Local Government Minister Simeon Brown. Photo: Nick Monro / RNZ
Local Government Minister Simeon Brown has directed officials to work with the Wellington region's councils on a better funding model for water infrastructure.
Wellington Water has recommended the city's council spend $2.5 billion over a decade to fix its leaky water network. It had previously said $10b would be needed, but chief executive Tonia Haskell there were restraints on contractor availability, staff capacity and an acceptable level of disruption in the city.
Brown on Tuesday said the government was "working at pace" on implementing the Local Water Done Well Plan.
Policy work would ensure that councils had more tools around financial sustainability, including some changes to the Council Controlled Organisation (CCO) model, he said.
An example of a CCO includes the current model for Wellington Water - a water provider that manages council water assets in the region.
"We are currently working through the policy decisions on that, and we'll have more to announce, I think, in March."
Work was being done by the Department of Internal Affairs (DIA). Brown confirmed the government department was working with leaders in Wellington, Hutt Valley and Porirua.
"I have asked officials at DIA to start talking and working with the mayors in Wellington around what the future looks like for water services and delivery of water infrastructure in Wellington water now."
Brown said they need a financially sustainable model including an entity structure that can provide ring fenced revenue and the ability to attract long-term funding and financing.
It comes after Brown met with Upper Hutt Mayor Wayne Guppy and Wellington Mayor Tory Whanau on Monday to discuss Wellington, Porirua and the Hutt Valley's water pipe woes.
Guppy described their meeting as "straightforward", involving discussion of the issues facing Wellington and the country, and possible models for change".
The $2.5b figure was how much Wellington Water believed it could deliver in the city over the next 10 years, Haskell said.
"You have to build capability ... it does take awhile to do that, as I say we have been doing that steadily for the past few years."
Brown said he was focused on ensuring the Wellington and Upper Hutt city councils were taking their responsibilities around water service delivery seriously.
"There is significant leakage from their pipes, and I want to have assurances that everything is being done to avoid a water emergency here in Wellington."
Porirua Mayor Anita Baker told RNZ her ratepayers were staring down the barrel of an 18 percent rates increase this year, partly due to the pipes, so they needed water budgets to be separated from the council's books.
"They're complaining that we haven't done our job, and I'm saying, 'Well, I've put more money in, but it's simply never enough'."
Wellington Water Committee chairperson and Lower Hutt Mayor Campbell Barry shared a similar sentiment.
"I think that there does need to be a model that allows for balance sheet separation. That has to be an absolute bottom line here and that's what I certainly would be keen to work with DIA officials and obviously the government on."
Baker said water meters would also play a role in managing water in the region.
"I note Horowhenua ... have just done consultation on water meters, and they didn't get anybody for or against, so that makes me happy in the sense other regions do realise the importance of meters."
In December, Greater Wellington Regional Council chairperson Daran Ponter wrote to Upper Hutt, Wellington, Porirua and Lower Hutt's mayors and asked for them to indicate their plans to implement water meters into their long-term plans.
Ponter told RNZ all councils had now responded but he had gone back to them to clarify their stances.
"I've been around the traps a long time as a local authority politician, and there are all sorts of words that can be put into long-term plan documents ... that are effectively smoke and mirrors, so I am looking for clarity."
He was also interested in their long-term planning to cut down on water leaks.
Wellington City Council will be meeting tomorrow to workshop options to increase funding for fixing pipes.