Local Government Minister Simon Watts and Commerce and Consumer Affairs Minister Scott Simpson say the government is taking action to improve transparency at Wellington Water.
The ministers expressed concerns over high costs, unsound financial management, and a lack of value for money in water services. They believe that imposing early economic regulation on Wellington Water will provide greater visibility into how ratepayer dollars are spent. The Commerce Commission will begin monitoring Wellington's water services sooner than other regions under Local Water Done Well.
The government plans to require Wellington Water to report key performance indicators and financial management measures publicly, including value for money, procurement practices, and plans to address past shortcomings. This is intended to promote long-term benefits for consumers and drive a shift in organisational behaviour.
According to Mr Watts, the action will help ensure steps are taken to reduce future costs for Wellington ratepayers. The government's goal is to achieve financially sustainable water services with strong regulatory oversight, strict rules for water quality, and ongoing investment. This move comes under Local Government (Water Services Preliminary Arrangements) Act legislation passed last year.
The ministers aim to tackle cost of living challenges in New Zealand by providing more transparency and accountability at Wellington Water.