A new water service delivery model has been proposed by Queenstown Lakes District Council (QLDC) and the option will go before councillors this week (Thursday May 29).

The proposal is for a Water Services Council Controlled Organisation (WSCCO). 

QLDC property and infrastructure general manager Tony Avery said assessments undertaken by QLDC show such a model “would provide the greatest opportunity to deliver high quality, resilient, sustainable and reliable water services and provide certainty for our communities on the provision of water services”.

A WSSCO would operate as a council controlled organisation specifically established to manage and deliver drinking water, wastewater, and stormwater services in the district, and to own QLDC’s current water assets and their associated debt and liabilities, he said.

The proposed organisation would operate independently from council and have its own specialist board and management, but legislation prevents it from being privatised or paying a dividend.

Council would set the organisation’s strategic priorities and establish measures to ensure it performs to expectations, while the Commerce Commission would use regulatory tools to ensure water charges are fair.

Tony said the council had assessed options for the future delivery of water services in the district as part of central government’s Local Water Done Well plan to address New Zealand’s water infrastructure challenges. 

The other shortlisted option evaluated was for QLDC to continue to deliver water services in-house,with changes made to comply with the new regulatory environment. An in-house model would be similarly subject to the Commerce Commission regulatory requirements.

The WSCCO and the in-house model were also assessed on their ability to attract and retain staff, adapt to changing requirements, maximise value and minimise waste, effectively and efficiently manage water services, and deliver to community priorities, Tony said.

“Under all scenarios, including council’s current Long-Term Plan, water charges are projected to increase substantially. The modelling undertaken shows that when compared with the in-house model, the proposed WSCCO model would initially result in higher water charges for households through to 2034, but long-term would lead to lower charges on average from 2034 to 2044.”

Councillors will be asked to agree to consult on the proposal at a council meeting in the Arrowtown Community Centre from 1pm on Thursday (May 29). A QLDC spokesperson encouraged people to attend the meeting, given the strong public interest in the delivery of water services.

If the proposal is approved by councillors, consultation will begin Monday June 2. 

PHOTO: Supplied