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02 March 2007
Council rejects fairer wastewater charges
Manukau City Council last night rejected volumetric wastewater
charging at the Council meeting held to adopt the Council’s draft
Annual Plan. The Council instead indicated that it is considering
increasing the residential fixed wastewater charge of $320 that
Manukau Water currently charges.
Howick Councillor Jami-Lee Ross led the push for fairer
residential wastewater charges which would have been based on the
amount of water that ratepayers use. Mr Ross also pushed for a
change to the current $950 business wastewater charges which have
been adversely affecting small businesses.
“Wastewater charges have caused a lot of concern within the
community since the Manukau City Council set a $320 fixed
wastewater charge from July 2006. This charge was not fair on low
water users such as pensioners and small families because it did
not recognise the amount of water that ratepayers use.
“At
the Council meeting on Thursday evening I proposed a change to the
current wastewater charges that would more accurately reflect the
services that ratepayers receive. The new proposed charges would
be made up of both a fixed and variable component and based on the
amount of water consumption.”
The
Council did not support Mr Ross’ call for fairer wastewater
charges and voted 11 to 5 against the motion to implement the
change.
Mr
Ross’ proposed residential charge would include a fixed annual fee
of $160, half of the former $320 charge. The variable charge would
be based on 75% of the water that a ratepayer uses and be set at
$0.80/m3. The 75% factor would be used to reflect the
fact that a portion of water consumption does not end up as
wastewater.
“Structuring wastewater charges with both a fixed and variable
component is the fairest way for Council to charge for wastewater
services. It takes into account the fixed cost of wastewater
infrastructure while at the same time ensuring that low water
users are not adversely impacted by fixed charges. High water
users would also be provided with an incentive to conserve water.”
The
proposal also contained a similar change for business customers
which would result in the fixed charge moving from $950 to $180.
As with residential customers, a variable component would be used
to reflect water usage. Business customers using large amounts of
water would continue to have the option of requesting an audit of
their wastewater output in cases where much of the water
consumption is retained within their product.
Mr
Ross says he is disappointed that the Council did not support a
fairer change to the wastewater charges. Instead the Council
indicated in its draft Annual Plan that it is considering
increasing the current fixed charges of $320 for residential
ratepayers, and $950 for businesses. Council officers reported to
the Council that Manukau Water has not yet indicated how much
charges will increase by, except that the increase will likely
exceed the rate of inflation.
“I
strongly encourage ratepayers to make a submission on the
Council’s draft Annual Plan to voice their concerns over the
current fixed wastewater charges. The only fair way to charge for
wastewater is to base the charges on the actual services that
ratepayers are receiving with a volumetric component.
“Manukau City Council did not set wastewater charges correctly in
2006 however the Council now has an opportunity to rectify the
situation by implementing fairer wastewater charges from 2007
onwards.”
ENDS
NOTES:
1)
Manukau Water is a Council Controlled Organisation 100% owned by
Manukau City Council. The Council sets the prices for water and
wastewater charges.
2)
Councillors in favour of the proposed wastewater charges: Jami-Lee
Ross (mover), Dick Quax (seconder), Peter Kelly, Jan Sinclair, Bob
Wichman.
3)
Councillors against the proposed wastewater charges: Sir Barry
Curtis, Arthur Anae, Colleen Brown, Noel Burnside, Anne Candy,
David Collings, Alf Filipaina, Neil Morrison, William Sio, Sharon
Stewart, Sylvia Taylor, John Walker.
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