South Taranaki District Council (Egmont Electricity Limited Sale Proceeds) Act 1999

Reprint as at 15 October 1999

South Taranaki District Council (Egmont Electricity Limited Sale Proceeds) Act 1999

Local Act1999 No 5
Date of assent14 October 1999
Commencement14 October 1999

Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.


An Act to require the South Taranaki District Council and its successors to apply the funds from the sale of the Council's shares in Egmont Electricity Limited only for purposes primarily benefiting the residents and ratepayers of the South Taranaki District as constituted on the commencement of this Act

  • Preamble

    Whereas— 

    A On 1 October 1993 the undertaking of the Egmont Electric Power Board vested in Egmont Electricity Limited and all shares in Egmont Electricity Limited held by the Egmont Electric Power Board vested in the South Taranaki District Council; and the vesting of the shares in the Council occurred as a result of the operation of sections 29 (establishment plan not to be approved unless share allocation plan endorsed) and 30 (allocation of shares where share allocation plan not endorsed) of the Energy Companies Act 1992:

    B On 23 April 1997 the South Taranaki District Council, after receiving an irrevocable offer from Powerco Limited to buy the Council's shares in Egmont Electricity Limited, resolved to accept the offer in principle and to undertake, under section 88 of the Energy Companies Act 1992 and section 716A of the Local Government Act 1974, consultation as to whether it should sell its shares to Powerco Limited:

    C On 19 June 1997, after the special consultative procedure was completed, the South Taranaki District Council resolved to sell its shares in Egmont Electricity Limited to Powerco Limited:

    D The Council considered it desirable to replace its shares in Egmont Electricity Limited with an asset thought to be safer and to give a better return to the residents and ratepayers of the South Taranaki District:

    E On 26 August 1997 settlement of the sale took place after determination of a judicial review application in the High Court:

    F The net proceeds from the sale of the South Taranaki District Council's shares available for investment as at 26 August 1997 amounted to $88,731,652:

    G The money available for investment from the sale of the Council's shares is not subject to any trusts or other equitable obligations:

    H The South Taranaki District Council has included the money available for investment in an investment fund called the Long Term Capital Fund; and, by resolution dated 26 June 1998, the Council resolved to invest the Long Term Capital Fund in accordance with the Council's long term financial strategy and investment policy, and the Local Government Act 1974:

    I The South Taranaki District Council recognises a connection between the residents and ratepayers of the current South Taranaki District and the investment arising from the sale of the Council's shares; and, consequently, the Council now considers it desirable that the investment arising from the sale of the Council's shares is managed or applied only for purposes primarily benefiting the residents and ratepayers of the South Taranaki District as constituted on the commencement of this Act:

    J It is desirable to ensure, by way of enactment, that the net proceeds from the sale of the Council's shares in Egmont Electricity Limited are managed and applied only for purposes primarily benefiting the residents and ratepayers of the South Taranaki District as constituted on the commencement of this Act.