Local Government Minister Simon Watts has called in Wellington Water for a “please explain” and sought advice on potential Government intervention.

It comes after two damning reports revealed Wellington Water has been prioritising consultants and contractors over ratepayers.

Findings included that Wellingtoinans are paying nearly three times that of comparable councils such as Hamilton and Christchurch for unplanned pipe maintenance.

It was also revealed Wellington Water’s ability to detect and prevent fraud was significantly lacking reliable safeguards. One case of alleged fraud has been detected and is being investigated by police.

Wellington Water chairman Nick Leggett.

Watts expected to meet with Wellington Water chairman Nick Leggett early next week.

Asked whether he had confidence in Wellington Water, Watts said the company was not meeting ratepayers' expectations.

Watts said he was also seeking advice from officials on potential options the Government has to intervene.

“I’ve asked officials to advise me what powers I have, intervention powers, in regards to Wellington Water.

“Obviously, you’ll be aware I have an observer on Wellington City Council at the moment.”

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Prime Minister Christopher Luxon called Wellington Water a “total basket case” when asked about the situation at his post-Cabinet press conference on Monday afternoon.

Water pipes burst frequently in Wellington City. Photo / Mark Mitchell

Leggett said on Monday he was considering his position and would “pause for thought”, including taking soundings from the region’s mayors.

Yesterday, Leggett told NewstalkZB that the water company has taken action to address problems.

“Wellington Water is in a much better position now than it was when I started in the chair’s role, these things take time to evolve.”

Leggett said none of the region’s mayors had asked him to resign directly.

He was however aware of public comments from Upper Hutt Mayor Wayne Guppy calling for him to go.

“The truth is, I’m a big boy and this is a political environment where people are going to say things that are sometimes not nice to hear. That’s life.

“I feel that I can hold my head up high and say to everybody that lives in Wellington that I’ve done the best and Wellington Water’s done the best by them with the information and the data that it’s had.”

Wellington Water is owned by the Wellington, Hutt, Porirua, and Upper Hutt city councils, Greater Wellington Regional Council and South Wairarapa District Council.

Representatives from these councils form the Wellington Water Committee which is meeting on Monday.

The committee’s terms of reference say directors can only be appointed and removed by a unanimous resolution of shareholders.

Guppy is the only representative who has publicly called for Leggett’s resignation, so far.

However, South Wairarapa Mayor Martin Connelly said the majority of his councillors thought Leggett should step aside.

Leggett should seriously consider his position, he said.

Connelly said Leggett was a good person who was appointed during a difficult time for Wellington Water, including the unexpected resignation of his predecessor and the exit of the company’s longstanding chief executive.

Short-term decisions were being made at the time because it was thought Wellington Water would soon transition into a new entity under Labour’s three waters reforms, Connelly said.

But he was concerned about a perceived conflict of interest, given Leggett is also the chief executive of Infrastructure New Zealand.

Connelly also voiced concerns about Wellington Water management not taking seriously his questioning of whether councils were getting value for money.

It’s understood a majority of Wellington City councillors also think Leggett should resign.

Wellington Water Committee deputy chairwoman Ros Connelly, who is also a Greater Wellington Regional councillor, said members had agreed as a collective to save the discussion for Monday.

Therefore, she declined to comment.

She said Monday’s meeting will address the contents of the reports, how to respond in the short and long term and assess ways to reassure the public.

Porirua Mayor Anita Baker said it would be “stupid” for Leggett to go.

It’s unclear what Hutt City Council’s position is at this stage and it’s understood councillors want to build a fuller picture before taking a position.

Ethan Manera is a multimedia journalist based in Wellington. He joined NZME in 2023 and is interested in local issues, politics and property in the capital. Ethan is always on the lookout for a story and can be emailed at [email protected].

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.