Leaders open to council merger
A "mega merger" of the West Coast's four councils into a unitary structure is not off the cards, local government leaders say.
Southland District Mayor Rob Scott has just backed a full-scale merger in the Deep South.
On the West Coast, an attempt in 2015 to merge the four councils through a citizens-initiated referendum resulted in the Local Government Commission ordering a combined district plan instead — Te Tai o Poutini Plan (TTPP).
Greymouth Mayor Tania Gibson said the region's leaders were always talking about ways of working more closely but much of that had yet to move beyond discussion.
"I'm not opposed to it ... it has to come as far as I'm concerned, and it will come eventually."
However, merging councils could also effectively mean "throwing out the baby with the bath water" and ending in "bureaucratic excess," Mrs Gibson said.
Buller Mayor Jamie Cleine said he did not believe the current government had an appetite to impose amalgamations on the West Coast, "but I wouldn't be surprised".
"I honestly think Local Water Done Well will be a bit of a test as to how councils work together," he said.
Buller, Grey and Westland district councils are considering forming a joint company or CCO (council-controlled organisation) to take over three waters (drinking water, wastewater and stormwater) functions throughout the region.
West Coast Regional Council chairman Peter Haddock said he believed a restructure had to come, based on the need for "rates affordability".
It would have to be on the basis of "fair representation" across the whole region.
He could foresee that, bringing about at least a two-council unitary authority structure that absorbed the current environmental functions of the regional council and combined with the current Westland and Grey district councils into a southern West Coast unitary council.
"There's got to be a way forward in the future. That's a question for the new council.
"However, the one plan [TTPP] is the key to it," Cr Haddock said.
The TTPP provided a model for collaboration by implementing a regime "run by the same set of planning rules" regardless of local authority boundaries in the region.
"That will be the founding document for it going forward.
"[But] I still believe there has to be some form of service centre in Buller, Grey and Westland."
Mr Cleine said he could definitely see a merger coming but he did not sense any real groundswell yet to formally instigate it.
"There isn't an appetite I don't think for a full governance merger-type scenario — just because of our geography."
He had "no fixed views" on the possibility, apart from not wanting Buller district swallowed up by a mega council administering the whole region.
"We shouldn't rule out some form of closer working together on the West Coast ... apart from not having one structure."
He agreed the Local Water Done Well reform was an important step and a tangible foretaste for wider restructure.
The joint CCO proposal was a "no-brainer to access cheaper capital" for asset provision, given the Westland, Grey and Buller councils faced a combined bill of $250 million to upgrade three-waters infrastructure.
If that got runs on the board it might give more impetus to other efforts to come together, Mr Cleine said.
"Seeing how that lands and getting that up and running could be a good vehicle to look at other areas."
Westland Mayor Helen Lash was not available for comment. — Greymouth Star
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
a day ago
- Scoop
Water Services To Be Managed And Delivered By Council Controlled Organisation
Queenstown Lakes District Council (QLDC) has confirmed a Water Services Council Controlled Organisation (WSCCO) will be specifically created to deliver water services in the district, after the matter was considered at the Full Council Meeting on Thursday 31 July 2025. The decision follows a proposal put before the community in May and June 2025 to manage and deliver drinking water, wastewater, and stormwater services, as part of central government's Local Water Done Well plan to address Aotearoa New Zealand's water infrastructure challenges. Mayor of the Queenstown Lakes District, Glyn Lewers said the decision reflected analysis that a WSCCO would be the most effective at providing these services under the new legislative and regulatory regime, and enabled Council to begin preparing to create an organisation to deliver future water services. 'Key themes arising from feedback centred around the costs to households, costs to implement and operate a potential WSCCO compared with the in-house model, along with comments around accountability, transparency, and managing a separate entity effectively,' said Mayor Lewers. 'The decision to progress with a WSCCO last week was undeniably a challenging one to make, but considered that this model will provide a range of advantages in accountability, independence, and lower household costs in the long term when compared with the in-house model.' Now decided on, the future WSCCO will be fully owned by QLDC, but the organisation will be governed by its own independent specialist board and management. QLDC will be the only shareholder and will appoint board members based on the skills and experience needed for proper governance of the new organisation. Intended legislation by central government will prevent any WSCCO from being privatised which means that the WSCCO will remain wholly owned by QLDC. Council will set the organisation's strategic priorities and establish measures to ensure it performs to expectations, while the Commerce Commission will use various regulatory tools to ensure water charges are fair, cost-reflective, and transparent. The other shortlisted option evaluated was for QLDC to continue to deliver water services in-house, recognising that changes would need to be made to enable Council to respond to the new regulatory environment if such a model was progressed in-house model would have been similarly subject to the Commerce Commission regulatory requirements. Letters and emails were sent to all ratepayers in the Queenstown Lakes District, along with supporting communications material shared in local papers and on a range of online platforms, all detailing the opportunity to share feedback on the WSSCO and in-house models. Over 120 submissions were received during the consultation period, the majority of which were in favour of the option to retain water services in-house. Mayor Lewers said given drinking water, stormwater, and wastewater services all cost ratepayers a significant amount of money that would increase regardless of which approach to water services was taken, it was imperative Council took a long-term view to ensure those services were reliable, sustainable, and future-proofed. 'I acknowledge that while the majority of submitters opposed a change to how water services are delivered, Council's role is to consider community views alongside legal and technical perspectives, and many of the genuine concerns raised have since been addressed by evolving legislative changes,' said Mr Lewers. 'Any potential WSCCO must consult with the community on matters of significance, and proposed changes in the resource management space will require the integration of urban development and infrastructure planning between Council and WSCCO – both of which address potential disadvantages of proceeding with this model,' added Mr Lewers. 'Ultimately, after careful assessment of the two models, public input, the recent legislative changes, and debate on the matter, we can now provide certainty to residents of the Queenstown Lakes District around how their water services will be delivered in the future.' QLDC will now begin to establish a WSCCO under new water legislation. Responsibility for the district's water services, along with ownership of QLDC's water assets and associated debt and liabilities, will be transferred to the WSCCO once established. The WSCCO will be responsible for planning, funding, and delivering water services in accordance with new legislative and regulatory requirements. A Water Services Delivery Plan (WSDP) will be prepared and submitted to Department of Internal Affairs (DIA) by Wednesday 3 September, describing the current state of QLDC's water assets and services as well as the future arrangements for delivery of water services.
Otago Daily Times
5 days ago
- Otago Daily Times
Mayor's vote seals decision to go with CCO
Queenstown mayor Glyn Lewers. PHOTO: ODT FILES A mayoral casting vote was needed to decide how Three Waters services will be delivered in the Queenstown Lakes district. After nearly three hours' debate at a full council meeting yesterday, Mayor Glyn Lewers used his vote to ensure council staff's recommended option of a council-controlled organisation (CCO) won the day. Councillors were evenly split on the issue, despite 77% of the 118 submissions received during community consultation favouring the retention of Three Waters services in house. In her report for councillors, strategy and reform manager Pennie Pearce said submitters' main concerns about a CCO had either already been addressed by her original analysis, or would be dealt with by amendments to the government's "Local Water Done Well" reforms. Since submissions had opened in June, amendments had been made to the Local Government (Water Services) Bill that strengthened the case for a CCO, Ms Pearce said. Asked by Cr Esther Whitehead whether the council's recommendation showed a disregard for the consultation process, chief executive Mike Theelen said it was not a "game of numbers". He urged councillors to make their decisions "based on the information and evidence before you". The decision means the council will transfer the district's drinking water, wastewater and stormwater assets — and associated liabilities — to a CCO, but will be its sole shareholder. Ms Pearce's analysis projects average annual water charges for households to be 10% lower under a CCO in the long term, compared with the in-house model. The CCO will operate independently from the council, with its own specialist board and management, although amendments to the Bill will require CCOs to consult with the community on matters of significance. The council's debt is expected to significantly decrease, giving it more headroom for other capital spending. Property and infrastructure general manager Tony Avery told councillors a CCO would be "singular in its purpose", faster to respond to changing circumstances and better placed to secure debt and expertise. Cr Lisa Guy said the small number of submissions — about 100 from a population of more than 50,000 — did not represent a mandate for keeping the status quo. Many submitters had opposed a CCO, but also criticised the existing model for its delivery of Three Waters services. "If we're in agreement the status quo isn't delivering, how can we not be open to a model that might provide us with hope of doing it better?" Cr Niki Gladding said they were making their decision in a "fear and pressure environment" arising from repeated staff warnings of how central government might react if they chose the in-house model. "Neither option is the status quo. Both are an improvement. "I don't see why we can't achieve the benefits of a CCO — bar losing the debt — with an excellent in-house model." Cr Matt Wong said he was wary of basing his decision on cost, because he was sceptical about the accuracy of financial projections over such a long time period. They were under pressure from the government to make a decision based on highly complex information and a great deal of uncertainty, and he joked he would "need a coin" to make his. "I hope the public listening today is not going to judge any one of us on which way we vote."
Otago Daily Times
5 days ago
- Otago Daily Times
Major rates increase forecast for district
It was a case of more bad news for Waitaki ratepayers this week, with suggestions big rates rises could be coming sooner and more often than first thought, as the district tries to fund a financially sustainable in-house water services unit. There was also bad news for those who might be elected to Waitaki District Council in the October elections. As part of the government's Local Water Done Well reforms, councils throughout New Zealand must submit a Water Services Delivery Plan (WSDP) to the Department of Internal Affairs by September 3. The Waitaki District Council last month voted that would be done through an in-house business unit, rejecting three other options including a joint council-controlled organisation (CCO) with the Central Otago, Clutha and Gore district councils. On Tuesday, it held a second weekly workshop to refine a draft plan to be put to Internal Affairs for initial feedback this week. Following the first workshop, councillors heard a rates rise of 25.61% in the 2028 LTP year would be needed to fund the in-house plan (it might also rise to about 30% if depreciation of water assets was included in the WSDP). This week, the council's chief financial officer Amanda Nicholls told the meeting if depreciation was included the 2028 rates rise would need to be 42.55%, with another "significant" increase needed in 2035. However, Mayor Gary Kircher suggested including the depreciation earlier than 2028. Doing so would ease the needed rates rise but bring it forward, Ms Nicholls said. Mr Kircher said he did not think there was a choice. It would mean a 25% rates increase for next year, followed by a 30% hike the following year. He recognised that also meant leaving it to the new council (following the local body elections in October) to redo the long-term plan and try to reduce the rates rise by cutting capital projects. "There's a lot of stuff that council has to do between now and agreeing on that annual plan to cut costs elsewhere," Mr Kircher said. The existing long-term plan was put together under the understanding that the council would adopt a joint CCO water services model, as it had previously said that was its preferred choice of model.
