Barry told The Post he was concerned that some candidates in the coming local government election were suggesting that shifting water services from council balance sheets opened up new spending or debt to invest.
“It’s a dangerous position because there will potentially be the desire to load up with additional spending, additional debt ‒ councils may want to do that because their financial or balance sheet may look a lot better.
“But of course, it will be the ratepayers who get hit with that, because they will still have to be paying water bills.”
He said with rates rises already unaffordable in many places, there should instead be a corresponding drop in rates, in line with that of water bills.
For example, he said if the new Wellington water provider had already been created, the rates rise at Hutt City Council would have dropped from 12.6% to 7.6% — a 5 percentage point decrease.
Any decrease in rates less than 5 percentage points would therefore actually be an increase to the ratepayer.
Continue Reading