1 00:00:00,000 --> 00:00:02,240 Speaker 1: It's new numbers around the water done well programmed for 2 00:00:02,279 --> 00:00:04,440 Speaker 1: you this morning, forty eight billion as you bill over 3 00:00:04,519 --> 00:00:07,960 Speaker 1: ten years though thirty billions for waste and stormwater. Previously 4 00:00:07,960 --> 00:00:10,760 Speaker 1: scrap three waters that was estimated at one twenty to 5 00:00:10,760 --> 00:00:13,480 Speaker 1: one to eighty five billion over thirty years. Now. Simon 6 00:00:13,480 --> 00:00:16,239 Speaker 1: Watts is your local government minister and his weather's good morning. 7 00:00:16,520 --> 00:00:17,239 Speaker 2: Very good morning, Mike. 8 00:00:17,520 --> 00:00:20,360 Speaker 1: The forty eight billion is made up of what for 9 00:00:20,440 --> 00:00:21,520 Speaker 1: who and where. 10 00:00:22,239 --> 00:00:24,920 Speaker 2: The forty eight billions an estimate by councils of how 11 00:00:25,000 --> 00:00:28,640 Speaker 2: much they think they're going to spend on water infrastructure 12 00:00:28,640 --> 00:00:32,760 Speaker 2: over the next decade. It's spread across the forty two 13 00:00:32,880 --> 00:00:36,360 Speaker 2: different entities. I think you have to put it in context, Mike, 14 00:00:36,400 --> 00:00:39,240 Speaker 2: that what they think they're going to spend is different 15 00:00:39,240 --> 00:00:41,880 Speaker 2: to what the industry is currently spending. The industry is 16 00:00:41,920 --> 00:00:44,760 Speaker 2: only spending between two and three billion dollars a year 17 00:00:44,800 --> 00:00:47,440 Speaker 2: at the moment in terms of run rate on this 18 00:00:47,560 --> 00:00:52,280 Speaker 2: type of infrastructure, So forty eight is a big differential 19 00:00:52,680 --> 00:00:55,080 Speaker 2: verse that, and I think there has to be taken 20 00:00:55,120 --> 00:00:57,240 Speaker 2: in context that you know, what they think they're going 21 00:00:57,280 --> 00:00:59,640 Speaker 2: to spend and what will be spending are two. 22 00:00:59,600 --> 00:01:03,520 Speaker 1: Different and how much is debt, Well. 23 00:01:03,320 --> 00:01:06,720 Speaker 2: It depends on the structure of each of the councils, 24 00:01:06,720 --> 00:01:09,680 Speaker 2: but you know they have the capability to take borrowings 25 00:01:09,720 --> 00:01:12,440 Speaker 2: significantly more than what they could under the last model. 26 00:01:13,040 --> 00:01:17,080 Speaker 2: I haven't got the specifics for each part, but forty 27 00:01:17,080 --> 00:01:18,360 Speaker 2: eight is of totality number. 28 00:01:18,480 --> 00:01:20,319 Speaker 1: How much do you how many do you reckon they're 29 00:01:20,319 --> 00:01:21,959 Speaker 1: going to end up in trouble with debt? 30 00:01:22,959 --> 00:01:26,200 Speaker 2: Well, we've had the ComCom review the financial sustainability of 31 00:01:26,240 --> 00:01:29,320 Speaker 2: their enerities, of all the entities and looked at what 32 00:01:29,400 --> 00:01:31,280 Speaker 2: they have got in terms of whether they can cover 33 00:01:31,319 --> 00:01:33,920 Speaker 2: their costs and repay their debt, and the ComCom said 34 00:01:33,959 --> 00:01:37,399 Speaker 2: to me that these entities are financially sustainable, and on 35 00:01:37,440 --> 00:01:40,880 Speaker 2: that basis, I'm comfortable that they can deal with the 36 00:01:40,959 --> 00:01:43,240 Speaker 2: challenges that are in front of them. I think without 37 00:01:43,360 --> 00:01:46,840 Speaker 2: doubt as we go into ten years from now, the 38 00:01:47,520 --> 00:01:50,480 Speaker 2: challenge around making sure that rates are affordable and all 39 00:01:50,480 --> 00:01:53,520 Speaker 2: that they can repay a debt is going to be important. 40 00:01:53,600 --> 00:01:57,160 Speaker 2: But I'm comfortable based on the Comcom's assessment that these 41 00:01:57,200 --> 00:01:59,880 Speaker 2: guys have got. You know, they've got the financial strength 42 00:02:00,040 --> 00:02:00,600 Speaker 2: depending them. 43 00:02:00,640 --> 00:02:02,320 Speaker 1: How many have you got left who have got a 44 00:02:02,360 --> 00:02:03,440 Speaker 1: plan that you don't like. 45 00:02:04,680 --> 00:02:07,160 Speaker 2: We've got one that I've put a facilitator in, and 46 00:02:07,280 --> 00:02:10,080 Speaker 2: we've got about six more that need to be approved. 47 00:02:10,760 --> 00:02:13,600 Speaker 2: But my view is that eventually all of those are 48 00:02:13,639 --> 00:02:16,200 Speaker 2: going to be fine. But we've probably got a couple 49 00:02:16,280 --> 00:02:18,160 Speaker 2: more weeks before I can sort of raise the flag 50 00:02:18,200 --> 00:02:20,880 Speaker 2: and say we're done in terms of a full assessment 51 00:02:20,919 --> 00:02:22,280 Speaker 2: of all the councils. 52 00:02:21,880 --> 00:02:25,760 Speaker 1: And what's the breakdown with cooperation councils coalescing versus people 53 00:02:25,800 --> 00:02:28,040 Speaker 1: going alone and do any of them bother you? 54 00:02:28,840 --> 00:02:32,760 Speaker 2: Yeah, we've got basically thirty eight of the councils have 55 00:02:32,840 --> 00:02:35,519 Speaker 2: joined together into twelve different entities, so that's a pretty 56 00:02:35,520 --> 00:02:40,200 Speaker 2: big success. Twenty two are doing it themselves and eight 57 00:02:40,280 --> 00:02:43,079 Speaker 2: have moved into a new structure. So we've got forty 58 00:02:43,080 --> 00:02:47,040 Speaker 2: two entities and totality and might you know, there's been 59 00:02:47,080 --> 00:02:49,480 Speaker 2: some pushback around the numbers and all of that. It's 60 00:02:49,520 --> 00:02:51,920 Speaker 2: never been about the number of entities. It's been about 61 00:02:52,000 --> 00:02:56,480 Speaker 2: whether financially sustainable, and you know that's the critical part 62 00:02:56,720 --> 00:02:59,359 Speaker 2: is the reform over No, you know, we've got other 63 00:02:59,400 --> 00:03:03,400 Speaker 2: groupings councils that are currently working on coming together as 64 00:03:03,400 --> 00:03:07,080 Speaker 2: well that are currently stand alone at the moment so 65 00:03:07,160 --> 00:03:09,400 Speaker 2: this is an evolution. We're not going to you know, 66 00:03:09,400 --> 00:03:11,440 Speaker 2: we're taking a bite to the apple. But are we 67 00:03:11,520 --> 00:03:14,400 Speaker 2: at the destination. No, But I think we've created we've 68 00:03:14,440 --> 00:03:16,560 Speaker 2: softened the ground and you're seeing this coming through in 69 00:03:16,560 --> 00:03:19,720 Speaker 2: the regional council conversation. We've softened the ground and the 70 00:03:19,760 --> 00:03:22,480 Speaker 2: dialogue that people are going, oh, well, you know, this 71 00:03:23,000 --> 00:03:25,360 Speaker 2: sort of makes sense that maybe we should consolidate and 72 00:03:25,400 --> 00:03:28,360 Speaker 2: continue on that journey. And that doesn't just happen. You know, 73 00:03:28,639 --> 00:03:32,000 Speaker 2: you've got to bring people with you on this and awards, 74 00:03:32,040 --> 00:03:35,240 Speaker 2: infrastructure reform, soften the ground for the conversations that we're 75 00:03:35,240 --> 00:03:37,640 Speaker 2: not having as a country, and I think that's that's 76 00:03:37,680 --> 00:03:40,360 Speaker 2: a pretty exciting prospect for the next five years ahead. 77 00:03:40,360 --> 00:03:42,680 Speaker 1: All right, appreciate it. Simon Wat's local government minister. 78 00:03:42,720 --> 00:03:46,080 Speaker 2: There for more from the Mic Asking Breakfast, listen live 79 00:03:46,200 --> 00:03:49,120 Speaker 2: to news talks that'd be from six am weekdays, or 80 00:03:49,160 --> 00:03:51,080 Speaker 2: follow the podcast on iHeartRadio.