Manufacturing Discontent
Posted 23rd March 2001

The Water Pressure Group challenges claims that were made by TV1 in their ëInsightí programme that Auckland sewers are in ëcrisisí. The FACTS from an Auckland City Council review of Metrowaterís own asset management plans show that there is no crisis. If there was a crisis why would the 2000/01 year Metrowater planned spend be $9,412,000 LESS on wastewater network renewals? Because, "Pipes (were) in better condition than expected."*1

In the 2000/01 year, Metrowater planned to spend $14,741,000 LESS on cleaner harbours - sewer separation. One of the reasons put forward was that "Separation may not be best in all cases."*1 An admission of failure. Metrowater has reduced capital expenditure across the 3-year period by $15 million, primarily by reducing environmental expenditure. If there is a crisis, why reduce spending on it?

[*1(Section 2.3 Proposed Capital Expenditure, Review of Metrowater's Asset Management Plans, Report To Investments Committee, from Ruth Vercoe, Policy Analyst, Treasury. 16 June 2000]

Intentionally or not, the TV1 ëInsightí programme very neatly dovetails in with the public communications strategy of the Auckland City Council which has been described by Councillor Maire Leadbeater, as ìCouncil-funded propaganda.î The Auckland City Council has agreed to a direct mail letter and brochure to all ratepayers/customers of Metrowater at a cost of $116,000 to which Metrowater would make a contribution. They appear desperate in local body election year to try and convince a skeptical public that :

1) Metrowater is not a profit making organisation. 2) There are no plans to privatise Metrowater 3) It costs more to dispose of wastewater and protect the environment.

ëI understand that it costs more to dispose of wastewater in an environmentally friendly way and I am prepared to contribute to these costs through my water bill. ëI can see the value that Metrowater adds and I feel comfortable with paying my billí*2(IE: This is a PR ploy to try and defend Metrowaterís user charges for wastewater.)

[*2 Pg 30 ìWater & Wastewater Issues Draft Communications Strategy March 2001 Prepared by : Sarah Hagan, Marketing manager, Corporate Services.]

One of the main aims of the Auckland Region Water Review is to try and spread user charges for wastewater. They want changes to the Local Government Act and Rating Powers Act which would allow Stand Alone Business Units (which is how Manukau City and Waitakere Cityís water services are currently run, to be able to introduce user charges for wastewater services without having to set up up a Local Authority Trading Enterprise. This is the reform they want, for which a ëcrisisí must be created. YV1 are standing by their interrpretation, and thus standing by Metrowater. Will the ratepayers of Auckland City stand by to?