Delivering future Wairoa water services through a local standalone Council Controlled Organisation (CCO) was unanimously supported by elected members at today’s Wairoa District Council meeting.

Last week, elected members adjourned their Local Waters Done Well decision-making to allow for information to be processed and discussed.

Today, they selected the local model, rather than a Hawke’s Bay Regional model, which could include Central Hawke’s Bay District Council, Napier City Council and Hastings District Council.

Two hours of robust discussion preceded the decision, which focused on what was best for the Wairoa community.

Elected members acknowledged that the Government’s reform of water services represents a fundamental shift in how future water services are delivered to communities.

In weighing up the pros and cons between the local and regional options, elected members agreed both models had affordability issues, but the best choice for the Wairoa community is to develop a localised plan and deliver it smartly, utilising Wairoa’s nimbleness and drawing on specialised expertise where needed.

A single Council Controlled Organisation model was described as simpler to implement, both structurally and functionally, and a way of retaining control of decision-making.

Elected members admitted it would have been easier to have selected a regional model and say, ‘this is out of our control’, but they wanted the best option for the Wairoa community, saying they had already seen the detrimental impacts removing services from Wairoa has historically had on the district.

They noted that Wairoa already knows what its three waters infrastructure and liabilities are, whereas a regional model bears the additional risk of unforeseen costs arising within any of the participating councils’ networks.

Elected members felt a single Council Controlled Organisation retains the ability to remain flexible to collaborate and cooperate with other water entities from other districts, even districts that are not geographically adjacent, be adaptive around potential changes and standards, and in the future could provide the benefits of purchasing power and sharing of expertise that a regional CCO might deliver.

Other key factors cited in their decision-making were the protection of localised arrangements, such as the water partnership with local processing plant Affco, improved social benefits through a local model, and a lack of confidence in regional partners to provide and deliver a better alternative.

In summarising their decision, elected members stated that a single Council Controlled Organisation would give Wairoa more flexibility as the master of its own destiny and would have the ability to meet Wairoa’s unique needs.

Wairoa Mayor Craig Little said in the meeting that prior to a decision being made, he had spoken to Minister for Local Government Simon Watts about a Wairoa standalone Council Controlled Organisation model, and the Minister was in agreement that a local CCO was a viable option.

Now that a decision has been made, the Water Services Delivery Plan, which is already underway, will need to be confirmed by September 3, with the expectation that the new entity will be operational within two years.

A likely scenario could see a new entity formed and governed by three directors specialising in engineering, financial and local knowledge, a manager and local operational expertise, based on the ground in Wairoa.

Councillors resolved that the necessary documentation for the establishment of a standalone Wairoa Council Controlled Organisation be developed for approval at the August Council meeting and that negotiating a heads of agreement outlining potential areas of cooperation and coordination with Gisborne District Council also be developed.

30 July 2025

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