The Timaru District Council’s sudden withdrawal from a key Otago-Southland water alliance has left other councils disappointed and raised a series of questions regarding the decision.
The move came to light during a Central Otago District Council (CODC) meeting in Ranfurly on Wednesday, where it was revealed Timaru had opted out of joining a regional partnership aimed at exploring a joint delivery model for the Three Waters reform.
The alliance, initially set to include Central Otago, Clutha, Gore, Waitaki and Timaru District Councils, was designed to investigate options for a collaborative approach to managing water services.
CODC councillors were preparing to vote on Timaru’s inclusion in the commitment agreement, which would see the councils working together on the "Local Water Done Well" (Three Waters) initiative.
However, when the item came up, council chief executive Peter Kelly announced Timaru had withdrawn its application.
"It’s disappointing, especially as the council had already invested both time and money into this process," Mr Kelly said.
The withdrawal has put additional pressure on the remaining councils, according to Waitaki District Mayor Gary Kircher. He noted the group was initially hopeful Timaru’s involvement would help bring Mackenzie and Waimate Districts on board, forming a stronger collective of seven councils.
"It’s disappointing they dropped out after initially expressing interest," Mr Kircher said.
"Their absence has tightened the time pressure for the remaining councils."
The "Local Water Done Well" initiative, tied to the government’s Water Services Delivery Plan, is part of the ongoing Three Waters reform, which is set to reshape the future of New Zealand’s water services. Councils must submit their Water Services Delivery Plans by September 3, leaving limited time for consultation and co-ordination.
The decision to withdraw will result in Timaru being billed for the work already completed, including the financial adjustments made to accommodate its potential participation in the long-term plan.
Mr Kircher said the move could delay the councils’ efforts to meet crucial deadlines.
"We’re working to very strict deadlines to ensure proper community consultation," he said.
"Losing a few days on this, especially with the pressure we are under, will likely make things even more difficult."
The timing of Timaru’s decision to withdraw remains unclear. Waitaki’s mayor suggested a recent joint workshop with Timaru’s council, held last Wednesday in Timaru, may have influenced its change of heart.
Perhaps there "was more commitment" from Mackenzie and Waimate District Councils to want to unite, Mr Kircher said.
"They’ve worked together on a number of things already, including some aspects around their regulatory responsibilities, and I think they are all shareholders in Alpine Energy ... their relationship is already quite strong."
Despite the setback, Mr Kircher expressed confidence in the remaining "southern four" councils — Central Otago, Clutha, Gore and Waitaki — forming a solid group moving forward. He emphasised the councils would focus on getting the best financial outcomes and ensuring any future collaborations could be easily integrated.
Meanwhile, Timaru District Council’s group manager of corporate and communications, Stephan Doran, declined to comment further on the matter, stating discussions would be held in a public-excluded section of its council meeting on April 2. A report on the progression of the Southern Water Done Well initiative is expected to be presented at that time.
The abrupt change has left many questions unanswered, including why Timaru initially joined the group, when the decision to withdraw was made, and what impact it will have on the overall timeline and costs of the water reform process.
The remaining councils now face the challenge of moving forward without Timaru’s involvement while ensuring they meet the critical September deadline.
