Source: New Zealand Government
The Government is accelerating Local Water Done Well for the Wellington region to provide greater transparency at Wellington Water and ensure it is delivering value for money for ratepayers, say Local Government Minister Simon Watts and Commerce and Consumer Affairs Minister Scott Simpson.
“Over the last few months, I have had serious concerns around Wellington’s water services,” Mr Watts says.
“Recent reports have shone a spotlight on high costs and unsound financial management at Wellington Water with clear evidence suggesting the ratepayers are not getting good value for money,” Mr Watts says.
“I am not satisfied by the progress made to address these glaring problems and without clear and decisive action, Wellingtonians face a decade of hefty rate increases with little to show for it.”
The Government is bringing forward Local Water Done Well for the Wellington region by imposing early economic regulation on Wellington Water. This means the Commerce Commission will begin its role as a monitor for the Wellington region’s water services sooner than other water services under Local Water Done Well.
“Given the current issues, Wellingtonians shouldn’t have to wait for the full economic regulation regime to be in place to have greater visibility over how their money is spent on water services,” Mr Simpson says.
“The Commission will impose foundational information disclosure requirements on Wellington Water. This will require it to report to the public and the Commission on key delivery performance and financial management measures.
“While the precise disclosure requirements will be set by the Commission, we anticipate it will include indicators that provide a view of value for money, procurement practices, and plans to address the shortcomings outlined in the published reports.”
Mr Watts says the action today to increase public accountability at Wellington Water is implemented under Local Water Done Well legislation the Coalition Government passed last year.
“The purpose of economic regulation including information disclosures is to promote the long-term benefit of consumers of water services and to ensure that sufficient information is available to assess whether that is occurring.
“The foundational information disclosure framework provided for under last year’s Local Government (Water Services Preliminary Arrangements) Act means we can ensure a more detailed picture sooner of how Wellington Water intends to address performance shortfalls in key areas.
“Experience in other sectors shows information disclosure provides greater transparency and is expected to drive a shift in organisational behaviour. The action we are taking will help ensure steps are taken to reduce unnecessary future costs for Wellington ratepayers.
“This is consistent with the Government’s Local Water Done Well objectives – financially sustainable water services with strong regulatory oversight, strict rules for water quality and ongoing investment. It is also consistent with our focus on tackling cost of living challenges for New Zealanders.”
