Dear Penny

Thank you for your email of 6 April, copied to a range of others, in which you asked me to inquire into the cost-effectiveness of the Metrowater CCO model.

The Public Audit Act gives the Auditor-General a discretion on whether to inquire into matters that are raised with us. We receive many requests every year, and carefully consider the appropriate response in each case.

As you note in your letter to me, the future of Metrowater is a policy matter that is the subject of current political consideration. The Royal Commission has made specific proposals on this issue, and the government has now made policy decisions in response. Legislation is currently being prepared for consideration by Parliament. The question of the cost-effectiveness of the CCO model is a part of that policy debate. The Auditor-General is not a policy agency. It would be inappropriate for me to inquire into what are essentially policy matters, particularly while they are being debated at a political level and through the parliamentary process. I therefore do not intend to carry out an inquiry into this issue. You will have an opportunity to raise your concerns with the select committee that considers the legislation.