Hon NANAIA MAHUTA: The CCO model was considered by the Department of Internal Affairs, but was ruled out for a number of reasons. CCOs are unlikely to be viewed as sufficiently separate from local government to achieve balance sheet separation from councils. As such, they would continue to be constrained in their ability to borrow to fund the infrastructure deficit, in much the same way as Watercare is currently limited in its ability to borrow due to debt constraints faced by Auckland Council. This is a key reason why the household water charges in Auckland are proposed to double over the next few years, as increased investment needs to be paid for through water charges rather than being funded with debt and paid for over the lifetime of the assets. Establishing CCOs requires the agreement of all councils, with each required to engage separately with its constituents. This would take time and create uncertainty. Wellington Water provides a good example of how different councils' views on priorities and charging has limited its ability to plan and invest strategically across the whole network.