Council Considers Slashing Water Plan Amid Rising Rates

Tuesday, 29 July 2025, 5:01 pm
Article: Linda Hall - Local Democracy Reporter

Central Hawke’s Bay District Council is considering halving $201 million of essential work on its water infrastructure as a trade-off to make rates more affordable.

Water rates were forecast to double by 2034 under modelling to comply with the Government’s water reforms, but residents voiced their outrage over affordability with one group accusing the council of causing ‘geriatric poverty’.

The council went back to the table to address the affordability challenges by substantially reducing the district’s capital works programme.

But it will come at a different cost.

The council’s chief executive, Doug Tate, said the council’s aim was to create more affordable Three Waters rates.

“However, it has the potential to create the opposite and erode the positive progress we’ve made in addressing historic underinvestment in our water assets,” Tate said.

Mayor Alex Walker said there were benefits and risks to the decisions facing the council.

“But we’re stepping up and providing a pragmatic option.

“What is important to me is that it’s not about remodelling everything that is in the regional plan because we know we need $201m worth of investment to set this community up for success.”

She said even though there was a bit of frustration that they might be downgrading their aspirations, they were still providing options.

“What we are doing has turned out to be astute. We are headed in a good direction.”

She thanked her team, saying local government was often criticised for not being able to move, but “Central Hawke’s Bay had done just that”.

The approach to reduce the district’s water services programme would be further developed by officers before being presented to Council for endorsement at its August 21 finance, infrastructure and performance committee meeting.

The current water investment plan was developed for the 2021 Long-Term Plan as a short-term “bubble of catch-up”.

The Council says it has achieved a lot of what was needed in terms of leak reductions and critical renewals, including renewing 10.4km of water pipes, making major upgrades in water treatment in Takapau, Kairakau, Pōrangahau and reduced network leaks threefold.

LDR is local body journalism co-funded by RNZ and NZ On Air.

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