The passing of the Local Water Done Well legislation last night will allow councils to begin developing their water service delivery plans, Local Government Minister Simeon Brown says.
“The legislation passed [yesterday] means councils can act sooner, with streamlined consultation and decision-making requirements to enable timely establishment of new water services council-controlled organisations (CCOs) to deliver the safe and reliable water infrastructure that Kiwis expect.
“It also includes the necessary provisions to finalise our Local Water Done Well deal for Watercare, which has already prevented a significant 25.8% water rate hike for Aucklanders this year.”
The immediate access to improved finance for water CCOs confirmed recently by the Local Government Funding Agency (LGFA) enables councils to better manage debt and make essential infrastructure investments without drastic rate hikes.
“The LGFA is the lowest cost provider of financing available to councils, and this arrangement means that water organisations can borrow up to a level equivalent to 500% of operating revenues – around twice that of existing councils – subject to water CCOs meeting prudent credit criteria.
“Given the scale and urgency of challenges facing water services for communities across the country, I expect councils to develop and implement plans for financially sustainable water services as soon as possible.
“My clear expectation is that councils will work together on joint arrangements where that makes sense to support financially sustainability, ease upward pressure on rates and provide for new infrastructure to support housing growth.”
Economic regulation of water services, along with other recently announced enduring settings for New Zealand’s water services system will be implemented through the Local Government Water Services Bill, which will be introduced in December this year and passed by mid-2025.
