Timaru is having to go it alone to manage its water and wastewater after not finding anyone to team up with.
The council consulted on a preferred option of forming a multi-council-controlled organisation (CCO) to deliver water services, and early discussions were held between Canterbury councils and the wider South Island after.
However, Timaru was forced into a stand-alone CCO after its planned partners - Mackenzie, Waimate, and Waitaki - all opted to keep their operations in-house.
Selwyn established standalone CCO with its chief executive stating Timaru didn't show initial interest in working together, while Ashburton pulled out of early discussions and opted for an in-house model.
Timaru held an emergency meeting this week to discuss a last-minute offer of joining Southern Water, a multi-council CCO of Central Otago, Clutha, and Gore district councils.
The councillors didn’t want to rush the decision and wanted more time, only to be told by Timaru District Council chief executive Nigel Trainor that “in this situation, time is not on our side anymore”.
“Our council has resolved to establish a standalone CCO. Our plan that will be going up to the DIA will be stating exactly that, that we are now on the path to establish a standalone CCO.”
Councils must submit their water plans to the Department of Internal Affairs for approval by September 3.
Trainor said the council would set up a CCO, which he estimated could cost $3 million, with the thinking that “others would come and join us” in future.
Mayor Nigel Bowen then uttered the big question, “but who?”.
Timaru is one of only five councils looking to work with others in the South Island, Bowen said.
Along with the southern trio there was Selwyn, “not their governance arm, but their water CCO have indicated yes, they want to”.
“Ashburton, Waimate, Waitaki, McKenzie, they don't want to work with us.”
Those councils had only indicated they could consider some shared services, Bowen said. Ashburton District Council chief executive Hamish Riach confirmed there had been some initial conversations with southern neighbours, including Timaru.
"We did pull out," Riach said.
“Knowing our community’s views from the previous Government’s reform was certainly a significant factor.”
He said he had spoken to Trainor “recently and briefly about shared services”.
“That door is definitely open from Ashburton’s point of view. It is true there are no concrete proposals as of this moment.”
Timaru's mayor said things may change once everyone submits their plans for approval.
“We might end up being with the ones that get told to be with us,” Bowen said.
That could potentially be Mackenzie, but that would mean a two-council CCO, which won't have a lot of benefit for our ratepayers, he said.
Timaru Deputy Mayor Scott Shannon had also suggested at the meeting that “politics is yet to play a part” with changes in leadership coming at the elections.
“We also know that Ashburton will have a new mayor. So who knows what the political influence on where they currently sit is."
Riach said a new mayor could change the water direction, if it was the will of the council.
“Any new council can revisit the previous council’s decision, subject to following due process."
Timaru was invited to join Southern Water and attended a meeting earlier in August, which Selwyn was also at.
Trainor said Selwyn would not make any decisions on adding other councils to their CCO until after the local government elections, and would have to consult with its community again if it wanted to join with other councils.
“Effectively, they were not in a position to entertain other partners.’’
Selwyn chief executive Sharon Mason said all the delivery models had been considered, including partnerships with nearby and more distant councils, before going with a stand-alone CCO.
“The council engaged with five South Island councils to explore working together, but differing priorities, investment levels, water pricing, and logistical challenges meant a joint approach was not pursued at the time, Mason said.
“Timaru was not one of the five councils that originally showed interest in working together during the earlier South Island discussions.”
Selwyn’s standalone CCO, Selwyn Water Limited, was the first water services entity to be established under the Government’s Water Done Well legislation on July 1.
Mason said it has been “designed to be scalable, allowing other councils to join in the future if the opportunity arises”.
“Any decision on partnerships would not be made before the local government elections, and would be up to the future elected council.”
Selwyn has had approaches from several councils “interested in our model and potential collaboration” since the start of July, Mason said.
-LDR is local body journalism co-funded by RNZ and NZ On Air.

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