TE AWAMUTU NEWS | 1
THURSDAY JULY 17, 2025
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JULY 17, 2025
Merger calls grow (Waipā) and John Robertson (Waitomo), lead councils It’s a tale of two councils – that have faced three years Waipā and Waitomo. of unprecedented financial One ranks third-highest in challenges, including the country for rate increases high inflation, ageing at 15.5 per cent, while the infrastructure, water reforms other sits near the bottom at and soaring debt. just 2.91 per cent. Waipā has cut nearly $200 The stark contrast in million of costs out of its performance has prompted Long Term Plan in a bid to calls from groups like the find savings. Taxpayers’ Union and But O’Regan says the issue the Waikato Chamber of goes beyond individual Commerce for council councils. amalgamations to spread “It’s bigger than that, costs and keep rates in it’s looking at the whole check. of this sector and how it is Waikato Chamber chief structured and funded and executive Don Good said where those shortcomings the 20-44 per cent increases are,” said O’Regan. “beggars belief” and would “Anybody that promises significantly affect voter rate suppression really fails sentiment in the upcoming to understand the situation local body elections. we’re in as a sector and as a Mayors Susan O’Regan country around the need for infrastructure renewal.” According 1: 2025-26 increases to the 2: 2022-25 cumulative increase Taxpayers’ Union, the Council 1 2 average Waipā 15.50 40.55 council rates Hamilton 15.50 41.15 increase Ōtorohanga 10.16 28.61 across New Ruapehu 9.00 27.13 Zealand South Waikato 8.90 44.40 for 2025 Rotorua 8.57 31.61 is 8.39 per Hauraki 8.40 35.92 cent, while Taupō 8.40 27.85 Waipā’s Thames-Coromandel 7.70 36.06 three-year Matamata-Piako 5.80 39.29 cumulative Waikato Region 5.70 19.65 increase Waikato 4.25 27.15 of 40.55 Waitomo 2.91 20.00 per cent is By Mary Anne Gill
Rates on the rise
Sam Warren
Susan O’Regan
John Robertson
Don Good
described as “staggering and unsustainable.” Local Government campaigns manager Sam Warren said councils like Waipā, Hamilton and Waikato used growth as a smokescreen to justify excessive spending and pass the burden onto ratepayers. “Councils are gaslighting those already struggling to get by,” he said. Robertson sees the upcoming water reforms as a catalyst for necessary mergers, particularly between Waitomo and Ōtorohanga. “When we lose water, we lose 20-25 per cent of our business. You can’t keep the overheads.” Waitomo, once one of the most debt-ridden councils in the country, is projected to have similar debt levels to Ōtorohanga, making amalgamation a practical necessity.
Robertson, a former member of Parliament, mayor of Papakura and local government commissioner acknowledged the government’s water reforms could be seen by some councils as “mergers by stealth.” O’Regan said councils would need to reassess their situations next term. Waipā is likely to transfer its drinking and wastewater infrastructure to a councilcontrolled organisation called Waikato Water Done Well comprising Ōtorohanga, Hauraki, South Waikato, Matamata-Piako and Waitomo. “Water reform will prompt a lot of councils to consider what the future for local government of the rest of council looks like. If that’s not a discussion then you don’t understand what the position is in the sector,” said O’Regan.
“If you’re not prepared to contemplate what local government could look like going forward, you’re misunderstanding the memo. “You have to look at how we can deliver better and more efficient, cost effective services to our community.” She cited Waikato Regional Airport and Co Lab – a council-owned initiative to find shared opportunities - as successful examples of collaboration. “Waikato Water Done well in and of itself is an example of excellent inter district collaboration. “I would like to think we would be mature enough to have a discussion about how the future of that representation and delivery of services could be created for our collective communities and at the same time not lose that local voice and expression and sense of place.”
Robertson said his council had “stripped back” costs to avoid insolvency, a situation that once led the Productivity Commission to label it the worst-performing council in the country. Good said the performances of Waitomo and Waikato Regional Council – its 2025 increase is 5.7 per cent and 19.65 per cent over three years – were acceptable premiums for growth. “Business accepts inflation increases but objects to paying two to three times inflation for the same service. “Double or even triple above inflation means voters will vote with their wallets for more business like financially prudent candidates,” he said. “It is time for accountability and real change. This is the year voters need to vote.”
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