10148 (2024). Hon Kieran McAnulty to the Minister of Local Government

10148 (2024). Hon Kieran McAnulty to the Minister of Local Government: What does the Local Water Done Well deal with Auckland’s Watercare involve?

Hon Simeon Brown: The new model provides Watercare with financial independence from the council allowing it to access more long-term borrowing to fund infrastructure investment while avoiding substantial increases in water charges for Aucklanders.  Key aspects of the Watercare model are: • Auckland Council retains complete ownership and control of Watercare. • The Council would not be able to provide financial support to Watercare in the event of any financial distress. This aspect of the model is critical to ensuring Watercare’s borrowing is considered separate from Auckland Council for credit rating purposes. • Any loans entered into by Watercare must include disclosures they are not guaranteed by the Crown. • A Crown monitor will be appointed to Watercare as a transitional measure, before the full economic regulation system for water services is implemented as part of Local Water Done Well. The new model for Watercare requires legislative changes which will be included in the Local Government (Water Services Preliminary Arrangements) Bill to be introduced later this month.