You are going to get used to the term “Three Waters” in 2021. It refers to drinking water, storm water, and waste water (sewage). Along with roads, the three waters are the core of council infrastructure, and, historically, the reason for councils’ existence. Legislation from the 1860s created borough councils by combining roading and water boards.
Why is this important? Because the Government is about to take the three waters away from councils.
For nearly two decades, I have been questioning council spending on core infrastructure – or rather, the lack of spending. Rates have instead been diverted to vanity projects and higher managerial salaries. Council staff have told me I don’t know what I am talking about, despite my figures coming from the council’s public data. Councillors have criticised me for complaining, despite every Auditor General’s Office annual reports for the last ten years criticising the chronic underinvestment.
Cabinet papers now put the mismanagement at $50 billion to fix. Sounds like I was right in a big way. That does not make me happy – I am both a ratepayer and a taxpayer. There are no winners here. I just wish I had been listened to earlier when preventative maintenance could have saved much of the cost.
Contaminated council drinking water killed four people in Havelock North and made another 5,000 sick. But the main issue is the water shortages every summer in places like Auckland.
This has nothing to do with droughts and global warming – summer has always been dry. Reservoir storage has not kept pace with increasing populations. This is a lack of investment. It is exacerbated by old water pipes leaking underground. This is a lack of maintenance.
Flash flooding in Wellington and Napier in December also had nothing to do with global warming. Stormwater pipes clogged by leaves and tree roots could not cope with the increased collection from city growth. Rivers did not burst their banks – instead the damage was done by pipes overflowing.
Surface water from even moderate rainfall ends up getting into the wastewater system through old grates, manholes, and gully traps. Overloaded treatment plants send raw sewage into Auckland and Wellington harbours all too frequently. Farmers get hit with convictions and massive fines for less.
Wellington recorded an average of 40 pipe bursts per week for 2020. Tauranga, Hamilton, New Plymouth and Taupo have had significant failures.
What worries me now is the government’s solution. I hope I am listened to this time.
The government’s proposal is new legislation to create 4 regional water management organisations to amalgamate and take control of council infrastructure. In theory, amalgamation should lead to better efficiencies. This was the reason behind the Auckland Super City. But in practice, the new organisations will take on the same staff with the same attitudes that led to the problem. This is the same reason the Auckland Super City has failed.
I predict virtually no job losses, which means no efficiency improvements and no cost savings. As usual, senior management salaries will go up because the organisation is bigger – despite the job being simpler. There is no need to negotiate the current difficult balancing act of local body politicians, competing budgets, and coordination with neighbouring districts. Surely this should mean salaries could be reduced? This is backed up by the law of supply and demand. There should be a dozen council water bosses competing for each new regional top dog position. Instead, I predict a rash of new “consultants” being paid more than their current salaries.
Contractors will amalgamate as well. Big firms will take the regional contracts, not because of sharper prices, but because they can provide the required bureaucratic paperwork.
The regional organisations will set their own water rates, with no representation from elected councillors, and no competition. The more it costs, (particularly wages) the more they will charge.
Legislation is only part of the solution. It is the application that is critical, and the devil really is in the detail. I would like to be proved wrong. To do that, the government needs to set strong performance criteria, and introduce some form of supervision by people outside the current council systems but they should not copy the District Health Board model. It needs to be apolitical, and don’t hamstring it with treaty obligations – this is simply too important. It will take a generation to fix. We, the people, need this done right.
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