The country’s bill to fix our water infrastructure could top $185 billion.
A report ordered by the Government and carried out by Scottish Water looked at the state of our aging drinking, storm and wastewater infrastructure.
For the first time, all 67 councils provided information about the state of their infrastructure and the report paints a dire picture.
The Government says it shows urgent reform is needed to fix that, and to prevent households from ballooning water bills.
Local Government Minister Nanaia Mahuta says: “The reports released today identify investment of between $120b and $185b is needed over the next 30 years to ensure New Zealander’s drinking water, wastewater and stormwater infrastructure meets acceptable public health and environmental standards.
“The reports also highlight how the national water infrastructure reforms, would create an extra 5900 – 9300 jobs countrywide between 2022 and 2051,” she says.
A report recommends combining the 67 councils and other water providers into a much smaller number.
But to achieve this, the 67 council and drinking water regulators would need to be amalgamated into a much smaller number of publicly-owned water providers.
That number is likely to be around five entities.
Mahuta says without reform average household bills in 2051 are forecast to range from $1900 to $13,900. Under reform proposals with five providers those figures range from $800 to $1800. With three providers the range is $800 to $1600.
Local Government NZ president Stuart Crosby says it’s good to finally see some more information and evidence.
“But councils will want more detailed data on how it’ll impact their individual communities, and what the final shape and nature of these water entities will be,” Crosby said.
Auckland Mayor Phil Goff supported the idea of reform, but said water in New Zealand's largest city was managed through Watercare, which had already been through an amalgamation process.
“It is already increasing investment in water services to ensure resilience of supply and quality with council’s 10-year Budget increasing investment by $4 billion over the next decade, from $7.1 billion to $11.1 billion."
He was concerned Aucklanders would have to cross-subsidise other regions, and it would mean less focus on the city's issues.
“We are keen to keep working with government to address these concerns and explore alternative models for Auckland including other ways to raise investment to meet the needs of renewal of other infrastructure and new assets to cater for Auckland’s growth needs,” he said.
Cabinet is likely to make decisions about how the planned reform will look in the next couple of months.
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