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C&R Retain Metrowaters Cash Cow Status

Richard NortheyMedia Release
City Vision-Labour Councillors - Auckland City Council
For Immediate Release
Thursday 6 March 2008

City Vision-Labour Auckland City Councillors are unsurprised yet disgusted by David Hay's Citizens and Ratepayers (C&R) Council voting yesterday to keep gouging water users by continuing to use Metrowater as a 'cash cow'.

Yesterday C&R voted to increase water prices by Auckland City Council's rate of inflation for the next three years which will mean approximately 5% increases on water each year. This will only slightly reduce Metrowater's charitable payments not remove them. This C&R Council will continue to charge much more for water than necessary throughout this Council term, just to subsidise other council activities.

City Vision-Labour Leader Councillor Richard Northey says "City Vision-Labour's position on Metrowater has been clear at all Council meetings since the election. Our policy is that water is a basic human right and should be provided at minimum cost to users. Users of water and wastewater services should only pay to provide a financially and environmentally sustainable water and wastewater service and these charges should not be a source of profit to subsidise other council activities."

He moved, and all City Vision-Labour Councillors voted, to continue to hold water prices at their current levels so that all charitable payments will be removed within two years, which is during this term of Council.

Councillor Northey says "David Hay talking of a 6.6% increase in value based rates over the 2008-2009 year to remove the charitable payments in one fell swoop is grossly misleading. Because it is to pay for water pipes, the C&R Councillors moved, and City Vision-Labour agreed, that these costs be paid for by borrowing which will only result in an initial rates increase of 0.1%. David Hay's continued wittering about getting a return on investment from Metrowater is wrong-headed given we are talking about a monopoly Council-owned organisation providing for an essential human need - clean water."

Councillor Northey says that the only way to make sure charitable payments and unfair water price gouging cease is for concerned public to make clear submissions to the Council's draft Annual Plan. This will be available for public feedback from 18 April to 20 May 2008 and in early June there will be opportunity to make verbal submissions to councillors before the Annual Plan is finalised by 30 June 2008.

ENDS

Posted Thu 06 Mar 2008


 

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