'Abysmal management': Luxon attacks Wellington water entity, Little hits back

Prime Minister Christopher Luxon has taken aim at Wellington’s new water entity for “abysmal management” and “poor communication” since it launched less than two months ago.

Tiaki Wai has refused to defend itself from the attacks, while Wellington Mayor Andrew Little has hit back, saying the organisation’s issues are a product of the Government’s flawed water reforms.

Appearing alongside Hutt South MP Chris Bishop at a public meeting on Tuesday night, Luxon was asked by an attendee how National would improve the new entity if re-elected, citing a recent billing fiasco and the high salaries of its leadership team, first reported by the Herald.

The Prime Minister responded saying his Government had tried to find a better way of addressing historical under-investment in water through its Local Water Done Well reforms, criticising the previous Labour Government’s Three Waters reform.

“In your case here in Wellington, I’ll be honest with you, I agree with you, you’ve had abysmal management of this new entity, I mean we are really unhappy with it Chris [Bishop] and I,” Luxon said.

“You’ve had very poor communication, you’ve had water rates sent out without your rates bill, you’re wondering what the hell’s going on, it’s just not good enough,” he said.

National leader and Prime Minister Christopher Luxon addresses a public meeting in Avalon. Photo / Julia Gabel

Luxon pointed to the Commerce Commission upping its oversight of the organisation last week as a positive step in reining in increased water charges.

“I think we would freely admit, man, this is not an impressive start for this organisation,” he said.

A Tiaki Wai spokesman said chief executive Michael Brewster would not be available for an interview in response to the claims.

“We aren’t going to comment on conversations or ideas emerging from political events,” the spokesman said.

“We have a big job in front of us, new customers to support, and our focus is on that,” he said.

Tiaki Wai chief executive Michael Brewster would not respond to attacks from Prime Minster Christopher Luxon over "abysmal management" of the new water entity.

But Little, who has previously been critical of some of the entity’s decisions, said “everything about Tiaki Wai, its establishment and its operations, is consistent with the Government’s Local Water Done Well policy and legislation.

“I have consistently called out the flaw in Local Water Done Well policy, which is the lack of comprehensive Commerce Commission oversight of Tiaki Wai. This risks unaffordable water bill increases for Wellingtonians,” Little said.

“It is good the Commerce Commission has recently agreed to track whether services are improving, measuring improvements in capability, and testing whether investment plans are credible, but this stops short of the full ‘price quality’ regulation.”

Price quality regulation would give the Commerce Commission stronger powers to limit what Tiaki Wai could charge households and the quality of service it must provide.

Little said Aucklanders currently have stronger price protections than Wellingtonians, which was unacceptable.

“The best way for the Prime Minister to address his feelings about Tiaki Wai is to urgently address the flaw in Local Water Done Well and implement ‘price quality’ regulation,” he said.

Wellington Mayor Andrew Little said Tiaki Wai is consistent with the Government’s Local Water Done Well policy. Photo / Mark Mitchell

It comes amid growing frustration toward Tiaki Wai as the entity has begun sending out its first round of water bills.

It was prompted by reports of widespread shock and confusion from ratepayers facing higher household water costs, set to balloon in the coming years.

The water charges have been separated from council rates for the first time, causing many households to mistake the bills for an entirely new cost, when they largely replace charges previously included in rates.

Adding to the confusion, the new bills arrived in letterboxes a week before residents’ updated rates bills, causing misunderstanding about how much more property owners would owe.

Brewster has since acknowledged that was a mistake.

Ethan Manera is a Wellington-based journalist covering Wellington issues, local politics and business in the capital. He can be emailed at ethan.manera@nzme.co.nz.