The Clutha District Council heard 25 verbal submissions to its Southern Water Done Well proposals at its Balclutha chambers, a majority of which opposed the council’s preferred option.
That option would involve Clutha forming a jointly council-controlled organisation (CCO) with the Waitaki, Central Otago and Gore district councils to manage water services infrastructure and delivery.
The proposal is in response to the latest central government push for water reform, which imposes more stringent regulations on councils that require multimillion-dollar investment in water infrastructure upgrades.
Submitter Ian McGimpsey, of Owaka, acknowledged the council’s hands were tied by a legal obligation to meet the new standards.
"Gold standard water regulations are just a joke. You’re in a hole, and so are we as ratepayers."
He favoured an option close to the status quo, of establishing an in-house council business unit to manage water.
"There’s no benefit to more or bigger governance for water. It just leads to a loss of local control. Why create a separate bureaucracy to do what we should be doing anyway, and relinquish control?"
He said economies of scale — cited by the council as a reason for forming a joint CCO — could as easily be achieved by establishing a joint buying group.
Mr Cadogan said economists had shown Mr McGimpsey’s preferred option would lead to an unviable water plan in the longer term, which would entail government intervention and a consequent loss of local control.
Mr McGimpsey said this seemed inevitable whichever route the council took.
"There a lot of councils that are going to hit the wall, whatever option they go for."
Other submitters echoed similar concerns.
Those speaking against the joint CCO said they feared loss of local control and accountability, increased bureaucracy and debt, and a failure to deliver purported cost savings.
Another submitter, former deputy mayor Hamish Anderson, said he was in favour of the joint CCO, with provisos.
"The success of a CCO is dependent on getting the right management and governance in place."
He said board members need not come from any of the districts concerned, as skills and experience were more important.
"Get the right people, get the job done."
Submitter Allan Dickson said a joint CCO with Gore and other southern councils might be more logical.
"We have nothing in common with Waitaki or Central Otago. I believe we should be looking south."
The government will assess all councils’ water services delivery plans after September 3, and provide feedback from December.
If approved, a joint CCO would begin operation in July 2027.
