Water delivery plan submitted

Local Government Minister Simon Watts has confirmed all local authorities, including Waitaki, have submitted their water services delivery plans on time.

"The plans will be assessed based on criteria that balances cost effectiveness over meeting quality standards," he told the Oamaru Mail.

Waitaki’s WSDP, if accepted, will raise costs on households through a proposed average rates rise of 26% next year. Asked if that was reflective of the government setting water service standards unnecessarily high, Minister Watts denied the proposed standards were overly expensive.

"For long-lived infrastructure, it’s about better care and asset management," he said.

"Councils, with their communities, should follow good process to deliver what is most cost-effective, including taking advantage of partnerships with other councils to reduce duplication and achieve economies of scale."

He also confirmed levies will also be paid to the Water Services Authority, which is now funded by a mix of Crown funding and levies payable by council or council-controlled organisations (CCOs).

"The levy is apportioned to each territorial authority based on census population data, ensuring consistency and transparency.

"Territorial authorities are free to choose the best approach for them to recover these costs."

For Waitaki, based on its census population of 23,472, the 2025/27 levy is $97,108.

"The cost of the levy (nationally) is $20.658million per annum for the next three years.

This equates to an average annual cost of $4.14 (excluding GST) per person or around $11.17 (excluding GST) per average household.

"The Authority will also continue to receive Crown funding of $4.642million per annum to cover functions and activities the Authority delivers that have a significant public good including supporting community-owned drinking water suppliers and public reporting to provide transparency about the performance of services."

Asked why these levies could not be fully funded by New Zealand taxpayers, Mr Watts said it was common for regulators to be funded by a levy for some or all of their activities.

"This includes activities undertaken in relation to the Authority’s drinking water, wastewater and stormwater functions — the Authority will also receive Crown funding of $4.642 million per annum."

He said it was important for New Zealand to have a robust and adequately funded water services authority.

"The Authority is committed to engaging proactively with councils, taking a proportionate approach to regulation and ensuring it works constructively with councils on cost-effective paths to compliance.

"An example of the authority’s focus on improving performance is its work to establish New Zealand’s first set of nationally consistent wastewater environmental performance standards.

"Case studies estimate that councils could save up to 40% in consenting costs under the proposed standards ... while protecting the health of the public and the environment."

Following assessment by Department of Internal Affairs officials, plans will undergo moderation by a review panel.

A recommendation is then made to the Secretary for Local Government who makes the final decision. If a plan is not accepted, DIA will provide the councils with an opportunity to respond and will then outline next steps.

These next steps may, if required, include a recommendation to the Minister about intervention options.

"I will be looking closely at the advice the Department provides to ensure councils have a plan that meet our requirements of being financially sustainable.

"I have been clear that I will intervene, but only if I need too," Mr Watts said.