Reforms denounced as ‘regional water done to us’ as consultation document adopted

Thursday, 13 February 2025

Palmerston North residents are being encouraged to be educated about wastewater management ahead of decisions on Local Water Done Well. (File photo)

The Government’s Local Water Done Well reforms should be rebranded as “regional water done to us”, according to Palmerston North City councillor Brent Barrett.

The council on Wednesday adopted a consultation document to take out to the community recommending the formation of a council-controlled water services organisation with Manawatū, Horowhenua and Kāpiti.

Many of the councillors were unhappy with the plan, with Barrett and Karen Naylor voting against going out for submissions, a stand mayor Grant Smith described as “quite silly”.

Smith said he shared concerns that the process of deciding on the future management of water services was rushed and was being forced on councils with no central government funding to help.

But he said keeping water services in-house would come with massive costs, whereas the option presented as “The Four” provided value in reducing costs, retaining local ownership of the organisation, and joining communities with shared values.

The cost to Palmerston North ratepayers for water, wastewater and stormwater was currently $957 each per year.

If the council continued to deliver those services alone, including the proposed $480 million cost of the Nature Calls wastewater management overhaul, that cost to residential ratepayers could increase to an annual $3800 in a decade, excluding inflation, dropping back to $2700 after 30 years.

The costs of Palmerston North’s Nature Calls wastewater upgrade could be shared among ratepayers from four councils depending on the outcome of consultation on a future water services organisation. (File photo)

The council’s preferred option of “The Four” would spread the costs among 223,000 people.

After 10 years the cost would be $2100 a year per residential ratepayer, dropping back to $1400 in 30 years.

The third option would include some but not all of the councils in the Horizons region, with costs sitting somewhere between “The Four” and the financially unsustainable and therefore illegal option of going it alone.

There would also be an estimated $14m cost to set up the new organisation.

Water meters could be an option for Palmerston North if it joins Kāpiti to form a new water services organisation. (File photo)

Barrett said the consultation document outlining the options was “exceptionally well-presented”, but should still come with a warning that ratepayers would face more debt, and have less control.

Councillor Vaughan Dennison said he largely agreed, and that it was most unfortunate to be having to go out to consult the local community before councillors had even had a chance to discuss proposals with their neighbours.

Councillor Kaydee Zabelin encouraged councillors to front up to every meeting and event they could to help people understand what was going on.

“This will be alarming for many in our community,” she said.

But councillor Lorna Johnson said she did not want to be the front person for changes that were part a government agenda.

She said it would be a “Claytons” consultation, rushed and without enough information, and with the cards stacked against some of the “choices”.

Councillor William Wood said although he wished the Government was putting some money into the reforms, he was happy to support the proposed change.

He said councils would retain control and there would be incredible value and savings for everyone in the long-term.