Big opposition to joint water CCO

Bryan Cadogan. File photo: Richard Davison
Bryan Cadogan. File photo: Richard Davison
A sample of submissions for a joint local government water initiative suggests officials may have a fight on their hands.

The Clutha District Council meets in Balclutha today for hearings on its Southern Water Done Well proposals.

Thirty-three groups and individuals are scheduled to speak to their submissions regarding the proposals, under which Clutha would join forces with the Waitaki, Central Otago and Gore District Councils to manage water services infrastructure and delivery.

The council received 393 submissions during consultation, of which only the 33 from those speaking to their submissions have been made public.

Of those, 29 (88%) opposed Clutha forming a jointly council-controlled organisation (CCO), the preferred option put forward by all four councils in the group.

Only four favoured a joint or stand-alone CCO model, some with modifications.

During consultation, Clutha District Mayor Bryan Cadogan described the joint CCO as the "least bad" solution to the latest central government push for water reform.

Documents showed the four councils collectively accruing $598 million of water infrastructure debt by 2034, as they expected to spend $760m on providing improved water services in line with more stringent regulations.

At the time, Mr Cadogan said the joint CCO could lead to modest efficiencies and savings for ratepayers.

Other options included formation of a stand-alone CCO, or an in-house business unit.

Mr Cadogan warned these options could consign Clutha to insolvency during the next decade, due to mounting infrastructure debt.

Submissions against the joint council-controlled organisation cited "loss of local control" and "lack of transparency" as concerns.

Submitter Alex de Boer, of Owaka, said centralisation had been demonstrated not to work.

"The sums show very little advantage in rating by 2033-34.

"Combining with other areas will cause loss of focus on our unique issues.

"Centralisation did not work for the polytechs, hospital boards or the Auckland ‘Super City’. Rates rose a lot."

Council deputy chief executive Jules Witt said yesterday the council could not comment on the overall split of submissions until the hearings had been completed.

"Council is still in the process of collating and analysing the submissions received. The submissions are part of the overall decision-making process of council," he said.

The Waitaki, Central Otago and Gore District Councils are also seeking feedback on the proposals at present.

The government will assess the council’s resulting water services delivery plan and provide feedback from December.

If approved, a jointly owned CCO would begin operation in July 2027.

richard.davison@odt.co.nz