Council to submit to Water Services Entities Bill

The Central Otago District Council will be making a submission regarding the creation of four publicly owned water services entities which will come into effect in 2024.

At the Council meeting today (Wednesday 6 July 2022), members agreed that a submission to the Water Services Entities Bill be drafted and circulated to councillors for feedback and finalising prior to 22 July, the closing date of the Bill which is now in Select Committee at Parliament.

This Bill will establish the four entities that will provide water, wastewater, and stormwater services in place of councils from 1 July 2024. It contains the ownership, governance, and accountability arrangements for the new entities, and the arrangements that will be put in place during the transition period over the next two years.

This is the first in an expected package of legislation, with further legislation expected in the coming months that will provide details relating to the transfer of assets, liabilities, and other related matters from councils to the new entities, specific powers, responsibilities, and functions to the entities, including pricing and charging arrangements; economic regulation and consumer protection regimes, and any changes that are related to Treaty settlement legislation to transfer obligations that currently sit with councils to the new entities.

The Bill had large sections relating to the governance, management, and asset management planning, and the administrative requirements related to these, Central Otago District Council Executive Manager – Infrastructure Services Julie Muir, said.

It covers the transfer of employment of staff (excluding senior managers) who predominantly work in the water activities from councils to the new entities. Of specific interest was the requirement on the Department of Internal Affairs (DIA) to oversee council’s agendas, and decisions relating to water activities during the transition period, she said.

“There is a very tight timeframe of one month in which to submit on the Bill. The timing of the submission period, along with the timing of the Council meeting has meant staff have been unable to prepare a proposed submission for councillors to consider today. This also coincides with the end of our financial year which is a high workload period.”

A number of organisations that council was affiliated to were preparing submissions on behalf of local government organisations, Ms Muir said.

“The Otago and Southland councils have also agreed to share their submission to assist each other in providing feedback to government on what is a large and complex bill, which will have significant implications on our communities.”

Council staff will prepare a submission and circulate this to councillors by next Friday 15 July.

“The tone of the submission will reflect the views of the Council, which is that our community doesn’t want it (3 waters reform): If we have to have it, these are our views,” she said.

Councillors will then have opportunity to provide feedback by 20 July, prior to the submission being finalised and presented by the due date of 22 July. The submission will then be ratified at the council meeting on 24 August.