Loss of funding another ‘broken promise’

North Canterbury’s three councils say the loss of Better Off funding is yet another ‘‘broken promise’’ from central government.

The councils were reacting to the belated announcement the promised second tranche of $1.5 billion in Better Off funding to councils has been withdrawn.

The government has announced it will now be used to fund the creation of 10 water entities, instead of four, as part of the revised Affordable Water – formerly Three Waters – Reform programme.

The councils have already had the first tranche of funding approved, with Waimakariri receiving $5.54 million, Hurunui $2.67 million and Kaikōura $1.55 million.

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The second tranche was earmarked for July 2024, with Waimakariri set to receive $16.64 million, Hurunui $8.01 million and Kaikōura $4.66 million.

But the three North Canterbury councils said they realised there was never any guarantee the second tranche would be paid out.

Hurunui District Council chief executive Hamish Dobbie said the U-turn was yet another ‘‘broken promise’’ from the government around the reforms.

Councils were informed in 2020 they would have the option to accept or reject the proposed reform, but this option was subsequently withdrawn.

‘‘The government reneging on its promised Better Off funding doubles down on it unilaterally, retracting its earlier promise that the Three Waters Reform would be optional for communities,’’ Dobbie said.

Hurunui was using the tranche one funding to assist with affordable housing, building restoration and climate resilience.

Dobbie said the council remained committed to delivering quality three waters services to its communities.

The councils have also received ‘‘no worse off’’ funding.

This was to compensate for staff time in providing the national transition authority with data to aid in the establishment of the new water entities.

But Waimakariri District Council acting chief executive Jeff Millward said the two year delay to 2026 to establish the new water entities would add extra cost to councils and uncertainty for staff.

‘‘We had always made a decision to include Three Waters in the (2024/34) Long Term Plan, so making that decision early has probably saved us a lot of work.

‘‘I understand there are some councils who weren’t doing that, so we are well-positioned.

‘‘It was the responsible thing to do.

‘‘But we need to work with the legislation and we will leave it to the elected members and politicians to argue it out.’’

Waimakariri was spending the Better Off funding on climate change projects, elderly persons’ housing, the Rangiora civic precinct project and the Kāinga Nohoanga Strategy project in Māori Reserve 873.

Kaikōura District Council chief executive Will Doughty said the first tranche money has been allocated across 13 projects.

‘‘Most of these are standalone projects that can still be achieved within the funding envelope.

‘‘However, on the advice of DIA (Department of Internal Affairs), we did include some feasibility studies with tranche one funding with a view that any capital works required from those studies could potentially be funded though tranche two.’’