- Hon Simon Watts
All councils water service delivery plans under Local Water Done Well have now been assessed, meaning ratepayers will benefit from reliable and financially sustainable water services, Local Government Minister Simon Watts says.
When developing their plans, councils had the option to deliver water services in-house or as part of a separate council-controlled water organisation (CCO). In total, 44 have chosen the CCO model and 23 councils have opted for the in-house model.
"These numbers mean that 76 percent of New Zealand's population will have water services delivered through a CCO model. This collaboration between councils offers significant assistance in addressing affordability challenges," Mr Watts says.
Analysis of councils' water services delivery plans show a significant uplift in capital expenditure for much needed water infrastructure works.
"Now that all councils have decisions on their plans, the Department of Internal Affairs has found that councils will collectively spend nearly $9 billion more on water infrastructure over the next ten years as compared to the estimates in their long-term plans," Mr Watts says.
"The $47.9 billion total estimated investment across all plans shows councils recognise that after decades of underinvestment, water projects can't wait any longer.
"The efficient funding and financing mechanisms available under Local Water Done Well enable a shift towards water services being operated in a similar way to other utilities, with the costs of investment being spread over the useful life of assets."
Under Local Water Done Well, councils and their water organisations are required to ensure capital investment is sufficient to bring infrastructure up to regulatory compliance. This requirement does not apply to councils' long-term plans, which has contributed to the underinvestment in water infrastructure.
"We need to fix the pipes, and we must address an unacceptable level of non-compliance, but we must also future proof for a growing population. It's important to strike the right balance now," Mr Watts says.
"The analysis shows New Zealand will need around 9,000 new jobs in the water industry over the next ten years to get the work done. That's both a challenge in terms of attracting, training and retaining the skilled workforce, and an opportunity for growing our economy."
"I want to thank councils and their communities for their work to make this reform a reality. This has been achieved in less than two years and represents one of the most significant changes to water service delivery in a generation.
"Local Water Done Well has prioritised the water infrastructure investment Kiwis need while providing local choice on how it gets done."
