The regional water entity proposed under the Government’s Local Water Done Well scheme could see Central Hawke’s Bay with the highest water rates in the region.

Central Hawke’s Bay annual water rates for connected users could go from around $3000 per property to between $7000 and $7600 within ten years, depending on which option of the proposed three is chosen.

“We’re in a perfect storm in Central Hawke’s Bay. We’re having to invest in catch-up from past underinvestment, meet growing regulatory expectations and invest for the future all at the same time,” Central Hawke’s Bay Mayor Alex Walker said.

“It’s very clear to the Councillors and I that the model is not a silver bullet to our affordability issues, but in the current changing legislative and regulatory environment, we are stronger together as Hawke’s Bay.”

Central Hawke’s Bay District Council, along with the three other territorial councils in the region, Hastings District, Napier City and Wairoa District Councils, began consultation on the Government’s new approach to water services delivery – Local Water Done Well – from today 12 May to 5pm 15 June.

Local Water Done Well sits alongside legislation mandating councils decide, along with their communities, how it meets the new standards Government has set for water delivery and quality of infrastructure. There are three options to decide from, Regional Council-controlled Organisation, a standalone Central Hawke’s Bay Council-controlled organisation or an ‘inhouse’ delivery unit –

“We prefer option one, the Regional Council-controlled organisation, which we jointly own with the other councils. It has the greatest benefits in terms of providing economies of scale, and ability to get the most skilled people working in our water space.

“We’re stronger together.”

The water rates were derived from modelling completed for business cases for each of the three options. Costs were determined from what each council indicated it needed to do in their longterm plans. While there are still a number of details to be worked out, it has been assumed each council would pay its own way for its water infrastructure, and this is the basis of the numbers presented to the community – so everyone can clearly see what costs and increases are looming over the next ten years.

“This is the biggest lever we currently have to reduce our rates impact. Come to one of our community conversations, go to our website, write us a letter -just get involved in the conversation,” Walker said.

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