Government intervention first task

Former environment minister Amy Adams has been appointed as Crown facilitator to Waitaki District...
Former environment minister Amy Adams has been appointed as Crown facilitator to Waitaki District Council. PHOTO: GETTY IMAGES
Sworn in just two days ago, the new Waitaki District Council’s first task will be decide how to deal with a surprise government intervention.

It comes after Local Government Minister Simon Watts this week announced the government would appoint a Crown facilitator to "assist" the council to rewrite its plan to address water reforms.

Incoming Waitaki District Mayor Melanie Tavendale said the Waitaki District Council still needed to understand the implications of the announcement and determine how to respond.

"So, our first step will be let’s work out, as a group, what that means for us and how we move forward from here.

"I guess the message is we’re happy to find a way forward for Waitaki."

The council’s previous water services delivery plan, required under the new Local Water Done Well legislation, was set to cost households an extra $200 a month in water charges and sparked fears some ratepayers would lose their homes with those charges adding to huge rates bill rises for the next two years.

However, earlier this month the plan was knocked back by the Department of Internal Affairs.

The council was also instructed to conduct a full asset review of its water infrastructure by the secretary for local government, who also wrote to the council advising it looks at an alternative to its current in-house delivery plan.

Mr Watts said former environment minister Amy Adams would be appointed to assist the council to amend and resubmit its water service delivery plan.

The government’s priority was for Waitaki ratepayers to have a plan that would ensure the costs of necessary water infrastructure upgrades were "fair, transparent, and do not lead to disproportionate rate increases", he said.

As part of the government’s Local Water Done Well reforms, councils throughout New Zealand were required to submit a water services delivery plan to the Department of Internal Affairs (DIA).

Mr Watts told the Oamaru Mail that while the secretary for local government was clear in his letter to the council about the timeline to amend and resubmit its water services delivery plan by the end of June, he was appointing a Crown facilitator in recognition of "all of the factors" the council needed to address to submit an acceptable plan, beginning with undertaking the required asset condition assessment.

"The council has clearly faced difficulties in providing this information as required by legislation and also when specifically requested to do so by the Department of Internal Affairs officials before the plan was formally submitted.

"It has long been recognised that better understanding of the condition of New Zealand’s water infrastructure is the key to addressing years of underinvestment and improving asset management practices.

"I’m confident that Waitaki District Council will benefit from the assistance of a Crown facilitator in completing this work."

He expects the Crown facilitator to provide valuable assistance in addressing the compliance issues identified in the assessment of the council’s plan "which reflect risks to the safety of the public and the environment".

"These include inadequate treatment, lead exceedances, eight long-term boil water notices, two untreated supplies, and abatement and infringement notices on the council’s wastewater plants, including dry-weather exceedances.

"I’m encouraged by the initial discussion I had with new Waitaki Mayor Melanie Tavendale earlier this week about the work ahead of the council to amend and resubmit an acceptable water services delivery plan with the assistance of the Crown facilitator in the next nine months."

Waitaki backtracked on its initially preferred option of joining with Central Otago, Gore and Clutha district councils in the Southern Water Done Well group, which has since had a joint plan accepted by the government.

Waitaki councillors voted to go in-house to provide a water plan.

However, in Waitaki’s case, DIA officials earlier this month identified a range of other areas which the council should reconsider.

Under the water services delivery plan, household rates bills (including water charges) were projected to rise a total of 26% from next year, followed by a 13% hike the following year.

Both the secretary of local government and Mr Watts have now said the council should consider alternative delivery options for its revised plan.

Mr Watts said, in a letter to the council, the facilitator could progress work the council has under way with Timaru District Council or "assist" the council to approach other neighbouring councils to explore collaboration there.

The council is now required to conduct an asset condition assessment and update its plan by June 30, allowing six months for the assessment and a further three months to amend the plan.

In a statement, council chief executive Alex Parmley said staff would "await direction from our newly elected council on our next steps".

Crown facilitator role explained

A spokesperson for Minister Simon Watts’ office said the role of a Crown facilitator in this instance is to assist a council or group of councils to prepare a water services delivery plan.

"A Crown facilitator can provide tailored guidance, facilitate collaboration among councils, or assist with joint planning efforts. These facilitators are not necessarily there to impose decisions but to help councils develop robust, achievable plans that meet their unique needs. 

"For example, a Crown facilitator could guide a council through the preparation of a plan or work with multiple councils to facilitate or negotiate a joint plan. 

"If requested and agreed upon, they can also provide a deciding role to help resolve challenges and ensure progress. 

"A Crown facilitator can be an individual or a panel of people, enabling access to a range of specialist expertise and experience," the spokesperson said.