Commerce Commission called on to keep an eye on Wellington Water

The Government will call on the Commerce Commission to keep an eye on Wellington Water as it brings forward plans to implement its water reforms for the capital ahead of other cities.

This morning, Local Government Minister Simon Watts said he had "serious concerns" about Wellington's water services.

Two reports into Wellington Water were released earlier this month, and found the entity suffered from poor financial oversight and contractor management, as well as paying contractors more than in other parts of the country. The investigation found ratepayers were paying nearly three times more for water repairs than elsewhere.

“I am not satisfied by the progress made to address these glaring problems and without clear and decisive action, Wellingtonians face a decade of hefty rate increases with little to show for it,” Watts said.

Today, he announced that the Government would bring forward Local Water Done Well for Wellington by imposing early economic regulation on Wellington Water. It means the Commerce Commission would begin its role as a monitor for the capital's water sooner than other regions.

“Given the current issues, Wellingtonians shouldn’t have to wait for the full economic regulation regime to be in place to have greater visibility over how their money is spent on water services,” Commerce and Consumer Affairs Minister Scott Simpson said.

Simpson said Wellington Water would be required to report to the public and the commission on "key delivery performance and financial management measures".

“While the precise disclosure requirements will be set by the Commission, we anticipate it will include indicators that provide a view of value for money, procurement practices, and plans to address the shortcomings outlined in the published reports.”

Watts said today's action would "increase public accountability" at Wellington Water.

“The foundational information disclosure framework provided for under last year’s Local Government (Water Services Preliminary Arrangements) Act means we can ensure a more detailed picture sooner of how Wellington Water intends to address performance shortfalls in key areas.

“Experience in other sectors shows information disclosure provides greater transparency and is expected to drive a shift in organisational behaviour. The action we are taking will help ensure steps are taken to reduce unnecessary future costs for Wellington ratepayers."

There have been calls for Wellington Water chairperson Nick Leggett to be removed following the release of the reports, including from Mayor Tory Whanau and other councillors.

Porirua Mayor Anita Baker, however, came to his defence.