Keeping water services in-house is the right option for right now, according to one Ashburton councillor.

The council adopted a stand-alone business unit as the delivery model for its Water Services Delivery Plan for the future delivery of water services in the Ashburton District at its meeting on Wednesday [May 21].

Councillor Russell Ellis said it was a simple decision as the model had the majority backing of the public submissions.

“Today, the stand-alone business unit is the best option for our council, listening to what our ratepayers had to say.

“As more understanding evolves over the next two or three years of the implications of that for us and central government, we may see other changes forced upon us.

“Financial sustainability is about the running of that business unit, it’s not about the cost of water for the ratepayer.

His fear of the council going alone is “the final cost of water to our users”.

“Today I support this because it’s what our ratepayers want, but in five or six years' time do I think it will be the same – probably not.”

A letter from a Local Government Minister Simon Watts delivered before the council meeting on Wednesday didn’t sway the council’s direction.

Ellis said the Local Water Done Well letter suggested a standalone business unit wasn’t the direction the Government had intended for the three waters reforms.

Mayor Neil Brown agreed, adding the letter suggested “there is an ability to move to a something else in the future, if the council decided”.

“Our preference, at the moment, is a standalone business unit,” Brown said.

Chief executive Hamish Riach said he had contacted another chief executive at a council pursuing a multi-council CCO that received a similar letter and felt the Minister’s letter was more focused on “meeting the obligations of the reform”.

“Financial sustainability, the best interest of the community and water supplies going forward, rather than being a particular message for those opting for a standalone business unit.”

“Having now seen another council with a very similar letter, with a different option, I think the minister is more urging everyone to understand the magnitude of the decision.”

The councillors unanimously voted for the stand-alone business unit model.

Democracy and engagement group manager Toni Durham said the council's “pivotal decision” allows staff to move forward with completing the water services delivery plan to submit to the Department of Internal Affairs by September 3.

By Jonathan Leask