Better together: cost savings confirmed under proposed Waikato water model

An independent review of the proposed Waikato Water Done Well model confirms it will deliver long-term cost savings for water services across much of the Waikato region. 

Brad Olsen, chief executive and principal economist at Infometrics, has analysed the financial modelling underpinning the collaborative proposal and found that households would benefit from significantly reduced costs compared to the status quo. 

“Despite the known rising costs for future water service delivery right across New Zealand, the modelling shows that a regional, collaborative approach can achieve more affordable outcomes for households than each council going it alone,” said Mr Olsen. 

Olsen noted that water and wastewater infrastructure costs have increased by 52% over the past decade — an average of 4.3% annually — compared to a 32% increase in consumer prices (CPI) over the same period. He expects these pressures to grow as infrastructure demands increase.

“While there are some initial set-up costs involved in establishing a new delivery model, these are quickly offset by significant long-term savings,” he said. 

“Pooling resources across the region enables more efficient planning, delivery, and maintenance of infrastructure. That efficiency translates into real savings.” 

According to Infometrics’ analysis, the proposed model could save approximately $580 million in cumulative costs by 2044. This equates to an average household saving of around $8000 over the next 20 years. 

“The bottom line is simple: this model delivers cost savings,” Mr Olsen said.

“Our independent analysis confirms the financial modelling is robust, and the underlying assumptions are both sound and reasonable.” 

Watch Brad Olsen’s full presentation here: https://youtu.be/Fo3kAH1hiHM

About Waikato Water Done Well Waikato Water Done Well is a proposed regional water service delivery model being considered by seven councils in response to the Coalition Government’s Local Water Done Well legislation. 

The model aims to deliver financially sustainable water services that meet strict new regulatory standards. Councils involved in the proposal include: 

• Waipā 

• Matamata-Piako 

• Hauraki 

• Waitomo 

• Ōtōrohanga

• South Waikato 

• Taupō

Together, these councils represent approximately 40% of the Waikato region’s population. 

Each council is currently consulting with its community as required by legislation, either presenting the model as their preferred option or as a strong alternative. All councils are expected to make final decisions by mid-July.

The Minister of Local Government, the Hon Simon Watts, has congratulated the seven Waikato councils for their collaborative efforts. 

“The leadership you are showing as a region provides a solid indication of the strength of your partnerships as councils, particularly in the context of city and regional deals and other infrastructure funding solutions”. 

“The size and scale provided by Waikato Water Done Well enables you to be matchfit in terms of your current structure for delivering water services and sets you up for the future. You’re stronger together as a region, than as individuals,” he said. 

Minister Watts acknowledged the important process of community consultation that is underway, and that final decisions on the WWDW model would not be made until this was completed for all seven councils.

Caption: Mayor Toby Adams (Hauraki), Mayor Adrienne Wilcock (Matamata-Piako), Mayor Susan O’Regan (Waipā), Mayor Max Baxter (Ōtōrohanga), Mayor John Robertson (Waitomo), Mayor Gary Petley (South Waikato) at recent Karāpiro hui for Waikato Water Done Well 

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Nga mihi nui ki Waikato Regional Council mo te tautoko