From the Mayor
By Martin Connelly
Water services have been a political football for some time. We associate “Three Waters” with the last Labour government, but it had been started by the John Key government, following the Havelock North deaths and carried on by the next two governments.
Now that National is back in power “Three Waters” has been replaced by “Local Water Done Well” (LWDW). It can be a bit hard to describe LWDW in simple terms.
Under recently-passed legislation, local councils have less than a year to develop plans to manage and fund water services, to the point where they are financially sustainable and government-approved.
Although not legally required, it has become obvious that the only way for most councils to ensure financial sustainability, is to set up Council-Controlled Organisations (CCOs) to operate those water services. This is because a CCO will be able to borrow money more favourably than a council.
For those not familiar with CCOs, they are entities set up to conduct activities on behalf of councils.
They are governed, managed and operated at arm’s-length from councils through an independent board of directors.
Our water services are currently managed by a CCO called Wellington Water.
This CCO is owned by the four Wellington Cities and us. The shareholding councils appoint a board of directors who then appoint a CEO.
Our Council has been exploring two different types of CCO to deliver future water services in the South Wairarapa. One would involve four shareholding councils, ourselves, plus Carterton, Masterton and the Tararua Councils. The other CCO we are considering is one that would include all the councils in the Greater Wellington Region plus the Horowhenua District. … Continue Reading
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