Ashburton District Council has asked to appear before Government’s Finance and Expenditure Select Committee to present Council’s feedback on the draft Water Services Legislation Bill that is part of Three Waters reforms.

The Council will be represented by Mayor Neil Brown and Chief Executive Hamish Riach.

Council remains strongly opposed to the overall Three Waters reform, and has made a number of points of concern in its submission.

Of particular note in the submission are the concerns about the reform intending to strip Council-owned company Ashburton Contracting Limited (ACL) of assets and resources associated with the delivery of Council’s water and wastewater services through reticulation and plant maintenance and operations.

These assets and resources are intended to be taken over by the new Water Services Entity covering the bulk of the South Island.

ACL also tenders for work in the private sector and contributes an average $600,000 dividend to Council a year - this income is used to offset general rates. As a commercially driven, arm’s length company that wins its work in the tender box, just like private sector providers, Council is deeply concerned ACL is being unfairly treated compared to private contracting companies.

Mayor Brown said that if ACL were to lose the water and wastewater contract, the likely reduction in profit and reduced dividend would roll through and directly impact ratepayers. There is also the question of loss in value of the company to the Council as 100% shareholder on behalf of the community.

He said ACL was a sponsor of community events and provided work to local people.

“We were alarmed that the transfer provisions in the bill apply to council-controlled organisations like ACL. We think the provisions were designed to capture big city operations like Watercare in Auckland, but they also capture us and ACL.

“We have asked to speak in person to the select committee when we present our submission, and providing an alternative solution to the issue.”

Mayor Brown said Council supported the technical points made in submissions by the Canterbury Mayoral Forum, Taituarā and Local Government New Zealand, but wanted to give its own feedback based on specific impacts to our district.

“We remain in strong opposition to the reforms as they are currently proposed, and we’d like to see the process paused for up to five years to let the new regulator Taumata Arowai settle in, and then see how readily councils are meeting their obligations and responsibilities.”

If, after five years, it was still necessary to reform then a regional approach with greater local input and local decision-making was preferred, he said.

Submissions on the bill have now closed. The Select Committee will gather information and prepare a report on the bill for the house, including recommendations, by 25 May.

You can read the full submission here.