A water company does not need to be set up in Dunedin for services to be delivered efficiently, city councillors have decided.
The Dunedin City Council yesterday unanimously backed keeping Three Waters services in-house, reflecting what seemed to be the public mood.
However, several councillors noted the call might need to be revisited and there had been encouragement from the government to carefully consider the merits of establishing a company to deal with drinking water, wastewater and stormwater.
Cr Jim O’Malley said he believed the in-house model was the most equitable option and would be the cheapest.
The council was clear residents could expect significantly more expensive water bills regardless of which option was favoured, mainly because of the need to continue to upgrade infrastructure and meet regulatory obligations.
It was signalled residents could initially expect a cost advantage for them from the company model, but Cr O’Malley said projections to that effect were "not true savings", as they relied on increased debt — the money would be recovered from consumers at some point.
About two-thirds of people who submitted to the council favoured the in-house model.
Mayor Jules Radich said the council had been an early mover for putting more money into water infrastructure in recent years, enabling retention of the model to remain viable.
Cr Christine Garey supported the approach, but felt the community had little idea "what’s coming in terms of cost".
Cr Andrew Whiley said the council was "picking up the pieces" after previous councils had underinvested in assets.
In a letter to the council, Minister of Local Government Simon Watts said investment would need to be sufficient, sustainable and affordable.
