Waters CCOs – scrutiny required

Water done well. pexels.com

The establishment of jointly owned council-controlled waters organisations (CCOs) marks the culmination of 10 years of Government-led investigations, changes to regulatory water quality standards, and water services structural reform since the 2016 Havelock North water crisis.

Crystal Beavis

Contamination of the Havelock North water supply led to 5500 people falling ill, 45 hospitalised, and suspicion it  contributed to three deaths.

Reports following this crisis put the cost of establishing future-proof, fit-for-purpose three waters services at between $120 and $185 billion nationally over 30 years and led to a reform programme to lift standards and improve the capability and sustainability of water service providers – mostly local councils.

Iawai Flowing Waters, a waters CCO jointly owned by Hamilton City and Waikato District Councils to be established on July 1, is a prominent example of this reform.  It is expected to reduce the spiralling cost of infrastructure needed to meet population growth and the new waters standards established since 2021 by the Government’s three waters regulator Taumata Arowai.

Where the rubber hits the road for consumers is how the CCOs are governed and continue to provide services at arms-length from the democratically elected councils that own them. To this end both Waikato district and Hamilton city are engaged in a series of decisions.

Both have just approved a draft Significance and Engagement Policy for Iawai, determining when consultation with customers must be triggered over decisions involving costs and levels of service. The next decision – expected this month – is the shape of the Iawai Transfer Agreement under which the council’s waters assets are valued and transferred to the CCO on July 1.

Also on the timetable for review and decisions are a series of policies that Iawai will either need to establish, or that may be transferred or delegated to Iawai by the two councils. These include policies covering land acquisition, easements, development contributions and rates and charges, and how responsibilities for waters infrastructure and charges governed by these policies will be transferred. Three bylaws controlling water supply, stormwater, and tradewaste and wastewater will be reviewed by August before responsibility for administering these bylaws is transferred to Iawai.

The devil is always in the detail and, under pressure of time, this will require close scrutiny by elected councillors and staff.

But just as we’re finalising waters reform, voices of concern have been raised regarding an equally large Government reform programme over how we manage development and the use of resources.

Unless a clear hierarchy is established between goals focused on enabling development, and goals aimed at protecting the environment, the question is whether draft legislation replacing the Resource Management Act may weaken protections over drinking water sources, such as aquifers, rivers and lakes, potentially making standards for healthy drinking water more difficult to maintain.

The balance between the need for development and the need for healthy drinking water also still requires close scrutiny at both national and local level.

Water. Photo: pexels.com

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