The CCO charged with operating Wellington’s water infrastructure, Capacity, is jointly owned by WCC, Hutt City Council and the Upper Hutt City Council. They’ve just realised their annual report.
The Wellingtonian have done an article on it, which provides some background:
It was set up in 2003 with the objective of saving $2.5 million for Wellington City Council during its first five years of operation, and then $960,000 each year thereafter.
The company saved only $700,000 for Wellington City Council between 2004 and 2009.
It’s interesting that Capacity isn’t actually meeting it’s cost-savings goals, but the really revealing statement is…
Mr Allport said the company had reached a plateau in cost and service delivery improvement. Increased integration and network standardisation would be needed to make further progress, he said.
It’s rather timely that this comes to light as the Government move to push through it’s Local Government Ammendment Bill, one of the primary purposes of which is to provide an easy back door avenue for water privatisation.
An integrated water company for across the region has provided some efficiencies, but they’re only going to achieve real savings by real investment.
In other words, proper investment in water services is the answer.