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Watercare, Auckland’s water services provider, is facing significant public criticism after it was revealed that a $20 million agreement with Waikato-Tainui was signed without informing ratepayers. The deal, which commits Watercare to paying $1 million annually for 20 years, was made to support environmental research and projects related to the Waikato River, a crucial water source for Auckland and the Waikato region.
The arrangement, signed in December 2023, came to light recently, sparking outrage over its perceived lack of transparency. Watercare, which is Auckland Council-controlled, already contributes $2 million annually to the Waikato River Clean-Up Trust as part of its consent to extract up to 150 million litres of water daily from the river, approved in 2022. The additional $20 million has raised concerns over the allocation of public funds.
Watercare CEO Dave Chambers admitted that the organisation could have handled the situation differently. He acknowledged that the public should have been informed of the agreement, stating, “As things have unfolded today—certainly if we had our time again, we would have done things in a different way.”
Critics argue that the deal’s benefits remain unclear. Sam Warren from the Auckland Ratepayers’ Alliance called the arrangement “murky at best” and highlighted the lack of specific, tangible projects tied to the financial commitment. He questioned the cost-to-benefit ratio, particularly since ratepayers were not consulted or made aware of the transaction. The secrecy surrounding the deal has fueled further concerns about Watercare’s governance and its use of public funds.
The $20 million commitment is separate from the financial contributions Watercare already makes under its river-consent agreements. The payments will fund environmental initiatives and research in the lower Waikato River catchment, an area of cultural significance to Waikato-Tainui.
In defence of the deal, Watercare emphasised its long-term strategy to reduce Auckland’s reliance on the Waikato River and to enhance Māori involvement in water management. The organisation has also announced plans to form a joint working group with Waikato-Tainui to develop a five-year plan outlining how the funds will be spent, which may help address concerns over transparency moving forward.
The controversy surrounding Watercare’s undisclosed deal reflects broader issues about transparency and accountability within public utilities. Critics argue that such significant financial commitments, especially those involving public money, should undergo rigorous public scrutiny and consultation.
This situation also brings into focus the increasing role of iwi in environmental management, particularly with respect to water resources. Waikato-Tainui holds a special connection to the Waikato River, and the deal represents a growing trend of co-governance between Māori and local authorities. However, the lack of transparency with the public regarding this deal has cast a shadow over what could otherwise be seen as a positive step toward greater iwi involvement in water stewardship.
