Water And Money Don't Mix
Posted 28th February 2001

The People's Option Water Coalition questions the figures that have been bandied about regarding the upgrading of water works, sewerage treatment and stormwater collections systems throughout the Auckland Region. It is claimed that much of the region's 6400 km sewerage network is now crumbling with age. Yet in the 2000/01 year Metrowater planned to spend $9,412,000 less on wastewater network renewals, because, "Pipes (were) in better condition than expected."* We have been told that "a recent law change required all councils to produce asset management plans, and ensure they raised enough money for future infrastructure needs by allowing for the depreciation of existing assets in their budgets." According to these asset management plans, apparently Auckland councils will have to spend $4.7million over the next 17 years, unless they find new ways of doing things. How can we have any confidence in these figures? In the 2000/01 year, Metrowater planned to spend $8,652,000 less on water network renewals, amongst other reasons, because "Water main faults declining, work previously planned not defined as necessary."* 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."* Translated - Metrowater failed. Metrowater has reduced capital expenditure across the 3-year period by $15 million, primarily by reducing environmental expenditure. Metrowater have made a lot of noise about the need to clean up the beaches, and their concern for the environment - these figures prove that they haven't put Aucklander's money where promised, how then can they be trusted?

Yet this commercialised L.A.T.E. model is what the Auckland region Water Review wants to spread. If Metrowater can be so far out in their capital spending projections, given that Auckland City must have some of the oldest pipe networks in the Auckland region, then what about the other Councils, with their much younger pipe networks? A definite theme of the review is the insinuation that public bodies are inefficient and, we are told, cannot cope with increasing capital costs. The 'New Right' tactic has been to contrive a 'crisis' then advocate commercialisation, competition, private investment, and privatisation as the 'cure'. The People's Option, by removing and banning the provision of water services according to any commercialised, corporatised or privatised business model, not only removes the possibility of commercial failure, but safeguards the interests of the community in their water services reliably remaining an essential public service, a public good. Under The People's Option, Infrastructure Auckland powers would be extended to include the funding of water and wastewater projects. With water services acknowledged as a public good, promotion of Council projects incorporating household-funding assistance for widespread conservation improvements would become possible, with small-scale or local solutions: hi-tech or low-tech. The need for infrastructure expansion and demand for growth in network capacity can be lessened by conservation efforts, and dedicated Council 'conservation officials' could instigate large-scale community education campaigns on the benefit of conservation without coming into conflict with those whose interests lie in making more money out of water.

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

The People's Option Activities:

PASIFIKA: Getting signatures for the People's Option Postcard! This Saturday March 3rd. Help get thousands of People's Option Postcards signed and sent off to Judith Tizard, to show the huge public support for the non-commercialised model for running water services. WHEN: This Saturday March 3rd. TIME: From 9.00am till 6.00pm WHERE: PASIFIKA Western Springs. Outside the entrance to Western Springs Park, opposite the Speedway.

E PEOPLE'S OPTION PUBLIC FORUM:

Wednesday 7 March, 7.30pm. Come and hear more about the People's Option campaign for our water services!

Hear guest speaker, Canadian journalist, Murray Dobbin, Financial Post columnist talk about how the multinational corporations are hellbent getting their hands on the world's water, and how the WTO's GATS agreement is helping them do this.

Hear Christchurch City Councillor David Close discuss how 'The People's Republic of Christchurch' has achieved water conservation without punitive user charges, and funds water services from property-based rates. (This speaker still to be confirmed.) WHEN: Next Wednesday, 7 March TIME: 7.30pm till 9.30pm WHERE: The Fickling Centre. Under the Mt Roskill Library, THREE KINGS SHOPPING CENTRE, (Corner of Mt Eden and Mt Albert Roads).