Official documents also showed further costs to the Crown would likely be required to operate drinking water regulator, Taumata Arowai. The Crown is expected to foot additional costs in the first instance, costing taxpayers, but costs might ultimately be charged back to the new Water Services Entities, costing ratepayers. This provision, however, is likely to be eclipsed by the new expenses. And the fixed costs of establishing 10 WSEs is anticipated to be higher than for four.Īs of the end of May, DIA said $166m remained undrawn from a contingency fund for establishing the water services entities. Hamiora Bowkett, Three Waters executive director, water services reform programme, said the additional $1b included $150 million to establish “centralised services capabilities” for the new WSEs, an effort at retaining some advantages of scale originally anticipated for four, larger entities.Īn extra $200m in Crown costs is expected due to the later establishment date. Minister for Local Government Kieran McAnulty’s office declined to say how much additional money Cabinet has agreed to spend, and directed the Herald’s questions to the Department of Internal Affairs (DIA), which is leading the Government’s water services reform programme. The estimate before recent revisions to the plan was $1-$2b. The cost of creating 10 new Water Services Entities (WSEs) over a transition period that now stretches to Jis expected to reach $2-$3b. ![]() ![]() Photo / Carson Bluck, Mark Mitchell, Herald graphicĪmendments to the Three Waters reform plan have blown out establishment costs by an estimated $1 billion. National's Simon Watts says the estimated blowout is ludicrous but Minister for Local Government Kieran McAnulty’s office declined to say how much additional money Cabinet agreed to spend.
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