Welcome to the 16th Newsletter for CityWatch NZ
Communities are successfully pushing back against council policies around the country. Recently, residents have successfully petitioned the Whanganui District Council to get speed humps removed and a Christchurch community board was able to stop a planned cycleway which would have removed 170 carparks.
For the May newsletter, Jean Dorrell provides commentary on Hamilton’s new electronic payment system for car parking and asks why has it been made so difficult to access “free parking”.
Hamilton City Councillor Andrew Bydder contributes two opinion pieces. His first piece is on Council’s questionable spending decisions around Hamilton’s new regional theatre and the second piece is on the rapidly growing debt levels in a rapidly growing city. The Council’s “growth pays for growth“ mantra is looking more like wishful thinking than a sound financial plan.
Both Hamilton City and Waikato District councils have agreed to form a new water company. This occurred in the same month when Auckland’s well-established water company faced a flood of troubling media coverage.
For a global perspective we summarise a publication from KPMG International, which was released earlier this year and titled "The Great Reset: Emerging trends in infrastructure and transport”. This publication explains how governments struggling with “unsustainable levels of public debt“ are seen as a “treasure trove of assets” for “institutional investors” and international “asset managers” to acquire.
We also highlight two failed attempts by governments (or more specifically their bureaucratic institutions) to suppress criticism. Councillors at Environment Canterbury rejected a proposal from their organisation’s communication staff to restrict public comments from Councillors. The Down to Earth Kiwi economics blog announced it was closing this month amid threats from political parties and big business interests. Ironically, its impending closure has resulted in the blogs critical ideas reaching new audiences.
June 2025 is looking like another busy month for Parliament’s select committees with a number of important bills being open for public feedback. Some bills could have major impacts on local communities and people’s property rights. The Regulatory Standards Bill and the Public Works (Critical Infrastructure) Amendment Bill being notable examples, with the latter designed to streamline the Government’s “land acquisition process“ for “Fast-track” projects and “Roads of National Significance”.
Links are provided to open consultations at the end of this newsletter.
COMMUNITIES SUCCESSFULLY OPPOSE SPEED BUMPS AND CARPARK REMOVAL
According to reports in the Whanganui Chronicle, local residents collected over 250 signatures on a petition to have speed bumps removed from outside Aramoho Shopping Centre.
Whanganui Chronicle reports that Aramoho speed bumps were removed following community-led petition
Local residents had a number of concerns with the speed bumps, including being woken by trucks in the early mornings, pedestrians having difficulty judging traffic flow and vehicle speeds, driver frustrations, possible suspension damage, increased congestion, and the impact on response times for emergency services.
“…we acknowledge that there have been some negative side effects, which the petitioners have brought to our attention,” Langford said.
“We’ve listened to the community and the speed humps have been removed.”
Whanganui District Council Chief Executive David Langford as quoted by Fin Ocheduszko Brown in the Whanganui Chronicle
According to a report by Chris Lynch Media, Christchurch residents successfully stopped a planned cycle lane which would have removed 170 carparks along Glandovey Road and Idris Road. Residents expressed opposition through public submissions and presentations to community board meetings; this was successful in making Christchurch City Council revise plans to redevelop the roads.
“Local residents know their communities best. I am pleased we could stop this excessive removal of carparks. Communities need to feel and see action that Council is listening and we have achieved that here.”
Fendalton Community Board Member David Cartwright as quoted on chrislynchmedia.com
HAMILTON’S NEW ELECTRONIC PARKING SYSTEM
Over the past few years Hamilton City Council has introduced an electronic payment system for parking in the Central Business District.
Hamilton resident Jean Dorrell provides a short account of using the app to access the “free parking“.
Why do they make this so complicated if the Council is genuinely trying to encourage people to spend time in the CBD?
OPINION: Why Make Things Simple When You Can Make Them Complicated?
“You need to record your vehicle on either a kiosk or the PayMyPark App.
The HCC website has instructions on how to use a kiosk. There are nine steps (and that is after you have found a kiosk).
The App (assuming that you have downloaded it) requires you to state where you are…
…Then there is a message that free parking will be applied at the end. The next screen stated $3.00 per hour for the first 2 hours. And states 60 free minutes apply. This is all accurate information, but it is not intuitive. The app is no simpler than the nine-steps required to use the kiosk…
…When the kiosks were first introduced, I would find that every time I went to enter my details, there was a person standing there trying to work out if they had actually done what they were supposed to do.”
Jean Dorrell, Why Make Things Simple When You Can Make Them Complicated?
MORE FUNDING FOUND FOR THE NEW REGIONAL THEATRE AND HAMILTON CITY COUNCIL’S GROWING DEBT
Hamilton City Councillor Andrew Bydder’s first opinion piece covers the recent vote to give an extra million dollars to an organisation building the new regional theatre.
This is on top of tens of millions in other loans, gifts, grants, and/or subsidies from ratepayers to support the new theatre.
Andrew Bydder voted against the extra funding and explains how $1 million dollars equates to the annual rates contributions from over 300 average Hamilton homes.
In his second article, Andrew Bydder explains how Hamilton City Council is borrowing to support the City’s growing population. However, the additional rates revenue from population growth will struggle to even cover the interest on the extra debt.
OPINION: Council Growth Financial Model 2019-2025
With Hamilton City Council debt levels reaching $20,000 per household (and climbing rapidly), the City is in for a troubled future. That is even if the budget surpluses in the Long-Term Plan (LTP) actually eventuate.
“Mathematically, rates need to increase to cover operating expenses. This is a problem if people cannot afford higher rates. However, council has committed to a series of increases that generate a surplus (assuming nothing changes) from 2027. History suggests the balancing of the books will continue to be pushed out and the surplus will be spent. A change in council governance is needed.
Philosophically, we should stop growing. Council has limited control over this because government policy is to grow the region. 11% of the Hamilton workforce is employed in construction which requires growth.
The cost of growth must be reduced. This is the only practical answer. We know NZ’s infrastructure cost is 4 x the OECD average. The way infrastructure is delivered needs to be changed. Private Developer Agreements (PDAs which allow developers to use their own contractors and project managers) in Rotokauri and Rototuna have delivered infrastructure at half council’s budgeted cost. It is achievable, and it must be done.
Council has operated without a business case, and is simply providing the infrastructure to its own specification to meet the demand without a cost-benefit analysis, and without consideration of affordable alternatives to different specifications. It is like a family that wants a new car so buys the latest model from a dealer on hire-purchase instead of a second-hand car that meets their needs….
…The operating surplus is what repays debt. Individual loans may be repaid, but it is done by rolling over the debt with another loan. Instead of setting aside money for depreciation of assets, we fund renewals. This means we will need more borrowing to replace existing infrastructure at the end of its life, so intergenerational borrowing never ends.
Even with surpluses from 2027, the LTP projects principal debt growing at a faster rate than the surplus. Debt is currently $20,000 per household. While intergenerational debt is OK, the accumulated debt from excess operating expenses should be repaid, and there is currently no ability to do so.”
Hamilton City Councillor Andrew Bydder, Council Growth Financial Model 2019-2025
WATER COMPANY WOES
On the 29th of May, Hamilton City and Waikato District councils agreed to form a water company.
“Hamilton Mayor Paula Southgate and Waikato District Mayor Jacqui Church say unanimous decisions this week from both councils to form a council-controlled organisation (CCO) to build and manage water infrastructure are “legacy decisions that will impact generations.”
“This is a fundamental change to the responsibilities of local government.”
Hamilton City Councillors today (29 May) said yes to forming a joint water company with their neighbours to manage 90,700 water connections (including non-residential connections) and invest around $3.3 billion on water infrastructure over the next decade. Their decision follows the unanimous decision by Waikato District Council on Tuesday (27 May) to join with Hamilton in forming the CCO.”
Water company decision ‘historic': Mayors, Hamilton City Council, 29 May 2025
The new organisation managed to achieve a budget blowout almost immediately as indicated by this Waikato Times article.
“Consultant Peter Winder, the CCO programme manager for both councils, explained the jump in projected establishment costs from $6 million to $7.35 million mostly related to a fresh assessment of digital technology-related costs. Just over $2 million was budgeted for these costs now.”
Thumbs up from Hamilton for joint waters body with Waikato, Waikato Times, 29 May 2025
CityWatch NZ editor John McDonald notes that Council’s December 2024 Business Case indicated that extra costs for forming the joint CCO will be much higher. This includes an estimated $2 million each year for the company’s board and new Chief Executive. Additional operating costs for the new corporate entity will total approximately $10 million per year (as estimated before any further budget blowouts occur).
The drive to create new water companies is part of the “Local Water Done Well” reform which replaced Labour’s attempted “Three Waters” reform. Both reforms are about transferring water infrastructure and water services to larger corporate entities, which can then take on larger amounts of debt. The “Local Water Done Well” reform is expected to be more voluntary and have less iwi co-governance than the “Three Waters” reform. However, there is speculation that those key differences may not exist in practice.
In other water CCO news, Auckland’s Watercare had another bad month in the news headlines. Prominent examples of articles about the water company included:
Auckland Watercare engineer pleads guilty to $1m fraud, faces up to seven years in prison, NZ Herald.
Watercare spends $11m on consultants for delayed Huia treatment plant project, NZ Herald.
Constraints on Watercare infrastructure could push up prices, RNZ.
"No accountability": Oyster farmers hit out at Auckland Council, Watercare for contaminated waters, Newstalk ZB.
NZ’s sewage crisis: dozens of livelihoods threatened on oyster farms, Newsroom.
Warkworth oyster farmers call for urgent solution to sewage overflowing into Mahurangi River, RNZ
Auckland oyster farm closes due to sewage contamination, The Post.
Cut back on showers, Aucklanders warned, as drought plan activated, MSN
Auckland Council’s communication and public relations team self-published positive-sounding headlines such as “Watercare completes new $115m watermain 20% under budget”. However, the established media did not appear keen to promote the story.
It has not been a good year for Watercare in terms of media coverage. In March they had bad press with NZ Herald running the headline “Auckland’s Huia water treatment plant cost blows out from $420m to $1.1b”. Also Newsroom interviewed the new Watercare Chief Executive Jamie Sinclair in a story which foreshadowed massive debt increases alongside large increases in water charges for consumers.
“That will mean going to the markets for money, and will require increasingly aggressive leverage of revenues. Sinclair says Watercare will raise its debt levels to $9.9b.
To put that in perspective, it’s nearly three times the current debt of $3.6b. It’s more than the debt of all four big power gentailers, combined. And its finance team don’t yet know what water users will pay to service that borrowing.
The $13.8b investment is a 40 percent increase on the previous plan, made just four years ago – but it’s deemed absolutely necessary, driven by the cold, hard scrutiny forced upon water service providers by the previous government’s Three Waters reform programme, and disasters like the main sewer line collapse in Parnell.”
Jonathan Milne, New Watercare boss to borrow $10b for ageing pipes and plants, Newsroom, 26 March 2025
KPMG INTERNATIONAL IS PUBLISHING ON THE “GREAT RESET” AND “THE GREAT PRIVATIZATION“ OF PUBLIC ASSETS
KPMG International published a document in February 2025 titled “The Great Reset: Emerging trends in infrastructure and transport”. The document identifies ten trends with each trend covered by different KPMG personnel.
“We are in the midst of a Great Reset. Protection of national interests are at the top of the agenda. Economies are being reshaped. Alliances and supply chains are being rewired. The frequency and severity of weather events are increasing. And social expectations and norms are being revised.”
Foreword: Reset 2025, The Great Reset: Emerging trends in infrastructure and transport, KPMG
The KPMG document covers a range of topics, with a heavy focus on technologies such as digital twin simulations, artificial intelligence (AI), automation, drones, and Internet of Things (IoT) sensor networks.
Another prominent topic in the document is “the Great Privatization“ where governments with “unsustainable levels of public debt“ are seen as a “treasure trove of assets” for “institutional investors” and international “asset managers” to acquire, with “bridges, roads and utilities” appearing to be some of the prime targets.
“Governments are trying to balance a range of funding priorities and that is reducing their fiscal capacity for infrastructure. At the same time, demand for new and more resilient infrastructure is climbing, driven by economic, environmental, technical and social pressures. Closing the gap will be a key priority for governments around the world.
Frustratingly, the solution to closing this gap has been obvious for some time. Governments are sitting on a treasure trove of assets. Indeed, a study of 38 countries by the IMF found more than US$100 trillion worth of assets on government books, including key infrastructure such as bridges, roads and utilities. And institutional investors are sitting on a treasure trove of capital. The world’s top 500 asset managers collectively manage more than US$128 trillion. The alignment is obvious…
…In this environment, governments will need to start assessing their portfolios of assets to understand what can be brought to market, what assets require more support to become commercially viable and what assets must remain on the government books. And they will want to provide some guidance to investors around the types of assets they will bring to market and associated timelines. Messaging to citizens and to national pension funds and institutional investors will also be key.
For their part, institutional investors will need to become more proactive as a gradual increase of new assets comes to market, likely sector by sector. Given the complexity of the transactions and the quantum of investment required, institutional investors would be wise to start identifying targets and asset classes that align to their investment strategies and begin their due diligence, outreach and internal discussions as soon as possible.
The Great Privatization is coming. Preparation will be key.”
Funding: The Great Privatization, The Great Reset: Emerging trends in infrastructure and transport, KPMG
KPMG New Zealand gave their local take on the publication from KPMG International. It had considerably less emphasis on open and direct asset sales. Congestion charging and road tolls are mentioned along with proposed changes to developer contributions.
“As demand for high-performing infrastructure is increasing, infrastructure is competing with other sectors for scarce funding. The Government is right to ‘sell’ New Zealand as an investment destination through the Global Investment Summit, but we need more than private capital. We also need to be able to pay back that capital, which requires new sources of funding. Initiatives such as the increased use of tolls and congestion charging and the recent announcement to improve local authority options to fund growth infrastructure (by replacing Development Contributions with levies) will help. However, other countries have and are increasingly looking for more flexibility around the use of the public sector balance sheet.
We see merit in New Zealand developing a more sophisticated understanding of whether the current assets held by central and local government are the best use of funds relative to the new infrastructure we need. That said, one of the lessons of asset recycling overseas is that the benefits are maximised when combined with strong consumer protections such as a sophisticated regulatory regime that can drive long term performance and asset quality”.
2025 Emerging trends in infrastructure and transport, KPMG New Zealand
The term “debt recycling” is used by Hamilton City Council staff. Sometimes a council never really pays back a specific infrastructure loan and instead they effectively refinance the loan into the ever-growing sum of intergenerational debt. Andrew Bydder describes this kind of practice in one of his articles in this newsletter.
The term “asset recycling” sounds like a reference to a system where governments sell some assets to buy or support other assets. Given their history, a council will likely build or keep loss-making “assets” (such as a poorly-performing stadium overdue for expensive upgrades). Other assets such as roads and utilities would be targeted by foreign institutional investors as an opportunity to make steady profits. Income streams from core infrastructure assets and monopolies will be less impacted by ‘belt-tightening‘ behavioural changes in a population facing economic hardship. Controlling and exploiting such assets is likely to have significant strategic value for institutional investors.
New Zealand currently has regulatory barriers and political resistance to officially privatising core infrastructure such as water utilities and roads. However, there are other ways that foreign investors can gain considerable levels of control over New Zealand’s infrastructure assets, and secure a steady stream of rent-extraction, without those assets officially being sold.
We should also be asking tough questions such as:
Why do we have unsustainable levels of public debt?
What happened to the ‘pay-as-you-go’ system that previous generations used to fund core infrastructure?
Where did all the money go; the money collected from developer contributions and taken from generations of ratepayers in the name of asset depreciation?
GOVERNMENTS TRY TO SUPPRESS CRITICISM AND FAIL
Environment Canterbury Councillors recently voted down a “public statement” policy proposal from Council staff. Chris Lynch Media reported that some Councillors considered that the policy would limit “…elected members’ ability to freely express their views on social media and in the media“. Councillors were vocal in expressing their concerns with the proposed policy with some likening it to “a gag order“ and something out of George Orwell’s “1984”.
The proposed “public statement” policy was voted down 10-to-6, the council chamber debate can be viewed at this link. The proposed policy was explained by the Council’s Director of Communications and Engagement using language such as “safe space“.
The economics blog called “Down to Earth Kiwi” announced it was shutting down due mounting pressure on its main author Professor Robert MacCulloch.
Robert MacCulloch’s hard-hitting ‘sign off’ post has been widely circulated and has helped the blog’s critical messages to reach a much wider audience. Coverage has included an interview on the Platform and an article in the NZ Herald.
“National, Labour and Big Business NZ have begun to complain & threaten me at the highest levels about my writings. The game has become clear. Continue doing so and it will mean the end of your future in this country. DownToEarth.Kiwi has been told in no uncertain terms that for me, as principal writer, due to this commentary, I've been wiped for consideration from top public & private appointments. So good luck to NZ. Good luck to maintaining the status quo of the same old people, in the same old big jobs, who together with their same old mates have driven NZ into division and economic decline. As for me, taking a fresh perspective & offering different solutions to the tired old, failed approaches of the past - the ones our two main political parties & their buddies in corporate NZ promote to protect their territories - is something I no longer wish to do. It would be good for them to be required to wear their gang patches announcing to Kiwis who and what they truly represent, rather than hiding in shadows. A lack of imagination threatens our future. Good luck and good night.”
Professor Robert MacCulloch, Down to Earth Kiwi
An archived version of the Down to Earth Kiwi blog can be found using the following link.
https://web.archive.org/web/20250521233702/https://www.downtoearth.kiwi/
OPEN CONSULTATIONS
PUBLIC WORKS (CRITICAL INFRASTRUCTURE) AMENDMENT BILL
CLOSES 11:59 PM FRIDAY 13 JUNE 2025
“This bill proposes to streamline the land acquisition process under the Public Works Act 1981 for:
-infrastructure projects listed in Schedule 2 of the Fast-track Approvals Act 2024
-Roads of National Significance (RoNS) outlined in the Government Policy Statement on Land Transport 2024”
Links:
View the current bill at this link
REGULATORY STANDARDS BILL
CLOSES 1:00 PM MONDAY 23 JUNE 2025
“The bill aims to support Parliament’s scrutiny of legislation, and its oversight and control of the use of delegated powers to make legislation. The bill would achieve these objectives in four ways.
First, it would introduce a set of regulatory principles that new and existing regulations would be measured against. These include the rule of law, personal liberties, taking of property, taxes, fees, and levies, and the role of courts.
Responsible Ministers, administering agencies, and other makers of legislation would be required to assess the consistency of proposed and existing legislation against these principles. Ministers, as well as makers of secondary legislation, would be required to publish or present to the House of Representatives the results of those assessments.
The bill would also establish a Regulatory Standards Board to independently consider the consistency of legislation with the principles. The members of the board would be appointed by the Minister for Regulation. The board would carry out inquiries into whether legislation is inconsistent with the principles following a complaint, at the direction of the Minister, or on its own accord.
Finally, the bill would strengthen the regulatory oversight of the Ministry of Regulation by requiring the Ministry to report on the overall state of the regulatory management system. It would empower the Ministry for Regulation to require agencies to supply information as a part of its oversight of the regulatory management system. This would include public service agencies, makers and administrators of secondary legislation, and agencies and contractors that perform a statutory function.”
Links:
View the current bill at this link
https://www.legislation.govt.nz/bill/government/2025/0155/latest/whole.html
BUILDING AND CONSTRUCTION (SMALL STAND-ALONE DWELLINGS) AMENDMENT BILL
CLOSES 11:59 PM MONDAY 23 JUNE 2025
“The chairperson of the Transport and Infrastructure Committee is now calling for submissions on the Building and Construction (Small Stand-alone Dwellings) Amendment Bill
This bill would amend the Building Act 2004 to allow small stand-alone dwellings ("granny flats") to be built without needing a building consent, as long as certain conditions are met”
Link:
VALUERS BILL
CLOSES 11:59 PM FRIDAY 27 JUNE 2025
“The Valuers Bill would re-enact the Valuers Act 1948. The Act provides for the registration of land valuers and the establishment of the New Zealand Institute of Valuers.
This is a revision bill. Revision bills are used to re-enact legislation in an up-to-date and accessible form. They may not change the effect of the law (except as authorised by section 96(3) of the Legislation Act 2019).
This bill would not make any substantial policy changes to the Act. It would make minor changes to the Act to correct inconsistencies and omissions. It is intended to rewrite the law using plain language and modern drafting style. The scope of the changes the committee can recommend on this bill is narrow.
The Primary Production Committee is also considering Amendment Paper 286 alongside this bill
An Amendment Paper is a document that gives notice of proposed amendments to a bill. Amendment Paper 236 would amend the Valuers Bill and proposes more substantial policy changes.
Amendment Paper 286 would make changes to the Valuers Bill, including:
increasing the penalties for offences
removing the requirement for a person to be at least 23 years old to become a registered valuer
expanding the Valuers Registration Board’s disciplinary powers.”
Link:
Posting of event information, petition information, consultation viewpoints, or other content on the CityWatch NZ newsletter or website does not constitute endorsement of those views by CityWatch NZ or its editors. This section is largely based on information readers have sent to us on issues they think are important.
If there is a political/regulatory consultation, petition, or event you think might be of interest to CityWatch NZ readers, email the details to contact@citywatchnz.org