The Labour government has told us to expect significant savings in the delivery of the Three Waters services (fresh water in, waste water out and stormwater around) once the new reforms kick in in 2024.
Investigations have detailed exactly where those cost savings will arise and the results are enumerated below.
1. Staff Costs
All current Council staff involved in the Three Waters will have their jobs protected at the same terms and conditions.
In addition, many more jobs will be created.
As reported by Stuff on October 27 this year, Minister Mahuta said an extra 6,000-9,000 jobs will be created.
Obviously retaining ALL current staff at their current pay rates and ADDING an extra 6,000-9,000 to the payroll will result in a lower wage bill and savings for the householders. (If you cannot understand simple economics like this then you, obviously, cannot get a role as a civil servant.)
2. Extra Committees or Forums
Obviously, the way that Councils have been managing the Three Waters has been seriously deficient as they have not had the requisite number of committees involved and any committees that are involved are probably made up of elected members who would not receive any extra remuneration for sitting on any such committee.
This simply will not do in the brave new world of Three Waters Reform.
Clearly, the burden for the extra costs for these committees will be passed on to the consumers of the Three Water services resulting in even more savings.
3. Transition Costs
Of the $1 billion budgeted for the transition costs, the government (oh dear – that means ‘taxpayer’) has generously agreed to fund $296 million, leaving only $704 million for the water service entities to fund and on-charge to their consumers
So, one way or another, you get to fork out $1 billion as a saving. This new maths is wonderful, is it not?
4. Set-up Costs
Nothing happens for free and setting up new entities involves costs: offices, vehicles (electric – naturally), letterhead design and printing, decals on the vehicles, desks, computers, etc, etc.
This is yet another cost saving that will be passed on to the householders using the Three Waters.
Life is wonderful when one is spending someone else’s money.
