WATER DEAL: GOVT SAYS AUCKLANDERS WILL AVOID 25.8 PCT RATES HIKE, LABOUR SAYS ITS PLAN WOULD HAVE SAVED MORE

The Government says Aucklanders will avoid a hefty water rates increase after cutting a deal with Auckland Council.

The announcement was made by Prime Minister Christopher Luxon, Local Government Minister Simeon Brown, and Auckland Mayor Wayne Brown at a joint press conference.

"The plan, which has been unanimously endorsed by Auckland Council’s Governing Body, will see Aucklanders avoid the previously projected 25.8 percent water rates increases while retaining local control of water assets," Simeon and Wayne Brown said in a joint statement.

Simeon accused the previous Government of wasting $1.2 billion over several years to deliver a water reform plan that was "wasteful, took away local control, and was divisive".

"Some said that Local Water Done Well could not be done. But within the space of just six months, the Coalition Government has worked with Auckland Council on designing a new model for Watercare."

The new model means Watercare will be able to borrow more money for long-term investment in water infrastructure and spread the borrowing over a longer period rather than front-loading the cost onto current ratepayers.

Wayne said he's pleased with the deal.

"This outcome is exactly what we've been looking to achieve. The new Government asked us to come up with a preferred model, and they've agreed to implement it, which is good. I want to thank the Minister and the Prime Minister for the way they have handled this," he said.

"The idea of water rates increasing by more than a quarter in the year ahead was unacceptable. There had to be a better way, and by working in partnership with central government we have found one."

"I have long said that this was a balance sheet issue and needed to be treated like one," Wayne added.

Opposition reacts

Labour's Local Government Spokesperson Kieran McAnulty said the Government's plan will still be costly.

"This will still cost Auckland ratepayers more than if the Government hadn't repealed the Affordable Water Reforms," he said.

"Water charges will increase by 7 percent in Auckland as a result of this. They would've only increased by 2 percent if they'd followed through with affordable water."

"This is because the Auckland/Northland entity would've had a credit rating of AA, while Watercare will be BBB at best, so the cost of borrowing will be larger."

He said the Government's plan "is a solution for Auckland, but it will not work anywhere else in the country".

"The cost of the Government repealing affordable water is already hitting ratepayers across New Zealand with proposed rates increases significantly higher than they otherwise would've been. Every time a ratepayer opens their rates bill and sees an increase, they can lay that at the feet of this Government. The longer they take to spell out to Kiwis what they're going to do, the more expensive it gets for ratepayers," he added.

2024-05-05T00:35:37Z dg43tfdfdgfd