Water reform a long and winding road

Strong leadership and trust between everyone involved is the key to local government reforming water services successfully, says former TasWater chief executive Michael Brewster.

He presented at a workshop for Waipā District Council elected members last week about the future delivery of drinking water, wastewater and stormwater across the district, following his experience in guiding reform in Tasmania.

Brewster explained to the Waipā councillors that while the ‘nitty gritty’ of water reform was extremely complex and often controversial, the benefits of scale were real and when done well, both ratepayers and councils would be better off, with safety outcomes, service and pricing significantly improved.

“It’s a long journey, and comes at a cost, but doing nothing ultimately would mean customers being worse off, and increase environmental and reputational damage,” he said.

“Strong leadership and trust between everyone involved, as well as getting public confidence from the start, are the keys to success.”

He urged Council to be focused on the benefits to ratepayers, to be realistic and prepared to prioritise, and to work to build public confidence from the start. Having experienced and skilled staff in key roles was vital, particularly when the breadth of reforms mean there is keen competition for talent.

Brewster presided over water service reforms in Tasmania that began in 2011 with similar issues to those faced in New Zealand – failing infrastructure, rising costs, financial constraints, pressures on the environment and growing demands on capacity.

The 29 local government authorities in Tasmania eventually merged their waters services into one organisation, TasWater.

Brewster was one of three guest speakers at the workshop, who shared their experiences in water reform and provided context for councillors as they prepare for the decisions ahead of them.

All councils across New Zealand are required to consider the future management of water services under the Government’s Local Water Done Well legislation, and must prepare a water services delivery plan and submit it to the Department of Internal Affairs by September 2025.

Former Papakura Mayor David Hawkins, who worked at Auckland’s Watercare Services for 20 years, talked about the governance framework and accountability requirements of that organisation, and how its performance was monitored.

New Plymouth District Council Mayor Neil Holdom outlined his experience with electricity reform.

He detailed the various regulatory bodies who will oversee the new water entities, and explained that the economic regulations in particular would come at a considerable cost. “The forensic level of detail required by the Commerce Commission means there is a significant cost of being regulated,” he said.

However, the new water entities would be community-focused rather than profit-focused, and it was a clear matter of balancing price, quality and environmental drivers while accommodating future growth.