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Councillors wary of water reforms By DARYL McINTOSH Plans to reform Auckland's water supply so companies can compete like those in electricity are alarming North Shore City councillors. They say the reforms may lead to problems such as those experienced by power consumers, such as price rises for small households. There are also fears it may open the door to privatisation. Earlier this week the council's strategy and finance committee got a report into the Auckland water, wastewater and stormwater industry which contains four options for the future. The report is the result of a commitment in November 1999 by Auckland councils to review water services. All the scenarios involve introducing some element of competition into the supply of water, stormwater and wastewater services. One option, called common carriage, allows competing water retailers who could act in a similar way to power retail companies such as TransAlta and First Electric. They would deal directly with customers, for example sending them bills. In this option, another organisation would own water pipes and other related assets. All Auckland councils have been asked to endorse the further evaluation of the four scenarios. North Shore City did this, but also expressed its concern at the competitive elements. Councillor Tony Holman says he is concerned the reforms open the door to privatisation of water. Mr Holman says the theme in the options is that competition is essential in any changes made to the water industry. "The gold of this millennium is water. All of the big international companies that can get hold of this (water companies) will do so. If we allow competitiveness in there they will go for the big profits. "I say, 'Don't go there'." Councillor Julia Parfitt says the scenarios are too limited because they all allow some competition, making it difficult to sell to the public. The public has become cynical about reforms because it hasn't seen any savings from changes to areas like electricity, says Ms Parfitt. Councillor Jenny Kirk says the options presented for the future of Auckland's water supply move it in the direction of allowing big international companies to take over the region's water. Other options for Auckland's water include maintaining the status quo, but with more opportunity for competition and improvements to industry co-operation. The third option would see the whole industry split into two companies, Northwest Water serving Rodney, North Shore and Waitakere and Southeast Water serving Auckland, Manukau and Papakura. The two would be competitive because comparisons would reveal how efficient they are. The final option would see a single entity providing water services for the whole Auckland region.
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