The Gore District Council has moved another step forward with its intent to join four other councils around the South Island in a joint water services council controlled organisation (CCO).
If the move passes the public consultation process, Gore District Council will join the Central Otago, Waitaki and Clutha District Councils to form a CCO, to provide water services.
Under this CCO, councils will join together in ownership, sharing resources and financial responsibility, however the exacts of the details will be confirmed once all parties are ready to join the table.
Councillors fielded questions regarding the council’s respective irresponsibilities and liabilities if it was to join the CCO.
Morrison Low director Stuart Cross, who worked on the document presented to the council, said although there were no current safeguards for councils in the CCO, finances would be fairly distributed according to local needs.
"[Safeguards] will develop over time. If I reflect on the pricing principle, that will ensure local prices are reflective of local investment.
"If Central Otago wants to double their work programme, it would impact their rates and not Gore," he said.
Safeguards would be established, he said.
Cr Andrew Fraser noted his worry over costs but accepted the need for a joint venture.
"Standalone, we can’t do it. We need this entity, or something like this, to help us through the next 20 to 30 years," he said.
Cr Stewart MacDonell said water services were often overlooked with the time to pay the piper soon approaching, noting cases where water budgets were reduced to pay for other projects.
"[There is] almost a gross underinvestment in water areas. This has happened in every council, they’ve robbed water because it was an easy target to take money from.
"With the underinvestment, we need to make up for it. It’s a double whammy of spending for capital, and costs will only go up," he said.
Councillors were assured there would be no poaching to or from the council for water services, as all involved would share resources to best manage water services in their respective regions.
Councillor Joe Stringer suggested qualified council staff could join the water services board, however mayor Ben Bell pointed to potential conflicts of interest and reiterated the need for the board to be comprised of independent directors.
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