The delegation led by Deputy Mayor Michael Ford explained that amongst concerns around property rights and fair compensation for the investment made by residents, there was a real possibility that the transfer of Three Waters services into the proposed entities would stifle economic development.

“When approached by a developer with a proposed development that involves an extension to three waters networks, MDC is able to negotiate directly with the developer to reach a mutually acceptable solution… The transfer of decision-making from local government to Entity C will remove MDC’s ability to work directly with customers to develop customised solutions,” said Deputy Mayor Ford.

The delegation questioned the proposed entities abilities to cater for land use planning without any local knowledge at a decision making level and they also highlighted that decision making around three waters assets needs to be made in conjunction with roading, District Planning and economic development.

Concerns were also raised about stormwater issues in Feilding, which had been highlighted by recent extreme rainfall events. MDC has already begun to address some of the issues identified, with a plan developed that has been costed at $18 million approximately and council is keen to continue that work and see it through.

“We are concerned that divorcing decision-making for stormwater management from Council’s land use decision-making will result in poor outcomes,” added Ford.

Speaking as the Chair of Communities 4 Local Democracy, Manawatū District Mayor Helen Worboys said that they had commissioned their own modelling which demonstarted that the transition costs of setting up the new entities was wasteful.

“Castalia’s modelling for us shows that capital expenditure in the sector is actually financeable for the next 20 years, and beyond that with only the most modest of price increases. Accordingly, the four mega entity, “balance sheet separation” is simply not necessary. Other structural alternatives do exist and would effectively address the core problem,” said Mayor Worboys.

Council believes the calculations made by the Department for Internal Affairs (DIA) exagerated residents savings on water rates, which is based on flawed assumptions that weren’t checked prior to proposed reforms being made public.

Deputy Mayor Ford called on the government to engage in meaningful dialogue with council’s and work with Communities 4 Local Democracy on a co-designed model that would be better for all.

“This model does not work for our District. Our system is not broken. It needs enhancing. Communities 4 Local Democracy have given you the way forward, which Manawatu District Council supports.”