The Govt's plan to replace Three Waters

Council-controlled water organisations will be able to leverage up to 500% of their operating revenues through the local government funding agency.

The Commerce Commission will oversee it to make sure there is appropriate investment, maintenance, and delivery of water infrastructure for consumers long-term. 

Auckland Councillor Daniel Newman joins Ryan Bridge on Early Edition to discuss. 

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Episode Transcript

Speaker 1 (00:00):
The government's plan to replace the three Waters legislation has
been revealed. Council controlled water organizations will be able to
leverage up to five hundred percent five times. Basically, they're
operating revenues through the local government funding agency and they
can body up with councils to do this. Councils not
necessarily even on their border, so the Commerce Commission will

(00:24):
oversee it to make sure there's appropriate investment, maintenance and
delivery of water infrastructure for consumers' long term. The Auckland
councilor Daniel Newman is with me this morning. Good morning Daniel,
Good morning Ryan. What do you make of this? Is
this better than three Waters?

Speaker 2 (00:39):
Yes? It is. It is because it keeps the assets
within council. It does provide a facility for borrowing to
fund and that facility will be cheaper. It will put
real pressure back on councils in terms of ensuring appropriate
governance of these wars water entities. But I think it's

(01:01):
a better model than what was proposed by the previous government.

Speaker 1 (01:05):
What does it mean in Auckland for water Care.

Speaker 2 (01:09):
Well, what it will mean is that water Care is
able to effectively borrow off the off the council's balance sheets,
so that allows it to be able to access more
more debt. But you know, it would be a cheaper
borrowing facility, and that's quite important because your borrowing capacity

(01:30):
is restricted according to your debt to revenue ratio. So
at the moment, what would happen if you didn't have
access to cheaper debt? You would have to raise rights
rates faster and faster in order to ensure that you
maintain a debt to revenue ratio, which is you know,
I don't want to be basically be taxing my constituents

(01:51):
just to meet a borrowing limits. So I think it's
a better option for for Auckland. Is I think it
will probably be a better option for a lot of
peace around the country.

Speaker 1 (02:01):
Yeah, they reckon you can you know we're borrowing five
times what you take in through your water rates. It
would double what the current most cecos would currently do.
Do you do we need Does Aukland need to buddy
up with anyone else?

Speaker 2 (02:13):
Auckland won't need to buddy up with anybody, And I'm
quite relieved about that. Auckland is big enough and ugly
enough to look after itself. But there will be councils
outside of the Auckland region who I'm sure will need
to buddy up. And that's not unworkable. It is complex,
but it is it is. It is a feasible option

(02:36):
if you can get that partnership relationship through a shareholder's
representative group.

Speaker 1 (02:40):
Daniel, very quickly, in one word, can you answer this question?
Wayne Brown's gone to the Herald this morning saying he
wants to dethrone Auckland Transport, stripping away the unelected board members' powers,
putting elected representatives in full control. He wants to gut
the place. Do you agree with him? Yes, thanks for
your time.

Speaker 2 (02:59):
That is sick.

Speaker 1 (03:01):
That's Daniel Newman, the Auckland Counts.

Speaker 2 (03:03):
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Speaker 1 (03:07):
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