Local Government Act 2002

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Schedule 3
Reorganisation of local authorities

ss 5(1), 24(2), 25(3)–(4), 26(3), 27(2)

Part 1
Reorganisation proposals

Subpart 1—Initiation of reorganisation proposals

Initiation

1 Who may make reorganisation proposal

  • (1) A reorganisation proposal that involves the alteration of a boundary or the transfer of a responsibility may be made—

    • (a) by an affected local authority; or

    • (b) by the Minister; or

    • (c) by a petition signed by at least 10% of the electors of the area subject to the proposed reorganisation.

    (2) A reorganisation proposal that involves the constitution of a new district or region may be made—

    • (a) by resolution by 1 or more of the affected local authorities that has the consent of each of the affected local authorities; or

    • (b) by the Minister; or

    • (c) in the case of a proposed new district with a population of not fewer than 10 000 persons, by a petition signed by at least 10% of the electors of each of the affected districts; or

    • (d) in the case of a proposed new region with a separately elected regional council and population of not fewer than 50 000 persons, by a petition signed by at least 10% of the electors of each of the affected regions.

    (3) A reorganisation proposal that involves the abolition of a district or region and its inclusion in 1 or more adjoining districts or regions, or the union of districts or regions, may be made—

    • (a) by resolution by 1 or more affected local authorities and with the consent of each of the affected local authorities; or

    • (b) by the Minister; or

    • (c) by petition signed by at least 10% of the electors of each district or region that is proposed to be abolished; or

    • (d) by petition signed by at least 10% of the electors of each of the districts or regions proposed to be united.

    (4) A reorganisation proposal that involves a territorial authority becoming a unitary authority may be made by—

    • (a) resolution of 1 or more of the affected local authorities that has the consent of each of the affected local authorities; or

    • (b) the Minister; or

    • (c) a petition signed by at least 10% of the electors of each of the affected districts or regions.

    Compare: 1974 No 66 s 37ZO

2 Contents of proposal

  • (1) If a proposal is a proposal to which clause 1(1)(c), (2)(c) or (d), (3)(c) or (d), or (4)(c) applies,—

    • (a) each signatory to the proposal must state, against his or her signature, the person's name and address with sufficient particularity to enable that person to be identified as an elector; and

    • (b) the proposal must include the name and address of a representative of the proposers.

    (2) A proposal involving a boundary change or the definition of boundaries must be accompanied by a plan or other description sufficient to identify the area or areas concerned.

    Compare: 1974 No 66 ss 37ZP, 37ZQ

Subpart 2—Criteria to be considered

3 Promotion of good local government

  • (1) When considering a reorganisation proposal or scheme, the joint committee of the affected local authorities or the appointed local authority or the Commission must satisfy itself that the proposal or scheme will—

    • (a) promote good local government of the districts or regions concerned; and

    • (b) ensure that each local authority provided for under the proposal will—

      • (i) have the resources necessary to enable it to carry out its responsibilities, duties, and powers; and

      • (ii) have a district or region that is appropriate for the efficient and effective performance of its role as specified in section 11; and

      • (iii) contain within its district or region a sufficiently distinct community of interest or sufficiently distinct communities of interests; and

      • (iv) be able to meet the requirements of section 76.

    (2) When considering the matters specified in subclause (1) in relation to any reorganisation proposal or scheme, the joint committee of the affected local authorities or the appointed local authority or the Commission must have regard to—

    • (a) the area of impact of the responsibilities, duties, and powers of the local authorities concerned; and

    • (b) the area of benefit of services provided; and

    • (c) the likely effects on a local authority of the exclusion of any area from its district or region; and

    • (d) any other matters that it considers appropriate.

    Compare: 1974 No 66 s 37ZQA

4 Appropriate boundaries

  • In determining boundaries under any reorganisation proposal or scheme, the joint committee of the affected local authorities or the appointed local authority or the Commission must ensure that,—

    • (a) if practicable, the boundaries of regions conform with catchment boundaries; and

    • (b) if practicable, the boundaries of districts conform with the boundaries of regions; and

    • (c) the boundaries of regions and the boundaries of districts conform with the boundaries of statistical meshblock areas determined by Statistics New Zealand and used for parliamentary electoral purposes.

    Compare: 1974 No 66 s 37ZR

5 Representation

  • If a joint committee of the affected local authorities or the appointed local authority or the Commission is required to determine the membership of a local authority as a consequence of any reorganisation proposal or scheme, the joint committee of the affected local authorities or the appointed local authority or the Commission must—

    • (a) provide fair and effective representation for individuals and communities of that local authority; and

    • (c) take into account the responsibilities, duties, and powers of that local authority.

    Compare: 1974 No 66 s 37ZRA

6 Minimum populations of districts and regions

  • A reorganisation proposal may not proceed if the implementation of that proposal would result in the constitution of—

    • (a) a district with a population of less than 10 000 persons; or

    • (b) a region having both a separately elected regional council and a population of less than 50 000 persons.

    Compare: 1974 No 66 s 37ZZP

7 Cities

  • A reorganisation scheme issued under subpart 4 may not provide that a territorial authority is to be called a city council unless the scheme provides for the constitution of a new district and the district—

    • (a) has a population of not less than 50 000 persons; and

    • (b) is predominantly urban; and

    • (c) is a distinct entity and a major centre of activity within the region.

    Compare: 1974 No 66 s 37M

Subpart 3—Proposals for boundary alterations and transfer of responsibilities

8 Application of this subpart

  • Reorganisation proposals for the alteration of the boundaries of a district or region, or the transfer of any responsibility from one local authority to another must be dealt with under this subpart.

9 Reorganisation proposal initiated when filed with affected local authorities

  • A reorganisation proposal is initiated if a copy of the proposal is filed at the principal office of each affected local authority.

    Compare: 1974 No 66 s 37ZP(1)

Procedure for proposals

10 Action required by local authorities for proposals relating to boundary changes or transfer of responsibilities

  • (1) A local authority that receives a reorganisation proposal under this subpart must—

    • (a) give notice of that proposal to both the Secretary and the Commission; and

    • (b) consult with the other affected local authorities for the purpose of determining—

      • (i) whether it should be dealt with by a joint committee of the affected local authorities appointed in accordance with clause 11; or

      • (ii) whether it should be dealt with under this Part by a local authority that the affected local authorities have agreed should be the appointed local authority; or

      • (iii) whether it should be referred to the Commission under subclause (2); and

    • (c) make the determination under paragraph (b) within 60 days of receiving the reorganisation proposal.

    (2) If the affected local authorities agree to refer the reorganisation proposal to the Commission, that proposal must be considered by the Commission under subpart 4 (excluding clauses 40 and 49 to 58).

    (3) If the affected local authorities fail to agree to establish a joint committee of the affected local authorities or to appoint a local authority to be the appointed local authority within 60 days of receiving the reorganisation proposal, that proposal must be—

    • (a) referred to the Commission; and

    Compare: 1974 No 66 ss 37ZT, 37ZV

    Schedule 3 clause 10(1)(c): amended, on 28 June 2006, by section 27(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

11 Joint committee of affected local authorities

  • (1) A joint committee of the affected local authorities must decide to accept or reject a proposal without referring the matter back to the affected local authorities.

    (2) However, the affected local authorities may—

    • (a) make submissions on the proposal to the joint committee of the affected local authorities; and

    • (b) appeal the decisions made by the joint committee of the affected local authorities.

    (3) Despite anything in clause 30 of Schedule 7, the joint committee of the affected local authorities may not appoint a subcommittee.

    (4) The membership of the joint committee of the affected local authorities must comprise an equal number of persons from each affected local authority.

    (5) The members of the joint committee of the affected local authorities may not participate in the preparation of submissions or appeals by the affected local authorities.

    (6) The chairperson of the joint committee of the affected local authorities—

    • (a) must be appointed from the membership of the joint committee; and

    • (b) has a deliberative vote but not a casting vote.

    (7) If a joint committee of the affected local authorities cannot reach a decision on a proposal, the proposal must be referred to the Commission for a decision.

    (8) If the proposal is referred to the Commission, the Commission—

    • (a) is not required to call for new submissions; but

    • (b) is required to—

      • (i) consider the submissions received by the joint committee of the affected local authorities; and

      • (ii) provide an opportunity to the persons who made those submissions to be heard by the Commission.

12 Duties of joint committee of affected local authorities or appointed local authority in relation to proposal

  • (1) The joint committee of the affected local authorities or appointed local authority must prepare a draft reorganisation scheme based on the reorganisation proposal, including the matters specified in clause 59 that are appropriate.

    (2) In preparing the draft reorganisation scheme, the joint committee of the affected local authorities or the appointed local authority must—

    • (a) incorporate any other matters that the joint committee of the affected local authorities or the appointed local authority considers necessary or appropriate to give effect to the reorganisation proposal; and

    • (b) make consequential changes to the reorganisation proposal that it considers necessary or desirable.

    (3) The joint committee of the affected local authorities or the appointed local authority must—

    • (a) give public notice of the draft reorganisation scheme; and

    • (b) send a copy of the draft reorganisation scheme to—

      • (i) the Commission; and

      • (ii) the affected local authorities; and

      • (iii) the Auditor-General; and

      • (iv) the Parliamentary Commissioner for the Environment; and

      • (v) the Secretary; and

      • (vi) the Secretary for the Environment; and

      • (vii) the Chief Executive of Te Puni Kōkiri; and

      • (viii) any affected Māori organisations identified by Te Puni Kōkiri; and

      • (ix) any other organisations that the joint committee of the affected local authorities, the appointed local authority, or the Commission considers appropriate; and

    • (c) invite submissions in relation to the draft reorganisation scheme.

    Compare: 1974 No 66 s 37ZW

13 Withdrawal of proposals

  • (1) The joint committee of affected local authorities or the appointed local authority must provide a copy of the submissions it receives on the proposal to the proposer as soon as practicable after the closing date for submissions on that proposal.

    (2) When providing a copy of the submissions on the proposal, or written notice of the absence of submissions, to the proposer, the joint committee of affected local authorities, or the appointed local authority, must give the proposer an opportunity to withdraw the proposal.

    (3) The proposer may withdraw the proposal by providing written notice to the joint committee of affected local authorities, or the appointed local authority, within 20 working days of the date on which the joint committee of affected local authorities, or the appointed local authority, provided the opportunity to withdraw the proposal to the proposer.

    (4) If notice of withdrawal is given by post,—

    • (a) it must be given by registered letter; and

    • (b) is deemed, in the absence of proof to the contrary, to be received on the fifth day after the day on which it was posted.

    Compare: 1974 No 66 ss 37ZZD(3), 37ZZZD

14 Power to decline to consider reorganisation proposal

  • (1) An affected local authority may request the Commission to direct the joint committee of the affected local authorities or the appointed local authority not to consider a reorganisation proposal on the grounds that it is the same as, or substantially similar to, a proposal that has been considered, declined, or abandoned within the previous 3 years, and the Commission may give a determination accordingly.

    (2) The Commission may consider a request under subclause (1) on the basis of the reorganisation proposals that it has received and is not obliged to hear an affected local authority or other person in relation to the request.

    (3) If the joint committee of the affected local authorities or the appointed local authority is directed not to consider a reorganisation proposal, it must immediately notify—

    • (a) the Secretary; and

    • (b) the proposer; and

    • (c) each affected local authority.

    (4) If appropriate, notice given for the purposes of subclause (3)(b) may be given generally by public notice.

    Compare: 1974 No 66 s 37ZZNA

Submissions

15 Submissions in relation to draft reorganisation scheme

  • (1) An interested person or body (including the Secretary) has a right to make submissions on a draft reorganisation scheme.

    (2) A submission must be made in writing to the joint committee of the affected local authorities or the appointed local authority—

    • (a) within 2 months after the first public notification of the draft reorganisation scheme; or

    • (b) within a further time that may be allowed by the joint committee of the affected local authorities or the appointed local authority.

    Compare: 1974 No 66 s 37ZX

16 Appointment of committee to consider submissions

  • (1) An appointed local authority may, if it thinks fit, appoint a committee consisting of 2 or more of its members to—

    • (a) consider the submissions on the draft reorganisation scheme; and

    • (b) make recommendations to the appointed local authority in respect of the submissions made on the draft reorganisation scheme.

    (2) If a committee appointed under subclause (1) is discharged, or if any member of the committee ceases to hold office or is removed from office by operation of law or otherwise before the committee has fully performed its responsibilities under this clause, the appointed local authority may alter or reconstitute the membership of the committee and the committee, as so altered or reconstituted or reappointed, must make its own recommendations or convey those of the previously existing committee to the appointed local authority.

    (3) Despite subclause (2), an altered or reconstituted committee must not vary any recommendation of the previous committee that considered or heard the submissions unless all the members of the altered or reconstituted committee—

    • (a) have considered them; or

    • (b) if a person making a submission was heard in support of his or her submission, have heard that person in support of his or her submission.

    Compare: 1974 No 66 s 37ZY

17 Consideration and hearing of submissions

  • (1) The joint committee of the affected local authorities or the appointed local authority or a committee appointed under clause 16—

    • (a) must, as soon as practicable, consider all the submissions on the draft reorganisation scheme; and

    • (b) for that purpose, may—

      • (i) convene meetings (either jointly or separately) with—

        • (A) all or any of the persons making submissions:

        • (B) all or any of the affected local authorities:

        • (C) any other persons or bodies that the joint committee of the affected local authorities or the appointed local authority or committee thinks fit:

      • (ii) hold discussions with any persons and bodies that the joint committee of the affected local authorities or the appointed local authority or committee thinks fit:

      • (iii) at any such meeting or discussions, hear the representations submitted that the joint committee of the affected local authorities or the appointed local authority or committee considers relevant or likely to be relevant to the matters being inquired into:

      • (iv) make any further inquiries that it considers necessary or desirable.

    (2) A person who has made a submission must be given the opportunity to be heard in support of his or her submission.

    (3) At a meeting or discussion at which a submission is being considered or any representations are being received, no cross-examination is allowed except with the consent of the joint committee of the affected local authorities or the appointed local authority or committee, but members of the joint committee of the affected local authorities or the appointed local authority or committee (or a barrister or solicitor on its behalf) may ask questions relating to the submission or the representations.

    Compare: 1974 No 66 s 37ZZ

Decisions

18 Decisions in relation to draft reorganisation scheme

  • (1) After the joint committee of the affected local authorities or the appointed local authority has considered either the submissions on the draft reorganisation scheme or the recommendations made in respect of those submissions by a committee appointed under clause 16, the joint committee of the affected local authorities or the appointed local authority may—

    • (a) adopt the draft reorganisation scheme; or

    • (b) adopt the draft reorganisation scheme with amendments to take account of recommendations, submissions, relevant material, representations, or comments received by it; or

    • (c) decide that the draft reorganisation scheme should not proceed.

    (2) The joint committee of the affected local authorities or the appointed local authority must—

    • (a) give notice of the decision to—

      • (i) each affected local authority; and

      • (ii) the Secretary; and

      • (iii) the Commission; and

      • (iv) each person who made a submission; and

      • (v) the proposer or his or her representative; and

    • (b) give public notice of the decision.

    (3) If the draft reorganisation scheme is adopted under subclause (1)(a) or (b), and no notice of appeal has been lodged within the time allowed for the lodging of appeals under clause 21, the draft reorganisation scheme becomes a reorganisation scheme and the joint committee of the affected local authorities or the appointed local authority must refer it to the Minister for the preparation of an Order in Council to give effect to it.

    (4) A joint committee of the affected local authorities or the appointed local authority must not approve a reorganisation scheme that does not comply with the criteria specified in clauses 3 to 7.

    (5) Notice given for the purposes of subclause (2)(a)(iv) may be given generally by public notice if the joint committee of the affected local authorities or the appointed local authority considers it appropriate.

    Compare: 1974 No 66 s 37ZZA

19 Procedure if no submissions received

  • If a draft reorganisation scheme has been publicly notified under clause 12(3)(a), and no submissions have been received within the period allowed for submissions, the draft reorganisation scheme becomes a reorganisation scheme and the joint committee of the affected local authorities or the appointed local authority must refer it to the Minister for the preparation of an Order in Council to give effect to it.

    Compare: 1974 No 66 s 37ZZB

Appeals

20 Appeal to Commission against decision of joint committee of the affected local authorities or appointed local authority

  • If a person who is given notice under clause 18(2)(a) is dissatisfied with the decision to which the notice relates, that person may appeal to the Commission against the decision.

    Compare: 1974 No 66 s 37ZZC

21 Notice of appeal

  • (1) An appeal under clause 20 must be instituted by the person lodging a notice of appeal (the appellant) within 1 month after the date of the decision with—

    • (a) the Chief Executive Officer of the Commission; and

    • (b) the chairperson of the joint committee of the affected local authorities or chief executive of the appointed local authority.

    (2) Either before or immediately after the lodging of the notice of appeal, the appellant must serve a copy of the notice of appeal, either personally or by post, on every other person who was given notice under clause 18(2)(a) of the decision to which the notice of appeal relates.

    (3) Service under subclause (2), if by post, must be by registered letter and, for the purposes of this clause, is deemed, in the absence of proof to the contrary, as being effected on the fifth day after the day on which it was posted.

    (4) A notice of appeal must specify—

    • (a) the decision, or the part of the decision, appealed from; and

    • (b) the grounds of the appeal, which must be specified with sufficient particularity to give full advice of the issues involved to both the Commission and to the other parties.

    (5) The chairperson of the joint committee of the affected local authorities or the chief executive of the appointed local authority must, as soon as is practicable after receiving a copy of the notice of appeal, send to the Chief Executive Officer of the Commission—

    • (a) a copy of the whole of the decision appealed from; and

    • (b) a copy of the draft reorganisation scheme; and

    • (c) a copy of the submissions received on the draft reorganisation scheme; and

    • (d) if the draft reorganisation scheme has been adopted with amendments as a reorganisation scheme, a copy of the reorganisation scheme.

    Compare: 1974 No 66 s 37ZZD

22 Right to appear and be heard on appeals

  • (1) A person who is served under clause 21(2) with a copy of the notice of appeal and who wishes to appear and be heard on the hearing of the appeal must, within 10 days after the date of the service on that person of a copy of the notice of appeal, lodge with the Chief Executive Officer of the Commission a notice of that person's intention to appear and be heard.

    (2) The parties to an appeal are—

    • (a) the person who gives notice of his or her intention to appear and be heard:

    • (b) the appellant:

    • (c) the joint committee of the affected local authorities:

    • (d) the appointed local authority.

    (3) Each party to the appeal is entitled to receive—

    • (a) a copy of each document filed or lodged with the Chief Executive Officer of the Commission that relates to the appeal; and

    • (b) a notice of the date set down for the hearing of the appeal.

    Compare: 1974 No 66 s 37ZZE

23 Commission may seek further information

  • (1) The Commission may, of its own motion or on the application of a party to the appeal, make all or any of the following orders:

    • (a) an order directing the joint committee of the affected local authorities or the appointed local authority to lodge with the Chief Executive Officer of the Commission a document or other written material or an exhibit in the possession or custody of the joint committee of the affected local authorities or the appointed local authority:

    • (b) an order directing the joint committee of the affected local authorities or the appointed local authority to lodge with the Chief Executive Officer of the Commission a report recording, in respect of any matter or issue that the joint committee of the affected local authorities or the appointed local authority may specify, any of the findings of fact of the joint committee of the affected local authorities or the appointed local authority that are not set out nor fully set out in its decision:

    • (c) an order directing the joint committee of the affected local authorities or the appointed local authority to lodge with the Chief Executive Officer of the Commission a report setting out, in respect of any matter or issue that the Commission may specify, any reasons or considerations of the joint committee of the affected local authorities or the appointed local authority to which the joint committee of the affected local authorities or the appointed local authority had regard but that are not set out in its decision.

    (2) An application under subclause (1) must,—

    • (a) in the case of the appellant, be made within 1 month after the date of the lodging of the notice of appeal; or

    • (b) in the case of any other party to the appeal, within 1 month after the date of service on that party of a copy of the notice of appeal.

    (3) The Commission may make an order under subclause (1) only if it is satisfied that a proper determination of the appeal requires it, and the order may be made subject to the conditions that the Commission thinks fit.

    (4) In addition to making any order under subclause (1), the Commission may, if it considers it desirable, make the inquiries, and seek further information from any person, that it considers relevant to the appeal, whether or not that person is a party to the appeal.

    Compare: 1974 No 66 s 37ZZF

24 Dismissal of appeal

  • The Commission may dismiss any appeal made under clause 20—

    • (a) if the appellant does not appear at the time appointed for the hearing of the appeal; or

    • (b) if the appellant does not prosecute the appeal with all due diligence and if a party applies to the Commission for the dismissal of the appeal.

    Compare: 1974 No 66 s 37ZZG

25 Appeal in respect of additional matters

  • (1) If a party to an appeal under clause 20, other than the appellant, wishes to contend, on grounds other than those set out in the notice of appeal, that the decision appealed from is erroneous, that party must, within 1 month after the date of the service on that party of a copy of the notice of appeal, lodge a notice to that effect with the Chief Executive Officer of the Commission.

    (2) The provisions of clauses 20, 21(2) to (4), 23, 24, 26, and 27 apply, with any modifications that may be necessary, to a notice lodged under this clause as if it were a notice of appeal.

    Compare: 1974 No 66 s 37ZZH

26 Extension of time

  • On the application of the appellant or intending appellant or any other party, the Commission may, if it thinks fit, extend any time prescribed or allowed under any of the provisions of clauses 21 to 25 for the lodging of any notice, application, or other document.

    Compare: 1974 No 66 s 37ZZI

27 Date of hearing

  • When the appeal is, in all respects, ready for hearing, the Chief Executive Officer of the Commission must arrange a date for the hearing as soon as practicable if a party to the appeal notifies the Chief Executive Officer of the Commission—

    • (a) that the notice of appeal has been served on all parties to the proceedings; and

    • (b) either—

      • (i) that no application has been lodged under clause 23 and that no order has been made under that clause; or

      • (ii) that any application lodged under clause 23 has been heard and that any order under that clause has been complied with.

    Compare: 1974 No 66 s 37ZZJ

28 Hearing and determination of appeal

  • (1) At the hearing of an appeal under clause 20, the Commission must hear and consider all evidence tendered and representations made by, or on behalf of, the appellant and any other party to the proceedings.

    (2) After hearing the evidence and representations in accordance with subclause (1), the Commission may confirm, discharge, or vary the decision of the joint committee of the affected local authorities or the appointed local authority and generally make the decisions that it considers just and equitable in the circumstances of the case, having regard to the evidence and representations received by it.

    (3) A decision under subclause (2) takes effect from the date of the decision or from any later date that may be specified in the decision.

    Compare: 1974 No 66 s 37ZZK

29 Power to refer appeal back for reconsideration

  • (1) Despite clause 28, the Commission may, in any case, before determining an appeal or instead of determining an appeal, direct the joint committee of the affected local authorities or the appointed local authority to reconsider, either generally or in respect of any specified matters, the whole or any specified part of the matter to which the appeal relates.

    (2) In giving any direction under this clause, the Commission must—

    • (a) advise the joint committee of the affected local authorities or the appointed local authority of its reasons for so doing; and

    • (b) give to the joint committee of the affected local authorities or the appointed local authority the directions that it thinks just concerning the rehearing or reconsideration or otherwise of the whole or any part of the matter that is referred back for reconsideration.

    (3) In reconsidering a matter referred back under this clause, the joint committee of the affected local authorities or the appointed local authority must have regard to the Commission's reasons for giving a direction under subclause (1) and to the Commission's directions under subclause (2).

    (4) If the Commission, before determining any appeal, gives a direction under subclause (1) for reconsideration, that direction has the effect of staying the proceedings on the appeal until the reconsideration of the matter by the joint committee of the affected local authorities or the appointed local authority has been completed.

    Compare: 1974 No 66 s 37ZZL

30 Notice of decision on appeal

  • (1) The determination of the Commission on the appeal must be communicated by its Chief Executive Officer to the appellant and to all other parties to the appeal.

    (2) The Chief Executive Officer must also give public notice of the Commission's decision together with all other relevant particulars.

    Compare: 1974 No 66 s 37ZZM

31 Procedure after appeal

  • If, after considering the appeal, the Commission determines that a draft reorganisation scheme is to become a reorganisation scheme, the Commission must refer it to the Minister for the preparation of an Order in Council to give effect to it.

    Compare: 1974 No 66 s 37ZZMA

32 Provisions pending determination of appeal

  • Pending the determination of an appeal under clause 20, the decision to which the appeal relates is deemed to have no effect.

    Compare: 1974 No 66 s 37ZZN

Subpart 4—Proposals for union, constitution, and abolition of districts and regions, and creation of unitary authorities

33 Application of this subpart

Initiation of proposal

34 Procedure for initiation of reorganisation proposal

  • (1) A reorganisation proposal to which this subpart applies must be initiated by the filing of the proposal with the Chief Executive Officer of the Commission, who must notify the affected local authorities.

    (2) If a proposal has been initiated under clause 1 by the electors of a local authority, the Chief Executive Officer of the Commission must send a copy of the proposal to the electoral officer of each affected local authority.

    (3) The electoral officers must—

    • (a) check whether or not the proposal has been made by the required number of electors; and

    • (b) not later than 1 month after receiving the proposal, forward to the Commission a certificate to that effect.

Initial action by Commission

35 Commission may decline proposal

  • (1) The Commission may decline to proceed with a reorganisation proposal on the grounds that it is the same or substantially similar to a proposal that has been considered, declined, or abandoned within the previous 3 years other than on the grounds of an insufficient number of electors.

    (2) The Commission may make a decision under subclause (1) on the basis of the reorganisation proposal as it is received and is not obliged to hear an affected local authority or other person on the proposal.

    (3) If the Commission makes a decision under subclause (1), the Commission must give notice of that decision to—

    • (a) the proposer; and

    • (b) each affected local authority.

    (4) Notice to the proposer under subclause (3)(a) may be given by public notice if the Commission considers it appropriate.

    Compare: 1974 No 66 s 37ZZSA

36 Representative of electors

  • (1) If the Commission receives a valid reorganisation proposal that has been initiated under clause 1 by the electors of a local authority, the Commission must, after consultation with those electors that it considers appropriate, determine a person or organisation to be, in relation to that proposal, the representative of those electors for the purposes of this subpart.

    (2) If the Commission has, under subclause (1), determined that a person or organisation is to be the representative of those electors, each reference in clauses 35 and 37 to 56 to the proposer must, in relation to that proposal, be read as a reference to that person or organisation.

    Compare: 1974 No 66 s 37ZZQA

Consideration of proposals

37 Consultation on proposal by Commission

  • (1) As soon as practicable after receiving a reorganisation proposal, the Commission must—

    • (a) take the action that it considers necessary to ensure that the persons or organisations who may be interested in a reorganisation proposal are informed of the proposal; and

    • (b) give public notice of the proposal, which must—

      • (i) advise the location where the proposal may be inspected or how a copy of the proposal may be obtained; and

      • (ii) invite submissions on the proposal; and

    • (c) seek the views of—

      • (i) the affected local authorities; and

      • (ii) the proposer; and

      • (iii) the Auditor-General; and

      • (iv) the Parliamentary Commissioner for the Environment; and

      • (v) the Secretary; and

      • (vi) the Secretary for the Environment; and

      • (vii) the Chief Executive of Te Puni Kōkiri; and

      • (viii) any affected Māori organisations identified by Te Puni Kōkiri; and

      • (ix) any other persons or organisations that the Commission considers appropriate.

    (2) Any body or person that wishes to make a submission on a proposal must make the submission to the Commission within 60 days after the first public notification of the proposal or within any further time that the Commission may allow.

    (3) The Commission must grant the opportunity to meet with, and be heard by, the Commission on the proposal to—

    • (a) the affected local authorities; and

    • (b) each local authority whose district or region adjoins or is coterminous with an affected local authority; and

    • (c) the proposer.

    (4) The Commission may also undertake, in a manner that it thinks fit, inquiries and consultations in relation to the proposal with whomever it considers appropriate.

38 Withdrawal of proposals

  • (1) The Commission must provide a copy of the submissions and views it receives on the proposal to the proposer as soon as practicable after the closing date for submissions on that proposal.

    (2) When providing a copy of the submissions or views on the proposal, or written notice of the absence of submissions or views, to the proposer, the Commission must give the proposer an opportunity to withdraw the proposal.

    (3) The proposer may withdraw the proposal by providing written notice to the Commission within 20 working days of the date on which the Commission provided the opportunity to withdraw the proposal to the proposer.

    (4) If notice of withdrawal is given by post,—

    • (a) it must be given by registered letter; and

    • (b) is deemed, in the absence of proof to the contrary, to be received on the fifth day after the day on which it was posted.

    Compare: 1974 No 66 ss 37ZZD(3), 37ZZZD

39 Decisions on proposals

  • After the Commission has complied with clause 37(1), and conducted any inquiries and consultations it considers appropriate under clause 37(4), it must—

    • (a) prepare a draft reorganisation scheme based on the proposal or on some modification or variation of the proposal resulting from the consideration of submissions, consultations, or inquiries, and the consideration of matters under clause 40; or

    • (b) decide not to proceed with the proposal and give public notice accordingly.

40 Commission may consider wider issues

  • (1) In considering a reorganisation proposal, the Commission may consider how that proposal affects the system of local government of any district or region affected by the reorganisation proposal.

    (2) In particular, the Commission may consider under subclause (1)—

    • (a) which system of local government in the district or region best meets the criteria set out in subpart 2:

    • (b) whether or not good local government would be promoted by the inclusion of any part of the district or region in the district or region of another local authority (whether by the constitution of a new district or region or by the alteration of boundaries):

    • (c) whether or not the system of representation in the district or region best meets the criteria in clause 5:

    • (d) whether or not good local government of the district or region would be best promoted by—

      • (i) the system of communities (if any) and the responsibilities, duties, and powers of the community boards in the district or region; or

      • (ii) an alternative system of communities; or

      • (iii) a change in the responsibilities, duties, and powers of the community boards in the district or region:

    • (e) any other matters that the Commission considers appropriate.

    (3) The Commission may consider a reorganisation proposal together or in conjunction with any other reorganisation proposal or proposals.

    Compare: 1974 No 66 s 37ZZTB

Draft reorganisation schemes

41 Draft reorganisation scheme

  • (1) If the Commission has resolved to issue a draft reorganisation scheme, it must include in that scheme any of the matters appropriate to the scheme that are specified in clause 59.

    (2) In preparing a draft reorganisation scheme, the Commission may consult or make inquiries of any persons or organisations that it thinks fit.

    Compare: 1974 No 66 s 37ZZV

42 Explanatory statement

  • (1) The Commission must attach to a draft reorganisation scheme an explanatory statement of the advantages and disadvantages of the proposal (as proposed to be given effect to in the draft reorganisation scheme).

    (2) The explanatory statement must outline the advantages and disadvantages of the proposal in respect of—

    • (a) a proposed new district; and

    • (b) any remaining area of a district affected by the proposal; and

    • (c) if appropriate, the responsibilities that would belong to the affected local authorities.

    Compare: 1974 No 66 s 37ZZW

43 Notification of draft reorganisation scheme

  • The Commission must, as soon as practicable after issuing a draft reorganisation scheme,—

    • (a) give public notice of the draft reorganisation scheme and, in that notice, invite submissions on the scheme and advise where copies of the scheme may be inspected; and

    • (b) take any other action that it considers necessary to ensure that the persons and organisations listed in clause 37(1)(c) are informed of the scheme.

    Compare: 1974 No 66 s 37ZZX

44 Submissions on draft reorganisation scheme

  • A person or body that is interested in a draft reorganisation scheme may, within 2 months after the first public notification of the draft reorganisation scheme or within a further time that the Commission may allow, make submissions to the Commission on that draft reorganisation scheme.

    Compare: 1974 No 66 s 37ZZY

45 Consideration of submissions

  • (1) The Commission must consider each submission received and may hold hearings of submissions or meet with the persons making submissions or their representatives.

    (2) Nothing in this clause obliges the Commission to hold a hearing or to meet with a person.

    Compare: 1974 No 66 s 37ZZZ

46 Reorganisation scheme

  • (1) After all the submissions on a draft reorganisation scheme have been considered and any further inquiries or consultations considered by the Commission to be necessary or desirable have been made or carried out, or if no submissions on a draft reorganisation scheme have been received, the Commission may, subject to subclause (2),—

    • (a) approve the scheme—

      • (i) in the form in which it was publicly notified; or

      • (ii) with the modifications that the Commission thinks fit, being modifications that result from the submissions made on the draft reorganisation scheme or from any inquiries or consultations made or carried out in relation to that scheme; or

    • (b) decline to proceed with the scheme.

    (2) The Commission must not approve a draft reorganisation scheme that does not comply with the criteria specified in clauses 3 to 7.

    (3) If the Commission approves a draft reorganisation scheme,—

    • (a) it becomes a reorganisation scheme; and

    • (b) the Commission must give public notice of the reorganisation scheme.

    Compare: 1974 No 66 ss 37ZZZA, 37ZZZC

47 Confirmation or substitution of explanatory statement

  • If a draft reorganisation scheme becomes a reorganisation scheme, the Commission must either—

    • (a) confirm the explanatory statement issued with the draft reorganisation scheme; or

    • (b) prepare and publish a new explanatory statement that complies with clause 42.

    Compare: 1974 No 66 s 37ZZB

48 Commission may abandon draft reorganisation scheme

  • At any time before approving a draft reorganisation scheme, the Commission may, on the basis of its consideration of the matters listed in clauses 3 to 7, abandon a draft reorganisation scheme.

    Compare: 1974 No 66 s 37ZZDA

Polls

49 Polls must be held

  • (1) If a draft reorganisation scheme has been approved under clause 46, a poll of electors on the proposal that the reorganisation scheme proceed must be held in each district or region that is directly affected by the scheme.

    (2) Despite subclause (1), no poll of electors must be held on a reorganisation scheme that deals solely with 1 or more of the matters listed in clause 40(2)(b), (c), or (d).

    (3) Except as otherwise provided in this Part, a poll under this clause must be held under the Local Electoral Act 2001 and the provisions of that Act apply, with any necessary modifications, to the conduct of the poll.

    (4) For the purposes of subclause (1), a district or region is directly affected by a reorganisation scheme if—

    • (a) the scheme provides for the abolition of that district or region; or

    • (b) the scheme provides for the union of the whole of that district or region with all or part of another or other districts or regions; or

    • (c) the scheme provides for the constitution of a new local authority whose district or region will include the whole of that district or region; or

    • (d) the scheme provides for the constitution of a new local authority whose district or region will include part of that district or region; or

    • (e) the scheme provides for the exclusion of an area from that district or region.

    Compare: 1974 No 66 s 37ZZZE

50 Timing of poll

  • (1) A poll required by clause 49 on a proposal that a reorganisation scheme proceed must be held on a date determined by the Commission in accordance with this clause.

    (2) In determining the date on which a poll is to be held, the Commission must consult with each electoral officer required to conduct the poll on the reorganisation scheme.

    (3) The Commission must give written notice in accordance with subclause (4) of the date determined under subclause (1) to the Secretary and to the chief executive and to the electoral officer of each territorial authority in whose district the poll is to be held.

    (4) Written notification under subclause (3) must be given,—

    • (a) if public notification of the reorganisation scheme under clause 46(3) occurs after 24 November in any year and before 10 February in the following year, not later than 10 March in that following year; and

    • (b) in any other case, within 1 month after the public notification of the reorganisation scheme.

    (5) Each electoral officer who receives written notification under subclause (4) must, within 7 days after receipt of that notification, give public notice of the poll and of the place or places at which the reorganisation scheme and the explanatory statement may be inspected.

    (6) The date determined under subclause (1) for the conduct of the poll must,—

    • (a) if written notice under subclause (3) is given on or after 5 October and before 19 November in any year, be a day not earlier than 14 February and not later than 21 February in the following year; and

    • (b) if written notice under subclause (3) is given on or after 19 November in any year and before 8 January in the following year, be a day not earlier than 17 March and not later than 24 March in that following year; and

    • (c) in any other case, be a day not later than 82 days after the day on which written notice under subclause (3) is given to the electoral officer.

    Compare: 1974 No 66 s 37ZZZF

51 Official result of poll

  • In addition to complying with section 86 of the Local Electoral Act 2001, the electoral officer must,—

    • (a) when declaring the official result of the poll, state the total number of electors on the roll or rolls compiled for the purpose of the poll; and

    • (b) as soon as practicable after declaring the result, notify the Secretary and the Commission of that result.

    Compare: 1974 No 66 s 37ZZZG

52 Fate of proposal after poll

  • (1) If more than 50% of the valid votes cast in each poll are for a reorganisation scheme, that scheme must be given effect.

    (2) In every other case, the reorganisation scheme must not proceed.

    (3) Whether or not effect is to be given to a reorganisation scheme, the Commission must give notice of the result of the poll to—

    • (a) the local authorities concerned; and

    • (b) the public by public notice.

    Compare: 1974 No 66 s 37ZZZH

53 Regulations

  • The Governor-General may, by Order in Council, make regulations under section 259 that prescribe the forms to be used in polls under this subpart.

    Compare: 1974 No 66 s 37ZZZI

Expenditure limits

54 Interpretation

  • (1) In clauses 55 to 58, unless the context otherwise requires,—

    advertising includes—

    • (a) advertising or publications of any kind or statements in any publication; or

    • (b) paid announcements on radio or television broadcasting; or

    • (c) publishing, issuing, distributing, or displaying any poster, pamphlet, or letter

    poll period, in relation to a poll under clause 49, means the period commencing on the day after the date on which public notice of the reorganisation scheme is first given and ending with the close of the day on which the poll is held.

    (2) For the purposes of clause 55, a reference to population, in relation to a district or a region, is a reference to—

    • (a) the greater of—

      • (i) the population of the district or the region as shown by the last census of population for which results have been published:

      • (ii) the population of the district or the region as assessed by the Government Statistician on a date subsequent to the date of that census; or

    • (b) if the district or the region was not constituted on the date of the last census of population for which results have been published or has had its boundaries altered by the inclusion of additional land since the date of that census, the population of the district or of the region as assessed by the Government Statistician as at the date of its constitution or the date of the boundary alteration.

    Compare: 1974 No 66 ss 37ZZZIA, 37ZZZIB

55 Advertising in relation to polls

  • (1) A local authority affected by a reorganisation scheme may not, at any time in a poll period, publish, broadcast, issue, distribute, or display, or cause to be published, broadcast, issued, distributed, or displayed, other than in accordance with this clause, any advertising that promotes or opposes the implementation of the reorganisation scheme or a provision of that scheme.

    (2) Each local authority affected by a reorganisation scheme must, in the period of 20 working days beginning with the first working day after the date on which public notice of the reorganisation scheme is first given, determine, by resolution, the amount of money it proposes to spend on advertising that—

    • (a) promotes or opposes the implementation of that scheme or of any provision of that scheme; and

    • (b) is to be published, broadcast, issued, distributed, or displayed in the poll period.

    (3) The amount determined under subclause (2) by a territorial authority affected by a reorganisation scheme and the amount that that territorial authority may spend on advertising to which the determination relates must not exceed,—

    • (a) if the population of the district of the territorial authority does not exceed 50 000, the sum of $10,000:

    • (b) if the population of the district of the territorial authority exceeds 50 000 but does not exceed 150 000, the sum of $20,000:

    • (c) if the population of the district of the territorial authority exceeds 150 000, the sum of $30,000.

    (4) The amount determined under subclause (2) by a regional council affected by a reorganisation scheme and the amount that that regional council may spend on advertising to which the determination relates must not exceed,—

    • (a) if the population of its region does not exceed 100 000, the sum of $20,000:

    • (b) if the population of its region exceeds 100 000 but does not exceed 200 000, the sum of $40,000:

    • (c) if the population of its region exceeds 200 000 but does not exceed 500 000, the sum of $50,000:

    • (d) if the population of its region exceeds 500 000, the sum of $60,000.

    (5) The sums referred to in subclauses (3) and (4) are inclusive of goods and services tax.

    (6) Nothing in this clause applies to—

    • (a) the cost of any investigations or research undertaken by, or on behalf of, the local authority that relate to the reorganisation proposal or its effects; or

    • (b) the making of submissions or other representations to the Commission by the local authority; or

    • (c) the cost of the labour of any person employed by a local authority; or

    • (d) the publication of any news or comment relating to the reorganisation proposal or the poll in a newspaper or other periodical or in a radio or television broadcast by any person other than the local authority; or

    • (e) any costs that would have been incurred by the local authority whether or not the reorganisation scheme had been proposed.

    Compare: 1974 No 66 s 37ZZZIC

56 Provision of funding to proposer

  • (1) A local authority affected by a reorganisation scheme must meet, up to the amount specified in subclause (2), the costs incurred by the representative determined under clause 36 in publishing, broadcasting, issuing, distributing, or displaying, in a poll period, advertising that promotes or opposes the implementation of the reorganisation scheme or a provision of that scheme.

    (2) The maximum amount of the costs that may be met under subclause (1) is an amount equal to the amount determined under clause 55(2) by the local authority.

    (3) Costs met by a local authority under subclause (1) must, as requested by the representative determined under clause 36, be met either directly or by way of reimbursement.

    (4) This clause does not apply to a reorganisation scheme that is based on a reorganisation proposal initiated by a local authority or by the Minister.

    Compare: 1974 No 66 s 37ZZZID

57 Returns of expenditure

  • (1) If a poll under clause 49 is held in the district or region of a local authority, the chief executive of that local authority must, within 1 month after the date of that poll, make a return to the Auditor-General that specifies—

    • (a) all advertising that—

      • (i) promoted or opposed the implementation of the reorganisation scheme or a provision of that scheme; and

      • (ii) was published, broadcast, issued, distributed, or displayed by the local authority in the poll period or that was caused by the local authority to be published, broadcast, issued, distributed, or displayed in the poll period; and

    • (b) the cost of the advertising specified under paragraph (a).

    (2) The Auditor-General must audit the return made under subsection (1).

    (3) If the amount spent by a local authority on advertising to which a resolution made under clause 55(2) relates is in excess of the amount specified in that resolution, the entire amount so spent is to be regarded as a loss that has been incurred by that local authority, and the provisions of sections 44 to 46 apply accordingly.

    Compare: 1974 No 66 s 37ZZZIE

    Schedule 3 clause 57(3): amended, on 7 July 2004, by section 24 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

58 Authorisation of advertising

  • (1) A person may not publish, broadcast, issue, distribute, or display advertising that promotes or opposes the implementation of the reorganisation scheme or a provision of that scheme unless that advertising contains a statement setting out the name of the person for whom, or at whose direction, that advertising is published, broadcast, issued, distributed, or displayed and the address of that person's place of residence or business.

    (2) To avoid doubt, for the purposes of this clause, person includes a local authority affected by the reorganisation scheme or a representative determined under clause 36.

    Compare: 1974 No 66 s 37ZZZIF

Part 2
Content of reorganisation schemes

59 Provisions for inclusion in reorganisation schemes

  • (1) In preparing a reorganisation scheme, a joint committee of the affected local authorities or the appointed local authority or the Commission—

    • (a) must include the provisions that are necessary to give effect to the scheme and, in particular, must—

      • (i) include those provisions specified in clause 66 that are considered necessary or desirable as a consequence of the scheme; and

      • (ii) include any provisions that are considered necessary for the purposes of a proposed new district or any other affected district, or for the discharge of the responsibilities of the local authority of any such district, or for any other matter rendered necessary or desirable through the carrying into effect of the provisions; and

    • (b) may provide that the provisions of clause 67—

      • (i) are amended in their application to the scheme; or

      • (ii) do not apply; and

    • (c) may provide for the application, with the modifications that may be necessary or desirable, of any provisions of any Act for the time being in force that are considered appropriate to the particular matter; and

    • (d) may include, in respect of a scheme providing for the constitution of a new district or region, provision for the establishment of committees to assist in the transition to the new local authority; and

    • (e) may incorporate any other matters that it considers necessary or appropriate to give effect to the proposal; and

    • (f) notwithstanding the provisions of section 19V of the Local Electoral Act 2001, may provide that, for a period of not more than 3 years,—

      • (i) the boundaries of a ward or constituency of a district or region constituted by the scheme must be the same as the boundaries of any region or district abolished by the scheme; or

      • (ii) the membership of any ward or constituency to which subparagraph (i) applies need not comply with section 19V of the Local Electoral Act 2001.

    (2) In preparing a reorganisation scheme, the Commission may also provide for the constitution of any community under Schedule 6.

    Compare: 1974 No 66 s 37ZZV(2), (3), (4)

    Schedule 3 clause 59(2): substituted, on 28 June 2006, by section 27(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

Part 3
Implementation of reorganisation schemes

60 Effect of Orders in Council giving effect to reorganisation schemes

  • (1) An Order in Council giving effect to a reorganisation scheme does not affect—

    • (a) any separate rate or special rate, and every such rate continues to be charged on the whole of the area of land on which it was charged before the making of the order and does not, for that reason, become a charge on any additional area; and

    • (b) the area within which, and the purposes for which, any unexpended loan money may be expended.

    (2) An Order in Council giving effect to a reorganisation scheme is not invalid on the ground that it is inconsistent with the provisions of the scheme if the inconsistency relates solely to matters of a verbal or formal nature or the correction of clerical or typographical errors.

    Compare: 1974 No 66 s 37ZZZM

61 Power to amend basis of certain rates

  • (1) Despite clause 60, a local authority constituted by an Order in Council giving effect to a reorganisation scheme may, with the approval of the Commission, make and levy a rate for the purpose of meeting the annual charges for a special loan (within the meaning of the Local Authorities Loans Act 1956) raised by any of the former authorities.

    (2) A rate made and levied under subclause (1) may be made and levied only over the area of the district of the local authority (being an area different from that over which the loan is secured) that the Commission agrees is benefiting or will benefit from the undertaking or amenity for which the special loan was raised.

    (3) Nothing in this clause authorises any alteration to the area over which any special loan is secured.

    Compare: 1974 No 66 s 37ZZZN

Miscellaneous

62 No compensation payable if responsibility transferred

  • Unless clause 63 or clause 69 applies, if provision is made in a reorganisation scheme for a responsibility to be transferred to, or assumed by, a local authority, provision may not be made for the payment of compensation to the local authority from which that responsibility is transferred or assumed.

    Compare: 1974 No 66 s 37ZZZP

63 Payment if undertaking transfer

  • (1) If a reorganisation scheme provides for the transfer of a trading undertaking from a local authority (the transferor) to any other local authority (the transferee), the transferor may request the Commission to determine whether or not any payment for the transfer of that trading undertaking should be made by the transferee to the transferor, and if so the amount of the payment.

    (2) The Commission may, in considering a request under subclause (1), require the local authorities to each appoint an independent person as an assessor to report to the Commission on whether any payment should be made.

    (3) The costs incurred by assessors must be met jointly by the local authorities appointing the assessors.

    (4) In making a determination under this clause, the Commission may attach the conditions that it considers desirable.

64 Certain matters not affected by transfer of responsibilities, duties, or powers

  • Nothing effected or authorised by an Order in Council giving effect to a reorganisation scheme—

    • (a) is to be regarded as placing a local authority or other person in breach of contract or confidence or as otherwise making the local authority or other person guilty of a civil wrong; or

    • (b) is to be regarded as giving rise to a right for a person to terminate or cancel any contract or arrangement, or to accelerate the performance of an obligation; or

    • (c) is to be regarded as placing a local authority or other person in breach of any enactment or rule of law or contractual provision prohibiting, restricting, or regulating the assignment or transfer of property or the disclosure of information; or

    • (d) releases a surety wholly or in part from an obligation; or

    • (e) invalidates or discharges a contract or security.

    Compare: 1974 No 66 s 37ZZZQ

65 Registers

  • (1) A Registrar of Deeds or District Land Registrar, or other person charged with the keeping of books or registers, is not obliged solely by reason of an Order in Council giving effect to a reorganisation scheme to change the name of the transferor to that of the transferee in those books or registers or other documents.

    (2) The presentation to a Registrar or other person of an instrument, whether or not comprising an instrument of transfer by the transferee, is, in the absence of proof to the contrary, sufficient evidence that the property is vested in the transferee if it—

    • (a) is executed, or purports to be executed, by the transferee; and

    • (b) is related to property held by the transferor; and

    • (c) contains a recital that the property has become vested in the transferee by virtue of an Order in Council giving effect to a reorganisation scheme under this Act or the Local Government Act 1974.

    (3) Except as provided in this clause, nothing in this Act derogates from the provisions of the Land Transfer Act 1952.

    Compare: 1974 No 66 s 37ZZZR

Part 4
Provisions for giving effect to reorganisation schemes

Provisions to be included in reorganisation scheme if necessary or desirable

66 Provisions to be included if necessary or desirable

  • If considered necessary or desirable, the following provisions may be included in a reorganisation scheme:

    • (a) provisions determining the nature or constitution of a new local authority:

    • (b) provisions necessary for the first or any election or appointment of members of a local authority affected by the scheme:

    • (c) provisions dealing with the division of a district or region into wards or constituencies:

    • (d) provisions that are necessary for the effective transition and future carrying out of responsibilities that are to be transferred from one local authority to another local authority:

    • (e) provisions dealing with the administration of an existing, proposed, or operative district plan or regional plan under the Resource Management Act 1991:

    • (f) if a local authority is constituted or a responsibility is assumed by, or transferred to, a local authority, provisions for—

      • (i) the committee structure of that local authority:

      • (ii) the membership and responsibilities of a committee of that local authority for a period not exceeding 3 years:

    • (g) provisions dealing with the apportionment or disposition of the assets and liabilities of all or any of the local authorities affected by the scheme, which provisions may include the date on which any of the apportionment or disposition takes place or may be treated as having taken place:

    • (h) if a new district or region is constituted,—

      • (i) provisions for the discharge of the responsibilities of the local authority pending the first election of members of the local authority; and

      • (ii) provisions dealing with the convening of the first meeting of the local authority if the boundaries of an existing district or region are altered by the inclusion in that district or region of the whole part of another district or region (the enlarged district or region):

    • (i) provisions determining the system of rating to be in force in a new district or region, or enlarged district or region, which provisions may provide that, for a specified period, different rating systems apply to all rates, or to the kinds of rates that are specified in the scheme, made and levied in those parts of the new district or region, or enlarged district or region, that were, or formed part of, separate districts or regions:

    • (j) despite paragraph (i), if the Commission agrees, provisions that provide that, for a specified period (not exceeding 5 years), different rating systems may be applied to all rates in a district or region, or to the kinds of rates that are specified in the order, made and levied in those parts of the new district or region, or enlarged district or region, at the time the order takes effect:

    • (k) if a district or region is abolished and the whole or any part of it is included in the district or region of another local authority, provisions for the representation of that first-mentioned district or region or part of it on that local authority until the next triennial general election of members of that local authority.

    Compare: 1974 No 66 Schedule 3B Part 1

Provisions that apply to each reorganisation scheme

67 Provisions that apply to each reorganisation scheme

  • The following provisions apply to each reorganisation scheme unless amended or declared not to apply by a reorganisation scheme:

    • (a) the local authority that assumes, under the scheme, jurisdiction over an area formerly comprising or forming part of a separate district or region, or that takes over the responsibilities of a local authority, has, and may exercise, and is responsible for,—

      • (i) all the powers, duties, acts of authority, and responsibilities that were previously exercised by the former local authority, or that would have been exercised by it if it had remained in existence or in control of that area:

      • (ii) all the liabilities, obligations, engagements, and contracts that were previously the responsibility of the former local authority, or that would have been its responsibility if it had remained in existence or in control of that area:

      • (iii) all the actions, suits, and proceedings pending by or against the former local authority, or that would have been its responsibility if it had remained in existence or in control of that area:

    • (b) the responsibilities, duties, and powers of the chairperson and chief executive of the former local authority must be exercised by the chairperson and chief executive of its successor:

    • (c) all real and personal property vested in an abolished local authority vests in its successor, subject to all existing encumbrances:

    • (d) a local authority that assumes jurisdiction over an area that was formerly part of a separate district or region has, subject to all existing encumbrances, vested in it all the land situated in that area that was vested in the local authority that formerly had jurisdiction over that area:

    • (e) all bylaws in force in the district or region of an abolished local authority, or in the part of a district or region included in another district or region, that are applicable to the altered circumstances of the new controlling local authority are deemed the bylaws of that local authority, and those bylaws remain, until revoked or altered by that local authority, in force in the area in which they were in force immediately before the abolition or the alteration of boundaries, and, if those bylaws cannot be restricted to that area, they must be treated as inapplicable and revoked by the abolition or alteration of boundaries:

    • (f) all rates or levies and other money payable in respect of an abolished local authority, or of an area of land included in the district or region of another local authority, are due and payable to the new local authority:

    • (g) if the area of an abolished district or region comprises part only of another district or region, any money to the credit of the abolished local authority's accounts must, after all liabilities have been provided for, be expended to the benefit of the residents of that area, and any money required to be paid into the accounts of the abolished local authority to meet any deficiency must be raised within the area of the abolished local authority:

    • (h) the rights or interests of creditors of a district or region must not be affected:

    • (i) the valuation rolls, electoral rolls, and rate records in force in the district or region of an abolished local authority, or in relation to any part of the district or region of a local authority included in the district or region of another local authority, continue in force in the district or region of the new controlling local authority until those rolls or records are made by that local authority, and, until that time, the Local Government (Rating) Act 2002 applies:

    • (j) except in the circumstances specified in clause 1, clause 2, clause 3, or clause 4, if part of a district or region is excluded from that district or region and included in another district or region, the members of the local authority of the first-mentioned district or region continue to be members of that district or region as if that part had not been excluded from the district or region:

    • (k) if an area is included in the district of another territorial authority, the civil defence emergency management group plan for the district in which the area is included applies to the area so included and is the only operative local civil defence plan to apply in that area:

    • (l) if a new district or region is constituted, every civil defence emergency management group plan that is in force in respect of any area included in that district or region continues in force until a new plan is prepared and approved for the district under the Civil Defence Emergency Management Act 2002.

    Compare: 1974 No 66 Schedule 3B Part 2

Provisions consequential on coming into force of Order in Council giving effect to reorganisation scheme

68 General

  • (1) This clause applies if, under a reorganisation scheme, a local authority assumes jurisdiction over an area formerly comprising a separate district or region, or formerly constituting a defined part of the district or region from which it was excluded.

    (2) If this clause applies, the local authority—

    • (a) has and may exercise, unless the Order in Council states otherwise, all the powers to raise a loan, or the part of the loan that has not already been raised, that could have been exercised by the local authority that had resolved to raise the loan if it had remained in existence or in control of the part excluded from its district or region; and

    • (b) is subject to the same duties, obligations, and liabilities that were, or would have been, imposed on the local authority that had resolved to raise the loan if it had remained in existence or in control of the part excluded from its district or region if, under the scheme,—

      • (i) 2 or more districts or regions are united, whether or not of the same kind; or

      • (ii) a district or region is included in another district or region, or is abolished; or

      • (iii) a part of a district or region that is or includes a part of the district or region that is separately defined for the purposes of the loan is excluded from the district or region and is constituted as a new district or included in another district or region; and

    • (c) before the union, inclusion, abolition, or exclusion, the local authority of an area formerly comprising a separate district, or of the district or region from which the part was excluded, had resolved to raise a loan, being a loan for the benefit of that defined part, but had not raised the loan, or had raised only part of the loan, and the resolution has not lapsed.

    (3) If, on the addition of an area to a district of a territorial authority, a liability is imposed on the local authority, a special rate made and levied as security for a loan raised under subclause (2) may be made and levied over the whole district or, if the special order to raise the loan so provides, over the added area.

    (4) If part of a district or region is excluded from that district or region and included in another district or region, the remaining part of the first-mentioned district or region continues to be the same district or region.

    Compare: 1974 No 66 Schedule 3B cls 24–26

69 Apportionment of assets and liabilities

  • (1) If an Order in Council does not make provision for the apportionment of the assets and liabilities of the local authorities affected by the order, those local authorities may, by agreement, determine the manner in which those assets and liabilities must be apportioned.

    (2) If an agreement is not entered into by the local authorities concerned within 3 months after the date of the coming into force of the order, a local authority directly affected may apply to the Commission for an order apportioning assets and liabilities, and the Commission must make an order directing the manner in which assets and liabilities must be apportioned among the local authorities concerned.

    (3) For the purpose of deciding an application to the Commission under subclause (2), the Commission must consult with the Auditor-General and with the local authorities directly affected, may make the enquiries that it thinks fit, and may obtain advice from any other person who, in the opinion of the Commission, has expert knowledge concerning any aspect of the matter to be decided.

    (4) In the exercise of its powers under subclause (2), the Commission may identify the assets and liabilities to be transferred, which assets and liabilities must include all amounts and items that properly ought to be treated as being of the same character irrespective of how they may be described in the accounts or records of any local authority.

    (5) An order of the Commission under subclause (2) may be enforced as if it were an agreement between the local authorities concerned.

    (6) For the purposes of the Income Tax Act 2007, the Goods and Services Tax Act 1985, and the Injury Prevention, Rehabilitation, and Compensation Act 2001, a local authority constituted under a reorganisation scheme is deemed to be the same local authority as each of the local authorities whose district, region, or functions are wholly transferred to that local authority.

    Compare: 1974 No 66 s 37E, Schedule 3B Part 3 cls 27–31; 1989 No 1 s 29A

    Schedule 3 clause 69(6): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Payment on transfer of trading undertaking

70 Apportionment of fuel tax revenue

  • (1) This clause applies if, under an Order in Council giving effect to a proposal in a final reorganisation scheme under this Act,—

    • (a) any proceeds of a fuel tax levied under Part 11 of the Local Government Act 1974 are distributed among the component authorities affected by the proposal in accordance with Part 11 of that Act; and

    • (b) either—

      • (i) a new district of a component authority is constituted comprising or including only part of another such district then existing; or

      • (ii) the boundaries of the district of a component authority are altered by the inclusion of an area of land forming part of another such district.

    (2) Despite the requirement of Part 11 of the Local Government Act 1974 that those proceeds must be distributed according to the proportion that the total rate revenue of each such component authority for the immediately preceding financial year bears to the total rate revenue of all the component authorities within the meaning of Part 11 of that Act for the preceding financial year, the component authorities whose districts have respectively been increased and decreased in area and the component authority for the newly constituted district may, by agreement, determine the basis on which those proceeds are distributed among them until the expiration of the year commencing on 1 July on or after the day on which the Order in Council comes into force.

    (3) Clauses 69(3) to (5) apply as if an order of the Commission under clause 69(2) were an order determining an issue under subclause (2) of this clause.

    (4) Nothing in this clause has the effect of altering the provisions of Part 11 of the Local Government Act 1974 in respect of the proportion of the proceeds of any tax distributed under that Part to any constituent authorities whose districts are not altered by the Order in Council or other instrument.

    Compare: 1974 No 66 s 37G; 1977 No 109 s 2, Schedule 3B cl 59

    Schedule 3 clause 70 heading: amended, on 1 October 2008, by section 17 of the Energy (Fuels, Levies, and References) Amendment Act 2008 (2008 No 60).

    Schedule 3 clause 70(1)(a): amended, on 1 October 2008, by section 17 of the Energy (Fuels, Levies, and References) Amendment Act 2008 (2008 No 60).