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Local government reform is creating some anxiety as the Hurunui District Council sets up its new water services entity.
Some Hurunui councillors called for the new water entity to be put on hold as it and the Kaikoura District Council pursue different partners for the Government's merger proposals.
But Hurunui District Council voted to transfer responsibility for water services and its assets to the new entity at a meeting on Tuesday, July 28, despite the call for a delay.
Kaikōura Hurunui Water Services Ltd was formed earlier this year with the Kaikōura District Council as a water services council controlled organisation (WSCCO) under the Government’s water reforms.
But the Government’s amalgamation Headstart reforms have created uncertainty, with councils having until August 9 to consider merging with their neighbours.
Earlier this month, Kaikōura voted to pursue a Headstart proposal with the Marlborough District Council, while Hurunui is considering forming either a North Canterbury council with the Waimakariri District Council or rural Canterbury council.
Crs Pauline White and Robbie Bruerton called for a pause ‘‘to get some more certainty’’ with reform, before proceeding with the asset transfer.
‘‘I would like to wait two months to see where the apples fall,’’ Cr Bruerton said.
But council chief executive Hamish Dobbie said a delay would create uncertainty for the new company and ‘‘potentially leave the council exposed’’.
At the moment the council is working on a goodwill basis, because the new company is waiting on the transfer agreement, he said.
‘‘We are potentially exposing ourselves to risk and liability if we don’t proceed.’’
If a natural disaster were to occur, the council would still control the assets but may not have the ability to rate for it, he said.
Mr Dobbie said the alternative would be to negotiate a service agreement with Kaikōura Hurunui Water Services Ltd to give the company some certainty.
Cr Steve Hutt said he understood his colleagues’ concerns.
‘‘The rug has been pulled out from under our feet with local government reform, but we have a duty for the people of Hurunui.
‘‘We have come this far in setting up this company and we need to empower them, because it could be two, three or five years before we are smashed together in a unitary authority.’’
Mayor Marie Black said it was time to move forward.
‘‘We don’t know our future, so we have to make decisions today with the best knowledge and intent.’’
Mr Dobbie said the Water Services Council Controlled Organisation was set up with the flexibility to allow it to expand if other councils wanted to join.
It could also be ‘‘wound back’’ in the future if either partner decided to leave.
The Hurunui and Kaikōura councils had one vote each in the company, which would transfer to any new council entity.
The transfer agreement will come back to the council for final sign off once the Kaikōura Hurunui Water Services Ltd board has considered it.
The Kaikōura District Council will be meeting to vote on its own transfer agreement.
■ LDR is local body journalism co-funded by RNZ and NZ On Air.
