10332 (2024). Hon Kieran McAnulty to the Minister of Local Government

10332 (2024). Hon Kieran McAnulty to the Minister of Local Government: What will be the arrangements, if any, for Auckland's Watercare if it defaults under the Local Water Done Well model?

Hon Simeon Brown: 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 independence. This is a transitional measure until a full economic regulation system is set up under Local Water Done Well. Existing Ministerial intervention powers under the Local Government Act will continue to apply to the owner of Watercare (Auckland Council) as they do now. Watercare has the ability to manage its financial position through changes to water charges, investment or operating costs to avoid financial distress. There are existing statutory management mechanisms in place for Watercare as an incorporated body if, in the unlikely event, it was to be in financial distress. A statutory management regime would keep the assets operating and have broad powers on debt arrangement. Existing Crown intervention powers under the Local Government Act will be extended to apply to Watercare Protections against privatisation in the Local Government Act will continue to apply and this includes prohibition on sale or loss of control of significant infrastructure.