Two chief executives have quit, faced with the threatened repeal of the Three Waters reforms by the incoming government – but one is pushing determinedly on
Former Royal Air Force pilot, transport boss and Watercare chief Jon Lamonte was a keynote speaker at this week's Water NZ conference, alongside Hollywood inspiration Erin Brockovich. He was reportedly sounding out people for roles in his new organisation – he's been recruiting a chief financial officer, a chief operations officer, and six other executive roles.
He seemed to be flying high.
But the organisation he is establishing is due to be voted out of existence in 100 days time, if the incoming National-led Government is true to its word.
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Lamonte is establishment chief executive of Wai Tāmaki ki Te Hiku, the Water Services Entity for Northland and Auckland. According to the recruitment pitch from executive search firms Kerridge & Partners, Aspire Executive Search and Amy Tea Consulting, the corporation would be the largest provider of water services in New Zealand, with more than 1500 staff serving a population of around 1.9 million people.
He and the Department of Internal Affairs are confirming short lists for the executive positions now, with interviews to start soon after.
His is one of several organisations facing an existential threat from the new government – and like others, he's pushing on with business until told otherwise. Similarly, BusinessDesk reported this week that Auckland Light Rail had just settled on a $33 million property on its proposed route through Kingsland, despite National promising to cancel the project.
Lamonte was one of four chief executives named in January to head four regional mega-entities in charge of all the country's drinking water, wastewater and stormwater reservoirs, treatment plants and distribution networks. But just two months later, Prime Minister Chris Hipkins and his new Local Government Minister Kieran McAnulty announced plans for four mega-utilities would be replaced with 10 super-utilities.
When that change was passed into law, Lamonte was allowed to continue in his role because the scope of the Auckland-Northland entity remained unchanged, with its scheduled start date of July 2024.
However the roles of the other three chief executives – Michael Brewster, Colin Crampton and Vaughan Payne – were disestablished. They and up to $2.4m in salaries were subsumed back into the Internal Affairs bureaucracy, while they waited to see whether they could land jobs with any of the remaining nine newer, smaller entities.
Now, with the election of a National-led government, all bets are off. Vaughan Payne has elected to continue with the water services reform programme (as the Three Waters reforms are now known). But Newsroom has learned that Michael Brewster and Colin Crampton have quit. Crampton has told former staff he's moving to Nelson.
Jon Lamonte and Internal Affairs' national transition unit are pressing on.
An Internal Affairs tender closed last week for insurance services for the water assets that the 10 new entities were expected to control. A report by the Auditor-General has shown that drinking water, wastewater and stormwater are frequently not insured – meaning it's hard to know their real value.
The government had intended that some of the backroom roles and contracts like insurance be provided as shared services across all 10 of the new entities, to save money. Another tender closed last week, to provide data management and query software across all 10 entities.
But it's unlikely these contracts will now be awarded.
Heather Shotter, the Department of Internal Affairs Water Services Reform Programme national transition unit executive director, says with the Water Services Entities Amendment Act coming into force on August 23, the three establishment chief executives of the former Entities B, C and D continued to be employees of the department.
The 10 new entities (if they go ahead) would each be managed by independent boards that would recruit their chief executives. She confirms that had left Brewster, Crampton and Payne without roles heading water utilities.
"A change process was worked through, including considering redeployment options within the programme," she says.
"As part of consultation with those affected, the Department canvassed options for continuing the transitional work, including the establishment of new roles leading regional establishment within the National Transition Unit, reflecting the transition to 10 entities and a more regional delivery model.
"Former establishment chief executive, Vaughan Payne has elected to continue with the Water Services Reform Programme. Michael Brewster and Colin Crampton have opted to leave the programme and will conclude their work in November and December respectively."
