By Prudintis (a Hamilton City Ratepayer)
There has been considerable hype for years around residential water meters – mostly political and often debated on ideological beliefs. Rarely have financial aspects been properly researched with a full business case being put before councillors and then residents.
Oldtimers remember the protective Labour governments of the 1950’s who sought to look after everyone with expensive policies that proved very little but to keep the country financially poor for decades. One or two of those believers still exist, still getting media attention despite living in remote locations where drinking water quality is dubious and metered.
There is international evidence that water meters lead to better water conservation by users, better management by councils and water entities, and a lower cost for consumers.
Hamilton City Council working with Waipa and Waikato in 2014 undertook a study to form a CCO (Council Controlled Organisation) to manage local water. It was a likely template for other local authorities to subsequently join and give the greater Waikato/Bay of Plenty a managed water supply with significant cost savings.
Sadly, the outlying politicians, for their own reasons, voted against an amalgamation. Hamilton then looked to Wellington waters model without success – fortunately, as it turns out!
The last time I looked, privatisation of water – ownership or delivery – is prohibited under NZ law. This of course does not prevent a future government from changing the law or giving away the water and its assets to Iwi as was a risk with the last government. There are successful models overseas (Scotland, Victoria, Tasmania etc.) that are owned by the local authorities and operate successfully and have done so for many years.
A downside, initially, is the cost of supplying and installing water meters and then setting up billing systems for occupiers but these have been successfully handled throughout NZ without downside financial effects on councils and ratepayers.
A recent example is Western Bay of Plenty District Council. Hamilton City Council spent nearly $20 million on plastic rubbish bins a few years ago when it rolled out its new refuse/ recycling project. There was minimal financial downside when this occurred. This to me is a red-herring and can be successfully managed. After installation councils may find the meters provide a new source of revenue and this must be in the minds of current council as it grapples to fund its continued overspending while it collects insufficient rate income.
It is ludicrous to suggest councils will make money out of water meter charging. Watercare in Auckland has often reported a moderate surplus, and this is an absolute if debt is to be repaid or for new infrastructure.
The big upside of residential water meters has to be conservation of water. The evidence is clear when metered, residents use less water and this must be a winner for the Greens and other left leaning politicians. In addition, water loss through leakage can be more accurately assessed and fixes undertaken on a timely basis. The city has no idea of its actual water loss, and guesswork surely must lead to inefficient outcomes both in terms of expert time and costs. An accurate assessment of usage will provide more accurate assessments of current needs and future capital spending.
There has never been a better time for councillors to remove the political hype and all the guesswork, and now call for a full business case that will spell out capital costs as well as ongoing revenue /expenditure outcomes in moving the city forward.
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