Ruapehu Mayor Weston Kirton is urging Council to reconsider its decision to partner solely with Whanganui District Council for the delivery of future water services, following new affordability guidance from the Department of Internal Affairs (DIA).
The DIA recommends that water charges should ideally not exceed 2.5% of median household income. However, financial modelling shows that under the current two-council Water Services Council-Controlled Organisation (WS-CCO), Ruapehu households will pay well above this benchmark.

Revocation Sought in Favour of Larger, Lower-Cost Option

Mayor Kirton has formally asked Council to revoke its earlier resolution and instead join one of the larger four- or five-council WS-CCO options, which would deliver significantly lower water charges for ratepayers.

“In today’s climate of rising costs and high unemployment, it’s hard to understand why any councillor wouldn’t support the most affordable option,” said Mayor Kirton.
“Ruapehu has the highest levels of deprivation in the country, and the situation isn’t improving. If a slim majority of councillors persist with the two-council model, our residents could be paying $1,000 more per year than necessary within just a few years. That’s simply not acceptable.”

Cost Projections Highlight Affordability Concerns

According to the modelling, all Ruapehu households will face higher-than-necessary water charges under the two-council approach. In the first year of the new entity alone, charges would be nearly $2,500 per household - almost $1,000 more than under a five-council model.

For the poorest households, particularly in northern Ruapehu, water charges could climb to 6% of household income within ten years - more than double the recommended threshold.

“These costs are totally unaffordable for many of our people and will be especially severe for Māori communities,” said the Mayor.

New Regulatory Requirements Will Increase Pressure

Further cost pressures are expected due to updated instructions from TaumataArowai, the national water regulator, which has told Council to bring forward upgrades to wastewater plants sooner than planned.

This means water charges under the current two-council model are forecast to rise to $2,800 per connection within a few years, and reach $4,000+ by 2033/34.

Shared Goals, But Better Solutions

Mayor Kirton stressed that his position is not a rejection of Whanganui or the many constructive partnerships between the two districts.

“We have strong and ongoing collaboration with Whanganui across multiple areas - such as the Mountains to Sea cycle trail and economic development - which will continue regardless of our water services structure.
In fact, a number of Whanganui councillors can see that joining with them alone is not a good deal for Ruapehu and have contacted me to voice their support for Council seeking a better deal by joining a larger WS-CCO.”

Kirton said the ideal outcome would see both Ruapehu and Whanganui joining a five-council model alongside Palmerston North City, Horowhenua, and Rangitīkei.

“This would deliver the lowest possible user charges for all water users, the greatest operational efficiencies, and align the Whangaehu and Whanganui river catchments under a single regulator and service provider.”

He also confirmed that existing commitments to river protection and shared services would not be compromised by moving to a larger model.

Deferring Affordability Not an Option
While some councillors have downplayed financial concerns, arguing that affordability can be addressed later by the new entity or the Commerce Commission, Mayor Kirton disagrees.

“When we discussed this at our workshop this week, the only proposed solution to unaffordable charges was ‘writing a letter to the Minister.’ That’s just not good enough.”
“I’m not prepared to defer responsibility and hope someone else sorts it out. This is our chance to act decisively and protect the people of Ruapehu from excessive costs.”

Decision on 13 August

Council will make its final decision at its meeting on Wednesday 13 August, choosing between staying with the current two-council WS-CCO or moving to a more cost-effective, larger model.

Mayor Kirton is encouraging the public to contact their elected members or speak in the public forum prior to the vote.
“This decision will have long-term consequences. Let your voice be heard.”

Weston Kirton
MAYOR - RUAPEHU DISTRICT COUNCIL

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