Council opts for stand alone business unit to deliver water services

Published: 22 May 2025

Council has adopted the Stand Alone Business Unit as the delivery model for future water services in the Ashburton District.

Councillors making the decision yesterday acknowledged the overwhelming support from the community during consultation for Council to retain control over drinking water, wastewater and stormwater services.

But Mayor Neil Brown said a Stand Alone Business Unit (SABU) would not be business as usual.

“This enhanced inhouse unit will be ringfenced from other Council activities, including the financials, and will have a stronger focus on just running three waters. Governance needs to be strong in this area too and the next council may even opt to include external members with a certain skill set.

“There was a lot of feedback and strong support, 88 per cent, for the SABU model, and I thank all those who took part in this important consultation. Government has been just as clear about its stance, and expects Council to comply with all the new three water standards they are rolling in.”

Mayor Brown said there would be stricter requirements to meet, such as reporting to the Commerce Commission, who will ensure that Council was charging fairly and sustainably for water services.

“It’s also clear that under any of the options that were considered that water services will cost more in the future, as we continue upgrading our infrastructure to meet these higher national standards.”

During the three waters reform consultation, submitters said they valued the water services and good decisions of previous Councillors and Council staff.

By the end of this year, Council will have spent about $10 million upgrading drinking water treatment facilities with UV equipment to meet the new standards, and it has work under way and planned at wastewater facilities.

Chief Executive Hamish Riach said deciding on the service delivery model was a pivotal decision and now Council staff could move on to preparing a water services delivery plan that would be submitted to Government for approval.

“There are now new documents that need to be prepared for the SABU and we are gearing up for that so we can meet the deadlines set for the Local Water Done Well programme.

“The water services work remains a big responsibility for Council and as national standards change and costs increase, Council and our community will have to bear this. These reforms are all about meeting water standards that now apply to every Council in the country.”

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