Westland District Councillors voted this afternoon to support a Coast-wide water services company.
The council is the first of the region’s three district councils to make the decision, with the Buller and Grey District councils set to vote tomorrow [Friday] on a joint water services delivery plan.
Councils around the country have until next Wednesday [September 3] to present the Government with plans showing how they will meet tougher safety and environmental standards for drinking water, wastewater and stormwater.
They must also show how they will finance the work. Westland mayor Helen Lash said the council approved the CCO plan with a narrow 5-4 vote, with amendments.
Westland mayor Helen Lash said the council approved the CCO plan with a narrow 5-4 vote, with amendments.
The figures show it will be cheaper in the long run than setting up a standalone Westland water company, she said.
But Westland District Council has been ultra-cautious about the project because it needs to borrow much less for infrastructure than Buller or Grey and is adamant it won't subsidise its northern partners, she says.
“We’ve negotiated to make sure we can back out of it if the figures change and it looks like it’s not going to work for us either before the CCO is formed, and if we join, after three years.
“Greymouth and Buller had wanted larger shares in the CCO because they had bigger populations but Westland insisted on equality, Mrs Lash said.
“We negotiated and we are now equal partners with a third each. If we leave we take our assets with us, and there are no cross- subsidies.
“Westland will need to borrow $65.9 million over the next nine years, to build new wastewater systems for Hokitika and Franz Josef.
“We’ve already sorted our drinking water – every system in Westland meets world health standards,” Mrs Lash said.
The report done for the West Coast councils by three consultant firms found a jointly-owned council company (CCO) would save costs and make borrowing more affordable.
The CCO would have its own chief executive and three managers under him or her.
Buller will need to spend $120.6 million and Grey District $118 million over the nine year period to bring ageing or non existent water services up to standard, the report says.
Funding will come from water charges and borrowing ,with the West Coast CCO debt rising from $220.9 million in 2034, to a peak of $229 million by 2040.
Westland ratepayers will be up for water charges of $2,863 per connection in the first year (2027/28) if the CCO goes ahead, rising to $4285 by 2034.
In comparison, a standalone Westland water entity would cost ratepayers $4999 per connection by then, the report says.
Buller ratepayers would be up for water charges of $3416 in the first year of the CCO ( 2027/28) and Grey District households would pay $2405.
The figures had changed since the council consulted on the options in May - Westland’s savings from a CCO were several hundred dollars less per household than originally projected, Mrs Lash said.
“Department of Internal Affairs officers have been working on it and helping us, but it’s an appalling position to be in, making decisions with a gun to our head when the model just keeps evolving and in the middle of an election campaign.
“If the councils don't adopt the Water Services Delivery Plan they risk breaching the Government’s statutory requirements and their reputations, the report warns.
The DIA could then use ministerial powers to appoint a water services specialist to write the plan for them.
And if the WDC chose to go it alone, it could end up paying for a Crown facilitator or Commissioner, Mrs Lash said.
“We just have to hope the latest figures are correct and we'll be better off with the joint CCO. But if we’re not – we at least have an agreed exit strategy.”
-LDR is local body journalism co-funded by RNZ and NZ On Air.

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