Better Off Fund - feedback

No. Council has already reiterated its strong opposition to reform proposals and in July recommended the Water Services Entities Bill be withdrawn. Read more here.

The Tranche 1 Three Waters Reforms allocation is provided via a grant by Central Government, therefore there are no expected impacts on ratepayers. Tranche 2 however appears to be debt-funded, which will be transferred to any new Water Services Entity. How the entity decides to recover this debt and any subsequent impact on rates is unknown at this time. Check out the discussions by our elected members here.

Council has concerns around applying for the funding due to the uncertainty of any ongoing impacts on ratepayers with the current proposed Water Services Entity model. Check out the discussions by our elected members here.

Projects must fit into one or more of the criteria listed below which the DIA has set for Tranche 1 funding. A Funding Proposal must also be created that demonstrates genuine engagement with iwi/Māori in determining how Council will use its Tranche 1 allocation.

• Supporting communities to transition to a sustainable and low-emissions economy, including by building resilience to climate change and natural hazards.
• Delivery of infrastructure and/or services that enable housing development and growth, with a focus on brownfield and infill development opportunities where those are available.
• Delivery of infrastructure and/or services that support local place-making and improvements in community well-being

On 26 July, Council recommended a shortlist of projects that met the fund criteria for further consideration and engagement with iwi, mana whenua and our wider community. All of these are funded in the Long Term Plan, except for the Cambridge Library feasibility study, which was considered in the draft Long Term Plan. Check out the discussions by our elected members here.

No. The seven shortlisted projects have been selected due to the pre-engagement requirements and meeting the criteria provided by the Department of Internal Affairs.Check out the discussions by our elected members here.

Council has consistently maintained two bottom lines in considering any proposed three waters reforms:

Firstly, that our water infrastructure delivers potable drinking water and compliant waste water discharges in accordance with national standards and at an affordable level; and secondly, that our residents will not be worse of financially.

It is considered that the decision to legislate the 3 Waters Reform and require the expropriation and transfer of effective control of in excess $480m of community drinking water, waste water and storm water assets to one of the four proposed new water entities will not be in the best interests of Waipā residents.

One of Central Government’s bottom lines is that there will be no further government funding to assist in upgrading 3 waters infrastructure which infers that communities that have invested in their existing infrastructure could well end up paying twice to upgrade those communities that have not. We believe that Waipā could well be one of those communities subsidising others in the proposed Entity B.

In general local government across the country agree that:

• The proposed Water Regulator be established to set standards and make sure those standards are complied with;
• Quality safe drinking water and better environmental outcomes are essential;
• Individual Councils have the democratic right to determine whether or not to opt into the reforms;
• Ownership of community assets should be retained by those that funded them; and
• The accountability and governance of those assets also be retained as they are critical for the ongoing planning and development of any community.

We disagree with the Government that a four entity solution is necessary to gain economies of scale. We are sceptical of the base figures used to draw these conclusions as a number of Councils do not have an accurate assessment of their infrastructure asset management plans; while Central Government does not have national standards for sewage or storm water discharges.

We raised this with the Department of Internal Affairs (DIA), as we too were concerned that, in signing the funding agreement, there would be limitations on the position that Council would take in opposing the proposed reform.

The DIA have sent a response as follows:

“Your concerns about the Better Off funding agreement are noted.

We acknowledge the importance of councils being able to independently express their views of the reform programme. However, the funding agreement for the Better Off package, including clause 4.3(c)(v), does not preclude councils from doing this.

Instead, clause 4.3(c)(v) allows for the Department of Internal Affairs (the Department) to terminate the agreement in the event the recipient of the funding is involved in any intentional or reckless conduct which, in the opinion of the Department, has damaged or could damage the reputation, good standing or goodwill of the Department or the New Zealand Government, or is involved in any material misrepresentation or any fraud.

For the avoidance of doubt, it is not the Department’s view that public criticism or expressions of opinions on the three waters reform would represent a breach of the clause. As such this clause does not restrict your community from being able to actively participate in the debate on the reforms. On this basis we will not remove clause 4.3(c)(v) from the funding agreement.”

Given this response from the DIA, we are satisfied that in possibly taking up the Better Off Funding opportunity, and signing the required funding agreement, there is no risk of liability in then continuing to oppose the water reforms as currently proposed.