Commentary on Castalia Reports

The Department of Internal Affairs, in partnership with the Joint Central/Local Government Three Waters Steering Committee, commissioned significant input from specialist economic, financial, regulatory and technical advisors to support the Three Waters Reform Programme and inform the development of policy advice to ministers.

In recent reports for councils, Castalia makes several broad-ranging and critical statements of the evidence base, focusing mostly on the Water Industry Commission for Scotland’s modelling and analysis.

The Department has been requested to provide commentary on the Castalia Reports, most notably that prepared for Whangārei District Council. The Department considers the Castalia report misrepresents the evidence base and analysis supporting the reform proposals, and reaches conclusions that are not well supported by the available empirical evidence from similar reforms undertaken in other jurisdictions.

The evidence base for the Three Waters service delivery reform proposals has been developed with oversight of the joint Central-Local Government Three Waters Steering Committee, comprising Mayors, council chief executives, Local Government New Zealand, Taituarā and senior government officials. The analysis has been subject to significant independent expert peer review.

The briefing and appendices below provide information, and the Department’s commentary on the report by Castalia.

Contact us

If you have any queries, please email: 3waterssteeringgroup@dia.govt.nz or ThreeWaters@dia.govt.nz