Source: New Zealand Government
Councils have gotten behind Local Water Done Well by submitting their water services delivery plans on time, laying out how they intend to ensure good quality, cost effective water services for their ratepayers, Local Government Minister Simon Watts says.
“This Government knows that addressing the scale and urgency of the water services challenges facing communities across the country comes at a cost to everyday Kiwis. That’s why under Local Water Done Well, we enabled councils to work together on joint arrangements to support financial sustainability, ease upward pressure of rates and provide new infrastructure to support new housing.
“We have also been clear that councils can continue in house service delivery if they can demonstrate they can meet financial sustainability and other legislative requirements via their plans.”
Councils were required to submit their water services delivery plans to the Department of Internal Affairs by 3 September. All councils that were required to submit their plans by this date have now done so. Plans will now go through a review process before being considered for acceptance by the Secretary of Local Government.
“I want to thank all councils who have submitted their plans. Their commitment and work mean all communities around New Zealand are now on a path to safe, resilient, and financially sustainable water services,” Mr Watts says.
“We know that we must improve the development and maintenance of water infrastructure, but costs must be met fairly. Growth should pay for growth.
“New water services providers will have greater access to lower-cost finance through the Local Government Funding Agency which was not available under the previous Government’s reforms. This will enable the cost of appropriate levels of borrowing to fund investment to be spread between current and future ratepayers that will benefit from the water infrastructure.”
Of the councils that have submitted plans, approximately two thirds will form multi and single council-controlled organisations to deliver water services, while the remainder will provide services via in-house business units.
“Local Water Done Well has never been about how many water services providers New Zealand has. It’s about giving councils ownership and flexibility so they can tailor solutions that best serve their communities,” Mr Watts says.
“Giving councils ownership gives them the best shot at identifying their most pressing problems and the right approach to solving them.”
Following assessment by Department of Internal Affairs officials, plans will undergo moderation by a review panel. A recommendation is then made to the Secretary for Local Government who makes the final decision.
If a plan is not accepted, the Department will provide the councils with an opportunity to respond and will then outline next steps. These next steps may, if required, include a recommendation to the Minister about intervention options.
“I will be looking closely at the advice the Department provides to ensure councils have a plan that meet our requirements of being financially sustainable. I have been clear that I will intervene, but only if I need too,” Mr Watts says.