IAWAI Water Services Strategy

Submission on IAWAI Water Company
I am making this submission as a ratepayer with direct experience in governance and oversight of business expenditure.
My primary concern with the proposed IAWAI Water Company is the lack of demonstrated confidence in its procurement processes and financial controls.
IAWAI appear to be engaging employees who are from the local government system, and across the country the track record of spending control is not seen as particularly frugal in those areas.
Over recent discussions and briefings, I have not seen sufficient evidence that procurement will be managed with the level of discipline, transparency, and scrutiny required for an entity of this scale. This is particularly concerning given the history of cost escalation and poor oversight that has occurred across a number of Council-Controlled Organisations (CCOs).
Procurement is not a secondary function, it is where ratepayer money is most exposed. Without robust controls, clear accountability, and independent oversight, inefficiencies and cost overruns are not just possible, they are very likely.
I am also concerned about the cost structure of the organisation, particularly staffing. There is an established pattern across CCOs where wage levels significantly exceed those of comparable roles in the private sector. Unless actively managed, this creates a culture of inflated operating costs that is ultimately borne by ratepayers.
This concern is amplified by the scale of borrowing being proposed. The company is signalling the intention to take on debt in the billions. While balance sheet separation may create the appearance of distance from councils, the reality is that communities remain exposed. If financial discipline is not maintained, the burden will inevitably fall back onus, the ratepayers as that is the source of income.
So much of the income is based on growth targets in development that are not being currently met, and given the economy, we are way off those build targets. We cant keep planning for “maybes” and “possibilities”. If those targets aren’t arrived at and the debt levels are in the billions and not being serviced, who will take responsibility and ownership, because as ratepayers we will be paying more and more.
I was particularly concerned to hear commentary from leadership suggesting that aspects of the process are being rushed and that not everything has been subject to full review. That approach is not acceptable when dealing with critical infrastructure and long-term financial commitments of this size.
Before any further progression, I believe the following must be clearly established and publicly demonstrated:
Robust procurement frameworks, including independent auditing, open-book transparency, and clear value-for-money requirements
Strict controls on staffing and remuneration, benchmarked against the private sector and subject to regular review
Full transparency of financial modelling, including debt assumptions, risk exposure, and worst-case scenarios
Clear accountability mechanisms, ensuring that decision-makers are directly responsible for outcomes
Independent oversight, separate from internal management, with the authority to intervene where required
As a ratepayer, I am not opposed to investment in water infrastructure. However, I am strongly opposed to entering into a structure that lacks clear, enforceable safeguards around spending, debt, and accountability.
This proposal requires more than assurance, it requires proof.
Until those guarantees are in place, I do not have confidence that the IAWAI Water Company will deliver the level of fiscal responsibility that our communities expect and deserve and we will see water costs being carried by ratepayers.

No, these are my own personal views