Should water and wastewater services be opened up to private competition?

Updated: 9:08AM Thursday November 19, 2009

The Government is planning to make it easier for private companies to take over water and wastewater services from councils.

Local Government Minister and Act leader Rodney Hide yesterday said "flexibility in delivery of water services" was part of changes to the Local Government Act 2002.

The Government wants to extend the 15-year limit on water-service contracts to 35 years and allow companies to build, own and operate new water and wastewater treatment plants during the contract period.

Should water and wastewater services be opened up to private competition? Here is the latest selection of Your Views:

L (Takanini)
Thursday November 19, 2009 I have this notion that capitalism will work only if socialism is it's watchdog. The issue with complete privatisation is there is really no control around pricing products to the consumer.

This is because players can simply sit on the same price regardless of whether the price is fair or not, or altogether they can hike prices. As players dwindle we then start heading towards a monopoly/duopoly. And while prices may be cheap for a while this is to eliminate competition as in for example Air New Zealand's cheap flight service in the 1990's.

There are certain things that should always be state owned. To begin with all utilities assets should be state owned ie water, power, telecommunications. These particular utilities are unique in that how much is used by each customer can be accurately measured.

With each of these SOEs they behave as wholesalers supplying the water, the power and the telecommunications line volume at wholesale prices to the players. For each of these SOEs there is also a state owned player (SOP), whose job is to regulate retail prices. As long as customers can change player and the wholesale price is transparent to the public, then privatisation would work.

Electa (MANUKAU CITY)
Monday November 16, 2009 Would it make a difference? I use about $30-40 of water and pay over $90.00 wastewater charges - as a lot of this water goes onto my garden there is little wastewater. I live alone - but my neighbours (where there are 5 in the family) use much more water, yet still pay the same in wastewater charges. I thought we were into user pays but this is ridiculous - I am paying to have everyone elses water taken away. Justice - not in NZ.

Rachel (Wellington City)
Friday November 13, 2009 Wastewater? Hell yes if it means more efficient, effective and environmentally friendly technologies are adopted. We claim to be a clean, green country but some of our waste management is horrific.

Sadly NZ's waterways are being degraded at a scary rate and cost is always toted as a reason not to upgrade or improve systems. If private companies can deal with waste better and turn a profit then good on them. If sensible regulations are set and regulatory bodies given sufficient powers to ensure compliance of course.

Evilus (Mt Eden)
Thursday November 12, 2009 In a word the answer is No.

This is Rodney gift wrapping public assets for private infrastructure investment, I can?t wait for Infratil to purchase Metro Water, using the money from the NZ Super fund, and then run the operation as well as they do NZ Bus.

Be prepared to suffer if this goes ahead.

Vivienne Campbell (johnsonville)
Thursday November 12, 2009 Absolutely no way.

It is a basic right for all, not just humans but animals too. It is an outrage to privatise it. Next it will be the oxygen in the air.

We will have people under stress, sharing baths, not flushing toilets, and sharing infections, and a host of other problems.

Progress is meant to cause happiness and peace, not grief, and I for one will be protesting most vigorously.

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