Latest news with #SelwynWaterLimited
Scoop
08-07-2025
- Business
- Scoop
First New Water Services Entity Springs To Life
Selwyn has become the first water services entity to be established under the Government's Water Done Well legislation. Local Government Minister Simon Watts attended the formal launch of Selwyn Water Limited today with Mayor Sam Broughton, local MP Nicola Grigg, and company chair Murray Strong. Watts confirmed at the launch that the Secretary for Local Government, Paul James, had formally accepted Selwyn's Water Services Delivery Plan. Selwyn Water Limited will deliver drinking and wastewater services to around 30,000 households and over 8,000 businesses across New Zealand's fastest-growing region. Broughton said the formation of Selwyn Water marked a major milestone for the District. 'After years of talking about water reforms, we're pleased to have moved to give our residents certainty for the future of drinking and wastewater services. 'Selwyn Water will deliver services that enable community and business development and protect environmental health, it will manage its finances prudently and operate independently from rates.' The councillors had voted 6-5 to move the district's drinking and wastewater to a council controlled organisation (CCO). That decision has received plenty of pushback, with 89% of the submissions calling for the alternative in-house model. Broughton previously said those submissions represented 1% of the population. At the opening, he said most of the things that had been raised by submitters had been considered by the council's three waters subcommittee. 'The council decision was already around a preferred WSCCO to set us up for the future.' Established under the Government'sLocal Water Done Wellframework, Selwyn Water Limited is the first CCO of its kind. It combines public ownership with customer services expertise and will be governed by an independent board. Over the next six months, the council will transfer relevant assets, staff, and systems to ensure a seamless transition and continuity of service. In its annual plan, the council has budgeted around $11 million for the transition to the CCO. It had already budgeted, in November, $2m to support the proposed establishment of a CCO and development of the Water Services Delivery Plan. Selwyn Water chairperson Murray Strong noted that the utility is being built on a strong foundation. 'Selwyn Water will be a 'best in class' public utility company, aligned with Council and Government expectations and subject to oversight from the Commerce Commission and Taumata Arowai. 'Our flexible structure also allows for other councils to partner in future, creating efficiencies and further cost savings across districts.' Broughton was confident that any future amalgamation of services with other councils wouldn't require a new CCO. 'This has been set up and designed from the beginning to be able to shape and change itself, and morph into whatever the future requirements are for the districts that want to be a part of collaborating for Canterbury.' Selwyn MP Nicola Grigg welcomed the launch as a practical response to the community's growth and infrastructure demands. 'I'm very pleased to see the council move to enable this ownership model and look forward to Selwyn Water delivering high standards of service for our people.'
RNZ News
08-07-2025
- Business
- RNZ News
Selwyn Water company 'continues local ownership, prevents privatisation'
The Selwyn waste water treatment plant stays in the hands of locals under the new plan, says the mayor. Photo: RNZ / Nate McKinnon Selwyn District Council has become the first in the country to establish a company to manage water and wastewater. Selwyn Water Limited was set up at a cost of $2 million under the government's Local Water Done Well legislation, which let councils create entities that could borrow more than councils were able to on their own. It would provide drinking and wastewater services to about 30,000 households and more than 8000 businesses. Selwyn Mayor Sam Broughton was joined by Local Government Minister Simon Watts and Selwyn MP Nicola Grigg at a formal launch event at the Pines Wastewater Treatment Plant on Tuesday. Photo: RNZ / Nate McKinnon Broughton said it was a milestone for the district and would future-proof its water infrastructure. "A stand-alone CCO [council controlled organisation] to manage our water and wastewater means we have continued local ownership, prevents the privatisation of our water assets, it means we think about a long-term future and brings in governance excellence to the management of our water," he said. The council voted for the model in April, despite about 87 percent of 424 public submissions against the proposal and in favour of keeping water services in-house. Broughton said public conerns about potential higher costs and reduced local control had been addressed. "We take all community feedback really seriously, we had hearings, we had people come and talk to us about what they had written down and during that process it became really clear the community congratulated us as a district for the investment that had already been made and that was part of the reason; 'why change it because you're already successful now'," he said. "Another key factor was that people were scared of privatisation, so we've made sure that has been dealt with too and the primary legislation meant that that couldn't happen as well. The continued local ownership and influence for the community is also taken account in the set-up because this isn't a separation for the community. Selwyn Water will continue to hear from our community to be a part of future decisions." Photo: RNZ / Nate McKinnon Water charges were expected to be higher for ratepayers initially because of set up costs but cheaper after about 10 years. "We put aside $2 million to set up the CCO and that has been paid for and some of that will be repaid through water charges. Our water charges in Selwyn have always been separate from rates and capital values of properties so that will continue with the new organisation being set up," Broughton said. "Anything we do with water needs to be done sensibly and thinking not just about today but for the generations to come as well." An average 14.2 per cent rates rise took effect for Selwyn ratepayers from July. The council said an in-house model would limit its ability to borrow for large-scale infrastructure projects needed to support Selwyn's rapid growth. Photo: RNZ / Nate McKinnon The CCO had the ability to borrow up to 500 percent of its revenue through the Local Government Funding Agency, compared to the 280 percent cap for councils managing water in-house, it said. Local Government Minister Simon Watts said the launch of Selwyn district's water service entity marked a significant milestone of water reform. The council was the the first to get its plan approved by the government ahead of the national deadline on 3 September. "I look forward to seeing similar Local Water Done Well plans progress in the coming months," Watts said. "Selwyn District has demonstrated it has a financially sustainable plan for the delivery of water services that meet health, quality, and environmental standards, along with community expectations. "I will be watching with interest how Selwyn Water manages the projected price increases for consumers during the initial years of their plan. I expect the Commerce Commission, as the economic regulator, will closely monitor to ensure the delivery of forecast levels of capital investment, justify the price." Over the next six months, the council would transfer relevant assets, staff, and systems to Selwyn Water. Stormwater services would remain managed in-house by the council. Photo: RNZ / Nate McKinnon Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
