August - September 2021
WATER
W
ork is already underway on a proposal to trim the country’s 67 water service providers – owned and managed by councils currently – into a small set of providers. The government says the new analysis confirms the need for major change, both to meet health and environmental needs – and prevent skyrocketing water bills for Kiwi households. Local Government Minister Nanaia Mahuta says it is clear the affordability challenges facing our water infrastructure are too great for councils alone. The reports identify investment of between $120bn and $185bn is needed over the next 30 years to ensure New Zealand’s drinking water, wastewater and stormwater infrastructure meets acceptable public health and environmental standards. “Together, the reports confirm the need for major reform to upgrade and maintain our water infrastructure, protect our environment, and avoid unaffordable increases to household bills.’ “Without reform average household bills in 2051 are forecast to range from $1900 to $13,900. Under reform proposals with five providers those figures range from $800 to $1800. With three providers the range is $800 to $1600. “Our plan means the required upgrade of infrastructure for our most precious natural resource will be much more affordable for New Zealanders than continuing on the current path.” But National’s Local Government spokesperson, Christopher Luxon says the Government’s proposed solution is already fraught 62 infrastructurenews.co.nz
Bold action needed to stop water infrastructure’s downward spiral New studies under Three Waters Reform Programme predict up to $185 billion is required in the next 30 years to get our drinking water, stormwater, and sewage infrastructure up to standard
with serious risks. “What we’ve heard from mayors is that they lack information; they’re not convinced amalgamation will be positive; they believe amalgamation relies on dubious scale benefits; and they have a ‘high degree of uncertainty about outcomes’. “Any change will be impossible if councils and communities aren’t taken on the journey. It’s vital that these reforms remain voluntary for councils, and
that councils and mayors are engaged with and kept informed by the Minister,” says Luxon. The reports include analysis of the economic benefits of reform by the Water Industry Commission of Scotland (WICS), independent reviews of WICS’ methodology by Farrierswier and Beca, and an analysis of the effects of the proposed reform on the economy and affected industries by Deloitte. “The case for reform is
boosted by an economic impact report produced by Deloitte,” says Mahuta. “The reports highlight how the national water infrastructure reforms, will provide more jobs for people (5900 – 9300 extra jobs countrywide between 2022 and 2051), opportunities for businesses and a net increase in GDP by $14bn to $23bn over 30 years.” Civil Contractors New Zealand Chief Executive, Peter Silcock says bold action is needed to imple-
