What is the Council's stance on the Three Waters reform in 2022?
During the Annual Plan 2022-2023 consultation and engagement process we had many questions about the government's Three Waters reform. The following message confirms Council's stance. It is published in the 20 May Community Update (newsletter):
In 2021, Council had an overwhelming response from our community asking us to retain the ownership and management of our Three Waters assets (wastewater, stormwater and drinking water).
In just three weeks in September 2021, we received 231 submissions of which 228 opposed Kawerau joining the government's reform model, and 3 submissions were in favour.
Our Council is supportive of the outcomes of the reform, but cautious of the likely increases in costs for our district and loss of control and voice as part of the government's four entity model.
The Government's reform model, would put Kawerau district into Entity B (see the map below) along with 22 other councils in the wider Waikato, Bay of Plenty, Taupo and Taranaki regions.
On receiving this feedback, Kawerau joined with 31 other Councils, to form the Communities 4 Local Democracy group that aims to find a better model for the Three Waters Reform (particularly with ownership model of the assets).
We must continue to participate in the transition activities, to minimise the risk that our local issues will not be considered or addressed. However, our participation does not represent support for the Three Waters reform currently being implemented by government. Participation in such activities is in good faith and aimed to influence beneficial outcomes for our staff and community, should the reform continue to be implemented.
If you agree with your Council's stance it is important you voice your views with your local MP's.
Three Waters Reform – Background
In July 2020, the Government launched the Three Waters Reform programme to reform local government three waters service delivery arrangements.
Currently 67 different councils own and operate the majority of the drinking water, wastewater and stormwater services across New Zealand.
The Government says the programme seeks to ensure no council is worse off and every community is better off after reform. It also sets councils up to focus on community wellbeing – and creates a precedent for working more closely with the Government.
The starting intention is to reform local government’s three waters services into four multi-regional entities.
The Department of Internal Affairs (DIA) initially proposed four entities. Under this scheme, the Kawerau District will be in Entity B with 22 other councils in the wider Waikato, Bay of Plenty, Taupo and Taranaki regions. The government expect the new water entities to be operational from 1 July 2024.
However, earlier this year on 13 April 2023, the Minister for Local Government announced a reset of the Three Waters Reform. This new proposal, sees the formation of 10 water service delivery entities in New Zealand. Kawerau would form part of the Bay of Plenty entity with our neighbours.
There is more information about this Three Waters Reform 2023 re-set here.
During the 2023 General Election various parties advised that they would amend the Three Waters Reform proposed by the former Labour government. The current situation is that until the new government is formed and inaugurated, Council continues to work with the Department of Internal Affairs (DIA) that is progressing the reform. This has implications for the Council's Long Term Plan 2024-2034, as currently Council has allowed for the Three Waters' operations and management until October 2025 when we have been advised that the Entity B (Waikato, Bay of Plenty, Taupo and Taranaki regions) will be stood up.
Council's response to the Government's Department of the Internal Affairs (DIA) in 2021
Kawerau District Council's reponse to the Department of Internal Affairs can be read here.
Kawerau District community feedback 2021 - about the government's Three Waters Reform
Council thanks and acknowledges the community for your feedback about the Three Waters Reform proposal. In September 2021, when Council sought feedback from our community about whether Kawerau would be better off under the rerform, we received 231 responses, of which 228 were opposed to the Kawerau District joining the government's Three Waters Reform model.
This feedback was acknowledged and formed part of the Council's response to the Government's Department of the Internal Affairs (DIA). You can read the Council Report, DIA Letter and Final Submissions here
Following this submission, the Government announced that it would take away the choice of Councils to join the reform or 'opt out'. This mandate was legislated and the government has signalled it intends to continue with implementing the reform by 1 July 2024.
Kawerau District Council, in hearing the concerns of the community, joined with 32 other Councils (from a total of 67 in New Zealand) who supported the outcomes of the reform, but wanted to find a better model, particularly of ownership and representation. This group is called Communities 4 Local Democracy.
At the Local Government NZ (LGNZ) Conference in mid-July, the Government announced a $2.5 billion package for councils to ensure they are not 'worse off' under the reform model.
The Government's proposed package has three financial components:
- Support for local government to invest in communities’ wellbeing. This part of the investment totals $2 billion, with $500 million being available from 1 July 2022. It will be allocated between councils according to a nationally consistent formula, reflecting population (75 per cent), deprivation (20 per cent) and land area (5 per cent).
- Targeted support to ensure no councils are financially worse off as a result of transferring their three waters assets. This is designed to protect councils from any negative financial consequences of the asset transfer.
- Cover of reasonable transition costs. This is intended to make sure council service delivery (including of water services) during the transition isn’t compromised by the work needed to make the transition happen.
What Does It Mean for the Kawerau District?
To nullify further confusion, there are two sets of Three Waters projects taking place that concern Kawerau. Firstly, there is the planned infrastructure upgrades to drinking water pipes taking place within the Kawerau District that was proposed in the 2021 – 2031 long-term plan. These upgrades will continue throughout 2022 and will be referenced through various Council news channels. Secondly, there is the Governments Three Waters Reform, which aims for each Council’s water assets to be taken control of by central government, as it is central governments belief that many Councils are facing significant challenges managing their water infrastructure. While this may be the case for some Councils, Kawerau District Council, along with 22 other Councils oppose this reform. In an effort to take action upon this, Kawerau District Council has decided to join ‘Communities 4 Local Democracy’.
Why Kawerau District Council Has Joined ‘Communities 4 Local Democracy’.
Communities 4 Local Democracy is a newly formed and growing group of 23 councils from around the country (Kawerau District Council included). The group formed in an effort to combat the concerns surrounding the Government’s Three Waters reforms from Council’s and their communities. Numbers continue to grow as local councils consider the implications of the proposed legislation – in particular losing control of approximately $60 billion of community owned assets across the whole country. In September 2021, Kawerau District Council asked the community for their feedback on the Government’s Three Waters Reform and after receiving close to 300 responses, the overwhelming majority were against the reform and preferred to stick with the status quo. We’re Communities 4 Local Democracy, and we’re bringing fresh ideas for better water. Communities 4 Local Democracy’s mission statement is as follows, ‘We want better services, local responsiveness and accountability, public ownership and meaningful Mana Whenua involvement’.
Kawerau District Council’s Three Waters Infrastructure Projects
Kawerau District Council’s Three Waters Infrastructure Projects refers to the wastewater, stormwater and drinking water infrastructure and pipes owned by the Kawerau District and managed by Council. The water pipe replacement will be continuing as the initial water mains are being completed. This is part of the Council's Three Waters infrastructure projects being completed now. This project was part of the Kawerau District Council's Long Term Planning and consultation process that got excellent support from the community. Therefore, the plan was adopted at the end of July 2021. It is a six-year project, whereby the Council will borrow a total of $12 million. Work has already been completed to replace a section of the wastewater piping line in Plunket Street and will continue on Massey Street.
The Government's Three Waters Reform proposal
The Government's Three Waters Reform - is separate from The Council’s Three Waters infrastructure projects (although the Government’s reform aims to upgrade infrastructure also). The Government's Three Waters Reform entails the Government taking control of Kawerau's Three Waters' assets and bundling them with other like assets owned by 22 other Councils in the Bay, Waikato and Taupo area (and slightly farther afield) - as part of Entity B serving a population of over 977,000. The government's Reform proposes four large entities.
Our Council having obtained an independent review of the reform, and also after our own staff have analysed the reform, maintains that this is not in the best interests of our district or our community. This is the reason the our Mayor Malcolm Campbell got the backing from his Councillors to sign the Memorandum of Understanding with 22 other Councils across the country to investigate better alternatives to the government's proposed reform. This group is called: Communities 4 Local Democracy and the MOU was signed in late 2022.
Department of Internal Affairs
Information has been steadily released from the Government's Department of Internal Affairs (DIA). This has assisted our staff in understanding the implications of the announcement for our District and communities.
We understand the individual council allocations will mean that Kawerau is allocated approximately $17.2m. There is more information on the funding allocations here.
The Three Waters Reform could potentially significantly change the way water infrastructure and services are delivered in our District.
Click here to view the Kawerau Distrct Council one-page summary.
What has Kawerau District Council done regarding the Three Waters Reform?
Following the July 2021 announcement, Kawerau, like all other councils took a close look at the reform proposals and assessed its impact on our community.
Council staff have continued to brief our Councillors on the Government's proposal and the impact of the proposed reforms. Councillors unanimously agreed to seek an independent review to confirm the better off/worse off scenario. This independent review was compled at the end of August 2021 by international consultants, Castalia Consulting.
The Castalia independent review analyses the financial implications and impacts of the reform on the Kawerau District.
During this eight-week period of analysis and consideration, Local Government New Zealand has being offering support to councils to understand what the package means for them.
The Government's assessment of Kawerau's Three Waters service delivery after the proposed Three Waters Reform is available here. This shows what the average cost of Kawerau's water per household is now, and the Government's assessment of what the costs will be with and without the Three Waters Reform. Council asked Castalia to review all the financial and non financial impacts in it's indepedent review. Note - you can also view the current and projected costs for other districts using this DIA website.
Council had committed to undertaking community consultation once we receive this information, to ensure that the residents are able to make informed decisions about whether it is better off or worse off under the new entity. Therefore, in September 2021 it was timely to gather feedback via submissions from the Kawerau District.
There is a commitment from all parties for the need to spend more time working through some issues that are important to all of us These are:
• Ensuring all communities have both a voice in the system and influence over local decisions. This means being sure the water entities understand and act on communities’ needs and wants.
• Effective representation on the new water entities’ oversight boards so that there is strong accountability to the communities they serve.
• Effective assurance that entities, which will remain in public ownership, cannot be privatised in future.
• Making sure councils’ plans for growth are appropriately integrated with water services planning.
• That our Three Waters Council staff, and Three Waters local contracting businesses have ongoing involvement in the delivery of our drinking water, wastewater and stormwater services.
Where can you find more information on the reform?
You can read more information on the reform programme on the Department of Internal Affairs (DIA) and LGNZ websites.
Castalia Independent Review for Kawerau District Council.
Please note: There are printed copies of the Council workshops, the Castalia Report and Feedack Forms at the Council Offices for people to collect.
The Government's Department of Internal Affairs (DIA) also has a feedback process which you can access here.
What do other Councils think about the reform?
You can find out what other councils around New Zealand think of this reform here.
Want to have your say?
If you wish to make a submission please click here for the feedback submission form.
Drop our Feedback Form back to the Council Offices during business hours (we have forms printed at the Council Offices)
Email your feedback submissions@kaweraudc.govt.nz
Post your feedback to the Council
2 Ranfurly Court, Kawerau 3169
Please note: Your information is held and administered by Kawerau District Council in accordance with the Privacy Act 2020 and Kawerau District Council’s Privacy Policy. Your submission will be made available to Councillors, Council staff, and the public as part of this consultation process. Your submission will form part of the Council's response to the Government. Copies of submissions may also be released at any other time, upon request.
