Marlborough District Council has reminded the Government its Three Waters four mega entity is not seen as an acceptable solution.

In its submission to the Finance and Expenditure Committee – Water Services Legislation Bill last week, Council agreed there were significant challenges across the Three Waters sector, but the current four mega entity model was not the right way to address them.

Mayor Nadine Taylor said a large increase in investment was needed but the existing local government funding sources – debt repaid by rates and charges and development contributions – would not suffice.

“Changes are essential if health and environmental standards, including the requirement of the new freshwater policies, growth and climate change challenges are to be met,” she said. “In line with many other councils around the country, we want different options for ownership, better representation and oversight for our community.”

Marlborough District Council’s submission raises concerns about the calculation for Three Waters debt with the proposed method based on external debt only, Mayor Taylor said.

“Council’s submission is that all debt held against Three Waters assets – internally and externally – must be transferred to the new Water Services Entities, not left with ratepayers,” she said. “We consider it inequitable to penalise councils who have utilised other funding sources such as land sales, subsidiary dividends, forestry and property rentals to minimise external debt.”

Mayor Taylor said the National Party’s recently announced policy was more in line with Marlborough’s view of retaining local ownership and influence while keeping measures in place to ensure quality standards and accountability.

“Council now needs to look at the detail of what National is proposing, particularly in terms of central government funding support for community water upgrades,” she said. “We are also waiting on the outcome of the Government’s own review of its Three Waters reforms.”

Marlborough District Council is a member of C4LD (Communities for Local Democracy) and is generally supportive of their alternative model for Three Waters reform with the exception of the billing and charges as security clauses. Council also disagrees with having an independent director of compliance and enforcement, Mayor Taylor said.

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