Cr Jami-Lee Ross

Manukau City Councillor For Howick

Media Release

2 March 2007

Council Rejects Fairer Wastewater Charges

Manukau City Council last night rejected volumetric wastewater charging at the Council meeting held to adopt the Council's draft Annual Plan. The Council instead indicated that it is considering increasing the residential fixed wastewater charge of $320 that Manukau Water currently charges.

Howick Councillor Jami-Lee Ross led the push for fairer residential wastewater charges which would have been based on the amount of water that ratepayers use. Mr Ross also pushed for a change to the current $950 business wastewater charges which have been adversely affecting small businesses.

"Wastewater charges have caused a lot of concern within the community since the Manukau City Council set a $320 fixed wastewater charge from July 2007. This charge was not fair on low water users such as pensioners and small families because it did not recognise the amount of water that ratepayers use.

"At the Council meeting on Thursday evening I proposed a change to the current wastewater charges that would more accurately reflect the services that ratepayers receive. The new proposed charges would be made up of both a fixed and variable component and based on the amount of water consumption."

The Council did not support Mr Ross' call for fairer wastewater charges and voted 11 to 5 against the motion to implement the change.

Mr Ross' proposed residential charge would include a fixed annual fee of $160, half of the former $320 charge. The variable charge would be based on 75% of the water that a ratepayer uses and be set at $0.80/m3. The 75% factor would be used to reflect the fact that a portion of water consumption does not end up as wastewater.

"Structuring wastewater charges with both a fixed and variable component is the fairest way for Council to charge for wastewater services. It takes into account the fixed cost of wastewater infrastructure while at the same time ensuring that low water users are not adversely impacted by fixed charges. High water users would also be provided with an incentive to conserve water."

The proposal also contained a similar change for business customers which would result in the fixed charge moving from $950 to $180. As with residential customers, a variable component would be used to reflect water usage. Business customers using large amounts of water would continue to have the option of requesting an audit of their wastewater output in cases where much of the water consumption is retained within their product.

Mr Ross says he is disappointed that the Council did not support a fairer change to the wastewater charges. Instead the Council indicated in its draft Annual Plan that it is considering increasing the current fixed charges of $320 for residential ratepayers, and $950 for businesses. Council officers reported to the Council that Manukau Water has not yet indicated how much charges will increase by, except that the increase will likely exceed the rate of inflation.

"I strongly encourage ratepayers to make a submission on the Council's draft Annual Plan to voice their concerns over the current fixed wastewater charges. The only fair way to charge for wastewater is to base the charges on the actual services that ratepayers are receiving with a volumetric component.

"Manukau City Council did not set wastewater charges correctly in 2006 however the Council now has an opportunity to rectify the situation by implementing fairer wastewater charges from 2007 onwards."

ENDS

NOTES:

1) Manukau Water is a Council Controlled Organisation 100% owned by Manukau City Council. The Council sets the prices for water and wastewater charges.

2) Councillors in favour of the proposed wastewater charges: Jami-Lee Ross (mover), Dick Quax (seconder), Peter Kelly, Jan Sinclair, Bob Wichman.

3) Councillors against the proposed wastewater charges: Sir Barry Curtis, Arthur Anae, Colleen Brown, Noel Burnside, Anne Candy, David Collings, Alf Filipaina, Neil Morrison, William Sio, Sharon Stewart, John Walker. (1 abstention - Sylvia Taylor).

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