Wairoa District Council elected members adjourned their Local Waters Done Well decision-making to allow for new information to be processed and discussed.

At last Tuesday’s Council meeting, elected members received reports on future water services being delivered by both Regional and local Council Controlled Organisations (CCO).

In presenting the Local Water Done Well report, Chief Executive Matt Lawson said the Government’s reform of water services, heralded by the Local Water Done Well policies, represents a fundamental shift in how water services are delivered to communities.

He described the regional and local models as two valid options, each with pros and cons. “Council is in the fortunate position of having two viable options before it. Each option would be financially sustainable, depending on the water tariffs to be charged to consumers. Those costs in each scenario are comparable, but ultimately that comparison is only as robust as the information input to the analysis. A regional model bears the additional risk of unforeseen costs arising within any of the participating councils’ networks. A standalone CCO means that those risks are focused solely on Wairoa’s infrastructure.”

Mr Lawson said that a regional model brings with it the possibility of better regional collaboration and the sharing of resources, leading to potential cost savings compared to the current scenario, where all four councils run standalone services. “There is the potential to avoid duplication of effort, particularly in services that are geographically close together.

“However, as noted in the financial analysis, there are risks involved in the regional delivery model associated with requiring agreement from other councils on governance, pricing and debt allocation. This gives rise to risks that are generally outside the Council’s direct control. Financial analysis recommends weighing up potential savings against broader financial and strategic implications.”

He described a local model as simpler to implement, both structurally and functionally, and as retaining control of decision-making within a single Council Controlled Organisation. “The governance board would need to meet the expertise and qualification imperatives of the policy and the expectation that genuine commercial expertise will be brought to the delivery of water services.

“This model retains the ability to collaborate and cooperate with other water entities from other districts, even districts that are geographically not adjacent, and could provide the benefits of purchasing power and sharing of expertise that a regional CCO might deliver.”

Mr Lawson described the potential downside of a standalone CCO as a loss of purchasing power, the inability to attract the necessary expertise at both governance and delivery levels, and the concern that ‘nothing has changed’ from the current delivery model, which is considered unacceptable.

He described Council’s approach as wise in preparing for both the regional and back up local models and draft plans for both options are being worked on. Once a decision has been made, Water Services Delivery Plans need to be confirmed by September 3.

Elected members chose to adjourn their decision-making and will meet on Tuesday, July 29, to further discuss the options.

28 July 2025

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