More entities means bigger bill: govt data

Otago and Southland households are set to be at the sharp end of higher bills for water after reform adjustments, government figures suggest.

But dumping the reforms and reverting to the status quo might have been far worse.

Figures from the Department of Internal Affairs and Stuff indicate the Government’s move to expand the number of planned water entities from four to 10 will add hundreds of dollars annually to the bills of Otago and Southland households.

Bryan Cadogan
Bryan Cadogan
This may be viewed as the price of Otago and Southland having their own entity, rather than being part of one covering almost all of the South Island.

Several Dunedin elected members suggested the cost of preserving "local voice" in decision-making was worth bearing, or the figures were dubious anyway.

Clutha Mayor Bryan Cadogan said figures being bandied about were shockingly inaccurate.

"That said, the trajectory and underlying assumptions clearly shows that Otago and Southland are considerably worse off after [Thursday’s] announcement," he said. "This is turning out to be an opportunity lost — and it is extremely hard to see any tangible benefits from the changes — certainly not from a southern perspective.

"I’m really struggling to see how this perception of local control and a voice at the table is adequate compensation when we already had governance mechanisms in place that were standard procedure and more than adequate."

Internal Affairs projected the average annual water bill in 2054 for an Otago or Southland household could be $4430 under the 10-entity model, compared with $9730 under the status quo, where councils retained control of assets.

Dunedin city councillor Jim O’Malley remained sceptical of government figures.

"The underlying economic model — I don’t believe it," he said.

Jules Radich
Jules Radich
Dunedin Mayor Jules Radich said he was pleased to see more room for regional voices in the reset.

"The latest figures do show increased costs for households in Otago and Southland compared to a four-entity model, but those numbers still represent a saving compared to the status quo," Mr Radich said.

"It remains to be seen just how robust those numbers are. If they are accurate, they amount to the cost of more regional representation, but we still have plenty of questions before we’re ready to endorse these reforms.

"We want to see a balance between local control and affordable services, and further detail is needed ..."

City councillor Christine Garey said establishing 10 entities, rather than four, "gives us a better chance of our voice being heard". The Government has clearly listened to that strong message from the local government sector."

Dunedin deputy mayor Sophie Barker said 10 entities was better for local voice, "but not financially or bureaucratically".

The Government’s reform model meant "those cities which have looked after their water, like Dunedin, will be disadvantaged".

grant.miller@odt.co.nz

 

Advertisement