Separation of Three Waters assets creates confusion

Council staff are continuing to scratch their heads over the details of the Three Waters reform.

North Canterbury councils say there is still confusion over what Three Waters assets will be handed over to the new water services entity and what will be retained.

Under the legislation the new Canterbury / West Coast water services entity would take over the staff, plant and pipes related to drinking water, stormwater and sewage.

It seems straightforward, except there is confusion over what constitutes rural and urban stormwater.

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There were also several different land ownership models.

In a shake-up last month, the government is now proposing 10 large regional water service entities across the country, instead of four.

The National Party said it will repeal Labour’s changes if it comes to power in October.

Under the Water Services Entities Act, the new entities will manage stormwater networks in urban areas, a Department of Internal Affairs spokesperson said.

Councils will continue to manage rural drainage and transport corridors, which were part of the broader stormwater system.

Hurunui District Council chief executive Hamish Dobbie said separating rural and urban stormwater will ‘‘create a mess”.

“If you take a town like Cheviot, the stormwater coming from the north off State Highway 1 comes into the town system, and then it goes downhill and discharges into a rural area, so we’re not sure how that fits in.’’

Kaikōura District Council chief executive Will Doughty shared Dobbie’s concerns.

‘‘When it comes to stormwater there is ambiguity over where it begins and ends.

‘‘There is no communication around what the reforms are and what they mean, so they are leaving it to councils to update our communities in terms of the reform – and it is not our policy.’’

Doughty hoped the two-year extension, to July 2026, would lead to better outcomes.

The Hurunui and Kaikōura councils have expressed concerns the reform could leave them with no plant, assets or people, or the ability to rate for Three Waters, but still having to maintain a rural stormwater infrastructure.

The ability to respond to natural disasters was also a concern.

Waimakariri District Council utilities and roading general manager Gerard Cleary said as a larger council it would still have the capacity to maintain rural infrastructure and respond to flooding events.

‘‘We have done the financial modeling and while we would lose some economies of scale, and that does come at a cost, we feel we will still have the capacity, particularly given we are a growth council.’’

Cleary said the council would aim to work closely with the new entity, with the intention of responding together to a natural disaster.

Of the properties used for Three Waters, some was used for multiple purposes, while other properties were road reserve, Crown, private or Environment Canterbury land.