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Public Water, Private Profits? Tauranga Vote On Waters Done Well Raises Alarm Bells Over Secrecy, Power, & Past Agendas

Tauranga, NZ - 3 August 2025

This Tuesday, Tauranga City Council will vote on whether to opt into the Government’s new "Waters Done Well" water services reform framework, a deceptively simple decision with massive consequences for local democracy, public ownership, and the future cost of living for every Tauranga resident.

While officials are pushing the proposal as a "streamlining" of services, watchdogs and local advocates say it’s anything but. “This isn’t just pipes and pumps, this is about whether public control of water remains public at all,” said Erika Harvey, spokesperson for Lobby for Good. “We've seen this play before, dress up centralisation as ‘efficiency,’ then open the door to corporate control behind closed doors.”

A Legacy of Sell-Offs - Are We Repeating the Past?
Todd McClay, Minister for State-Owned Enterprises, has denied any intent to privatise water. But scrutiny is growing over his links to one of New Zealand’s most notorious sell-offs, the 1990s electricity sector privatisations overseen by his father, Roger McClay, under the National government.

“Let’s not forget what happened when electricity was deregulated and handed to the market: prices soared, and public power was lost, literally and politically,” Harvey said. “Now his son is overseeing a framework that removes water from councils, centralises decision-making, and could make it far easier to privatise later.”

What's at Stake in Tuesday’s Vote?
Tauranga City Council and Western Bay of Plenty District Council will vote on whether to opt in to the Government’s new “Waters Done Well” framework, a decision that will lock in the future of local water services for decades.

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This vote isn’t just procedural. It decides whether our local drinking water, wastewater, and stormwater infrastructure remains accountable to the communities who use and pay for it, or whether it’s handed over to a new centralised entity with limited public oversight.

Councils hand over key water assets to new centralised "service delivery organisations".

  • Local accountability is diluted, with communities having little say over how water is managed
  • Once transferred, these assets could be harder to return to public control
  • Governance structures are vague, with key decisions potentially made by political appointees or private advisers

Cr. Crowther’s Warning: “A Trojan Horse for Corporatisation”
In a must-read Substack post this week, Councillor Glen Crowther called the proposal what it really is: "a Trojan Horse for corporatisation." He outlines how the new entities will operate more like commercial utilities than community services, despite still being technically owned by councils.

Cr. Crowther also questions why the Government is rushing councils to opt-in without clear public consultation, funding guarantees, or transparent rules for asset control. His analysis echoes concerns already raised around the Marine Precinct, Durham Street, and other high-value local asset deals: the public is being shut out of decisions that will shape the city for generations.

The Big Questions Tauranga Deserves Answers To
As councillors prepare to cast their votes, Lobby for Good is demanding they publicly address:

  1. Why is this being rushed with so little public scrutiny?
  2. What protections will exist to stop privatisation by stealth in the future?
  3. Why are ratepayers being asked to give up control without guarantees on price, quality, or transparency?
  4. How will this governance structure avoid the same failings seen in past council-controlled organisations (CCOs)?
  5. And most importantly: who stands to profit, and who stands to lose?
  6. If this is the wrong decision, who is held accountable?

“This vote isn’t just about water, it’s about whether Tauranga is governed for the public good or private gain,” said Harvey. “Once control is lost, it’s near impossible to get back. We’ve learned that lesson the hard way. The question now is; will our council learn from it, or repeat it?”

Call to Action

Lobby for Good is urging Tauranga residents to contact their elected members, speak up before Tuesday’s vote, and demand full transparency and public consultation before any irreversible decisions are made.

Website: www.lobbyforgood.co.nz

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