Opinion: New way forward for water in Invercargill
"This will enable our councils to better manage debt and make essential investments in infrastructure without inflicting drastic rate hikes on Southland residents."
Penny Simmonds is the MP for Invercargill.
A new way forward for water services is being delivered by the Government, after councils and ratepayers in Invercargill and Southland rejected Labour’s expensive and bureaucratic Three Waters experiment.
We have announced key steps in the delivery of Local Water Done Well – providing local councils in the South with the certainty they need to deliver water services, while minimising costs on ratepayers.
Crucially, Local Water Done Well keeps water in local ownership and control, something that is very important to Southlanders.
The key details, announced last week, will ensure new models provide for financially sustainable investment in water infrastructure, reducing the burden on ratepayers.
The Local Government Funding Agency (LGFA) can immediately begin lending to water council-controlled organisations (CCOs) that are financially supported by their parent council or councils. LGFAÂ will support financing for water CCOs of up to 500% of operating revenues, around twice that of existing councils.
This will enable our councils to better manage debt and make essential investments in infrastructure without inflicting drastic rate hikes on Southland residents. Our model provides councils with the flexibility and tools to meet their unique needs, as we know that one size does not fit all.
The Government’s expectation is that councils will now use this certainty, and the additional borrowing capacity, to take the pressure off ratepayers while still being able to invest in the critical water infrastructure that this province and New Zealand needs.
Labour said that Local Water Done Well could not be done. We did it in just 9 months, because we know that you elected us to deliver for Southland.
This column is funded by Parliamentary Service