Responding to news that two Three Waters Chief Executives have received a combined $710,000 in redundancy payments, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:

“Golden handshakes worth almost 11 times the annual median wage combined after just 10 months of work are just one example of a culture of waste in Wellington. Bureaucrats continued to sign away vast sums of taxpayers’ money well after it became clear unpopular, divisive mega-projects like Three Waters and Let’s Get Wellington Moving would be scrapped.

“Public sector fat cats already earning almost 4.5 times as much as an MP should not be entitled to enormous redundancy payments straight from the back pockets of hardworking Kiwi taxpayers.”

The Taxpayer’s Union is today welcoming Local Government Minister Simeon Brown’s announcement that the Government will scrap Three Waters in the new year but says there is still work to be done to ensure that its replacement protects property rights, ensures sustainable investment and infrastructure and removes undemocratic co-governance.

Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“We have spent the better part of two years campaigning to stop Three Waters including a nationwide roadshow, more than 100,000 petition signatures and almost 70,000 submissions to the select committee. The announcement to repeal Three Waters is a welcome one, the Department of Internal Affairs should immediately halt all work relating to Three Waters in order to prevent further wastage of taxpayers’ money.

“But there is still work to be done. The Taxpayers’ Union’s technical advisory group, chaired by Malcolm Alexander has been working hard drafting replacement legislation, which will be presented to the Minister in the near future. There is no point repealing Three Waters if its replacement is just a watered-down version of Labour’s proposal. We encourage the Minister to engage constructively with those in the local government sector and experts, including our Technical Advisory Group.

“While we remain optimistic, we will not rest until we see Three Waters repealed and a workable replacement has been passed through all stages of the house.”

This week on Taxpayer Talk, Taxpayers' Union Executive Director, Jordan Williams, sits down with lawyer Stephen Franks to provide an update on the Three Waters legal challenge. Stephen is a founding director of the commercial and public law firm Franks Ogilvie, a former member of Parliament and spokesperson for the Water Users' Group. 

Franks Ogilvie has been leading the legal challenge against Three Waters that, among other things, aimed to force the Minister of Local Government, Nanaia Mahuta, to release her legal advice that co-governance of Three Waters infrastructure was required under the Treaty of Waitangi. Unfortunately, this challenge was unsuccessful and was appealed to the Court of Appeal where the challenge was again dismissed. We have decided to drop the case in order to focus our resources and efforts on developing a repeal and replacement bill for Three Waters. 

The Local Water Infrastructure Bill that we have been developing addresses the infrastructure issues that were used as the justification for Three Waters but without the co-governance, seizure of local assets and other numerous problems in the Three Waters legislation. You can read about our Local Water Infrastructure Bill here. 

The Court of Appeal judgment can be read here. 

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If you have any comments, questions or suggestions, feel free to email [email protected] 

You can also listen to Taxpayer Talk on Apple Podcasts, Spotify, Google Podcasts, iHeart Radio and all good podcast apps. 

Grant Robertson’s claim that there is a ‘hole’ in the funding as of a result of scraping Three Waters is nonsense on stilts.

Taxpayers’ Union Executive Director, Jordan Williams, says:

“Grant Robertson is trying to frame opponents of Three Waters - including the National Party - as not having an alternative. Nonsense. There is an off the shelf solution that has the broad backing of the countries largest two councils, Communities4Local Democracy, the Taxpayers’ Union, and ACT. The National Party’s policy is nearly identical.

“Unlike Three Waters, the Local Water Infrastructure Bill, doesn’t just splash cash and bureaucracy.  No government funding is required within the budget forecast period, and any that subsequently is needed requires disciplined analysis showing investment is justified before amounts are committed - similar to the tests for investment Transpower is subject to.

“The only hole here seems to be Grant Robertson’s knowledge about the alternative to Labour expensive, bureaucratic, undemocratic Three Waters.”

As per the Q&A released on 11 August when the Taxpayers’ Union announced that it had earlier appointed an expert group to develop the Three Waters Repeal And Replacement Bill:

Cost for water utilities and for communities depends on how much investment is needed and how much has been delayed. That differs from council to council.

But the government has promoted unrealistic estimates of costs and promoted the idea that somehow essential upgrades and replacements can only be afforded if everything is centralised and overseas savers’ funds can be accessed to pay for our water services. Castalia says that the investment plans for water infrastructure of most of the sample of councils they have audited appear prudent and readily fundable. They found that the consultants engaged by DIA wildly overstated investment needs.

As Castalia explains it “the government has assumed that one factor, scale, will deliver fantastical cost savings. This is plain wrong and the international evidence confirms this. Because the government’s consultants could claim such big cost savings from scale, they were able to include enormous estimates of needed capital expenditure”.

After two years debate on water reform and countless promises of more efficiency and transparency, today’s news that the Government is refusing to disclose the salaries of the recently appointed entity CEOs is a slap in the face of the hundreds of thousands of New Zealand ratepayers who objected to the reforms. The NZ Herald has confirmed, however, “that the salaries sit within a range of $602,500 to $815,500 per year, which suggests a very tidy pay rise for at least three of the four executives in question.

Responding to the report, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“The Government’s Three Waters reforms are failing its own litmus test – reducing costs and delivering services more efficiently. There is no efficiency or transparency in Government officials trying to keep secret what they are spending on CEOs for organizations that don’t yet exist.

“This is precisely what the Taxpayers' Union warned about. By taking control away from local communities, faceless bureaucrats in their ivory tower head offices tend to snub transparency and accountability. This example is case in point.”

Commenting on the news that the new Three Waters reform plan has already blown out costs by around $1 billion, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Three Waters is adding layer upon layer of pointless bureaucracy. Inefficiency is baked into the design of these reforms, so is it really any wonder that they are already behind schedule and over budget?

“It has been clear from the get-go that Three Waters offered tremendously poor value for taxpayers’ money. More bureaucracy, no job losses, yet lower costs was a sum that never added up. McAnulty’s attempt to pull the wool over voters’ eyes with the changes introduced to Parliament earlier this month simply make this power grab even more expensive, and yet the Government is still failing to meet even these revised targets.

“The public has made it clear that they do not support seizing community water assets, whether they’re being handed to four distant entities or ten.”

The New Zealand Taxpayers’ Union is pleased to hear that the Minister of Local Government, Kieran McAnulty, has invited concerned mayors to the Beehive to discuss the Three Waters reforms but believe he should meet with the country’s largest taxpayer and ratepayer organization too.

The Taxpayers’ Union Executive Director, Jordan Williams, has written to the Minister requesting a meeting to share the views of taxpayers and ratepayers on the problems with the Government’s Three Waters reforms and to set out alternatives that maintain local control and democratic accountability while keeping costs to ratepayers down.

Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“We met with more than 10,000 people on our Stop Three Waters roadshow last year including elected local representatives and those directly involved with the delivery of water services.

“Our concerns that these reforms will lead to higher water costs, unnecessary bureaucracy, no local control and an undermining of democratic accountability were echoed those we met.

“The entire process for these reforms has been flawed and lacked proper engagement with those directly impacted, including when more than 60,000 of our supporters made a submission against the reforms but the Select Committee refused to hear them.

“We strongly urge the new Minister to engage with concerned mayors in good faith and meet with us so that we can put forward the concerns of all those who were not given the opportunity to present to the Select Committee.”

Taxpayers’ Union Welcomes National’s Three Waters Alternative

National’s ‘Local Water Done Well’ alternative to Three Waters is bang on what the Taxpayers’ Union and local councils have been calling for. It meets the Taxpayers’ Union’s red lines of respecting property rights, retaining community control, ensuring local accountability, giving councils the ability to opt into shared models of their choosing, and the efficient delivery of water services.

“This policy is almost identical to the model developed by Communities 4 Local Democracy, which the Taxpayers’ Union has been promoting,” said Taxpayers’ Union Executive Director, Jordan Williams.

“This is a serious challenge to Chris Hipkins who has said he wants to ‘refocus’ Three Waters. Here is the solution.”

“Three Waters will mean higher waters costs, more bureaucracy, no local control, and less democracy. Poll after poll has shown that the reforms face overwhelming opposition from Kiwis.”

“But everyone accepts that doing nothing is not an option. Now the Government can not claim ‘there is no alternative’.”

“This alternative to Three Waters is now a consensus among the Taxpayers’ Union, 31 provincial councils, the Mayors of our two largest cities, and the opposition National Party. There is just one more person to convince: Mr Hipkins.”

It's been a tough few weeks. Like so many, our team in Wellington have family and friends who have lost their homes and livelihoods following Cyclone Gabrielle and our thoughts continue to be with all of those who have been affected. 

Government must cut wasteful spending – not hike taxes – to fund cyclone clean up ✂️💰

The clean up and restoration works following the devastation of the cyclone will cost a lot of money, but the knee-jerk reaction to hike taxes is not the solution. People are already struggling with the cost of living and a new tax could not come at a worse time. 

Worryingly, this week both Chris Hipkins and Grant Robertson refused to rule out a ‘cyclone levy’ or other new taxes.

Borrowing more – an option the National Party signalled it was open to – is not the solution either. It will simply serve to drive up inflation further and force the Reserve Bank to whack up the Official Cash Rate even higher than the 4.75% it was set at yesterday.

The answer is actually quite simple but it may be a difficult pill for politicians to swallow: The Government needs to get a grip on its spending. 

Unnecessary projects such as Auckland's proposed tramway that Treasury officials estimate could cost up to $29 billion – equivalent to $14,842 for every New Zealand household – should be scrapped. The over $1 billion annual spend on consultants should be slashed, and the explosion in the number of public service mangers could easily be reduced without impacting on frontline public services.

Chris Hipkins keeps talking of a shift towards 'bread and butter politics', but refocussing policies isn't enough, the Government needs to refocus its spending too.

🔍 Taxpayers' Union Investigation: Ministry of Education wasted $1 million on truancy 'awareness' campaign under Chris Hipkins 🏫❌

With much fanfare, the Prime Minister announced funding for new truancy officers to tackle the attendance crisis in our schools. While the funding may be welcome, we were curious as to why it had taken the Government so long to take serious action to tackle the problem.

It turns out Chris Hipkins did take action on truancy when he was Minister of Education. A Taxpayers' Union investigation this week revealed that the Ministry allocated $1 million last year for an 'awareness' campaign about the truancy crisis. 

Unclear about what this actually meant, we asked the Ministry to explain how the campaign addressed the problem of declining attendance and how it improved it. Shockingly, the Ministry said it “was not expected to have a direct, quantifiable, impact on attendance rates itself.”

In short, instead of working to fix the problem (kids not going to school), taxpayers have been made to foot the $1 million bill for an advertising campaign to make them aware about something the media had already done a very good job of covering. You couldn't make it up! 

You can read the full details of our investigation on our website.

High Court confirms Government's Three Waters is an asset grab from local councils and ratepayers ⚖️🚰 

This week the High Court issued its decision on the Three Waters case brought by Timaru, Waimakariri and Whangarei District Councils. They had asked the Court to make declarations on the rights and interests that property ownership entails. You will recall the comments the then Local Government Minister, Nanaia Mahuta, made last year that under her Three Waters scheme councils would still 'own' the assets.

The High Court said

"local councils will lose central incidents of ownership that they presently hold... that local councils’ ability to control the use of their assets will be materially diluted through the WSE governance structure, and... that local democratic accountability for the provision of the Three Waters services in local communities is essentially lost."

This confirms what we have known all along: That the Government's claims that councils retain ownership of water assets are just plain wrong. What will the Government say now?

The judgement also noted that the Government:

"has deliberately decided that [the Three Waters funding package] is not intended to compensate local councils for the value of the infrastructure assets"

But ultimately, our constitutional framework and parliamentary sovereignty means Parliament can make these changes to water service delivery regardless of the impact on local governance and accountability. The way to stop this is through the ballot box, and that is why we continue to work hard to raise public awareness and force the Government to Scrap Three Waters!

Far North District Council spends $2.4 million on pound that can house just 10 dogs 🐶

Our friends in the Far North are having a tough time of it as it is with money desperately needed to fix the roads and flood-damaged infrastructure.

So it's raised some hackles that the Far North District Council has spent $2.4 million on a pound to house just ten mutts. The Northern Advocate reports:

An existing dog kennel bought by Far North District Council to use as a dog pound has ballooned from a $200,000 upgrade project into a “bizarrely expensive” $2.4m facility that will house fewer dogs.

The council bought Melka Kennels near Kaikohe in 2020 with the aim of converting the commercial dog kennels into a dog shelter that would serve the district’s busy southern area.

The original plan was to spend $200,000 to upgrade the site to meet national animal welfare codes to house up to 24 dogs.

Now the new Southern Animal Shelter has morphed into a purpose-built facility that has cost $2.4m and will house just 10 dogs.

That's nearly a quarter of a million dollars per dog that can be housed at any one time and nearly three-and-a-half times the average value of a house in the district. 

The Council is defending the decision, saying that it's value for money, and was partly funded by a Covid "shovel-ready" Provincial Growth Fund grant.  So, taxpayers across the country paid up too...

Taxpayer Talk with Peter Williams: Dr. Oliver Hartwich And Callum Purves On The Future Of Local Government 🎙️

In the latest edition of Taxpayer Talk, the focus is on local government. A review into the future of local government has been commissioned but it fails to address the main issues affecting the sector, in particular the way it’s funded and what its main functions should be.

New Zealand Initiative Executive Director, Oliver Hartwich, explains to host Peter Williams why more localism is such an important concept and why it can be great for a country’s economy. I also speak to Peter about what was wrong with the recent local government review and how the Taxpayers' Union thinks local government could be improved.

Also in the podcast, our War on Waste team focus on some silly spending by the Wellington City Council.

You can still make your voice heard on the Review into the Future of Local Government's consultation report using our easy submission tool at www.protectlocaldemocracy.nz

Listen to the episode | Apple | Spotify | Google Podcasts | iHeart Radio

Thank you for your support.

Yours aye,

Callum Purves Campaigns Manager New Zealand Taxpayers’ Union.

Media coverage:

NZ Herald National and Labour tied, but Chris Hipkins way ahead of Christopher Luxon - poll

The Spinoff New poll puts Labour and National neck and neck

RNZ Labour closes gap with National in new poll

Newstalk ZB Jordan Williams: Taxpayers' Union says Eleanor Catton should pay back her subsidies

Newstalk ZB The Huddle: Curia poll results and Auckland Grammar staying open despite Cyclone Gabrielle

Newstalk ZB Barry Soper: senior political correspondent on Chris Hipkins announcing $11.5 million in support for cyclone affected regions

Te Ao Māori News Labour closes gap with National in new poll

The Kaka by Bernard Hickey National emergency declared for Gabrielle

The Working Group with John Tamihere, David Seymour and Damien Grant

The Platform Jordan Williams on Eleanor Catton’s swipe at the NZ Tax Payers' Union

Kiwiblog Journalist complains polling question wasn’t leading enough

In our first episode of Taxpayer Talk for 2023, Peter Williams is joined by lawyer Stephen Franks. Stephen is a founding director of the commercial and public law firm Franks Ogilvie, a former member of Parliament and spokesperson for the Water Users' Group. 

Stephen joins Peter to discuss why the Water Users' Group, backed by the Taxpayers' Union, is taking a Government minister to the Court of Appeal and what any alternative Three Waters legislation might look like. The Government has claimed that Crown Law told the former Minister for Local Government Nanaia Mahuta that co-governance of our water services is required under Treaty of Waitangi. The new Water Services Entities Act means the country’s water infrastructure will be co-governed by Iwi and local authority representatives, but at what cost to water users?

If you would like to contribute towards the Three Waters legal challenge click here 

To support Taxpayer Talk, click here

If you have any comments, questions or suggestions feel free to email [email protected] 

You can also listen to Taxpayer Talk on Apple Podcasts, Spotify, Google Podcasts, iHeart Radio and all good podcast apps.