Affordable Water Reforms

Three waters is a term used to describe the management of storm water, waste water and drinking water infrastructure.

Central government has been embarking on a programme of three waters reform for the last few years. There are two main parts to the reforms:

Regulation

The first is about updating regulations and standards and establishing a regulatory oversight body to monitor and enforce the standards. Taumata Arowai was established from 1st March 2022 and took over responsibility from the Ministry of Health for enforcing drinking water standards and ensuring compliance by all service providers. There is an initial focus on larger public water supplies (namely local authorities), but the intention of Taumata Arowai is that all water schemes, whether public or private, are required to demonstrate compliance with the drinking water standards if there are two or more domestic dwelling connections to the supply.

Service Delivery

The second is about significantly changing the way that water services and infrastructure is delivered across New Zealand. Currently most of these services in New Zealand are delivered by 67 local councils and are paid for by rates. Government is proposing that responsibility for providing these services is removed from local councils and transferred to 4 large multi-regional entities. At the start of the process local authorities were assured that this would be a democratic process and that each local authority would have the right to choose to join the new entity or not.

In August 2021 we sought feedback from our community on the second part of the proposed reforms and had an overwhelming negative response. This helped inform our feedback to central government in September 2021. Our summary report to Council which includes all of the feedback from the community can be found in the 29th September Council Agenda p26

Kaikōura District Council remains opposed to aspects of the proposed three waters service delivery reforms as they currently stand. We have been an active member of the Communities 4 Local Democracy group of 32 councils across the country representing over 1.5 million New Zealanders that have similar views. This group has provided feedback and alternative solutions to the Minister for Local Government and also discussed concerns with all opposition parties. This included the presentation of a ten point plan to the Minister on the 4th April 2022 which provided a potential way forward that could be supported, but it was felt that this fell largely on deaf ears.

KDC has always been supportive of an entity taking a Ngāi Tahu takiwā boundary approach if a super entity is to be implemented and also co-governance arrangements with Māori. For Kaikōura District Council and our community it is really about a loss of local democracy. The Government has not been listening to the people. The current proposal has significantly reduced the ability for small communities to have a say in the future management of assets they own. The future impacts are likely to be significant for us as a small rural council and community. There’s a real danger that we will get ignored in the new multi-regional entity and our community will pay more for a lower level of service.

Despite the Minister continuing to say the national case for change is proven, we believe the local Kaikōura financial case just doesn’t add up. We cannot show that the Kaikōura community will be better off financially under the new entity model than if we continued on our own. It’s easy to make the financial case that ‘everyone’s a winner’ stack up if your base assumptions are wrong and you over estimate the level of future investment required. How can our Kaikōura three waters network worth $60m and that had substantial renewal and repair work after the earthquake require $280million of investment over the next 30years? We have asked this question of Government and to date they have been unable to answer.

Update April 2023

Even with the latest announcements in April 2023, KDC continues to be an active member of C4LD and oppose some Even with the latest announcements in April 2023, KDC continues to be an active member of C4LD and oppose some aspects of the reforms. Although increasing the number of entities has the possibility to strengthen the local voice and influence at the decision-making table, there has been no details as to how a move to more entities will achieve the improvements in the economies of scale and associated efficiencies promised by the reforms. Nothing has also changed in terms of the local case for change and the base numbers and assumptions used for KDC, which we have always contested and challenged. We remain unconvinced at this stage that our community will be financially better off under the new entity model going forward.

When the idea of three waters service delivery reform was first introduced there was an initial stimulus funding package made available to all Councils across the country to assist with Three Waters network improvements. This funding was provided on a good faith basis with no commitment required from any Council to join the 3 waters reforms process at a later date. The MOU can be found in the section below.

When the idea of three waters service delivery reform was first introduced there was an initial stimulus funding package made available to all Councils across the country to assist with Three Waters network improvements. This funding was provided on a good faith basis with no commitment required from any Council to join the 3 waters reforms process at a later date. The MOU can be found in the section below.

• Seismic upgrading of Kaikōura township water supply treatment
• Water supply treatment upgrading Kincaid, East Coast, Suburban and Fernleigh
• Inflow control and infiltration of wastewater network
• Spare pumps for main and local wastewater pump stations
• Standby generator for Kaikōura township water supply treatment and site fencing
• Standby generators for mobile wastewater network
• Odour control of wastewater network

Yes, Kaikōura District Council received a total of $1.88m on a no commitment basis back in August 2020. At the point the stimulus funding was offered to us the reforms were still voluntary and all Councils across the country were assured there would be locally led democratic process to determine whether to join the proposed Three Waters multi-regional entities or not.

We have used the funding to undertake a comprehensive programme of improvement works over the last 18mths. The programme of work is due to be completed at the end of June 2022.

At its August 2022 meeting Council decided to apply for the first portion of $1.55m from the Government's Three Waters Better Off Funding to satisfy a September deadline for applications. It noted in an accompanying letter that it would still strongly oppose aspects of the Three Waters Reforms publicly. It also reserved the right to not sign the final agreement depending on whether Government accepted requested changes to the draft funding agreement.

The Government’s Better Off fund is a $2bn package of funding to invest in community wellbeing. It does not pay for three waters infrastructure. Kaikōura is eligible for $1.55m now and a further $4.55 million from 1st July 2024.

The DIA informed Kaikōura District Council that its application for the shortlisted projects was successful, but confirmed that they are not prepared to make changes to their draft funding agreement.

At an Extraordinary Council Meeting on 14 December, Kaikōura District Council Mayor and Councillors voted six to two in favour of signing the final funding agreement for $1.55m from the Three Waters ‘Better Off’ Fund which will benefit 12 community projects. This was following a request from Council to have amendments made to the draft funding agreement being declined by the Department of Internal Affairs (DIA). Council also voted unanimously to continue to voice its opposition to aspects of the Three Waters Reforms and that its opposition would be noted in the funding acceptance letter.

CEO Will Doughty acknowledged that central government had put elected members in a very challenging position by once again refusing to listen. “It was a tough decision whichever way they voted, requiring a considered balance of principles, conscience and community benefit.” Mayor Craig Mackle noted that the current government is hell bent on pushing the aggressive reform agenda at all costs to local democracy, but that KDC will continue to voice its opposition. It is anticipated that the DIA will release the funding upon signing the agreement and so the 13 community projects can get underway early in the new year.

Community amenities, housing, sports, and tourism are in line for a potential boost from the funding, shortlisted by Kaikōura District Council from a wish list that could not be accommodated in the Long Term Plan and are unlikely to be funded in the short to medium term.

The list includes;

1. Upgrading play equipment and surfacing at Gooches Beach playground
2. Upgrading the toilets and creating a public meeting space at West End carpark,
3. Providing a toilet for Churchill Park
4. Support for the new sports facility at Takahanga Reserve
5. Seed funding for an asphalted pump track
6. Support towards International Dark Skies accreditation
7. Additional upgrades to the Scout Hall
8. Additional Upgrades to Kekerengu town hall
9. Feasibility study for papakainga housing
10. A Kaikōura township flood protection feasibility study
11. Reseal of the community parking area for the pensioner units
12. Upgrade to the Kaikōura Lookout.

It is expected that the funding towards these projects will be released early 2023.

You can keep checking this webpage which has the latest information released from both Central Government and the Communities 4 Local Democracy campaign (C4LD).

Progress updates are also provided in the Council monthly meeting papers typically in the Chief Executive’s monthly report (under matters for information) and the Council’s monthly ‘Work & Services Committee’ agenda . The agendas can be found at the following link: Monthly Council Meeting Agendas & Minutes

It appears that Central Government is committed to its current course despite significant opposition from Councils and their communities across the country. Kaikōura District Council will continue to work through the C4LD group and advocate for changes to the proposed legislation and there are some political decisions required in the not too distant future with regard to whether we access the additional funding or not. Community members that feel strongly about the reforms should continue to voice their concerns to both Kaikōura District Council (see the link on our website to also keep informed) and our local MP.