10327 (2024). Hon Kieran McAnulty to the Minister of Local Government

10327 (2024). Hon Kieran McAnulty to the Minister of Local Government: Will Auckland Council be able to bail out Watercare if it defaults under the new Local Water Done Well model?

Hon Simeon Brown: 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. It’s important to note that there will be a range of checks and balances in place to ensure Watercare continues to perform well. Auckland Council will continue to have oversight of Watercare. They will continue to control Watercare’s operational and financial decisions, and would continue to appoint, monitor, and remove Watercare’s board. The Government will also be appointing a Crown Monitor to ensure that consumer interests are protected and the entity is well-managed as Watercare gains greater financial flexibility. This is a transitional measure until a full economic regulation system is set up under Local Water Done Well.