The Government has announced its plan to provide a "financially sustainable model" for the future of Auckland's water that keeps rates low and retains control of water assets.
Last month, Auckland's water provider Watercare warned customers that water rates may need to increase by as much as 25.8% to run the business, while keeping to the council's borrowing limit.
The Local Water Done Well plan unveiled today would instead see Aucklanders pay a "more manageable" rate increase.
Speaking from Watercare's Central Interceptor construction site in Māngere, Local Government Minister Simeon Brown said the plan was unanimously endorsed by Auckland Council's Governing Body at a meeting on Thursday.
"Some said that Local Water Done Well could not be done. But within the space of just six months, the coalition Government has worked with Auckland Council on designing a new model for Watercare."
He said the new model means Watercare will be able to borrow more money for long-term investment in water infrastructure and spread the borrowing over a longer period rather than front-loading the cost on to current ratepayers."
Auckland Mayor Wayne Brown said he had been working closely with central government to provide a simple, affordable water solution and described the outcome as "exactly what we've been looking to achieve".
"The new Government asked us to come up with a preferred model, and they’ve agreed to implement it, which is good. I want to thank the Minister and the Prime Minister for the way they have handled this," Brown said.
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He slammed the idea of water rates increasing by more than a quarter in the year ahead as "unacceptable".
"There had to be a better way, and by working in partnership with central government we have found one."
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