Wellington Water’s Chief Executive, Pat Dougherty, recently shed light on the deepening issues facing the organisation, from underfunded infrastructure to systemic inefficiencies. Addressing a Greater Wellington Regional Council committee, Dougherty revealed a funding gap so significant that even an immediate financial boost would leave the region’s water network at current standards for over a decade.

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Critical Funding Shortfalls

Wellington Water has requested $39 million in funding for immediate upgrades, but the six shareholding councils, including Wellington City Council, have allocated less than half the required amount over the next decade. Currently, Wellington Water can replace just 9 km of pipes annually, compared to a “best year” replacement rate of 24 km in 2023. At this pace, some pipes would need 670 years to be replaced, far exceeding their lifespan.

Systemic Operational Challenges

Dougherty described the organisation’s reliance on third-party systems from contractors Fulton Hogan and Veolia due to the absence of an in-house asset management system. This arrangement has hindered efficient decision-making and added costs. An estimated $37.5 million is required to implement IT upgrades and modernise outdated systems.

In addition, Dougherty highlighted inefficiencies such as over-reliance on consultants, where Wellington Water spends $600,000 annually on external engagements that could be managed internally for a fraction of the cost. He has proposed bringing 28 consultant roles in-house, saving $1.3 million.

A Culture in Need of Overhaul

Dougherty called for a cultural reset, labelling the organisation’s current state as one of “learned helplessness.” He emphasised the importance of instilling accountability and adaptability within the organisation to tackle the challenges posed by aging infrastructure and financial constraints.

Role of Wellington City Council

Wellington City Council’s historical underinvestment in water infrastructure has exacerbated the issue. The council’s current allocation allows for the repair of less than 1 km of pipes this year, leaving a significant backlog of work. Nick Leggett, chair of the Wellington Water Board, likened the discovery of systemic issues to “peeling an onion,” revealing years of neglected decision-making.

Looking Ahead

Dougherty remains focused on streamlining operations and preparing the organisation for the eventual transition to a new national water services entity under New Zealand’s three waters reform. He stressed that proposed upgrades, though costly, are essential to maintain water quality, ensure compliance, and safeguard the region’s future growth.

Wellington’s water woes highlight the urgent need for sustainable funding, strategic leadership, and decisive action. Without these measures, the region risks long-term disruptions to essential services.