The Whakatāne District Council has signalled its willingness to collaborate with other councils through a Council Controlled Organisation (CCO) for the future delivery of water, wastewater and stormwater services.
At a public briefing on 26 March, the Mayor and elected members reviewed two potential options: an internal business unit, or a multi-council CCO. While no formal decision was made, most elected members indicated their support for the collaborative CCO model as the most effective and sustainable solution for the district’s water services.
Council staff and advisors have assessed the district’s Three Waters activities and analysed potential delivery options in line with government legislation. Mayor Dr Victor Luca emphasised that a long-term vision is necessary to ensure affordability, sustainability, and investment certainty for the community.
“This is one of the most significant changes in Whakatāne District Council’s history,” he said. “While Local Water Done Well provides an option to retain in-house services, we must be realistic about the challenges we face.”
He continues, “We are a large district with a small population, and affordability is a key consideration - currently, ratepayers connected to all three water services contribute about 50 percent of their rates towards water.”
Under the Government’s Local Water Done Well legislation, all councils must submit a Water Services Delivery Plan by 3 September 2025, either individually or jointly. The Government has given strong signals that collaboration will be a key factor in the success of these plans.
Mayor Luca indicated that financial modelling and other considerations suggest that the advantages of a regional approach outweigh the disadvantages.
“Going it alone would be incredibly challenging. The aim of a collaborative approach is to achieve greater efficiencies, strengthen our workforce, and ensure we can continue to deliver high-quality water services.”
Under a multiple Council model, the Whakatāne District Council would be a shared owner, along with other councils, of a limited liability company responsible for delivering water services. All assets, revenue, and debt would transfer from council ownership to the new company, which would provide services directly to customers, set charges under regulatory oversight, and ensure service reliability, affordability, and compliance. In saying that, the Council would be able to set its expectations of the Board to ensure local issues and priorities are fairly considered in planning and service delivery. The Council is keen to ensure that our strong relationships with iwi and hapū are well reflected in any future model.
“Models suggest an organisation with the scale would better manage our district’s current and future water challenges,” Mayor Luca said. “Much of Whakatāne District’s water infrastructure is aging, with 43 percent of underground pipes over 50 years old and needing replacement in the next 30 years. Addressing these issues will require significant investment and a joint effort.”
“This is a long-term strategy, and one best tackled together.”
The Council will make a final decision on its preferred option on April 10, 2025, and approve a consultation document. Community consultation is scheduled to commence from April 17, 2025, and last a month. The final Water Services Delivery Plan and Implementation Plan will be submitted to the Department of Internal Affairs by 3 September 2025.
Mayor Luca said that he is expecting the community to make its voice heard through the consultation process.
For more information and updates, visit whakatane.govt.nz/localwaterdonewell.
ENDS