Local Government Amendment Act (No 3) 1996

Local Government Amendment Act (No 3) 1996

Public Act1996 No 83
Date of assent26 July 1996

An Act to amend the Local Government Act 1974

BE IT ENACTED by the Parliament of New Zealand as follows:

1 Short Title and commencement
  • (1) This Act may be cited as the Local Government Amendment Act (No 3) 1996, and shall be read together with and deemed part of the Local Government Act 1974 (hereinafter referred to as the principal Act).

    (2) Except as provided in sections 10(2), 13(3), 14(4), 16(2), 17(2), 18(2), 21(3) and 22(3) of this Act, this Act shall come into force on the day after the date on which this Act receives the Royal assent.

2 Interpretation
  • This section amended s 2(1) of the principal Act by inserting definitions of the terms Annual plan, Annual report, and Generally accepted accounting practice.

3 New Parts 7A and 7B inserted
  • [Repealed]

    Section 3 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84).

4 New sections substituted
5 Miscellaneous expenditure
  • [Repealed]

    Section 5 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84).

6 Restriction on lending to local authority trading enterprise
  • [Repealed]

    Section 6 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84).

Amendments to Chatham Islands Council Act 1995

7 Interpretation
  • [Repealed]

    Section 7 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84).

8 New sections substituted
  • [Repealed]

    Section 8 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84).

9 Financial systems

Amendments, repeals, and revocations

10 Further amendments to principal Act
  • (1) The principal Act is hereby further amended in the manner indicated in Schedule 1 to this Act.

    (2) This section and Schedule 1 to this Act shall come into force on the 1st day of July 1998.

11 Amendment to Auckland Regional Authority Act 1968
12 Amendments to Local Authorities Loans Act 1956
  • (1) The Local Authorities Loans Act 1956 is hereby amended by repealing section 56 and sections 85 to 91.

    (2) The following enactments are hereby consequentially repealed:

    • (a) Section 10 of the Local Authorities Loans Amendment Act 1959:

    • (b) Section 7 of the Local Authorities Loans Amendment Act 1961:

    • (c) Section 5 of the Local Authorities Loans Amendment Act 1976:

    • (d) Section 8 of the Local Authorities Loans Amendment Act 1986:

    • (e) The Local Authorities Loans Amendment Act 1991.

    (3) It shall be lawful for a local authority to withdraw loan money deposited in a separate bank account as required by section 56 of the Local Authorities Loans Act 1956 and to deposit that money in any other bank account or bank accounts held by that local authority.

13 Amendment to Securities Act 1978
  • (1) Section 5(3)(b) of the Securities Act 1978 is hereby repealed.

    (2) [Repealed]

    (3) This section shall come into force on the 1st day of July 1998.

    Subsection (2) was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84).

14 Amendments to Rating Powers Act 1988
  • [Repealed]

    Section 14 was repealed, as from 1 July 2003, by section 138(1) Local Government (Rating) Act 2002 (2002 No 6). See section 138(2) of that Act for the savings provision that provides that the Acts and regulations continue in force to the extent necessary for the levying and collection of rates made or levied for the financial year ending on 30 June 2003 or a previous financial year.

15 Amendment to Public Finance Act 1989
16 Amendments to other enactments
  • (1) The enactments specified in Schedule 2 to this Act are hereby amended in the manner indicated in that Schedule.

    (2) This section and Schedule 2 to this Act shall come into force on the 1st day of July 1998.

17 Repeal of Local Authorities Loans Act 1956
  • (1) The enactments specified in Schedule 3 to this Act are hereby repealed.

    (2) This section and Schedule 3 to this Act shall come into force on the 1st day of July 1998.

18 Revocations
  • (1) The regulations and orders specified in Schedule 4 to this Act are hereby revoked.

    (2) This section and Schedule 4 to this Act shall come into force on the 1st day of July 1998.

19 Transitional provisions in relation to annual plans and annual reports
  • (1) Notwithstanding the repeals effected by section 4 of this Act, every local authority (other than the Chatham Islands Council) shall, as if this Act had not been passed, prepare and adopt, in respect of the financial year beginning on the 1st day of July 1996 and the financial year beginning on the 1st day of July 1997,—

    • (a) An annual plan under section 223D of the principal Act; and

    • (b) An annual report under section 223E of the principal Act.

    (2) Notwithstanding the repeals effected by section 8 of this Act, the Chatham Islands Council shall, as if this Act had not been passed, prepare and adopt, in respect of the financial year beginning on the 1st day of July 1996 and the financial year beginning on the 1st day of July 1997,—

20 Early implementation by specified local authorities of provisions relating to financial management
  • (1) The Governor-General may from time to time, by Order in Council made on the recommendation of the Minister of Local Government, apply the provisions of this section to any local authority specified in the Order (being a local authority from which the Minister of Local Government has received, before the 1st day of October 1996, a written application for the making of an Order under this section in respect of that local authority).

    (2) Where the provisions of this section are applied to any local authority, the provisions of this Act, the principal Act, and any Act amended by this Act shall apply in respect of that local authority—

    • (b) As if for the expression 30th day of June 1999 wherever it occurs in section 122ZK, there were substituted in each case the expression 30th day of June 1998; and

    • (c) As if for the expression 1st day of July 1998 wherever it occurs in sections 10(2), 13(3), 14(4), 16(2), 17(2), 18(2), 21(3), and 22(3) of this Act, there were substituted in each case the expression 1st day of July 1997; and

    • (d) As if the words and the financial year beginning on the 1st day of July 1997 were omitted from section 19(1) of this Act.

Transitional provisions

21 Transitional provisions
  • (1) Notwithstanding the repeals effected by section 17 of this Act, the provisions of the Local Authorities Loans Act 1956 shall, in respect of any loan outstanding by any local authority at the time of the repeal, be deemed to remain in force in relation to any local authority so far as those provisions are required to maintain any arrangements or provisions for—

    • (a) Repayment of any such loan out of any specific fund or account:

    • (b) Levying of any separate rate towards payments in respect of any such loan, including the amendment or increase or diminishing of any such rate:

    • (c) Appropriation or pledging of any rates revenue in respect of any such loan:

    • (d) Prohibiting the questioning of the validity of any rate made or levied to secure any such loan:

    • (e) Appropriating or pledging of any other property or revenue or fund as security for any such loan:

    • (f) Allocating any charges in respect of any such loan against revenues from any district or legal subdivision or other defined part of a district:

    • (g) Transfer, division, cancellation, replacement, hypothecation, mortgage, registration, and surrender of debentures and stock, to such extent (if any) as is required to maintain in full force and effect all the rights and entitlements of any local authority and each holder in respect of such debentures and stock:

    • (h) Establishment, accumulation, and administration of any sinking fund for the repayment of any such loan.

    (2) Notwithstanding subsection (1) of this section, nothing in section 57(2) of the Local Authorities Loans Act 1956 shall affect the free transferability of a debenture issued in form 3 in Schedule 1 to that Act.

    (3) This section shall come into force on the 1st day of July 1998.

22 Transitional provisions in relation to effect on principal Act of repeal of Local Authorities Loans Act 1956
  • (1) Subject to subsection (2) of this section, the repeals effected by section 17 of this Act shall not affect section 37ZZZM(1) of the principal Act or the application of that section to any Order in Council (whether made before or after the commencement of this section) giving effect to any reorganisation scheme.

    (2) Notwithstanding anything in subsection (1) of this section or in sections 37ZZZM(1) and 37ZZZN of the principal Act, where a local authority repays, before its maturity, any loan that is secured by a rate to which section 37ZZZM(1) of the principal Act refers or any loan in respect of which a rate has been made and levied pursuant to section 37ZZZN(1) of the principal Act, the provisions of section 37ZZZM(1) of the principal Act or of section 37ZZZN of the principal Act or of both, as the case may require, shall cease to apply to the rate or the area of land upon which the rate is charged.

    (3) This section shall come into force on the 1st day of July 1998.


Schedule 1
Amendments to principal Act

Section 10(1)

Provision of Principal Act AmendedAmendment
 
Section 180 (as enacted by section 2 of the Local Government Amendment Act (No 3) 1977)By repealing this section.
 
Section 326 (as enacted by section 2 of the Local Government Amendment Act 1978)By repealing subsection (6).
 
Section 562 (as enacted by section 2 of the Local Government Amendment Act 1979)By repealing this section.
 
Section 614 (as enacted by section 2 of the Local Government Amendment Act 1979)By repealing this section.
Section 617 (as enacted by section 2 of the Local Government Amendment Act 1979)By repealing this section.
 
  • The item relating to section 707ZK Local Government Act 1974 was repealed, as from 1 October 1998, by section 14(1)(n) Local Government Amendment Act 1998 (1998 No 89).

  • The items relating to sections 114D, 223CA, 225, 228(2), 247D, 463, 564, 565, 574, 592, 594Z, 596, 598, 604, 656, 658, Schedule 3B and Schedule 17 sections 114D, 223CA, 225, 228(2), 274D, 463, 564, 565, 574, 592, 594Z, 596, 598, 604, 656, 658, Schedule 3B and Schedule 17 Local Government Act 1974 were repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84).

Schedule 2
Enactments amended

Section 16(1)

Enactment AmendedAmendment
1932, No 18—The National Expenditure Adjustment Amendment Act 1932 (RS Vol 10, p 299)By repealing section 14.
1938, No 9—The Carter Observatory Act 1938 (RS Vol 1, p 429)

By repealing section 24, and substituting the following section:

24 Power to borrow on over draft
  • (1) The Board may, in anticipation of its revenue, from time to time, borrow money from its bankers by way of overdraft, or from any person or persons.

    (2) It shall not be lawful for the Board—

    • (a) To borrow money under the power conferred by this section to such an extent that there shall be owing by the Board at any time upon its account a sum exceeding three-fourths of its revenue for the preceding 12 months properly payable into that account:

    • (b) To owe under the authority of this section at the end of any year on its account any sum greater than such part of the revenue of the year then ended as remains outstanding and unpaid, and properly payable into that account.

    (3) For the purposes of this section,—

    • (a) Money borrowed otherwise than by way of bank overdraft shall be deemed to be money owing upon the bank account into which it was paid:

    • (b) The amount of any cheque drawn on a bank account but not presented at the end of the year shall be deemed to be money owing upon that account at the end of that year:

    • (c) Money in a bank account at the end of a year which is properly payable into another bank account shall be deemed to be money owing at the end of that year upon the bank account in which it is held.

    (4) So long as the money borrowed by the Board under this section does not exceed the limit prescribed by subsection (2)(a) of this section, the lenders shall not be liable in any manner in respect of the failure of the Board to comply with or provide for compliance with the provisions of this section; and nothing in this section shall be interpreted to affect the right of the lenders to be repaid, out of the assets of the Board.

1948, No 64—The Land Act 1948 (RS Vol 23, p 559)By omitting from section 112(1) the words and for the purposes of the Local Authorities Loans Act 1956.
1950, No 34—The Harbours Act 1950 (RS Vol 2, p 551)

By omitting from section 49 (as enacted by section 4 of the Harbours Amendment Act (No 2) 1988) the words the Local Authorities Loans Act 1956, and substituting the words Part VIIB of the Local Government Act 1974.

By omitting from section 50 (as enacted by section 3(1) of the Harbours Amendment Act 1980) the words the Local Authorities Loans Act 1956, and substituting the words Part VIIB of the Local Government Act 1974.

By omitting from section 55A(7) (as enacted by section 8 of the Harbours Amendment Act (No 2) 1988) the words the Local Authorities Loans Act 1956, and substituting the expression Part VIIB of the Local Government Act 1974.

By omitting from section 142A (as enacted by section 11(1) of the Harbours Amendment Act 1952) the words the Local Authorities Loans Act 1956 in both places where they appear, and substituting in each case the words Part VIIB of the Local Government Act 1974.

By omitting from section 142B(3) (as enacted by section 6(1) of the Harbours Amendment Act 1964) the words the Local Authorities Loans Act 1956, and substituting the expression Part VIIB of the Local Government Act 1974.

By repealing subsection (5) of section 142B (as so enacted).

1951, No 79—The Fees and Travelling Allowances Act 1951 (RS Vol 6, p 403)By omitting from Schedule 1 the item relating to the Local Authorities Loans Board.
1953, No 96—The Selwyn Plantation Board Act 1953 (RS Vol 27, p 841)By repealing section 18.
1956, No 65—The Health Act 1956 (RS Vol 31, p 467) 
1962, No 20—The Forestry Encouragement Act 1962 (RS Vol 17, p 213)

By repealing section 3 (as amended by sections 3(2) and 4 of the Forestry Encouragement Amendment Act 1965), and substituting the following section:

3 Minister may make advances
  • (1) Subject to the provisions of this Act, the Minister may make an advance, out of money appropriated by Parliament for the purpose, to any applicant for the purpose of establishing or managing a farm woodlot or to any local authority within the meaning of section 2(1) of the Local Government Act 1974 for the purpose of establishing or managing a forest plantation.

    (2) A local authority within the meaning of section 2(1) of the Local Government Act 1974 may be an applicant for the purposes of this section, and, subject to the provisions of that Act, may enter into one or more forestry encouragement agreements.

1966, No 51—The Airport Authorities Act 1966 (RS Vol 17, p 1)

By repealing subsection (5) of section 3 (as amended by section 3 of the Airport Authorities Amendment Act 1986).

By repealing section 8.

1974, No 19—The Housing Corporation Act 1974 (RS Vol 24, p 281) 
  
1977, No 52—The Forest and Rural Fires Act 1977 (RS Vol 27, p 331)

By omitting from section 54(1) the words Notwithstanding anything in Part II of the Local Authorities Loans Act 1956,

By repealing subsection (2) of section 54.

1977, No 66—The Reserves Act 1977

By omitting from section 90(1) the words by way of special loan under the Local Authorities Loans Act 1956, as if for a public work,.

By repealing so much of Schedule 2 as relates to the Local Authorities Loans Act 1956.

1981, No 35—The Public Works Act 1981

By omitting from section 44 (as substituted by section 2 of the Public Works Amendment Act 1991) the words Subject to section 104 of the Local Authorities Loans Act 1956,

By repealing subsection (6) of section 224.

1983 No 46—The Civil Defence Act 1983

By repealing subsection (2) of section 76 (as amended by section 3(2) of the Civil Defence Amendment Act 1989).

By omitting from subsection (3) of section 76 (as so amended) the words , out of money borrowed under subsection (2) of this section,.

     
1988, No 97—The Rating Powers Act 1988 
1988, No 103—The Local Elections and Polls Amendment Act 1988By repealing section 22.
1991, No 49—The Local Government Amendment Act 1991By repealing section 18.
1991, No 119—The Securities Transfer Act 1991

By repealing paragraph (e) of the definition of the term securities in section 2, and substituting the following paragraph:

  • (e) Debentures or stock issued under Part VIIB of the Local Government Act 1974 or the Local Authorities Loans Act 1956; or.

By repealing section 9(5)(d).

1992, No 56—The Energy Companies Act 1992

By inserting, after section 65, the following section:

65A Restriction on power of local authority to lend to energy company
  • Where a local authority is a shareholder in an energy company, that local authority shall not lend money to, or provide any other financial accommodation, to that energy company on terms and conditions that are more favourable to the energy company than those that would apply if the local authority were (without charging any rate or rate revenue as security) borrowing the money or obtaining the financial accommodation.

1993, No 28—The Privacy Act 1993 
1993, No 106—The Financial Reporting Act 1993

By inserting, after paragraph (e) of section 27(1), the following paragraphs:

  • (ea) All local authorities; or

  • (eb) Specified local authorities; or.

By repealing paragraph (e) of section 27(7), and substituting the following paragraphs:

  • (e) The Chairperson and the Chief Executive of a Crown entity or, where no Chairperson exists, the Chief Executive; or

  • (f) The principal administrative officer of a local authority,—.

By repealing paragraph (e) of section 28(4), and substituting the following paragraphs:

  • (e) The Chairperson and the Chief Executive of a Crown entity or, where no Chairperson exists, the Chief Executive; or

  • (f) The principal administrative officer of a local authority,—.

1993, No 4 (Local)—The Canterbury Museum Trust Board Act 1993By repealing section 20(2).
  • Financial Reporting Act: an item relating to section 24(a) was substituted by the item relating to section 24(b)(ii), as from 7 August 1996, by section 4 Financial Reporting Amendment Act 1996 (1996 No 86).

  • The items relating to sections 2(1) and 24(a) of the Financial Reporting Act 1993 were repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84).

  • The item relating to the Health Act 1956 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84).

  • The item relating to the Housing Corporation Act 1974 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84)

  • An item relating to the Local Elections and Polls Act 1976 was repealed, as from 1 July 2001, by section 152(1) Local Electoral Act 2001 (2001 No 35). See sections 153 to 157 of that Act as to the transitional provisions. See clause 2 Local Electoral Act Commencement Order 2001 (SR 2001/144).

  • An item relating to the Port Companies Act 1988 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84)

  • An item relating to the Privacy Act 1993 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84)

  • An item relating to section 224(16) of the Public Works Act 1981 was repealed, as from 1 July 2003, by section 266 Local Government Act 2002 (2002 No 84)

  • The item relating to the Rating Powers Act 1988 was repealed, as from 1 July 2003, by section 138(1) Local Government (Rating) Act 2002 (2002 No 6). See section 138(2) of that Act for the savings provision that provides that the Acts and regulations continue in force to the extent necessary for the levying and collection of rates made or levied for the financial year ending on 30 June 2003 or a previous financial year.

Schedule 3
Enactments repealed

Section 17(1)

  • 1933, No 33—The Finance Act 1933: Section 12. (RS Vol 24, p 451.)

  • 1956, No 63—The Local Authorities Loans Act 1956. (RS Vol 24, p 369.)

  • 1959, No 17—The Local Authorities Loans Amendment Act 1959. (RS Vol 24, p 453.)

  • 1961, No 71—The Local Authorities Loans Amendment Act 1961. (RS Vol 24, p 454.)

  • 1963, No 97—The Local Authorities Loans Amendment Act 1963. (RS Vol 24, p 454.)

  • 1967, No 20—The Local Authorities Loans Amendment Act 1967. (RS Vol 24, p 455.)

  • 1968, No 90—The Local Authorities Loans Amendment Act 1968. (RS Vol 24, p 456.)

  • 1971, No 27—The Local Authorities Loans Amendment Act 1971. (RS Vol 24, p 456.)

  • 1976, No 29—The Local Authorities Loans Amendment Act 1976. (RS Vol 24, p 458.)

  • 1982, No 121—The Local Authorities Loans Amendment Act 1982. (RS Vol 24, p 459.)

  • 1986, No 22—The Local Authorities Loans Amendment Act 1986. (RS Vol 24, p 460.)

  • 1989, No 37—The Local Authorities Loans Amendment Act 1989.

Schedule 4
Revocations relating to repeal of Local Authorities Loans Act 1956

Section 18(1)

TitleGazette Reference or Statutory Regulations Serial Number
The Local Authorities Loans Order 19601960/62
The Local Authority Loan Raising Fees Notice 1969Gazette, 1969, p 1089
The Local Authorities Loans Order 1960, Amendment No 11970/262
The Local Authorities Loans Order 1960, Amendment No 21971/114
The Local Authorities Loans Regulations 19751975/287
The Local Authorities Loans (Approved Corporations) Notice 19781978/290
The Local Authorities Loans Regulations 1975, Amendment No 11983/62
The Local Authorities Loans Exemption Order 19861986/149
The Local Authorities Loans Regulations 1975, Amendment No 21986/355