Now on another subject, and independent report has revealed that Wellington Water staff took four months to tell regional councils about an error in budgeting advice. In May, the water company apologized for leaving councils with a bill of an additional fifty one million dollars over three years. You'll remember that. But the report has now suggested that the CEO actually downplayed the issue to the board, stating that the company could manage the situation within its current budget. Now Nick Legett is on the Wellington Water Board, he's the chair and he's with us. Now, Hey, Nick, Hi, Heather Tanya Haskell has to go, doesn't she.

Now on another subject, and independent report has revealed that Wellington Water staff took four months to tell regional councils about an error in budgeting advice. In May, the water company apologized for leaving councils with a bill of an additional fifty one million dollars over three years. You'll remember that. But the report has now suggested that the CEO actually downplayed the issue to the board, stating that the company could manage the situation within its current budget. Now Nick Legett is on the Wellington Water Board, he's the chair and he's with us. Now, Hey, Nick, Hi, Heather Tanya Haskell has to go, doesn't she.

Heather, You know as well as I do that we can't comment on individual employment, but I can tell you this, the board is committed to improving this organization. There's a lot of good stuff that comes out of well Into Water, but this review has shown us that we've got to improve the culture. We've got to elevate problems as they come up and be upfront and frank about them. And we've got to improve our systems, particularly in the finance part of the business. And that's what we focused on doing over the weeks and months ahead.

Heather, You know as well as I do that we can't comment on individual employment, but I can tell you this, the board is committed to improving this organization. There's a lot of good stuff that comes out of well Into Water, but this review has shown us that we've got to improve the culture. We've got to elevate problems as they come up and be upfront and frank about them. And we've got to improve our systems, particularly in the finance part of the business. And that's what we focused on doing over the weeks and months ahead.

Okay, tell me you've got confidence in her.

Okay, tell me you've got confidence in her.

I've got confidence in the organization that it will be able to deliver for the six councils in the Wellington region that it services and delivers water for. I mean, Wellington has big long term challenges with water. We've got a leaky pipe network and difficult wastewater treatment plants. We have to be focused on those and the councils and the public have to have confidence in Wellington Water that it can deliver and improve those services with the limited resources.

I've got confidence in the organization that it will be able to deliver for the six councils in the Wellington region that it services and delivers water for. I mean, Wellington has big long term challenges with water. We've got a leaky pipe network and difficult wastewater treatment plants. We have to be focused on those and the councils and the public have to have confidence in Wellington Water that it can deliver and improve those services with the limited resources.

It has explain something to me like if you can't express confidence in her, what happens from here on in? Is this something well you have to manage behind the scenes because you can't talk about employment.

It has explain something to me like if you can't express confidence in her, what happens from here on in? Is this something well you have to manage behind the scenes because you can't talk about employment.

It matters. What happens now is that the Wellington Water Committee today. I know there's a lot of Wellington Waters but the committee, which is that the mayors and councilors of the shareholding councils met. They said to the board, thank you for initiating the independent review. We agree that the review, we agree with the findings and by the way, here is the improvement plan that we want to see in four weeks time. Now there's a lot in that. Obviously it is about systems and processes and controls and potentially some additional resources to support the finance team, but it's also about culture and actually being able to prove to the public and councils that Wellington Water can be trusted to get things right. Now, you never eliminate all risk, but what we've got to do is do better and that starts immediately.

It matters. What happens now is that the Wellington Water Committee today. I know there's a lot of Wellington Waters but the committee, which is that the mayors and councilors of the shareholding councils met. They said to the board, thank you for initiating the independent review. We agree that the review, we agree with the findings and by the way, here is the improvement plan that we want to see in four weeks time. Now there's a lot in that. Obviously it is about systems and processes and controls and potentially some additional resources to support the finance team, but it's also about culture and actually being able to prove to the public and councils that Wellington Water can be trusted to get things right. Now, you never eliminate all risk, but what we've got to do is do better and that starts immediately.

Okay, Now, explain to me what happened on the first of May, because on the first of May, the Chief Executive Tanya met with you, the board chair and found and told you that you guys had this fifty one million dollar budgeting area.

Okay, Now, explain to me what happened on the first of May, because on the first of May, the Chief Executive Tanya met with you, the board chair and found and told you that you guys had this fifty one million dollar budgeting area.

Yeah, that's right, and she told me we have you know, we have that weekly catch up and she said that that was we've got a bit of a budgetary era. It looks as though we've underestimated or haven't haven't included the fee that Wellington Water uses to run its operations. It takes a fee off every project it does for councils, and that wasn't included in the projects for the ten year plan the ltps that councils adopt. And at that point my alarm bells went off, but I was given assurance a couple of days later that actually it's not as bad as we thought and we can manage this. And then the board met the following week and were told the same thing, and we did. The board did interrogate this. It wasn't just a sort of a passive Okay, we did interrogate it. But you know, the board wasn't given the whole truth because I'm not sure the truth was understood.

Yeah, that's right, and she told me we have you know, we have that weekly catch up and she said that that was we've got a bit of a budgetary era. It looks as though we've underestimated or haven't haven't included the fee that Wellington Water uses to run its operations. It takes a fee off every project it does for councils, and that wasn't included in the projects for the ten year plan the ltps that councils adopt. And at that point my alarm bells went off, but I was given assurance a couple of days later that actually it's not as bad as we thought and we can manage this. And then the board met the following week and were told the same thing, and we did. The board did interrogate this. It wasn't just a sort of a passive Okay, we did interrogate it. But you know, the board wasn't given the whole truth because I'm not sure the truth was understood.

What was the whole truth that you were not given.

What was the whole truth that you were not given.

Well, the extent of the problem. I'm not sure there was an understanding about how big the problem actually was.

Well, the extent of the problem. I'm not sure there was an understanding about how big the problem actually was.

How many on the first of maineck you didn't have a number.

How many on the first of maineck you didn't have a number.

We had a number of nineteen million over sort of ten years, which is pretty manageable. I mean to give you, just give me some context. Wellington Water delivered three hundred and thirty million dollars worth of capital projects for the councils and the region last year, and that's increased from fifty million seven years ago, so that the companies grown. And I'm not trying to step away from it, but just this was part of the problem. The reviews I need to find but I just want to haven't grown with it?

We had a number of nineteen million over sort of ten years, which is pretty manageable. I mean to give you, just give me some context. Wellington Water delivered three hundred and thirty million dollars worth of capital projects for the councils and the region last year, and that's increased from fifty million seven years ago, so that the companies grown. And I'm not trying to step away from it, but just this was part of the problem. The reviews I need to find but I just want to haven't grown with it?

Yeah? No, I want to understand this though. So you were told round about nineteen million over ten years, which is manageable. You guys then interrogated it, and when did you find out it was fifty one million.

Yeah? No, I want to understand this though. So you were told round about nineteen million over ten years, which is manageable. You guys then interrogated it, and when did you find out it was fifty one million.

Or not until probably the seventeenth eighteenth when the first council was told. And that's been the council. I learned others.

Or not until probably the seventeenth eighteenth when the first council was told. And that's been the council. I learned others.

Okay, And when you were interrogating her between the first of May and the seventeenth of May, she didn't tell you, obviously how big the problem was. Did she actually know?

Okay, And when you were interrogating her between the first of May and the seventeenth of May, she didn't tell you, obviously how big the problem was. Did she actually know?

Well, that's that's what I that's I think the level of concern that the board has does did the organization understand the extent? And actually this you know, we talk about culture in a kind of loose way, but specifically here this is an organization that there isn't sight across the organization at times around whose responsibility there is to find out issues to problems like this and secondly, whose responsibility is to find the answer and then solve it. And that that's the problem we're dealing with and heither you might remember a couple of years ago there was a review into fluoride because fluoride hadn't been added to a part of Wellington's water supply for quite a period, and Wellington Water to fix the system that dealt with fluorride. But the same cultural elements that not being afraid to give bad news a sense of where we feel exposed. We don't know whose job it is to fix it. We don't have someone internally that takes responsibility. Those issues have come up again and I can tell you this, Heather, this time we're going to fix it up.

Well, that's that's what I that's I think the level of concern that the board has does did the organization understand the extent? And actually this you know, we talk about culture in a kind of loose way, but specifically here this is an organization that there isn't sight across the organization at times around whose responsibility there is to find out issues to problems like this and secondly, whose responsibility is to find the answer and then solve it. And that that's the problem we're dealing with and heither you might remember a couple of years ago there was a review into fluoride because fluoride hadn't been added to a part of Wellington's water supply for quite a period, and Wellington Water to fix the system that dealt with fluorride. But the same cultural elements that not being afraid to give bad news a sense of where we feel exposed. We don't know whose job it is to fix it. We don't have someone internally that takes responsibility. Those issues have come up again and I can tell you this, Heather, this time we're going to fix it up.

Good Nick. I'm pleased to hear it. Sounds like you've got quite a job on your hands. Thanks mate. That's Nick Leiget, Wellington to board chair

Good Nick. I'm pleased to hear it. Sounds like you've got quite a job on your hands. Thanks mate. That's Nick Leiget, Wellington to board chair

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