After nearly three hours’ debate at a full council meeting yesterday, Mayor Glyn Lewers used his vote to ensure council staff’s recommended option of a council-controlled organisation (CCO) won the day.
Councillors were evenly split on the issue, despite 77% of the 118 submissions received during community consultation favouring the retention of Three Waters services in house.
In her report for councillors, strategy and reform manager Pennie Pearce said submitters’ main concerns about a CCO had either already been addressed by her original analysis, or would be dealt with by amendments to the government’s "Local Water Done Well" reforms.
Since submissions had opened in June, amendments had been made to the Local Government (Water Services) Bill that strengthened the case for a CCO, Ms Pearce said.
Asked by Cr Esther Whitehead whether the council’s recommendation showed a disregard for the consultation process, chief executive Mike Theelen said it was not a "game of numbers".
He urged councillors to make their decisions "based on the information and evidence before you".
The decision means the council will transfer the district’s drinking water, wastewater and stormwater assets — and associated liabilities — to a CCO, but will be its sole shareholder.
Ms Pearce’s analysis projects average annual water charges for households to be 10% lower under a CCO in the long term, compared with the in-house model.
The CCO will operate independently from the council, with its own specialist board and management, although amendments to the Bill will require CCOs to consult with the community on matters of significance.
The council’s debt is expected to significantly decrease, giving it more headroom for other capital spending.
Property and infrastructure general manager Tony Avery told councillors a CCO would be "singular in its purpose", faster to respond to changing circumstances and better placed to secure debt and expertise.
Cr Lisa Guy said the small number of submissions — about 100 from a population of more than 50,000 — did not represent a mandate for keeping the status quo.
Many submitters had opposed a CCO, but also criticised the existing model for its delivery of Three Waters services.
"If we’re in agreement the status quo isn’t delivering, how can we not be open to a model that might provide us with hope of doing it better?"
Cr Niki Gladding said they were making their decision in a "fear and pressure environment" arising from repeated staff warnings of how central government might react if they chose the in-house model.
"Neither option is the status quo. Both are an improvement.
"I don’t see why we can’t achieve the benefits of a CCO — bar losing the debt — with an excellent in-house model."
Cr Matt Wong said he was wary of basing his decision on cost, because he was sceptical about the accuracy of financial projections over such a long time period.
They were under pressure from the government to make a decision based on highly complex information and a great deal of uncertainty, and he joked he would "need a coin" to make his.
"I hope the public listening today is not going to judge any one of us on which way we vote."
