you start building council-controlled organisations (CCOs), especially combined council CCOs, you incur administrative costs and overheads,” Henderson explained. “The money we pay in rates should be directed towards tangible outcomes, not administrative expenses.”
Henderson further argued that the council could still achieve efficiencies by sharing resources, water specialists, and machinery with other councils, even without formal participation in the Southern Water Done Well model. “The option for efficiency is still available,” he asserted.
The debate surrounding the council’s decision is rooted in broader concerns about the government’s approach to water management in New Zealand. The impetus for the Southern Water Done Well model and similar initiatives can be traced back to the water contamination crisis in Havelock North in 2016. This incident, which resulted in thousands falling ill due to contaminated drinking water, prompted the government to take decisive action to improve water safety and management across the country.
In response to the Havelock North crisis, the government introduced a series of reforms aimed at ensuring the safety and quality of drinking water. These reforms included the establishment of Taumata Arowai, a dedicated water services regulator, and the introduction of the Three Waters Reform Programme. The latter aimed to consolidate water services across the country into a small number of large, publicly owned entities to achieve economies of scale and improve service delivery.
However, these reforms have been met with mixed reactions. While some have praised the government’s efforts to address water safety issues, others have criticised the approach as overly centralised and bureaucratic. Ray Henderson, for instance, described the government’s response as a “knee-jerk reaction” and an “overreaction” to the Havelock North incident. “The whole situation could have been managed more effectively,” he argued.
The Waitaki District Council’s decision to manage its water services independently reflects a broader trend among some local councils to seek greater autonomy in service delivery. Last week, the Waikato District Council also voted to exit a similar partnership and manage its services in-house for at least two years. This move was welcomed by National MP Ryan Hamilton, who hailed it as a victory for localism and choice. In contrast, Te Pāti Māori MP Mariameno Kapa-Kingi criticised the legislation as “an atrocious piece of work.”
The debate over water service management in New Zealand is likely to continue as councils grapple with the challenges of balancing cost, efficiency, and local autonomy. The Waitaki District Council’s decision underscores the complexities involved in managing essential services in a way that meets the needs of local communities while also adhering to national standards and regulations.
As the Waitaki District Council prepares to implement its independent water plan, residents and ratepayers will be closely monitoring the impact of this decision on their financial obligations and the quality of water services. The council’s ability to navigate these challenges will be crucial in determining the long-term success of its independent approach to water management.
The situation in Waitaki is emblematic of the broader challenges facing local councils across New Zealand as they seek to balance the demands of efficient service delivery with the financial realities faced by their communities. As the debate over water management continues, it remains to be seen how local and national authorities will reconcile these competing priorities in the interest of ensuring safe, reliable, and affordable water services for all New Zealanders.
