Water company a step towards unlocking regional growth

Water company a step towards unlocking regional growth

A stronger regional water network with a longer-term focus would be a huge step towards unlocking Waikato’s economy, according to Property Council Waikato.

A report from independent consultants Cranleigh released this week recommended Hamilton City, Waipa and Waikato district councils transfer their water assets into a single ratepayer-owned council-controlled organisation (CCO).

Branch President Rob Dol commended the councils for scrutinising the options for delivery and management of water services and said the cost savings of more than $469 million over 28 years would make a significant difference to the region.

“A CCO would deliver a stronger level of service in some parts of the region, with the ability to deliver more cost-effective water infrastructure.”

However, Mr Dol said there were issues with infrastructure growth charges in other parts of the country and the development community and commercial property industry would need to be consulted about any proposed new CCO structure at the earliest opportunity.

Under a CCO model, developers pay an infrastructure growth charge instead of a development contribution.

“We are pleased to see potential (growth capital) savings to customers through lower infrastructure growth charges of at least 4.25% a year, but because these charges wouldn’t be regulated by the Local Government Act, we would like to see a robust objections process put in place.

“The same principles need to apply to an infrastructure growth charge as with a development contribution – they need to be fair, transparent and clearly linked to the growth that occurs as a result of the development.

“We support Cranleigh managing director Paul Bayly’s comments that this CCO would need to meet the needs of the Waikato and offer a solution that meets the needs of three councils. It must also support and understand the needs of the development community and its role in the consents process.

“This report offers a forward-looking approach to managing local infrastructure and providing for growth in the whole regional economy.”

ENDS

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