Local Government Minister Kieran McNaulty has confirmed tweaks to the water reforms, previously referred to as Three Waters, will see 10 new regional entities established rather than the previously announced four entities.
But he says the changes will still deliver "big cost savings" to the Aotearoa households.
“These reforms are absolutely essential. Leaving things as they are will mean unaffordable rate bills,” McAnulty said.
“The feedback has been overwhelmingly clear that our water infrastructure deficit needs to be addressed now if we’re to save households from ballooning bills that will make water unaffordable. But also that the reform programme must be led at a regional level - we have listened closely and absolutely agree."
He says the costs involved in meeting the upgrades needed for water systems are projected to be up to $185 billion over the next 30 years, which local councils cannot afford on their own, and households in some areas could see rates rise up to $9,730 per year by 2054 if nothing is as done.
'Having a say'
“The projected costs have been peer-reviewed by both Farrierswier Consulting (an Australian regulatory economic specialist) and Beca (an international engineering firm) and make for pretty grim reading. Leaving councils to deal with this themselves will lead to unaffordable rate rises. It would be setting councils up to fail and I can’t in good conscience do that," he says.
McAnulty says establishing 10 entities is projected to save households between $2,770 and $5,400 a year by 2054 on average within each region.
“By extending the number of publicly owned water entities to 10, every district council in the country will have a say and representation over their local water services entities through regional representative groups, forming a partnership between council representatives and iwi/Māori that will provide strategic oversight and direction to the entities.
“These groups will continue to sit below the governance board, in which each member will be appointed on merit and qualification but, by increasing the number of entities we will be able to ensure the needs of every community, especially small rural towns, are heard and met.
Mayors opposed to the reforms say the changes aren't meaningful and as a result has turned the 'Three Waters' issue into an election issue.
Political football
They say while the number of entities has increased, the governance structure - including partnerships with iwi and mana whenua - means communities remain "two steps away from any real influence".
Communities 4 Local Democracy co-chairs Helen Worboys and Dan Gordon, said mayors were disappointed the government had again rejected the opportunity to seek a consensus approach to Three Waters Reform.
“We think New Zealanders will see through this - it’s the same plan with a different name.
“Simply adding more entities and changing the name is a desperate attempt to save this plan and attempt to show they’ve done something with the $100 million they’ve sunk into this process so far.
They say McAnulty, who has taken over responsibility for the reforms from Nanaia Mahuta has simply "reheated" the previous plan.
“Unfortunately, instead of listening to what communities are asking for, the government once again thinks it knows better and is serving up a reheated version of the same unpalatable, unpopular plan.
Weather events evidence for reform
“These are assets that local communities have paid for over many generations. They do not belong to central government, and they are not there to play with as they please, like the health and polytech reforms.
“The plan still sees billions of dollars of assets confiscated without compensation from communities throughout the nation and greatly diminishes their say on the infrastructure they own and have built."
McAnulty says recent months have shown the need for reforms is only getting more desperate.
“The recent flooding and cyclone is a taste of the extreme weather events to come, and our water infrastructure needs to be ready.
“I have seen first-hand the impact of devastating floods and extreme weather events. These events have highlighted the criticality of water services, especially stormwater, for community adaptation and resilience. They have also shown the fragility of critical water infrastructure in some areas,” Kieran McAnulty said.
'Sam old like-it-or-lump it'
CD4L agrees change is needed to mitigate climate change but not at the expense of community-led decisions.
“They [communities] want locally led, locally informed and locally accountable solutions to these issues, not another one-size-fits-none approach dictated from Wellington,” they said.
“While there may be a fresh new minister presenting the ideas, there’s nothing fresh about the ideas themselves. It’s just the same old meal with the same old ‘like-it-or-lump-it’ approach.
“It now appears this matter will be once and for all settled at the upcoming general election as there are clear choices for voters on this matter,”
The water services entities will start delivering water services from July 1, 2026, at the latest. Entities are able to proceed before this if ready.
“These are once-in-a-generation reforms, and it’s important that we get it right. We landed on this by working with councils and will continue to do so to ensure a smooth transition,” McAnulty said.