Ratings agency puts 15 councils on review for downgrade, blaming uncertainty over new Government's financial support after Three Waters repeal; Councils forced to ramp up rates increases
I disagree with your statement that councils largely supported 3 waters. Most did not. The issue at base of this is the broken relationship between central and local government.
You're right, the initial Three Waters really got councils' backs up. But Kieran McAnulty worked hard to understand the problems facing each different council and redesigned Three Waters as a better fit. But all the institutional knowledge that was acquired has disappeared with the disbanding of the Three Waters project. And now councils have to scramble round with too little time and money to find a way forward.
Those councils who didn't support it now have buyers remorse. Three Waters was deliberately politicised by people who didn't understand it or chose to use it as a political football.
Eventually, we'll be left with two options. Either central government pony up the cash that the previous government committed to spending to fix water (but in a chaotic and significantly less efficient way), or local governments, via CCOs, will sell the provision of water services and related services to third parties. Almost guaranteed that Serco and others are knocking on Simeon's door already.
Councils, unless forced, will not generate the revenue to fix water, and merged CCOs will do literally nothing to improve that without new revenue.
Quite right! Asset Management groups like BlackRock own what was publicly owned assets around the world. These are not philanthropic bodies! They are in it for profit which will come out of our pockets before much needed investment happens as usual.
Private management of utilities leads to higher charges, worse service and the funds needed for investment paid out as dividends usually to overseas investors.
Agree that likely Simeon has private companies on Speeddial to purchase our water. Auckland has had this fight once already had to constantly argue to keep in public ownership.
Bernard, it's important this analysis gets wide circulation. Mayors are afraid of clearly pointing to the cause of the projected high rate increases. Their public statements obfuscate on the issue. Please open today's column up, too.
I'm in some kind of existential despair with the way this government is heading. Luxcon sounds like an idealistic teenager with a head full of platitudes and ideological one liners, Seymour sounds like a petulant four year old and Winston and his hunchman Shame Jones are the echo chamber for the wingnut conspiracy theorists....
Someone commented yesterday that this government has done nothing but tear things down and came into office without any plans in place for implementation. They are going to "fix" things. Well while "things" may not have been perfect they were working to some extent and now all we seem to be looking at, instead of progress, is an ever widening sink hole of disappearing initiatives.
Is it too optimistic to theorise the current government are advocating, by stealth, a shift towards a broad-based land tax (via rates) rather than income?
I love Bernard's reporting and am new to the Kaka. After listening to his report on S&P downgrade I went looking for the full throated responses by NZ media. I couldn't find much and will keep looking. Perhaps there will be a full investigation on TVNZ this evening after the journalists have a few minutes to digest the implications of today's Kaka. Please open this up and we will hope other serious journalists will take the reins for their publications to enlighten their readers
Good. Someone who our PM might just listen to had to say it. He certainly doesn't listen to people who live here.
I disagree with your statement that councils largely supported 3 waters. Most did not. The issue at base of this is the broken relationship between central and local government.
You're right, the initial Three Waters really got councils' backs up. But Kieran McAnulty worked hard to understand the problems facing each different council and redesigned Three Waters as a better fit. But all the institutional knowledge that was acquired has disappeared with the disbanding of the Three Waters project. And now councils have to scramble round with too little time and money to find a way forward.
Sort of but the government still refuses to address the broken relationship between central and local government and the need for new funding models
Exactly.
Thanks Rosemary. Depends how it’s measured. But I agree the relationship needs repair.
Those councils who didn't support it now have buyers remorse. Three Waters was deliberately politicised by people who didn't understand it or chose to use it as a political football.
Thx always for your clear connected analysis
Can’t believe the dishonesty in the rhetoric around young people stuck on a life of welfare. Thanks for posting those stats.
So comprehensive. So on point. So intelligent. Shows up exactly what is missing from the current government. Please open it up.
Nobody - except the current government - thought that S & P would be fooled by shifting The Water Problem to a CCO.
Love your column this morning ! What a mess the new Government is dealing to us! Can we revolt??
Sadly, an entirely foreseeable mess.
Eventually, we'll be left with two options. Either central government pony up the cash that the previous government committed to spending to fix water (but in a chaotic and significantly less efficient way), or local governments, via CCOs, will sell the provision of water services and related services to third parties. Almost guaranteed that Serco and others are knocking on Simeon's door already.
Councils, unless forced, will not generate the revenue to fix water, and merged CCOs will do literally nothing to improve that without new revenue.
Quite right! Asset Management groups like BlackRock own what was publicly owned assets around the world. These are not philanthropic bodies! They are in it for profit which will come out of our pockets before much needed investment happens as usual.
Private management of utilities leads to higher charges, worse service and the funds needed for investment paid out as dividends usually to overseas investors.
Indeed. Britain is the sad poster child.
Agree that likely Simeon has private companies on Speeddial to purchase our water. Auckland has had this fight once already had to constantly argue to keep in public ownership.
Definitely, open up.
Bernard, it's important this analysis gets wide circulation. Mayors are afraid of clearly pointing to the cause of the projected high rate increases. Their public statements obfuscate on the issue. Please open today's column up, too.
Definitely open up
The adults have now entered the conversation...
Looks like the substance behind the much vaunted 100 day plan is the actually throw the baby out with the bath water!
I'm in some kind of existential despair with the way this government is heading. Luxcon sounds like an idealistic teenager with a head full of platitudes and ideological one liners, Seymour sounds like a petulant four year old and Winston and his hunchman Shame Jones are the echo chamber for the wingnut conspiracy theorists....
Someone commented yesterday that this government has done nothing but tear things down and came into office without any plans in place for implementation. They are going to "fix" things. Well while "things" may not have been perfect they were working to some extent and now all we seem to be looking at, instead of progress, is an ever widening sink hole of disappearing initiatives.
/rantover
First class rant Des.
Could you write now a chorus so then we could sing it.
They can't cancel singing - can they?
Is it too optimistic to theorise the current government are advocating, by stealth, a shift towards a broad-based land tax (via rates) rather than income?
Yeah I reckon they’re hoping for councils to be forced into privatisation instead of increased rates
Ha! If only. That’s the last thing they want.
I love Bernard's reporting and am new to the Kaka. After listening to his report on S&P downgrade I went looking for the full throated responses by NZ media. I couldn't find much and will keep looking. Perhaps there will be a full investigation on TVNZ this evening after the journalists have a few minutes to digest the implications of today's Kaka. Please open this up and we will hope other serious journalists will take the reins for their publications to enlighten their readers
Will do.