Water New Zealand says councils have today been given new incentives, as well as checks and balances, to encourage them to address the countrywide infrastructure deficit facing water services.

Chief executive, Gillian Blythe says the Government’s new plan expands the range of water services delivery models available to councils.

She says these models, together with the announcement that the Local Government Funding Agency Limited (LGFA) will provide financing, gives councils the opportunity to address their water infrastructure deficits.

“Allowing increased borrowing through the setting up of council controlled organisations (CCOs) will help councils to unlock potential investment funding.

"This will enable investment in long life assets to be paid for over multiple generations."

She says the economic regulatory mechanisms, under the Commerce Commission, and the proposed new planning and accountability framework as well as new governance models, will improve transparency and accountability for ratepayers and customers.

“Today’s announcement provides more clarity and guidance for councils.

“We are optimistic that councils will now be able to move forward and establish professionally led water entities with the economies of scale and financing required to lift capability and capacity.”

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