Government on right path to amalgamate municipal water services

The Taxpayers’ Union is welcoming Local Government Minister, the Hon Nanaia Mahuta’s comments today on the need for ‘step change’ to the provision of municipal water and signalling increased aggregation of water service providers.

The Union’s Executive Director, Jordan Williams, said:

“Small Councils have struggled to grapple with one-in-a-generation investment decisions because of lack of economies of scale and internal expertise. We’ve seen the disasters in Wanganui, Kaiprara, and Havelock North where local councils' poor decisions have caused financial difficulty failed to keep residents safe.”

“While we don’t agree with amalgamation of councils, we do agree with amalgamating water infrastructure for the efficient provision of high quality services.”

“In Ireland a single water utility provider has proven successful. Irish Water is publicly owned, and took over water and wastewater services previously provided by local authorities in 2013. Given the success of Auckland’s Water Care, there are certainly benefits of a similar model here. One, or up to half-a-dozen providers."

"The Havelock North contamination is likely to lead to higher drinking water standards. Leaving responsibility with individual councils, with their shallow pools of expertise and small scale, risks unnecessarily ‘gold plating’ – precisely what got Kaipara Council into trouble."

“It is good to see the Minister not shying away from these well overdue reforms.”

ENDS

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