New Zealand Legislation: Acts
Acts are laws made by Parliament
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as at 1 July 2009
| Public Act | 2002 No 84 |
| Date of assent | 24 December 2002 |
| Commencement | see section 2 |
Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.
This Act is administered by the Department of Internal Affairs.
Governing bodies and chief executives
88 Use of special consultative procedure in relation to change of mode of delivery of significant activity
122 Prospectuses and loan documents to contain statement that the Crown does not guarantee securities or loan
Closure or transfer of small water services
Contracting out of water services
Joint local government arrangements and joint arrangements with other entities
Powers of territorial authorities to make bylaws
Power of regional councils to make bylaws
Power of local authorities to prescribe fees
General provisions applying to bylaws made by a local authority
The Crown bound by certain bylaws
156 Special consultative procedure must be used in making, amending, or revoking bylaw made under this Act
Review of bylaws made under this Act or the Local Government Act 1974
Transfer of bylaw-making power
Powers of arrest, search, and seizure in relation to liquor
Administration of enforcement functions
Powers of enforcement officers
Administration of enforcement may be contracted out
Enforcement of regional council bylaws
Powers relating to owners and occupiers of land
Compulsory acquisition of land
194 Power to stop water services [Repealed]
Discharge of sewage and trade wastes
Contributions may be required by territorial authorities
Conditions relevant to requirement for contributions
Development contributions policy
Use of development contributions
207 Power to use money collected and held under Local Government Act 1974 or Resource Management Act 1991
Powers to recover unpaid development contributions
Refund of development contributions
Objection to making of removal order
Application of certain other Acts
Offences relating to water meters
Offences relating to water races and private drains
Offence relating to obstruction of enforcement officers and others
Offences by occupiers or owners
Offences relating to property damage
Offences committed by members and officers of local authorities
Offences committed by members and officers of Remuneration Authority
Information laid by local authority
Powers if local authority not performing
255 Minister may appoint Commissioner to perform and exercise powers and duties of local authority or call general election
Powers in relation to disaster recovery
Consequential amendments, repeals, and revocations
276 First statement of intent and report and accounts of existing local authority trading enterprises
282 Certain decisions to be taken only if provided for in annual plan or special consultative procedure used
Schedule 1
Acts under which responsibilities, powers, and duties are conferred or imposed on Minister of Local Government and Secretary for Local Government
This Act is the Local Government Act 2002.
(1) Sections 5, 6, and 7, subparts 1 to 3 of Part 6, subpart 2 of Part 7, sections 138, 267, 268, 271, 275, 276, 278, 279, 281, 282, 284, 287, 288, and 312, and Schedules 10 and 11 come into force on the day after the date on which this Act receives the Royal assent.
(2) The rest of this Act comes into force on 1 July 2003.
The purpose of this Act is to provide for democratic and effective local government that recognises the diversity of New Zealand communities; and, to that end, this Act—
(a) states the purpose of local government; and
(b) provides a framework and powers for local authorities to decide which activities they undertake and the manner in which they will undertake them; and
(c) promotes the accountability of local authorities to their communities; and
(d) provides for local authorities to play a broad role in promoting the social, economic, environmental, and cultural well-being of their communities, taking a sustainable development approach.
In order to recognise and respect the Crown's responsibility to take appropriate account of the principles of the Treaty of Waitangi and to maintain and improve opportunities for Māori to contribute to local government decision-making processes, Parts 2 and 6 provide principles and requirements for local authorities that are intended to facilitate participation by Māori in local authority decision-making processes.
(1) In this Act, unless the context otherwise requires,—
activity means a good or service provided by, or on behalf of, a local authority or a council-controlled organisation; and includes—
(a) the provision of facilities and amenities; and
(b) the making of grants; and
(c) the performance of regulatory and other governmental functions
annual plan means an annual plan adopted under section 95
bylaw means a bylaw made by a local authority under any enactment
capital project has the meaning given to it in section 5 of the Local Government (Rating) Act 2002
Commission means the Local Government Commission continued under section 28
committee includes, in relation to a local authority,—
(a) a committee comprising all the members of that local authority; and
(b) a standing committee or special committee appointed by that local authority; and
(c) a joint committee appointed under clause 30 of Schedule 7; and
(d) any subcommittee of a committee described in paragraph (a) or paragraph (b) or paragraph (c)
community means, subject to subsection (2), a community constituted under Schedule 6
community board means a community board established under section 49
community facilities has the meaning set out in section 197
community infrastructure has the meaning set out in section 197
community outcomes, in relation to a district or region,—
(a) means the outcomes for that district or region that are identified as priorities for the time being through a process under section 91; and
(b) includes any additional outcomes subsequently identified through community consultation by the local authority as important to the current or future social, economic, environmental, or cultural well-being of the community
council-controlled organisation has the meaning set out in section 6
council-controlled trading organisation has the meaning set out in section 6
council organisation has the meaning set out in section 6
development contribution has the meaning set out in section 197
development contribution policy has the meaning set out in section 197
district means the district of a territorial authority
enforcement officer means a person appointed by a local authority to exercise the powers of an enforcement officer in relation to offences against, and infringement offences under, this Act, including enforcement of the bylaws of the local authority
financial year means a period of 12 months ending on 30 June
generally accepted accounting practice means—
(a) approved financial reporting standards (within the meaning of section 2(1) of the Financial Reporting Act 1993) so far as those standards apply to local authorities and council-controlled organisations; and
(b) in relation to matters for which no provision is made in approved financial reporting standards (within the meaning of section 2(1) of the Financial Reporting Act 1993) and that are not subject to any applicable rule of law, accounting policies that—
(i) are appropriate to the local authority or council-controlled organisation; and
(ii) have authoritative support within the accounting profession in New Zealand
group of activities means 1 or more related activities provided by, or on behalf of, a local authority or council-controlled organisation
local authority means a regional council or territorial authority
local government organisation has the meaning set out in section 124
long-term council community plan means a long-term council community plan adopted under section 93
lump sum contribution has the meaning given to it in section 5 of the Local Government (Rating) Act 2002
mayor means the mayor of a territorial authority elected under the Local Electoral Act 2001
member,—
(a) in relation to a community board, means a member appointed to that board or elected to that board under the Local Electoral Act 2001:
(b) in relation to the Commission, means a member of the Local Government Commission:
(c) in relation to a local authority, means a member of the governing body of the local authority elected under the Local Electoral Act 2001:
(d) in relation to a regional council, means a member of the governing body of the regional council elected under the Local Electoral Act 2001, including the chairperson:
(e) in relation to a territorial authority, means a member of the governing body of the territorial authority elected under the Local Electoral Act 2001, including the mayor
Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act
network assets of Watercare Services Limited—
(a) means the network assets of Watercare Services Limited used in its provision of water supply; and
(b) includes—
(i) rivers, streams, lakes, waters, and underground waters, and rights relating to these; and
(ii) land, watershed, catchment, and water collection areas; and
(iii) any of the following that are vested in, or are acquired, constructed, or operated by, or are under the control of, Watercare Services Limited:
(A) reservoirs, dams, bores, tanks, and pipes; and
(B) buildings, machinery, and appliances
network infrastructure has the meaning set out in section 197
operating expenses and operating revenues have the same meaning as under generally accepted accounting practice
public notice, in relation to a notice given by a local authority,—
(a) means a notice published in—
(i) 1 or more daily newspapers circulating in the region or district of the local authority; or
(ii) 1 or more other newspapers that have at least an equivalent circulation in that region or district to the daily newspapers circulating in that region or district; and
(b) includes any other public notice that the local authority thinks desirable in the circumstances
publicly available, in relation to a document, has the meaning set out in subsection (3)
region—
(a) means the region of a regional council; and
(b) includes the district of a territorial authority, if the territorial authority is a unitary authority
regional council means a regional council named in Part 1 of Schedule 2
reorganisation proposal means a proposal initiated under section 24
reorganisation scheme means a reorganisation scheme within the meaning of clauses 18, 19, or 46 of Schedule 3
Secretary means the Secretary for Local Government
significance, in relation to any issue, proposal, decision, or other matter that concerns or is before a local authority, means the degree of importance of the issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impact on, and likely consequences for,—
(a) the current and future social, economic, environmental, or cultural well-being of the district or region:
(b) any persons who are likely to be particularly affected by, or interested in, the issue, proposal, decision, or matter:
(c) the capacity of the local authority to perform its role, and the financial and other costs of doing so
significant, in relation to any issue, proposal, decision, or other matter, means that the issue, proposal, decision, or other matter has a high degree of significance
special consultative procedure means the procedure set out in section 83
strategic asset, in relation to the assets held by a local authority, means an asset or group of assets that the local authority needs to retain if the local authority is to maintain the local authority's capacity to achieve or promote any outcome that the local authority determines to be important to the current or future well-being of the community; and includes—
(a) any asset or group of assets listed in accordance with section 90(2) by the local authority; and
(b) any land or building owned by the local authority and required to maintain the local authority's capacity to provide affordable housing as part of its social policy; and
(c) any equity securities held by the local authority in—
(i) a port company within the meaning of the Port Companies Act 1988:
(ii) an airport company within the meaning of the Airport Authorities Act 1966
territorial authority means a city council or a district council named in Part 2 of Schedule 2
unitary authority means a territorial authority that has the responsibilities, duties, and powers of a regional council conferred on it under—
(a) the provisions of any Act; or
(b) an Order in Council giving effect to a reorganisation scheme
wastewater has the meaning given to wastewater services in section 124
water race means the land occupied by a water channel (other than a main river)—
(a) constructed—
(i) by or under the authority of a local authority:
(ii) in, upon, or through land for the supply of water; and
(b) to be used—
(i) solely or principally for farming purposes; or
(ii) in the case of an existing water race, for any other purpose for which water from that water race may be used at the commencement of this section; and
(c) includes—
(i) a branch of a water race taken or made through land for the purpose of supplying water as referred to in paragraph (b); and
(ii) an alteration, extension, or widening of a water race or branch water race, whether done by the local authority or by any person with the approval of the local authority; and
(iii) a flood or other bank, or a dam, sluice, flume, bridge, gauge, meter, reservoir, or other waterworks relating to, or forming part of, a water race; and
(iv) buildings and machinery, pipes, and other materials on the land and within the limits of a water race or relating to, or used in connection with, a water race
waterworks, in relation to the provision of water supply within and outside the district of a territorial authority,—
(a) includes—
(i) rivers, streams, lakes, waters, and underground waters, and rights relating to these; and
(ii) land, watershed, catchment, and water collection areas; and
(iii) if vested in a territorial authority, or acquired, constructed, or operated by, or under the control of, the territorial authority,—
(A) reservoirs, dams, bores, tanks, and pipes; and
(B) buildings, machinery, and appliances; but
(b) does not include the network assets of Watercare Services Limited
working day means a day of the week other than—
(a) a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign's birthday, and Labour Day; and
(b) a day in the period commencing with 25 December in a year and ending with 2 January in the following year; and
(c) if 1 January falls on a Friday, the following Monday; and
(d) if 1 January falls on a Saturday or a Sunday, the following Monday and Tuesday.
(2) The meaning given to the term community by subsection (1) does not apply in relation to—
(a) section 3; or
(b) the definition of the term long-term council community plan; or
(d) any of the provisions of Schedules 10 and 11; or
(e) any other provisions of this Act in respect of which the context otherwise requires.
(3) If a local authority or a council-controlled organisation is required under this Act to make a document publicly available, it must take reasonable steps to—
(a) ensure that the document or a copy of the document is accessible to the general public; and
(b) publicise both the fact that the document is available and the manner in which copies of the document may be obtained.
Section 5(1) bylaw: inserted, on 28 June 2006, by section 4(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
Section 5(1) capital project: inserted, on 28 June 2006, by section 15(1) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).
Section 5(1) community facilities: substituted, on 28 June 2006, by section 4(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
Section 5(1) lump sum contribution: inserted, on 28 June 2006, by section 15(1) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).
Section 5(1) network assets of Watercare Services Limited: inserted, on 20 September 2007, by section 4 of the Local Government Act 2002 Amendment Act 2007 (2007 No 69).
(1) In this Act, unless the context otherwise requires,—
council-controlled organisation means a council organisation that is—
(a) a company—
(i) in which equity securities carrying 50% or more of the voting rights at a meeting of the shareholders of the company are—
(A) held by 1 or more local authorities; or
(B) controlled, directly or indirectly, by 1 or more local authorities; or
(ii) in which 1 or more local authorities have the right, directly or indirectly, to appoint 50% or more of the directors of the company; or
(b) an entity in respect of which 1 or more local authorities have, whether or not jointly with other local authorities or persons,—
(i) control, directly or indirectly, of 50% or more of the votes at any meeting of the members or controlling body of the entity; or
(ii) the right, directly or indirectly, to appoint 50% or more of the trustees, directors, or managers (however described) of the entity
council-controlled trading organisation means a council-controlled organisation that operates a trading undertaking for the purpose of making a profit
council organisation means—
(a) a company—
(i) in which equity securities carrying voting rights at a meeting of the shareholders of the company are—
(A) held by 1 or more local authorities; or
(B) controlled, directly or indirectly, by 1 or more local authorities; or
(ii) in which 1 or more local authorities have the right, directly or indirectly, to appoint 1 or more of the directors (however described) of the company; or
(b) an entity in respect of which 1 or more local authorities have, whether or not jointly with other local authorities or persons,—
(i) control, directly or indirectly, of 1 or more of the votes at any meeting of the members or controlling body of the entity; or
(ii) the right, directly or indirectly, to appoint 1 or more of the trustees, directors, or managers (however described) of the entity.
(2) For the purposes of subsection (1), entity means any partnership, trust, arrangement for the sharing of profits, union of interest, co-operation, joint venture, or other similar arrangement; but does not include a company, or a committee or joint committee of a local authority.
(3) If a council organisation is not a company, references in this Act, in relation to the council organisation, to—
(a) equity securities include any form of voting rights in that organisation; and
(b) the directors and the board include trustees, managers, or office holders (however described in that organisation); and
(c) shareholders include any partners, joint venture partners, members, or other persons holding equity securities in relation to that organisation; and
(d) the constitution include any rules or other documents constituting that organisation or governing its activities; and
(e) subsidiaries include any entity that would be a council-controlled organisation if the references to “local authority”
or “local authorities”
in subsection (1) read “council-controlled organisation”
or “council-controlled organisations”
.
(4) The following entities are not council-controlled organisations:
(a) an electricity company or electricity trust within the meaning of the Electricity Industry Reform Act 1998; or
(b) an energy company within the meaning of the Energy Companies Act 1992; or
(c) a port company or subsidiary of a port company within the meaning of the Port Companies Act 1988; or
(ca) a company in which a port company (within the meaning of the Port Companies Act 1988) holds or controls 50% of the shares; or
(d) [Repealed]
(e) New Zealand Local Government Association Incorporated; or
(f) New Zealand Local Government Insurance Corporation Limited and its subsidiaries; or
(g) Watercare Services Limited and any subsidiary of Watercare Services Limited; or
(h) a company or other organisation (as defined in subsection (2)) of which the New Zealand Local Government Association Incorporated has control directly or indirectly by whatever means; or
(i) an organisation exempted under section 7.
(5) In this section, terms not defined in this Act, but defined in the Companies Act 1993, have the same meaning as in that Act.
Compare: 1974 No 66 s 594B
Section 6(1) council-controlled organisation paragraph (b): amended, on 7 July 2004, by section 3(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 6(1) council-controlled organisation paragraph (b)(i): amended, on 7 July 2004, by section 3(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 6(1) council-controlled organisation paragraph (b)(ii): amended, on 7 July 2004, by section 3(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 6(1) council organisation paragraph (a)(ii): amended, on 7 July 2004, by section 3(2) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 6(1) council organisation paragraph (b): amended, on 7 July 2004, by section 3(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 6(1) council organisation paragraph (b)(i): amended, on 7 July 2004, by section 3(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 6(1) council organisation paragraph (b)(ii): amended, on 7 July 2004, by section 3(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 6(2): amended, on 7 July 2004, by section 3(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 6(4)(ca): inserted, on 7 July 2004, by section 3(5) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 6(4)(d): repealed, on 1 July 2004, by section 48(1)(b) of the Local Government (Auckland) Amendment Act 2004 (2004 No 57).
(1) The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt an organisation for the purposes of section 6(4)(i).
(2) The Minister may make a recommendation only if—
(a) the organisation is subject to monitoring and reporting requirements under an enactment; and
(b) in the Minister's opinion, the organisation's accountability under that enactment is of a similar nature and effect to that required of a council-controlled organisation under this Act.
(3) A local authority may, after having taken account of the matters specified in subsection (5), exempt a small organisation that is not a council-controlled trading organisation, for the purposes of section 6(4)(i).
(4) An exemption must be granted by resolution of the local authority.
(5) The matters are—
(a) the nature and scope of the activities provided by the organisation; and
(b) the costs and benefits, if an exemption is granted, to the local authority, the council-controlled organisation, and the community.
(6) A local authority must review an exemption it has granted—
(a) within 3 years after it is granted; and
(b) after the first review, at intervals of not less than 3 years.
(7) A local authority may, at any time, revoke an exemption it has granted.
Section 7(1): amended, on 28 June 2006, by section 5(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
Section 7(2): substituted, on 28 June 2006, by section 5(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
(1) Except as provided in subsections (2) and (3), this Act does not bind the Crown.
(2) The following provisions of this Act bind the Crown:
(a) section 22 and subpart 4 of Part 2 (which relate to the powers of the Minister and of officials); and
(b) Part 3 and Schedules 4, 5, and 6 (which relate to the Commission, the reorganisation of local authorities, and the establishment of community boards); and
(c) Part 10 and Schedule 15 (which relate to the Minister's powers in relation to the governance of local authorities).
(3) Subpart 1 of Part 8 binds the Crown to the extent set out in sections 153 and 154.
(4) Except as provided in subsections (2) and (3), this Act, and the regulations and bylaws made under it, apply to the interest of any lessee, licensee, or other person claiming an interest in any property of the Crown in the same manner as they apply to private property.
(5) A local authority or person or body of persons (whether incorporated or not) appointed, under section 28 of the Reserves Act 1977, to control and manage any public reserve that is vested in the Crown is, by virtue of that appointment, deemed to have an interest in that reserve.
This Part—
(a) states the purpose of local government; and
(b) states the role and powers of local authorities.
The purpose of local government is—
(a) to enable democratic local decision-making and action by, and on behalf of, communities; and
(b) to promote the social, economic, environmental, and cultural well-being of communities, in the present and for the future.
The role of a local authority is to—
(a) give effect, in relation to its district or region, to the purpose of local government stated in section 10; and
(b) perform the duties, and exercise the rights, conferred on it by or under this Act and any other enactment.
(1) A local authority is a body corporate with perpetual succession.
(2) For the purposes of performing its role, a local authority has—
(a) full capacity to carry on or undertake any activity or business, do any act, or enter into any transaction; and
(b) for the purposes of paragraph (a), full rights, powers, and privileges.
(3) Subsection (2) is subject to this Act, any other enactment, and the general law.
(4) A territorial authority must exercise its powers under this section wholly or principally for the benefit of its district.
(5) A regional council must exercise its powers under this section wholly or principally for the benefit of all or a significant part of its region, and not for the benefit of a single district.
(6) Subsections (4) and (5) do not—
(a) prevent 2 or more local authorities engaging in a joint undertaking, a joint activity, or a co-operative activity; or
(b) prevent a transfer of responsibility from one local authority to another in accordance with this Act; or
(c) restrict the activities of a council-controlled organisation; or
(d) prevent a local authority from making a donation (whether of money, resources, or otherwise) to another local authority or to a person or organisation outside its district or region or outside New Zealand—
(i) if the local authority considers, on reasonable grounds, that the donation will benefit its district or region, or the communities within its district or region; or
(ii) if the local authority considers, on reasonable grounds, that a benefit will be conferred on the local government sector as a whole; or
(iii) for emergency relief; or
(e) prevent a local authority from making a donation (whether of money, resources, or otherwise) to a local government body outside New Zealand to enable it to share its experience and expertise with that body.
Section 12(6)(c): amended, on 28 June 2006, by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
Section 12(6)(d): added, on 28 June 2006, by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
Section 12(6)(e): added, on 28 June 2006, by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
Sections 10 and 12(2) apply to a local authority performing a function under another enactment to the extent that the application of those provisions is not inconsistent with the other enactment.
(1) In performing its role, a local authority must act in accordance with the following principles:
(a) a local authority should—
(i) conduct its business in an open, transparent, and democratically accountable manner; and
(ii) give effect to its identified priorities and desired outcomes in an efficient and effective manner:
(b) a local authority should make itself aware of, and should have regard to, the views of all of its communities; and
(c) when making a decision, a local authority should take account of—
(i) the diversity of the community, and the community's interests, within its district or region; and
(ii) the interests of future as well as current communities; and
(iii) the likely impact of any decision on each aspect of well-being referred to in section 10:
(d) a local authority should provide opportunities for Māori to contribute to its decision-making processes:
(e) a local authority should collaborate and co-operate with other local authorities and bodies as it considers appropriate to promote or achieve its priorities and desired outcomes, and make efficient use of resources; and
(f) a local authority should undertake any commercial transactions in accordance with sound business practices; and
(g) a local authority should ensure prudent stewardship and the efficient and effective use of its resources in the interests of its district or region; and
(h) in taking a sustainable development approach, a local authority should take into account—
(i) the social, economic, and cultural well-being of people and communities; and
(ii) the need to maintain and enhance the quality of the environment; and
(iii) the reasonably foreseeable needs of future generations.
(2) If any of these principles, or any aspects of well-being referred to in section 10, are in conflict in any particular case, the local authority should resolve the conflict in accordance with the principle in subsection (1)(a)(i).
(1) Not later than 1 March after each triennial general election of members, all local authorities within each region must enter into an agreement containing protocols for communication and co-ordination among them during the period until the next triennial general election of members.
(2) Each agreement must include a statement of the process for consultation on proposals for new regional council activities.
(3) After the date specified in subsection (1), but before the next triennial general election of members, all local authorities within each region may meet and agree to amendments to the protocols.
(4) An agreement remains in force until replaced by another agreement.
(1) This section applies if,—
(a) in the exercise of its powers under section 12(2), a regional council proposes to undertake a significant new activity; or
(b) a regional council-controlled organisation proposes to undertake a significant new activity; and
(c) in either case, 1 or more territorial authorities in the region of the regional council—
(i) are already undertaking the significant new activity; or
(ii) have notified their intention to do so in their long-term council community plans or their annual plans.
(2) When this section applies, the regional council—
(a) must advise all the territorial authorities within its region and the Minister of the proposal and the reasons for it; and
(b) must include the proposal in its draft long-term council community plan.
(3) A proposal included in a draft long-term council community plan must include—
(a) the reasons for the proposal; and
(b) the expected effects of the proposal on the activities of the territorial authorities within the region; and
(c) the objections raised by those territorial authorities, if any.
(4) If, after complying with subsection (2), the regional council indicates that it intends to continue with the proposal, but agreement is not reached on the proposal among the regional council and all of the affected territorial authorities, either the regional council or 1 or more of the affected territorial authorities may submit the matter to mediation.
(5) Mediation must be by a mediator or a mediation process—
(a) agreed to by the relevant local authorities; or
(b) in the absence of an agreement, as specified by the Minister.
(6) If mediation is unsuccessful, either the regional council or 1 or more affected territorial authorities may ask the Minister to make a binding decision on the proposal.
(7) Before making a binding decision, the Minister must—
(a) seek and consider the advice of the Commission; and
(b) consult with other Ministers whose responsibilities may be affected by the proposal.
(8) This section does not apply to—
(a) a proposal by a regional council to establish, own, or operate a park for the benefit of its region; or
(b) a proposal to transfer responsibilities; or
(c) a proposal to transfer bylaw-making powers; or
(d) a reorganisation proposal; or
(e) a proposal to undertake an activity or enter into an undertaking jointly with the Crown.
(9) For the purposes of this section,—
affected territorial authority means a territorial authority—
(a) the district of which is wholly or partly in the region of a regional council; and
(b) that undertakes, or has notified in its long-term council community plan or annual plan its intention to undertake, the significant new activity
annual plan—
(a) means a report adopted under section 223D of the Local Government Act 1974; and
(b) includes such a report that section 281 applies to
new activity—
(a) means an activity that, before the commencement of this section, a regional council was not authorised to undertake; but
(b) does not include an activity authorised by or under an enactment
regional council-controlled organisation means a council-controlled organisation that is—
(a) a company—
(i) in which equity securities carrying 50% or more of the voting rights at a meeting of the shareholders of the company are—
(A) held by 1 or more regional councils; or
(B) controlled, directly or indirectly, by 1 or more regional councils; or
(ii) in which 1 or more regional councils have the right, directly or indirectly, to appoint 50% or more of the directors of the company; or
(b) an organisation in respect of which 1 or more regional councils have, whether or not jointly with other regional councils or persons,—
(i) control, directly or indirectly, of 50% or more of the votes at any meeting of the members or controlling body of the organisation; or
(ii) the right, directly or indirectly, to appoint 50% or more of the trustees, directors, or managers (however described) of the organisation.
(1) A regional council may transfer 1 or more of its responsibilities (other than a responsibility that may be transferred under section 33 of the Resource Management Act 1991) to a territorial authority in accordance with this section.
(2) A territorial authority may transfer 1 or more of its responsibilities (other than a responsibility that may be transferred under section 33 of the Resource Management Act 1991) to a regional council in accordance with this section.
(3) A transfer of responsibilities under this section—
(a) must be made by agreement between the local authorities concerned and may be on the terms and conditions that are agreed; and
(b) may be, as agreed, either—
(i) a substantive transfer of responsibilities; or
(ii) a delegation of the undertaking of responsibilities with the transferring local authority remaining responsible for the exercise of those responsibilities.
(4) A local authority may not transfer a responsibility, or accept a transfer of a responsibility, unless—
(a) it has—
(i) included the proposal in its annual plan or draft long-term council community plan; or
(ii) used the special consultative procedure; and
(b) it has given prior notice to the Minister of the proposal.
(5) From the time a transfer takes effect, the responsibilities and powers of the local authority receiving the transfer are extended as necessary to enable the local authority to undertake, exercise, and perform the transferred responsibilities.
(6) If a transfer of responsibilities has been made, either local authority that was party to the transfer may, through the process set out in subsections (3) to (5), initiate—
(a) a variation of the terms of the transfer; or
(b) the reversal of the transfer.
(1) The responsibilities, powers, and duties conferred or imposed on the Minister of Internal Affairs by any of the Acts specified in Schedule 1, or by any regulations, rules, orders, or bylaws made under any of those Acts, must be exercised or performed by the Minister.
(2) The Governor-General may, by Order in Council, amend Schedule 1 to add or delete any Act.
Compare: 1974 No 66 s 2A
The responsibilities, powers, and duties conferred on the Secretary for Internal Affairs by any of the Acts specified in Schedule 1, or by any regulations, rules, orders, or bylaws made under any such Act, must be exercised or performed by the Secretary for Local Government.
Compare: 1974 No 66 s 2B(2)
This Part—
(a) sets out the structure of local government; and
(b) provides for the reorganisation of local authorities; and
(c) continues the Local Government Commission.
(1) Local government in New Zealand consists of the following local authorities:
(a) regional councils; and
(b) territorial authorities.
(2) Every part of New Zealand (other than the Chatham Islands) that is within the district of a territorial authority must also be within the region of 1 or more regional councils.
(3) Part 3 of Schedule 2 applies to the boundaries of regions and districts.
(1) The Minister is the territorial authority for any part of New Zealand that does not form part of the district of a territorial authority.
(2) Subsection (1) does not apply in relation to—
(a) the territorial sea; or
(b) the Kermadec Islands, the Snares Islands, the Bounty Islands, the Antipodes Islands, the Auckland Islands, Campbell Island, and the islands adjacent to Campbell Island.
Compare: 1974 No 66 s 37R
(1) A territorial authority must be either a city council or a district council.
(2) A territorial authority that is a city council must be described as the “[name of city] City Council”
.
(3) A territorial authority that is a district council must be described as the “[name of district] District Council”
.
(4) A regional council must be described as the “[name of region] Regional Council”
.
(5) Despite subsection (1), the Chatham Islands Council is a territorial authority.
Compare: 1974 No 66 s 37L(2), (3)
(1) A reorganisation proposal may deal with any or all of the following matters:
(a) the union of districts or regions:
(b) the constitution of a new district or region, including the constitution of a new local authority for that district or region:
(c) the abolition of a district or region, including the dissolution or abolition of the local authority for that district or region:
(d) the alteration of the boundaries of any district or region:
(e) the transfer of a statutory obligation from one local authority to another:
(f) a proposal that a territorial authority assume the power of a regional council.
(2) Schedule 3 applies to reorganisation proposals.
(3) A reorganisation proposal made before the commencement of this Act must be completed under the provisions of the Local Government Act 1974 (as if this Act had not been passed).
(1) A reorganisation scheme—
(a) is given effect to by Order in Council; and
(b) has effect on and from the date specified for this purpose by Order in Council.
(2) If a reorganisation scheme does not specifically provide for a matter that the Secretary considers to be necessary, desirable, or incidental as a consequence of the scheme,—
(a) the Secretary must consult with the Commission, or any affected local authority, about the inclusion of the matter in the Order in Council; and
(b) the matter may be included in the Order in Council if considered appropriate by the Governor-General in Council.
(3) Clause 67 of Schedule 3 applies in respect of each reorganisation scheme that is given effect to by Order in Council, except to the extent that the reorganisation scheme provides that the clause is—
(a) amended in its application by the reorganisation scheme; or
(b) declared not to apply.
(4) Clauses 68 to 70 of Schedule 3 apply to each reorganisation scheme that is given effect to by Order in Council.
(1) The Commission may issue a determination amending a reorganisation scheme if satisfied that—
(a) some further or other provision is necessary to enable, or better enable, the intention of the scheme; or
(b) some provision of the scheme is no longer relevant or appropriate to the intention of the scheme.
(2) A determination issued under subsection (1) has effect on and from the date specified for this purpose by Order in Council.
(3) In this section, reorganisation scheme means—
(a) a reorganisation scheme prepared under Schedule 3 and given effect to by Order in Council:
(b) a reorganisation scheme prepared and given effect to under the Local Government Act 1974.
Compare: 1974 No 66 s 37ZZZO
(1) A territorial authority that wishes to be called a city council or a district council may, instead of making a reorganisation proposal, apply to the Local Government Commission.
(2) The Commission may refer the application to the Minister for the preparation of an Order in Council to give effect to it, if the Commission considers that—
(a) the application should be approved; and
(b) in the case of a territorial authority wishing to be called a city council, the district of the territorial authority meets the criteria specified in clause 7 of Schedule 3.
(3) The Governor-General may, by Order in Council made on the recommendation of the Minister, give effect to the application.
(4) The Order in Council may consequentially amend Part 2 of Schedule 2.
There continues to be a Local Government Commission.
Compare: 1974 No 66 s 37V
(1) The Commission is a body corporate with perpetual succession.
(2) For the purpose of performing its functions, the Commission has—
(a) full capacity to carry on or undertake any activity, do any act, or enter into any transaction; and
(b) for the purposes of paragraph (a), full rights, powers, and privileges.
(1) The Commission has the functions, duties, and powers conferred on it by this Act or any other enactment.
(2) Without limiting subsection (1), the Commission may—
(a) provide information about local government; and
(b) promote good practice relating to a local authority or to local government generally.
Compare: 1974 No 66 s 37W
(1) The Commission may consider, report on, and make recommendations to the Minister and any relevant local authority on matters relating to a local authority or local government considered appropriate by the Commission.
(2) The Commission must consider, report on, and make recommendations to the Minister and any relevant local authority on matters relating to a local authority or local government that are referred to the Commission by the Minister.
(3) If the Minister refers any matter to the Commission under subsection (2), the Minister must immediately publish the terms of reference in the Gazette.
(4) A local authority that receives a report or recommendation from the Commission under subsection (1) or subsection (2) must consider and respond to the Commission in relation to the report or recommendation.
(5) A local authority must comply with subsection (4)—
(a) by a date specified by the Commission; or
(b) if the Commission does not specify a date, within 20 working days after receiving a report or recommendation.
Compare: 1974 No 66 s 37X
(1) The Commission must—
(a) review the operation of this Act and the Local Electoral Act 2001; and
(b) present a report on the review to the Minister.
(2) The report must be presented to the Minister as soon as practicable after the triennial general election of members of local authorities in 2007.
(3) Without limiting the scope of the review, the review must determine and assess—
(a) the impact of conferring on local authorities full capacity, rights, powers, and privileges; and
(b) the cost-effectiveness of consultation and planning procedures; and
(c) the impact of increasing participation in local government and improving representation on local authorities.
(4) The Commission must, no later than 1 July 2005, present a report to the Minister if it considers that amendments should be made to this Act or the Local Electoral Act 2001 before the triennial general election of members of local authorities in 2007.
(1) The Commission consists of 3 members appointed by the Minister.
(2) One member of the Commission—
(a) must have a knowledge of tikanga Māori; and
(b) is to be appointed after consultation with the Minister of Māori Affairs.
(3) The powers of the Commission are not affected by any vacancy in its membership.
(4) No person is to be treated as employed in the service of the Crown for the purposes of the Government Superannuation Fund Act 1956 or the State Sector Act 1988 because the person is a member of the Commission.
(5) In this section, tikanga Māori means Māori custom and practice.
Compare: 1974 No 66 s 37Y
(1) The Commission is to be treated as a Commission of Inquiry under the Commissions of Inquiry Act 1908 and, subject to this Act, the provisions of that Act (except sections 2, 4A, and 11 to 15), as far as they are applicable, apply accordingly.
(2) The chairperson of the Commission, or any other person (being a member of the Commission or an officer of the Public Service) purporting to act by direction or with the authority of the chairperson, may—
(a) issue summonses requiring the attendance of witnesses before the Commission or the production of documents; and
(b) do any other act preliminary or incidental to the investigation or consideration of any matter by the Commission.
Compare: 1974 No 66 Schedule 3A cl 8
(1) The Evidence Act 2006 applies to the Commission and its members, and to all proceedings before the Commission, in the same manner as if the Commission were a court within the meaning of that Act.
(2) However, the Commission may receive as evidence any statement, document, information, or matter that may, in its opinion, assist it to deal effectively with the matter being dealt with, whether or not the same would be admissible in a court of law.
Compare: 1974 No 66 Schedule 3A cl 9
Section 35(1): amended, on 1 August 2007, by section 216 of the Evidence Act 2006 (2006 No 69).
Schedule 4 applies in respect of the Commission and its proceedings.
Schedule 5 applies in respect of appeals against decisions of the Commission.
This Part—
(a) identifies the principles and requirements for the governance and management of local authorities; and
(b) provides for the establishment of community boards and their governance arrangements.
A local authority must act in accordance with the following principles in relation to its governance:
(a) a local authority should ensure that the role of democratic governance of the community, and the expected conduct of elected members, is clear and understood by elected members and the community; and
(b) a local authority should ensure that the governance structures and processes are effective, open, and transparent; and
(c) a local authority should ensure that, so far as is practicable, responsibility and processes for decision-making in relation to regulatory responsibilities is separated from responsibility and processes for decision-making for non-regulatory responsibilities; and
(d) a local authority should be a good employer; and
(e) a local authority should ensure that the relationship between elected members and management of the local authority is effective and understood.
(1) A local authority must prepare and make publicly available, following the triennial general election of members, a local governance statement that includes information on—
(a) the functions, responsibilities, and activities of the local authority; and
(b) any local legislation that confers powers on the local authority; and
(ba) the bylaws of the local authority, including for each bylaw, its title, a general description of it, when it was made, and, if applicable, the date of its last review under section 158 or 159; and
(c) the electoral system and the opportunity to change it; and
(d) representation arrangements, including the option of establishing Māori wards or constituencies, and the opportunity to change them; and
(e) members' roles and conduct (with specific reference to the applicable statutory requirements and code of conduct); and
(f) governance structures and processes, membership, and delegations; and
(g) meeting processes (with specific reference to the applicable provisions of the Local Government Official Information and Meetings Act 1987 and standing orders); and
(h) consultation policies; and
(i) policies for liaising with, and memoranda or agreements with, Māori; and
(j) the management structure and the relationship between management and elected members; and
(k) equal employment opportunities policy; and
(l) key approved planning and policy documents and the process for their development and review; and
(m) systems for public access to it and its elected members; and
(n) processes for requests for official information.
(2) A local authority must comply with subsection (1) within 6 months after each triennial general election of members of the local authority.
(3) A local authority must update its governance statement as it considers appropriate.
Section 40(1)(ba): inserted, on 14 October 2007, by section 7 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
(1) A regional council must have a governing body consisting of—
(a) members elected in accordance with the Local Electoral Act 2001; and
(b) a chairperson elected by members of the regional council in accordance with clause 25 of Schedule 7.
(2) A territorial authority must have a governing body consisting of members and a mayor elected in accordance with the Local Electoral Act 2001.
(3) A governing body of a local authority is responsible and democratically accountable for the decision-making of the local authority.
(4) A chairperson of a regional council, or a mayor of a territorial authority, is a Justice of the Peace during the time that he or she holds the office of chairperson or mayor.
(5) An employee of a local authority who is elected to be a member of the local authority's governing body must resign from his or her position as an employee of the local authority before taking up his or her position as a member of the local authority.
(1) A local authority must, in accordance with clauses 33 and 34 of Schedule 7, appoint a chief executive.
(2) A chief executive appointed under subsection (1) is responsible to his or her local authority for—
(a) implementing the decisions of the local authority; and
(b) providing advice to members of the local authority and to its community boards, if any; and
(c) ensuring that all responsibilities, duties, and powers delegated to him or her or to any person employed by the local authority, or imposed or conferred by an Act, regulation, or bylaw, are properly performed or exercised; and
(d) ensuring the effective and efficient management of the activities of the local authority; and
(e) maintaining systems to enable effective planning and accurate reporting of the financial and service performance of the local authority; and
(f) providing leadership for the staff of the local authority; and
(g) employing, on behalf of the local authority, the staff of the local authority; and
(h) negotiating the terms of employment of the staff of the local authority.
(3) A chief executive appointed under subsection (1) is responsible to his or her local authority for ensuring, so far as is practicable, that the management structure of the local authority—
(a) reflects and reinforces the separation of regulatory responsibilities and decision-making processes from other responsibilities and decision-making processes; and
(b) is capable of delivering adequate advice to the local authority to facilitate the explicit resolution of conflicting objectives.
(4) For the purposes of any other Act, a chief executive appointed under this section is the principal administrative officer of the local authority.
(1) A member of a local authority (or a committee, community board, or other subordinate decision-making body of that local authority) is indemnified by that local authority, whether or not that member was elected to that local authority or community board under the Local Electoral Act 2001 or appointed by the local authority, for—
(a) costs and damages for any civil liability arising from any action brought by a third party if the member was acting in good faith and in pursuance (or intended pursuance) of the responsibilities or powers of the local authority (or committee, community board, or other subordinate decision-making body of that local authority); and
(b) costs arising from any successfully defended criminal action relating to acts or omissions in his or her capacity as a member.
(2) Subsection (1) does not apply to a member's liability for a loss under section 46.
(3) To avoid doubt, a local authority may not indemnify a director of a council-controlled organisation for any liability arising from that director's acts or omissions in relation to that council-controlled organisation.
(1) For the purposes of this section and sections 45 and 46, a local authority is to be regarded as having incurred a loss to the extent that any of the following actions and omissions has occurred and the local authority has not been fully compensated for the action or omission concerned:
(a) money belonging to, or administrable by, a local authority has been unlawfully expended; or
(b) an asset has been unlawfully sold or otherwise disposed of by the local authority; or
(c) a liability has been unlawfully incurred by the local authority; or
(d) a local authority has intentionally or negligently failed to enforce the collection of money it is lawfully entitled to receive.
(2) If the Auditor-General is satisfied that a local authority has incurred a loss, the Auditor-General may make a report on the loss to the local authority, and may include in the report any recommendations in relation to the recovery of the loss or the prevention of further loss that the Auditor-General thinks fit.
(3) The Auditor-General must send copies of the report to the Minister and every member of the local authority.
Compare: 1974 No 66 s 706A
(1) On receipt of a report from the Auditor-General, the local authority must, within 28 days, respond in writing to the Auditor-General, and send a copy of the response to the Minister.
(2) The local authority's response must—
(a) respond to each of the Auditor-General's recommendations; and
(b) include a statement as to what action, if any, the local authority intends to take in respect of the loss.
(3) The Minister may extend the period of time within which the local authority must forward its response.
(4) An individual member of the local authority may respond to the Auditor-General—
(a) by making a separate response to the Auditor-General, and sending a copy to the local authority and the Minister, within the time required for the local authority's response; or
(b) with the consent of the local authority, by incorporating that member's response in the local authority's response.
(5) The local authority must, as soon as practicable after the expiry of the time for forwarding its response, table in a meeting of the local authority that is open to the public a copy of the Auditor-General's report, the local authority's response, and any response of an individual member of the local authority not incorporated in the local authority's response.
Compare: 1974 No 66 s 706B
(1) If the Auditor-General has made a report on a loss to a local authority under section 44, then, without limiting any other person's liability for the loss, the loss is recoverable as a debt due to the Crown from each member of the local authority jointly and severally.
(2) If the members of the local authority or any other person or persons do not pay the amount of the loss to the Crown or the local authority within a reasonable time, the Crown may commence proceedings to recover the loss from any or all of those members.
(3) Any amount recovered by the Crown under subsection (2), less all costs incurred by the Crown in respect of the recovery, must be paid by the Crown to the local authority concerned.
(4) It is a defence to any proceedings under subsection (2) if the defendant proves that the act or failure to act resulting in the loss occurred—
(a) without the defendant's knowledge; or
(b) with the defendant's knowledge but against the defendant's protest made at or before the time when the loss occurred; or
(c) contrary to the manner in which the defendant voted on the issue at a meeting of the local authority; or
(d) in circumstances where, although being a party to the act or failure to act, the defendant acted in good faith and in reliance on reports, statements, financial data, or other information prepared or supplied, or on professional or expert advice given, by any of the following persons:
(i) an employee of the local authority whom the defendant believed on reasonable grounds to be reliable and competent in relation to the matters concerned:
(ii) a professional adviser or expert in relation to matters that the defendant believed on reasonable grounds to be within the person's professional or expert competence.
Compare: 1974 No 66 s 706C
(1) This section applies if, in a proceeding commenced by the Attorney-General, the local authority is—
(a) held to have—
(i) disposed of, or dealt with, any of its property wrongfully or illegally; or
(ii) applied its property to any unlawful purpose; or
(iii) permitted the reserves that it must manage to be used for purposes not authorised by law; or
(b) restrained from acting in the ways referred to in paragraph (a).
(2) If subsection (1) applies, costs and other expenses arising out of the proceeding or incurred in doing the things to which the proceeding relates—
(a) must not be paid out of general revenues by the local authority; and
(b) must be paid, by order of the court, by the members of the local authority who, by voting or otherwise, assented to the acts concerned.
(3) The court must not make an order under subsection (2) against a member of the local authority if the member proves that, in doing the act concerned,—
(a) the member acted in good faith and in accordance with the written advice of the solicitor to the local authority; or
(b) the member acted honestly and reasonably and, having regard to all the circumstances of the case, the member ought fairly to be excused.
Compare: 1974 No 66 s 706
The following activities of local authorities must be carried out in accordance with Part 1 of Schedule 7:
(a) vacation of office by members:
(b) remuneration of members:
(c) conduct of members:
(d) election and removal of chairperson, deputy chairperson, and deputy mayor:
(e) calling of meetings:
(f) conduct of meetings:
(g) procedures at meetings:
(h) subordinate decision-making structures:
(i) delegations:
(j) employment of staff.
(1) A community board must be established for each community constituted, in accordance with Schedule 6, by—
(a) an Order in Council giving effect to a reorganisation scheme; or
(b) a resolution made by the territorial authority within whose district the community will be situated as a result of a proposal by electors to establish a community; or
(c) a resolution made by the territorial authority within whose district the community will be situated as a result of the territorial authority's review of representation arrangements.
(2) The community board must be described as the “[name of community] Community Board”
.
Compare: 1974 No 66 s 101ZG
The membership of a community board consists of—
(a) members elected under the Local Electoral Act 2001; and
(b) members (if any) of, and appointed in accordance with the Local Electoral Act 2001 by, the territorial authority in whose district the relevant community is situated.
A community board—
(a) is an unincorporated body; and
(b) is not a local authority; and
(c) is not a committee of the relevant territorial authority.
Compare: 1974 No 66 s 101ZP
The role of a community board is to—
(a) represent, and act as an advocate for, the interests of its community; and
(b) consider and report on all matters referred to it by the territorial authority, or any matter of interest or concern to the community board; and
(c) maintain an overview of services provided by the territorial authority within the community; and
(d) prepare an annual submission to the territorial authority for expenditure within the community; and
(e) communicate with community organisations and special interest groups within the community; and
(f) undertake any other responsibilities that are delegated to it by the territorial authority.
Compare: 1974 No 66 s 101ZY
(1) A community board has the powers that are—
(a) delegated to it by the relevant territorial authority in accordance with clause 32 of Schedule 7; or
(b) prescribed by the Order in Council constituting its community.
(2) The powers of a community board prescribed by Order in Council expire at the close of 6 years after the order comes into force.
(3) Despite subsection (1), a community board may not—
(a) acquire, hold, or dispose of property; or
(b) appoint, suspend, or remove staff.
(1) Part 2 of Schedule 7 applies to community boards.
(2) Part 1 of Schedule 7 (excluding clauses 15 and 33 to 36) applies to community boards, with all necessary modifications, as if they were local authorities.
This Part establishes—
(a) requirements for the governance and accountability of council-controlled organisations and council organisations; and
(b) procedures for the transfer of local authority undertakings to council-controlled organisations.
(1) A proposal to establish a council-controlled organisation must be adopted in accordance with the special consultative procedure before a local authority may establish or become a shareholder in the council-controlled organisation.
(2) The consultation required in subsection (1) may be undertaken as part of another proposal or as part of a long-term council community plan.
(1) A local authority must adopt a policy that sets out an objective and transparent process for—
(a) the identification and consideration of the skills, knowledge, and experience required of directors of a council organisation; and
(b) the appointment of directors to a council organisation; and
(c) the remuneration of directors of a council organisation.
(2) A local authority may appoint a person to be a director of a council organisation only if the person has, in the opinion of the local authority, the skills, knowledge, or experience to—
(a) guide the organisation, given the nature and scope of its activities; and
(b) contribute to the achievement of the objectives of the organisation.
(1) The role of a director of a council-controlled organisation is to assist the organisation to meet its objectives and any other requirements in its statement of intent.
(2) This section does not limit or affect the other duties that a director of a council-controlled organisation has.
(1) The principal objective of a council-controlled organisation is to—
(a) achieve the objectives of its shareholders, both commercial and non-commercial, as specified in the statement of intent; and
(b) be a good employer; and
(c) exhibit a sense of social and environmental responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so; and
(d) if the council-controlled organisation is a council-controlled trading organisation, conduct its affairs in accordance with sound business practice.
(2) In subsection (1)(b), good employer has the same meaning as in clause 36 of Schedule 7.
All decisions relating to the operation of a council-controlled organisation must be made by, or under the authority of, the board of the organisation in accordance with—
(a) its statement of intent; and
(b) its constitution.
Compare: 1974 No 66 s 594R
A local authority obtaining goods or services from a council-controlled organisation (whether for itself or any other person) must do so under a contract for the supply of the goods or services if the supply of the goods or services is an activity specified in the council-controlled organisation's statement of intent as an activity to be undertaken by the council-controlled organisation or any subsidiary of the council-controlled organisation.
A local authority must not give any guarantee, indemnity, or security in respect of the performance of any obligation by a council-controlled trading organisation.
Compare: 1974 No 66 s 594ZP
A local authority must not lend money, or provide any other financial accommodation, to a council-controlled trading organisation on terms and conditions that are more favourable to the council-controlled trading organisation 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.
Compare: 1974 No 66 s 594ZPA
(1) A council-controlled organisation must have a statement of intent that complies with clause 9 of Schedule 8.
(2) [Repealed]
(3) [Repealed]
(4) Schedule 8 applies to statements of intent of council-controlled organisations.
(5) A statement of intent—
(a) must not be inconsistent with the constitution of a council-controlled organisation; and
(b) may include and apply to 2 or more related council-controlled organisations.
(6) Despite this section, an organisation that becomes a council-controlled organisation not more than 6 months before the end of a financial year is not required to prepare a statement of intent for that financial year.
Section 64(2): repealed, on 7 July 2004, by section 4 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 64(3): repealed, on 7 July 2004, by section 4 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 64(6): added, on 28 June 2006, by section 8 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
(1) A local authority that is a shareholder in a council organisation must regularly undertake performance monitoring of that organisation to evaluate its contribution to the achievement of—
(a) the local authority's objectives for the organisation; and
(b) (if applicable) the desired results, as set out in the organisation's statement of intent; and
(c) the overall aims and outcomes of the local authority.
(2) A local authority must, as soon as practicable after a statement of intent of a council-controlled organisation is delivered to it,—
(a) agree to the statement of intent; or
(b) if it does not agree, take all practicable steps under clause 5 of Schedule 8 to require the statement of intent to be modified.
Section 65(1)(b): amended, on 7 July 2004, by section 5(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 65(2): amended, on 7 July 2004, by section 5(2) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 65(2)(a): amended, on 7 July 2004, by section 5(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
(1) Within 2 months after the end of the first half of each financial year, the board of a council-controlled organisation must deliver to the shareholders a report on the organisation's operations during that half year.
(2) The report must include the information required to be included by its statement of intent.
Compare: 1974 No 66 s 594Z
(1) Within 3 months after the end of each financial year, the board of a council-controlled organisation must deliver to the shareholders, and make available to the public, a report on the organisation's operations during that year.
(2) The report must include the information required to be included by—
(a) sections 68 and 69; and
(b) its statement of intent.
(3) [Repealed]
Section 67(3): repealed, on 7 July 2004, by section 6 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
A report on the operations of a council-controlled organisation under section 67 must—
(a) contain the information that is necessary to enable an informed assessment of the operations of that organisation and its subsidiaries, including—
(i) a comparison of the performance of the organisation and its subsidiaries with the statement of intent; and
(ii) an explanation of any material variances between that performance and the statement of intent; and
(b) state the dividend, if any, authorised to be paid or the maximum dividend proposed to be paid by that organisation for its equity securities (other than fixed interest securities) for the financial year to which the report relates.
Compare: 1974 No 66 s 594Z
(1) A report on the operations of a council-controlled organisation under section 67 must include—
(a) audited consolidated financial statements for that financial year for that organisation and its subsidiaries; and
(b) an auditor's report on—
(i) those financial statements; and
(ii) the performance targets and other measures by which performance was judged in relation to that organisation's objectives.
(2) The audited financial statements under subsection (1)(a) must be prepared in accordance with generally accepted accounting practice.
Compare: 1974 No 66 s 594Z
Despite sections 196 to 203 of the Companies Act 1993, a council-controlled organisation or a subsidiary of a council-controlled organisation is a public entity as defined in section 4 of the Public Audit Act 2001 and, in accordance with that Act, the Auditor-General is its auditor.
Compare: 1974 No 66 s 594ZC
Nothing in this Act requires the inclusion in any statement of intent, annual report, financial statement, or half-yearly report required to be produced under this Act by a council-controlled organisation of any information that may be properly withheld if a request for that information were made under the Local Government Official Information and Meetings Act 1987.
Compare: 1974 No 66 s 594ZA
(1) This section applies to a council-controlled organisation if the shares of any of the following are listed on a stock exchange:
(a) the council-controlled organisation:
(b) a holding company of the council-controlled organisation:
(c) controlling companies of the council-controlled organisation.
(2) If subsection (1) applies, the council-controlled organisation is not required to—
(a) have a statement of intent under section 64:
(b) deliver a half-yearly report under section 66:
(c) deliver an annual report under section 67.
(3) In this section,—
controlling companies means 2 or more companies whose degree of control over a council-controlled organisation, if exercisable by one notional company, would make the notional company a holding company of the council-controlled organisation
holding company has the same meaning as in section 5 of the Companies Act 1993.
Section 71A: inserted, on 7 July 2004, by section 7 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Sections 57 to 71 apply to a company as if it were a council-controlled organisation if the company is a related company (within the meaning of section 2(3) and (4) of the Companies Act 1993) of a council-controlled organisation.
Section 72: substituted, on 7 July 2004, by section 8 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Schedule 9 applies to the transfer of an existing undertaking to a council-controlled organisation.
(1) Parts 1 to 6 of the Local Government Official Information and Meetings Act 1987 apply to a council-controlled organisation as if that organisation were a local authority.
(2) The Ombudsmen Act 1975 applies to a council-controlled organisation as if that organisation were listed in Part 3 of Schedule 1 of that Act.
This Part—
(a) sets out obligations of local authorities in relation to the making of decisions:
(b) states the obligations of local authorities in relation to the involvement of Māori in decision-making processes:
(c) states the obligations of local authorities in relation to consultation with interested and affected persons:
(d) sets out the nature and use of the special consultative procedure:
(e) sets out a process for identifying and reporting on community outcomes:
(f) prescribes the processes and general content of the long-term council community plan, the annual plan, and the annual report (all of which are prescribed in more detail in Schedule 10):
(g) prescribes the obligations of local authorities in relation to financial management:
(h) provides for borrowing by local authorities.
(1) Every decision made by a local authority must be made in accordance with such of the provisions of sections 77, 78, 80, 81, and 82 as are applicable.
(2) Subsection (1) is subject, in relation to compliance with sections 77 and 78, to the judgments made by the local authority under section 79.
(3) A local authority—
(a) must ensure that, subject to subsection (2), its decision-making processes promote compliance with subsection (1); and
(b) in the case of a significant decision, must ensure, before the decision is made, that subsection (1) has been appropriately observed.
(4) For the avoidance of doubt, it is declared that, subject to subsection (2), subsection (1) applies to every decision made by or on behalf of a local authority, including a decision not to take any action.
(5) Where a local authority is authorised or required to make a decision in the exercise of any power, authority, or jurisdiction given to it by this Act or any other enactment or by any bylaws, the provisions of subsections (1) to (4) and the provisions applied by those subsections, unless inconsistent with specific requirements of the Act, enactment, or bylaws under which the decision is to be made, apply in relation to the making of the decision.
(6) This section and the sections applied by this section do not limit any duty or obligation imposed on a local authority by any other enactment.
(1) A local authority must, in the course of the decision-making process,—
(a) seek to identify all reasonably practicable options for the achievement of the objective of a decision; and
(b) assess those options by considering—
(i) the benefits and costs of each option in terms of the present and future social, economic, environmental, and cultural well-being of the district or region; and
(ii) the extent to which community outcomes would be promoted or achieved in an integrated and efficient manner by each option; and
(iii) the impact of each option on the local authority's capacity to meet present and future needs in relation to any statutory responsibility of the local authority; and
(iv) any other matters that, in the opinion of the local authority, are relevant; and
(c) if any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water, sites, waahi tapu, valued flora and fauna, and other taonga.
(2) This section is subject to section 79.
(1) A local authority must, in the course of its decision-making process in relation to a matter, give consideration to the views and preferences of persons likely to be affected by, or to have an interest in, the matter.
(2) That consideration must be given at—
(a) the stage at which the problems and objectives related to the matter are defined:
(b) the stage at which the options that may be reasonably practicable options of achieving an objective are identified:
(c) the stage at which reasonably practicable options are assessed and proposals developed:
(d) the stage at which proposals of the kind described in paragraph (c) are adopted.
(3) A local authority is not required by this section alone to undertake any consultation process or procedure.
(4) This section is subject to section 79.
(1) It is the responsibility of a local authority to make, in its discretion, judgments—
(a) about how to achieve compliance with sections 77 and 78 that is largely in proportion to the significance of the matters affected by the decision; and
(b) about, in particular,—
(i) the extent to which different options are to be identified and assessed; and
(ii) the degree to which benefits and costs are to be quantified; and
(iii) the extent and detail of the information to be considered; and
(iv) the extent and nature of any written record to be kept of the manner in which it has complied with those sections.
(2) In making judgments under subsection (1), a local authority must have regard to the significance of all relevant matters and, in addition, to—
(a) the principles set out in section 14; and
(b) the extent of the local authority's resources; and
(c) the extent to which the nature of a decision, or the circumstances in which a decision is taken, allow the local authority scope and opportunity to consider a range of options or the views and preferences of other persons.
(3) The nature and circumstances of a decision referred to in subsection (2)(c) include the extent to which the requirements for such decision-making are prescribed in or under any other enactment (for example, the Resource Management Act 1991).
(4) Subsection (3) is for the avoidance of doubt.
Section 79(3): added, on 7 July 2004, by section 9 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 79(4): added, on 7 July 2004, by section 9 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
(1) If a decision of a local authority is significantly inconsistent with, or is anticipated to have consequences that will be significantly inconsistent with, any policy adopted by the local authority or any plan required by this Act or any other enactment, the local authority must, when making the decision, clearly identify—
(a) the inconsistency; and
(b) the reasons for the inconsistency; and
(c) any intention of the local authority to amend the policy or plan to accommodate the decision.
(2) Subsection (1) does not derogate from any other provision of this Act or of any other enactment.
(1) A local authority must—
(a) establish and maintain processes to provide opportunities for Māori to contribute to the decision-making processes of the local authority; and
(b) consider ways in which it may foster the development of Māori capacity to contribute to the decision-making processes of the local authority; and
(c) provide relevant information to Māori for the purposes of paragraphs (a) and (b).
(2) A local authority, in exercising its responsibility to make judgments about the manner in which subsection (1) is to be complied with, must have regard to—
(a) the role of the local authority, as set out in section 11; and
(b) such other matters as the local authority considers on reasonable grounds to be relevant to those judgments.
(1) Consultation that a local authority undertakes in relation to any decision or other matter must be undertaken, subject to subsections (3) to (5), in accordance with the following principles:
(a) that persons who will or may be affected by, or have an interest in, the decision or matter should be provided by the local authority with reasonable access to relevant information in a manner and format that is appropriate to the preferences and needs of those persons:
(b) that persons who will or may be affected by, or have an interest in, the decision or matter should be encouraged by the local authority to present their views to the local authority:
(c) that persons who are invited or encouraged to present their views to the local authority should be given clear information by the local authority concerning the purpose of the consultation and the scope of the decisions to be taken following the consideration of views presented:
(d) that persons who wish to have their views on the decision or matter considered by the local authority should be provided by the local authority with a reasonable opportunity to present those views to the local authority in a manner and format that is appropriate to the preferences and needs of those persons:
(e) that the views presented to the local authority should be received by the local authority with an open mind and should be given by the local authority, in making a decision, due consideration:
(f) that persons who present views to the local authority should be provided by the local authority with information concerning both the relevant decisions and the reasons for those decisions.
(2) A local authority must ensure that it has in place processes for consulting with Māori in accordance with subsection (1).
(3) The principles set out in subsection (1) are, subject to subsections (4) and (5), to be observed by a local authority in such manner as the local authority considers, in its discretion, to be appropriate in any particular instance.
(4) A local authority must, in exercising its discretion under subsection (3), have regard to—
(a) the requirements of section 78; and
(b) the extent to which the current views and preferences of persons who will or may be affected by, or have an interest in, the decision or matter are known to the local authority; and
(c) the nature and significance of the decision or matter, including its likely impact from the perspective of the persons who will or may be affected by, or have an interest in, the decision or matter; and
(d) the provisions of Part 1 of the Local Government Official Information and Meetings Act 1987 (which Part, among other things, sets out the circumstances in which there is good reason for withholding local authority information); and
(e) the costs and benefits of any consultation process or procedure.
(5) Where a local authority is authorised or required by this Act or any other enactment to undertake consultation in relation to any decision or matter and the procedure in respect of that consultation is prescribed by this Act or any other enactment, such of the provisions of the principles set out in subsection (1) as are inconsistent with specific requirements of the procedure so prescribed are not to be observed by the local authority in respect of that consultation.
(1) Where this Act or any other enactment requires a local authority to use or adopt the special consultative procedure, that local authority must—
(a) prepare—
(i) a statement of proposal; and
(ii) a summary of the information contained in the statement of proposal (which summary must comply with section 89); and
(b) include the statement of proposal on the agenda for a meeting of the local authority; and
(c) make the statement of proposal available for public inspection at—
(i) the principal public office of the local authority; and
(ii) such other places as the local authority considers necessary in order to provide all ratepayers and residents of the district with reasonable access to that statement; and
(d) distribute in accordance with section 89(c) the summary of the information contained in the statement of proposal; and
(e) give public notice, and such other notice as the local authority considers appropriate, of the proposal and the consultation being undertaken; and
(f) include in the public notice a statement about how persons interested in the proposal—
(i) may obtain the summary of information about the proposal; and
(ii) may inspect the full proposal; and
(g) include in the public notice a statement of the period within which submissions on the proposal may be made to the local authority; and
(h) ensure that any person who makes a submission on the proposal within that period—
(i) is sent a written notice acknowledging receipt of that person's submission; and
(ii) is given a reasonable opportunity to be heard by the local authority (if that person so requests); and
(i) ensure that the notice given to a person under paragraph (h)(i) contains information—
(i) advising that person of that person's opportunity to be heard; and
(ii) explaining how that person may exercise that person's opportunity to be heard; and
(j) ensure that, except as otherwise provided by Part 7 of the Local Government Official Information and Meetings Act 1987, every meeting at which submissions are heard or at which the local authority, community board, or committee deliberates on the proposal is open to the public; and
(k) subject to the Local Government Official Information and Meetings Act 1987, make all written submissions on the proposal available to the public.
(2) The period specified in the statement included under subsection (1)(g) must be a period of not less than 1 month beginning with the date of the first publication of the public notice.
(3) This section does not prevent a local authority from requesting or considering, before making a decision, comment or advice from an officer of the local authority or any other person in respect of the proposal or any submission or both.
Compare: 1974 No 66 s 716A
(1) Where this Act or any other enactment requires a local authority to use or adopt the special consultative procedure in relation to any decision or matter, it may (but is not required to) carry out the consultation at the same time as, or combined with, any other special consultative procedure that it is required to carry out under this or any other enactment.
(2) This section—
(a) applies except to the extent that this Act or any other enactment expressly provides otherwise; and
(b) is for the avoidance of doubt.
Section 83A: inserted, on 7 July 2004, by section 10 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
(1) Where the special consultative procedure is used in relation to the adoption of a long-term council community plan under section 93, the statement of proposal referred to in section 83(1)(a) must include a draft of the long-term council community plan.
(2) Where the special consultative procedure is used in relation to the amendment of a long-term council community plan under section 93, the statement of proposal referred to in section 83(1)(a)—
(a) must include a draft of the parts of the long-term council community plan that are proposed to be amended; and
(b) must be accompanied by a draft of any consequential amendments to the long-term council community plan that will be required if it is amended in the manner proposed.
(3) Where a statement of proposal to which subsection (1) or subsection (2) applies relates to a proposal for the making of a decision to which section 97 applies, that statement of proposal must (unless the making of that decision was explicitly provided for in the long-term council community plan last adopted by the local authority) include—
(a) the details of the proposal; and
(b) the reasons for the proposal; and
(c) an analysis of the reasonably practicable options, including the proposal, identified under section 77(1); and
(d) in respect of a proposal to transfer ownership or control of a strategic asset from the local authority to any other person,—
(i) a description of any accountability or monitoring arrangements to be used to assess the performance of that person and any other person in regard to the asset; and
(ii) an assessment of whether there are any conflicts of interest arising from the proposed transfer of the control or ownership of the asset, and, if so, what they are and how they will be managed; and
(e) in respect of a proposal that the local authority assume or cease responsibility for an activity,—
(i) an assessment of the possible effects on other current providers of the activity; and
(ii) an assessment of whether there are any conflicts of interest arising from the proposal, and, if so, what they are and how they will be managed.
(4) A statement of proposal to which subsection (1) or subsection (2) applies must also contain a report from the local authority's auditor on—
(a) the extent to which the statement complies with the requirements of this Act; and
(b) the quality of the information and assumptions underlying the forecast information provided in the statement; and
(c) the extent to which the forecast information and proposed performance measures will provide an appropriate framework for the meaningful assessment of the actual levels of service provision.
(5) For the avoidance of doubt, the report under subsection (4) must not comment on the merits of any policy content of the statement.
(1) Where the special consultative procedure is used in relation to the adoption of an annual plan under section 95, the statement of proposal referred to in section 83(1)(a) must include a draft of the annual plan.
(2) A statement of proposal to which subsection (1) applies must also include—
(a) the information that, under clause 2(2) of Schedule 10, is specified, in relation to the year to which the draft annual plan relates, in the long-term council community plan in relation to each group of activities; and
(b) the reasons why any information included in the draft annual plan departs from information specified, in relation to the year to which the draft annual plan relates, in the long-term council community plan; and
(c) if it is proposed that the making of an amendment to the long-term council community plan and the adoption of the annual plan should take place concurrently, the summary under section 89 in relation to the amendment.
Section 85(2)(c): amended, on 7 July 2004, by section 11 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
(1) This section applies to the following:
(a) making a bylaw to which section 156 applies:
(b) amending a bylaw to which section 156 applies (other than under subsection (2) of that section):
(c) revoking a bylaw to which section 156 applies.
(2) Where the special consultative procedure is used in relation to an activity described in subsection (1), the statement of proposal referred to in section 83(1)(a) must include,—
(a) as the case may be,—
(i) a draft of the bylaw as proposed to be made or amended; or
(ii) a statement that the bylaw is to be revoked; and
(b) the reasons for the proposal; and
(c) a report on any relevant determinations by the local authority under section 155.
Section 86: substituted, on 28 June 2006, by section 9 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
(1) This section applies in any case where—
(a) none of sections 84 to 86 apply but a local authority is required to use or adopt the special consultative procedure; or
(b) a local authority chooses to use the special consultative procedure.
(2) In any case to which this section applies, the statement of proposal referred to in section 83(1)(a) is,—
(a) if a plan or policy or similar document is proposed to be adopted, a draft of the proposed plan, policy, or document; and
(b) in any other case, a detailed statement of the proposal.
(3) A statement of proposal under subsection (2)(b) must include—
(a) a statement of the reasons for the proposal; and
(b) an analysis of the reasonably practicable options, including the proposal, identified under section 77(1); and
(c) any other information that the local authority identifies as relevant.
(1) A local authority must use the special consultative procedure in relation to any proposal for an alteration (of the kind described in subsection (2)) in the mode by which a significant activity is undertaken by or on behalf of the local authority.
(2) The kind of alteration to which subsection (1) refers is an alteration that involves—
(a) a change from delivery of the activity by the local authority itself to delivery of the activity by a council-controlled organisation in which the local authority is a shareholder; or
(b) a change from delivery of the activity by the local authority itself to delivery of the activity by another organisation or person; or
(c) a change from delivery of the activity by a council-controlled organisation in which the local authority is a shareholder to delivery of the activity by another organisation or person.
(3) This section does not apply if—
(a) the proposed decision on the proposal is explicitly provided for in the council's long-term council community plan; and
(b) the proposal to provide for the decision was included in a statement of proposal under section 84.
(4) In the case of any proposal to which this section applies, the statement of proposal referred to in section 83(1)(a) is—
(a) a detailed statement of the proposal; and
(b) a statement of the reasons for the proposal; and
(c) an analysis of the reasonably practicable options, including the proposal, identified under section 77(1); and
(d) any other information that the local authority identifies as relevant.
A summary of the information contained in a statement of proposal must—
(a) be a fair representation of the major matters in the statement of proposal; and
(b) be in a form determined by the local authority; and
(c) be distributed as widely as reasonably practicable (in such manner as is determined appropriate by the local authority, having regard to the matter to which the proposal relates) as a basis for general consultation; and
(d) indicate where the statement of proposal may be inspected, and how a copy may be obtained; and
(e) state the period within which submissions on the proposal may be made to the local authority.
(1) Every local authority must adopt a policy setting out—
(a) that local authority's general approach to determining the significance of proposals and decisions in relation to issues, assets, or other matters; and
(b) any thresholds, criteria, or procedures that are to be used by the local authority in assessing the extent to which issues, proposals, decisions, or other matters are significant.
(2) The policy adopted under subsection (1) must list the assets considered by the local authority to be strategic assets.
(3) A policy adopted under subsection (1) may be amended from time to time.
(4) A local authority must use the special consultative procedure both in relation to—
(a) the adoption of a policy under subsection (1); and
(b) the amendment, under subsection (3), of a policy adopted under subsection (1).
(1) A local authority must, not less than once every 6 years, carry out a process to identify community outcomes for the intermediate and long-term future of its district or region.
(2) The purposes of the identification of community outcomes are—
(a) to provide opportunities for communities to discuss their desired outcomes in terms of the present and future social, economic, environmental, and cultural well-being of the community; and
(b) to allow communities to discuss the relative importance and priorities of identified outcomes to the present and future social, economic, environmental, and cultural well-being of the community; and
(c) to provide scope to measure progress towards the achievement of community outcomes; and
(d) to promote the better co-ordination and application of community resources; and
(e) to inform and guide the setting of priorities in relation to the activities of the local authority and other organisations.
(3) A local authority may decide for itself the process that it is to use to facilitate the identification of community outcomes under subsection (1), but the local authority—
(a) must, before finally deciding on that process, take steps—
(i) to identify, so far as practicable, other organisations and groups capable of influencing either the identification or the promotion of community outcomes; and
(ii) to secure, if practicable, the agreement of those organisations and groups to the process and to the relationship of the process to any existing and related plans; and
(b) must ensure that the process encourages the public to contribute to the identification of community outcomes.
(1) A local authority must monitor and, not less than once every 3 years, report on the progress made by the community of its district or region in achieving the community outcomes for the district or region.
(2) A local authority may decide for itself how it is to monitor and report under subsection (1), but the local authority must seek to secure the agreement of organisations and groups identified under section 91(3)(a) to the monitoring and reporting procedures, including the incorporation of any research, monitoring, or reporting undertaken by those organisations and groups.
(1) A local authority must, at all times, have a long-term council community plan under this section.
(2) A local authority must use the special consultative procedure in adopting a long-term council community plan.
(3) A long-term council community plan must be adopted before the commencement of the first year to which it relates, and continues in force until the close of the third consecutive year to which it relates.
(4) A local authority may amend a long-term council community plan at any time.
(5) A local authority must use the special consultative procedure in making any amendment to a long-term council community plan.
(6) The purpose of a long-term council community plan is to—
(a) describe the activities of the local authority; and
(b) describe the community outcomes of the local authority's district or region; and
(c) provide integrated decision-making and co-ordination of the resources of the local authority; and
(d) provide a long-term focus for the decisions and activities of the local authority; and
(e) provide a basis for accountability of the local authority to the community; and
(f) provide an opportunity for participation by the public in decision-making processes on activities to be undertaken by the local authority.
(7) A long-term council community plan adopted under this section must—
(a) cover a period of not less than 10 consecutive financial years; and
(b) include the information required by Part 1 of Schedule 10.
(8) A local authority must, in complying with the requirements of this Act in relation to the preparation and adoption of a long-term council community plan, act in such manner, and include in that plan such detail, as the local authority considers on reasonable grounds to be appropriate.
(9) A local authority must, in deciding what is appropriate for the purposes of subsection (8), have regard to—
(b) the significance of any matter; and
(c) the extent of the local authority's resources.
(10) A local authority must, within 1 month after the adoption of its long-term council community plan,—
(a) make its long-term council community plan publicly available; and
(b) send copies of that plan to—
(i) the Secretary; and
(ii) the Auditor-General; and
(iii) the Parliamentary Library.
Section 93(9): amended, on 7 July 2004, by section 12 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
(1) The long-term council community plan must contain a report from the local authority's auditor on—
(a) the extent to which the local authority has complied with the requirements of this Act in respect of the plan; and
(b) the quality of the information and assumptions underlying the forecast information provided in the plan; and
(c) the extent to which the forecast information and performance measures provide an appropriate framework for the meaningful assessment of the actual levels of service provision.
(2) A report under subsection (1) may be in the form of confirmation or amendment of the report made by the auditor under section 84(4).
(3) For the avoidance of doubt, a report under subsection (1) must not comment on the merits of any policy content of the plan.
(1) A local authority must prepare and adopt an annual plan for each financial year.
(2) A local authority must use the special consultative procedure in adopting an annual plan.
(3) An annual plan must be adopted before the commencement of the year to which it relates.
(4) Despite subsection (1), for the first year to which a long-term council community plan under section 93 relates, the financial statement and funding impact statement included in that long-term council community plan in relation to that year must be regarded as the annual plan adopted by the local authority for that year.
(5) The purpose of an annual plan is to—
(a) contain the proposed annual budget and funding impact statement for the year to which the annual plan relates; and
(b) identify any variation from the financial statements and funding impact statement included in the local authority's long-term council community plan in respect of the year; and
(c) support the long-term council community plan in providing integrated decision-making and co-ordination of the resources of the local authority; and
(d) contribute to the accountability of the local authority to the community; and
(e) extend opportunities for participation by the public in decision-making processes relating to the costs and funding of activities to be undertaken by the local authority.
(6) Each annual plan adopted under this section must—
(a) be prepared in accordance with the principles and procedures that apply to the preparation of the financial statements and funding impact statement included in the long-term council community plan; and
(b) contain appropriate references to the long-term council community plan in which the local authority's activities for the financial year covered by the annual plan are set out; and
(c) include the information required by Part 2 of Schedule 10.
(7) A local authority must, within 1 month after the adoption of its annual plan,—
(a) make its annual plan publicly available; and
(b) send copies of that plan to—
(i) the Secretary; and
(ii) the Auditor-General; and
(iii) the Parliamentary Library.
Compare: 1974 No 66 s 223D(1), (3)–(5), (7)–(8)
(1) The effect of a long-term council community plan and an annual plan adopted by a local authority is to provide a formal and public statement of the local authority's intentions in relation to the matters covered by the plan.
(2) A resolution to adopt a long-term council community plan or an annual plan does not constitute a decision to act on any specific matter included within the plan.
(3) Subject to section 80, and except as provided in section 97, a local authority may make decisions that are inconsistent with the contents of any long-term council community plan or annual plan.
(4) No person is entitled to require a local authority to implement the provisions of a long-term council community plan or an annual plan.
(5) This section applies subject to Part 4A of the Local Government (Rating) Act 2002.
Section 96(5): added, on 28 June 2006, by section 15(2) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).
(1) This section applies to the following decisions of a local authority:
(a) a decision to alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the local authority, including a decision to commence or cease any such activity:
(b) a decision to transfer the ownership or control of a strategic asset to or from the local authority:
(c) a decision to construct, replace, or abandon a strategic asset:
(d) a decision that will, directly or indirectly, significantly affect the capacity of the local authority, or the cost to the local authority, in relation to any activity identified in the long-term council community plan.
(2) A local authority must not make a decision to which this section relates unless—
(a) the decision is explicitly provided for in its long-term council community plan; and
(b) the proposal to provide for the decision was included in a statement of proposal prepared under section 84.
(3) Nothing in this section applies to a decision of a local authority to fund a capital project by lump sum contributions if the local authority has complied with section 117B(3)(c)(i) of the Local Government (Rating) Act 2002.
Section 97(2)(a): amended, on 28 June 2006, by section 10 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
Section 97(3): added, on 28 June 2006, by section 15(3) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).
(1) A local authority must prepare and adopt in respect of each financial year an annual report containing in respect of that year the information required by Part 3 of Schedule 10.
(2) The purposes of an annual report are—
(a) to compare the actual activities and the actual performance of the local authority in the year with the intended activities and the intended level of performance as set out in respect of the year in the long-term council community plan and the annual plan; and
(b) to promote the local authority's accountability to the community for the decisions made throughout the year by the local authority.
(3) Each annual report must be completed and adopted, by resolution, within 4 months after the end of the financial year to which it relates.
(4) A local authority must, within 1 month after the adoption of its annual report, make publicly available—
(a) its annual report; and
(b) a summary of the information contained in its annual report.
(5) The summary must represent, fairly and consistently, the information regarding the major matters dealt with in the annual report.
(6) A local authority must, within 1 month after the adoption of its annual report, send copies of that report and of the summary prepared under subsection (4)(b) to—
(a) the Secretary; and
(b) the Auditor-General; and
(c) the Parliamentary Library.
Compare: 1974 No 66 s 223E(1), (2), (14), (15)(c)
(1) In addition to the information required by Part 3 of Schedule 10, the annual report must contain the auditor's report on—
(a) the financial statements referred to in clause 17 of Schedule 10; and
(b) the local authority's compliance with the requirements of Schedule 10 that are applicable to the annual report.
(2) In addition to the information required by section 98(5), the summary required by section 98(4)(b) must contain the auditor's report on whether the summary represents, fairly and consistently, the information regarding the major matters dealt with in the annual report.
Compare: 1974 No 66 s 223E(8)(a)
(1) A local authority must ensure that each year's projected operating revenues are set at a level sufficient to meet that year's projected operating expenses.
(2) Despite subsection (1), a local authority may set projected operating revenues at a different level from that required by that subsection if the local authority resolves that it is financially prudent to do so, having regard to—
(a) the estimated expenses of achieving and maintaining the predicted levels of service provision set out in the long-term council community plan, including the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and
(b) the projected revenue available to fund the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and
(c) the equitable allocation of responsibility for funding the provision and maintenance of assets and facilities throughout their useful life; and
(d) the funding and financial policies adopted under section 102.
(1) A local authority must manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community.
(2) A local authority must make adequate and effective provision in its long-term council community plan and in its annual plan (where applicable) to meet the expenditure needs of the local authority identified in that long-term council community plan and annual plan.
(3) The funding needs of the local authority must be met from those sources that the local authority determines to be appropriate, following consideration of,—
(a) in relation to each activity to be funded,—
(i) the community outcomes to which the activity primarily contributes; and
(ii) the distribution of benefits between the community as a whole, any identifiable part of the community, and individuals; and
(iii) the period in or over which those benefits are expected to occur; and
(iv) the extent to which the actions or inaction of particular individuals or a group contribute to the need to undertake the activity; and
(v) the costs and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities; and
(b) the overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental, and cultural well-being of the community.
Compare: 1974 No 66 s 122C(1)(a)–(c), (f)
(1) A local authority must, in order to provide predictability and certainty about sources and levels of funding, adopt the funding and financial policies described in subsection (4).
(2) A local authority must, subject to subsection (3), use the special consultative procedure in adopting a policy under this section.
(3) A policy under this section may be adopted by a local authority as part of its long-term council community plan.
(4) A local authority must adopt—
(a) a revenue and financing policy; and
(b) a liability management policy; and
(c) an investment policy; and
(d) a policy on development contributions or financial contributions; and
(e) a policy on partnerships between the local authority and the private sector; and
(f) a policy on the remission and postponement of rates on Māori freehold land.
(5) A local authority may adopt all or any of the following policies:
(a) a rates remission policy:
(b) a rates postponement policy.
(6) A policy described in this section may be amended only as an amendment to the long-term council community plan.
(1) A policy adopted under section 102(4)(a) must state—
(a) the local authority's policies in respect of the funding of operating expenses from the sources listed in subsection (2); and
(b) the local authority's policies in respect of the funding of capital expenditure from the sources listed in subsection (2).
(2) The sources referred to in subsection (1) are as follows:
(a) general rates, including—
(i) choice of valuation system; and
(ii) differential rating; and
(iii) uniform annual general charges:
(b) targeted rates:
(ba) lump sum contributions:
(c) fees and charges:
(d) interest and dividends from investments:
(e) borrowing:
(f) proceeds from asset sales:
(g) development contributions:
(h) financial contributions under the Resource Management Act 1991:
(i) grants and subsidies:
(j) any other source.
(3) A policy adopted under section 102(4)(a) must also show how the local authority has, in relation to the sources of funding identified in the policy, complied with section 101(3).
Compare: 1974 No 66 s 122O
Section 103(2)(ba): inserted, on 28 June 2006, by section 15(4) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).
A policy adopted under section 102(4)(b) must state the local authority's policies in respect of the management of both borrowing and other liabilities, including—
(a) interest rate exposure; and
(b) liquidity; and
(c) credit exposure; and
(d) debt repayment; and
(e) specific borrowing limits; and
(f) the giving of securities.
Compare: 1974 No 66 s 122S
A policy adopted under section 102(4)(c) must state the local authority's policies in respect of investments, including—
(a) the objectives in terms of which financial and equity investments are to be managed; and
(b) the mix of investments; and
(c) the acquisition of new investments; and
(d) an outline of the procedures by which investments are managed and reported on to the local authority; and
(e) an outline of how risks associated with investments are assessed and managed.
Compare: 1974 No 66 s 122Q
(1) In this section, financial contributions has the meaning given to it by section 108(9) of the Resource Management Act 1991.
(2) A policy adopted under section 102(4)(d) must, in relation to the purposes for which development contributions or financial contributions may be required,—
(a) summarise and explain the capital expenditure identified in the long-term council community plan that the local authority expects to incur to meet the increased demand for community facilities resulting from growth; and
(b) state the proportion of that capital expenditure that will be funded by—
(i) development contributions:
(ii) financial contributions:
(iii) other sources of funding; and
(c) explain, in terms of the matters required to be considered under section 101(3), why the local authority has determined to use these funding sources to meet the expected capital expenditure referred to in paragraph (a); and
(d) identify separately each activity or group of activities for which a development contribution or a financial contribution will be required and, in relation to each activity or group of activities, specify the total amount of funding to be sought by development contributions or financial contributions; and
(e) if development contributions will be required, comply with the requirements set out in sections 201 and 202; and
(f) if financial contributions will be required, summarise the provisions that relate to financial contributions in the district plan or regional plan prepared under the Resource Management Act 1991.
(3) If development contributions are required, the local authority must keep available for public inspection the full methodology that demonstrates how the calculations for those contributions were made.
(4) If financial contributions are required, the local authority must keep available for public inspection the provisions of the district plan or regional plan prepared under the Resource Management Act 1991 that relate to financial contributions.
(5) The places within its district or region at which the local authority must keep the information specified in subsections (3) and (4) available for public inspection are—
(a) the principal public office of the local authority; and
(b) such other places within its district or region as the local authority considers necessary in order to provide members of the public with reasonable access to the methodology, provisions, or plan.
(1) A policy adopted under section 102(4)(e)—
(a) must state the local authority's policies in respect of the commitment of local authority resources to partnerships between the local authority and the private sector; and
(b) must include—
(i) the circumstances (if any) in which the local authority will provide funding or other resources to any form of partnership with the private sector, whether by way of grant, loan, or investment, or by way of acting as a guarantor for any such partnership; and
(ii) what consultation the local authority will undertake in respect of any proposal to provide funding or other resources to any form of partnership with the private sector; and
(iii) what conditions, if any, the local authority will impose before providing funding or other resources to any form of partnership with the private sector; and
(iv) an outline of how risks associated with any such provision of funding or other resources are assessed and managed; and
(v) an outline of the procedures by which any such provision of funding or other resources will be monitored and reported on to the local authority; and
(vi) an outline of how the local authority will assess, monitor, and report on the extent to which community outcomes are furthered by any provision of funding or other resources or a partnership with the private sector.
(2) In this section, partnership with the private sector means any arrangement or agreement that is entered into between 1 or more local authorities and 1 or more persons engaged in business; but does not include—
(a) any such arrangement or agreement to which the only parties are—
(i) local authorities; or
(ii) 1 or more local authorities and 1 or more council-controlled organisations; or
(b) a contract for the supply of any goods or services to, by, or on behalf of, a local authority.
Section 107(2)(a)(ii): amended, on 28 June 2006, by section 11(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
Section 107(2)(b): amended, on 28 June 2006, by section 11(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
(1) If a policy adopted under section 102(4)(f) provides for the remission of rates on Māori freehold land, the policy must state—
(a) the objectives sought to be achieved by the remission of rates; and
(b) the conditions and criteria to be met in order for rates to be remitted.
(2) If a policy adopted under section 102(4)(f) provides for the postponement of the requirement to pay rates on Māori freehold land, the policy must state—
(a) the objectives sought to be achieved by a postponement of the requirement to pay rates; and
(b) the conditions and criteria to be met in order for the requirement to pay rates to be postponed.
(3) For the avoidance of doubt, a policy adopted under section 102(4)(f) is not required to provide for the remission of, or postponement of the requirement to pay, rates on Māori freehold land.
(4) In determining a policy under section 102(4)(f), the local authority must consider the matters set out in Schedule 11.
(5) For the purposes of this section, the term rates includes penalties payable on unpaid rates.
(1) A policy adopted under section 102(5)(a) must state—
(a) the objectives sought to be achieved by the remission of rates; and
(b) the conditions and criteria to be met in order for rates to be remitted.
(2) In determining a policy under section 102(5)(a), the local authority may consider the matters set out in Schedule 11.
(3) For the purposes of this section, the term rates includes penalties payable on unpaid rates.
(1) A policy adopted under section 102(5)(b) must state—
(a) the objectives sought to be achieved by a postponement of the requirement to pay rates; and
(b) the conditions and criteria to be met in order for the requirement to pay rates to be postponed.
(2) In determining a policy under section 102(5)(b), the local authority may consider the matters set out in Schedule 11.
(3) For the purposes of this section, the term rates includes penalties payable on unpaid rates.
All information that is required by any provision of this Part or of Schedule 10 to be included in any plan, report, or other document must be prepared in accordance with generally accepted accounting practice if that information is of a form or nature for which generally accepted accounting practice has developed standards.
In this subpart, unless the context otherwise requires,—
asset of a local authority, in relation to a charge or to charging, includes any revenue, rate, or other right or entitlement of the local authority capable of being subjected to a charge
borrowing—
(a) means the incurring by any means of debt to raise money; and
(b) includes the incurring of debt—
(i) under any contract or arrangement for hire purchase, deferred payment, instalment payment, sale and lease back or buy back, financial lease, loan, overdraft, or other arrangement for obtaining debt finance; or
(ii) by the drawing, acceptance, making, endorsement, issue, or sale of bills of exchange, promissory notes, and other negotiable instruments and debt securities; or
(iii) by the use, for any purpose, of funds received or invested by the local authority for any other purpose if the local authority has resolved to repay, with or without interest, the funds used; but
(c) does not include debt incurred in connection with the hire purchase of goods, the deferred purchase of goods or services, or the giving of credit for the purchase of goods or services if—
(i) the period for which the indebtedness is outstanding is less than 91 days and the indebtedness is not incurred again promptly after payment; or
(ii) the goods or services are obtained in the ordinary course of the local authority's performance of its lawful responsibilities, on terms and conditions available generally to parties of equivalent credit worthiness, for amounts not exceeding in aggregate an amount—
(A) determined by resolution of the local authority as not being so significant as to require specific authorisation; or
(B) recorded for the purposes of this subparagraph in the then current borrowing management policy of the local authority—
and borrow has a corresponding meaning
charge includes a mortgage, a floating charge, and any other non-possessory security interest deliberately created by the local authority concerned
incidental arrangement means—
(a) a contract or arrangement for the management, reduction, sharing, limiting, assumption, offset, or hedging of financial risks and liabilities in relation to any investment or investments or any loan or loans or other incidental arrangement, whether or not that contract or arrangement involves—
(i) the expenditure, borrowing, or lending of money; or
(ii) the local authority undertaking to make payments in exchange for another person undertaking to make payments to the local authority; or
(iii) the creation or acquisition or disposal of any property or right; or
(b) a contract or arrangement with any bank, financial institution, or other person providing for any person to act as underwriter, broker, indemnifier, guarantor, accommodation party, manager, dealer, trustee, registrar, or paying, fiscal, or other agent for, or in connection with, any loan or investment—
and includes the creation of a charge
loan includes the amounts raised or indebtedness incurred, as the context may require, as a result of borrowing
protected transaction means—
(a) any deed, agreement, right, or obligation constituting, relating to, or for the purpose of, any borrowing or incidental arrangement; and
(b) includes—
(i) any charge, guarantee, or security for the payment of any amount (including any loan) payable in relation to, or for the purpose of, any borrowing or incidental arrangement; and
(ii) any conveyance or transfer of any property in relation to, or for the purpose of, any borrowing or incidental arrangement.
(1) No local authority may borrow or enter into incidental arrangements, within or outside New Zealand, in currency other than New Zealand currency.
(2) Subsection (1) does not apply to an incidental arrangement in relation to an investment in currency other than New Zealand currency.
Compare: 1974 No 66 s 122ZC
Section 113(2): added, on 28 June 2006, by section 12 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
Every charge given by a local authority over any 1 or more of the assets of the local authority as security for any loan, or the performance of obligations under any incidental arrangement, is subject to subsections (5) and (6) of section 40D of the Receiverships Act 1993.
Compare: 1974 No 66 s 122ZE(1), (4), (5)
(1) This section applies if—
(a) a local authority has charged a rate or rates revenue as security for any loan or the performance of any obligations under an incidental arrangement; and
(b) a receiver has been appointed under section 40A or section 40B of the Receiverships Act 1993 in respect of that loan or arrangement.
(2) The receiver may, without further authority than this section, assess and collect in each financial year a rate under this section to recover sufficient funds to meet—
(a) the payment of the local authority's commitments in respect of the loan or incidental arrangement during that year; and
(b) the reasonable costs of administering, assessing, and collecting the rate.
(3) A rate under this section must be assessed as a uniform rate in the dollar on the rateable value of property—
(a) in the district; or
(b) if the local authority resolved, at the time when the loan was being raised or the incidental arrangement was being entered into, that it was for the benefit of only a specified part of the district or region, that part.
(4) For the purposes of this section, rateable value, in relation to any property, means its rateable value under the valuation system used by the local authority for its general rate.
(5) A rate under this section may not be assessed and collected on rateable property in respect of which an election under section 65 or section 77 of the Rating Powers Act 1988 has been exercised in respect of any repayment loan or the works for which any loan was borrowed.
Compare: 1974 No 66 ss 122ZE(2), (3), 122ZF
(1) A local authority that has any charge over any of its assets must establish and maintain at its principal office a register of, and keep copies of, all instruments specifically affecting any of its property.
(2) The register referred to in subsection (1) must be available for inspection during ordinary office hours.
(3) No fee is payable for inspection of the register.
(4) A local authority may charge for supplying any person with copies of, or any particulars from, the register.
Compare: 1974 No 66 s 122ZJ
Every protected transaction entered into, or purportedly entered into, by or on behalf of a local authority is valid and enforceable despite—
(a) the local authority failing to comply with any provision of this Act in any respect; or
(b) the entry into, or performance of, the protected transaction being outside the capacity, rights, or powers of the local authority; or
(c) a person held out by the local authority as being a member, employee, agent, or attorney of the local authority—
(i) not having been validly appointed as such; or
(ii) not having the authority to exercise any power or to do anything either which the person is held out as having or which a person appointed to such a position would customarily have; or
(d) a document issued, or purporting to be issued, on behalf of the local authority by a person with actual or customary authority, or held out as having such authority, to issue the document not being valid or not being genuine.
Compare: 1974 No 66 s 122ZG(2)
A certificate signed, or purporting to be signed, by the chief executive of a local authority to the effect that the local authority has complied with this Act in connection with a protected transaction is conclusive proof for all purposes that the local authority has so complied.
Compare: 1974 No 66 s 122ZG(3)
(1) Sections 117 and 118 apply even though a person of the kind referred to in section 117(c) or section 117(d) or section 118 acts fraudulently or forges a document that appears to have been signed on behalf of the local authority, unless the person dealing with the local authority or a person who had acquired property, rights, or interests from the local authority acts in bad faith.
(2) A person may not rely on section 117 or section 118 in relation to a protected transaction if that person—
(a) has dealt in bad faith with a local authority in relation to the protected transaction; or
(b) had actual knowledge before the protected transaction was entered into that it was in breach of section 113.
(3) For the purpose of subsections (1) and (2),—
(a) a person is not regarded as acting in bad faith by reason only of the fact that, in relation to any protected transaction, the person knew or ought to have known of the existence of any of the states of affairs referred to in paragraphs (a) to (d) of section 117; and
(b) a person must be presumed to have acted in good faith unless the contrary is proved.
Compare: 1974 No 66 s 122ZG(4)–(6)
Nothing in sections 117 to 119 affects the ability of any person to obtain any remedy from a court that has the effect of preventing or restraining temporarily or permanently a local authority from doing any act or thing in the future (other than an act or thing necessary for the performance of a protected transaction that has already been entered into).
(1) The Crown is not liable to contribute to the payment of any debts or liabilities of any local authority.
(2) Subsection (1) does not apply in relation to liability for any sum of a kind described in section 49 of the Public Finance Act 1989.
Compare: 1974 No 66 s 122ZP(1)
Section 121(2): amended, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
(1) If a local authority is named as the issuer or a promoter in any registered prospectus within the meaning of the Securities Act 1978, that prospectus must, unless the securities being offered pursuant to the prospectus are expressly guaranteed by the Crown under the Public Finance Act 1989, contain a statement that the securities being offered pursuant to the prospectus are not guaranteed by the Crown.
(2) If a local authority enters into any loan agreement or incidental arrangement, that agreement or arrangement must include a statement that the loan or other liability under the incidental arrangement is not guaranteed by the Crown.
(3) Subsection (2) does not apply in relation to liability for any sum of a kind described in section 49 of the Public Finance Act 1989.
Compare: 1974 No 66 s 122ZP
Section 122(3): amended, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
This Part contains provisions that set out specific obligations and restrictions on local authorities and other persons as follows:
(a) the obligation to assess water and sanitary services, the scope of those assessments, and the process to be followed:
(b) the obligations and restrictions on local authorities and other persons in relation to the delivery of water services:
(c) specific restrictions on disposal of parks, reserves, and endowment properties, including provision for the protection of parks and reserves from disposal:
(d) a requirement that, if a public library is provided, the residents of the district must be entitled to free membership.
In this Part,—
assessment means—
(a) an assessment of water services and other sanitary services available to communities in the district of the territorial authority; but
(b) does not include assessments in relation to individual properties
local government organisation means a local authority, council-controlled organisation, or a subsidiary of a council-controlled organisation, that provides water services
sanitary services has the same meaning as sanitary works in section 25(1)(a), (b), (d), (h), and (i) of the Health Act 1956
wastewater services means sewerage, treatment and disposal of sewage, and stormwater drainage
water services means water supply and wastewater services
water supply means the provision of drinking water to communities by network reticulation to the point of supply of each dwellinghouse and commercial premise to which drinking water is supplied.
Section 124 sanitary services: amended, on 1 July 2009, by section 62(1) of the Waste Minimisation Act 2008 (2008 No 89).
(1) A territorial authority must, from time to time, in accordance with sections 126 and 127, assess the provision within its district of—
(a) water services; and
(b) other sanitary services.
(2) One type of service may be assessed in conjunction with another type of service.
(3) An assessment may be included in the territorial authority's long-term council community plan, but, if it is not, the territorial authority must adopt the assessment using the special consultative procedure.
(1) An assessment of water services must contain the following information:
(a) a description of the means by which—
(i) drinking water is obtained by residents of, and communities within, the district, including the extent to which—
(A) water supply is provided within the district by the territorial authority and any other person; and
(B) the water is potable; and
(ii) sewage is disposed of within the district, including the extent to which reticulated sewerage and sewage treatment services are provided within the district by the territorial authority and any other person; and
(iii) stormwater is disposed of within the district, including the extent to which drainage works are provided within the district by the territorial authority and any other person; and
(b) an assessment of any risks to the community relating to the absence in any area of either a water supply or a reticulated wastewater service or both; and
(c) an assessment of—
(i) the quality and adequacy of supply of drinking water available within the district for each community; and
(ii) the quality and quantity of wastewater discharged from reticulated sewerage or a sewage treatment system; and
(d) a statement of current and estimated future demands for water services within its district and a statement of any issues relating to—
(i) the quality and adequacy of supply of drinking water for each community; and
(ii) the health and environmental impacts of discharges of stormwater and sewage (whether treated or untreated) arising from the current and future demands; and
(e) a statement of the options available to meet the current and future demands identified under paragraph (d) and assessment of the suitability of each option for the district and for each community within it; and
(f) a statement of the territorial authority's intended role in meeting the current and future demands identified under paragraph (d); and
(g) the territorial authority's proposals for meeting the current and future demands identified under paragraph (d), including proposals for any new or replacement infrastructure.
(2) In this section, potable water means water suitable for use by humans as drinking water.
An assessment of sanitary services must contain the following information:
(a) a description of the sanitary services provided within the district for each community in it; and
(b) a forecast of future demands for sanitary services within the district and each community in it; and
(c) a statement of the options available to meet the forecast demands and an assessment of the suitability of each option for the district and each community in it; and
(d) a statement of the territorial authority's intended role in meeting the forecast demands; and
(e) a statement of the territorial authority's proposals for meeting the forecast demands, including proposals for any new or replacement infrastructure; and
(f) a statement about the extent to which the proposals will ensure that public health is adequately protected.
(1) In making an assessment under section 125, the territorial authority must—
(a) consult the appropriate Medical Officer of Health; and
(b) take into account the duties of the territorial authority under section 23 of the Health Act 1956.
(2) In making an assessment of current and future demands for water services and options to meet those demands, a territorial authority must consider—
(a) the full range of options and their environmental and public health impacts, including (but not limited to)—
(i) on-site collection and disposal; and
(ii) grey water and stormwater reuse or recycling; and
(iii) demand-reduction strategies, including public education, information, promotion of appropriate technologies, pricing, and regulation; and
(iv) the full range of technologies available; and
(b) any comments by the Medical Officer of Health.
(3) An assessment of sanitary services is not required to address matters that a territorial authority considers have been adequately addressed in—
(a) an assessment made under section 125; or
(b) [Repealed]
(4) In this subpart, Medical Officer of Health has the meaning given to it in section 2(1) of the Health Act 1956.
Section 128(3)(b): repealed, on 1 July 2009, by section 62(2) of the Waste Minimisation Act 2008 (2008 No 89).
(1) Information is required under sections 126 and 127 to the extent that the territorial authority considers appropriate, having regard to—
(a) the significance of the information; and
(b) the costs of, and difficulty in, obtaining the information; and
(c) the extent of the territorial authority's resources; and
(d) the possibility that the territorial authority may be directed under the Health Act 1956 to provide the services referred to in those sections.
(2) An assessment under section 125 must indicate whether and, if so, to what extent the matters referred to subsection (1)(b) and (c) have impacted materially on the completeness of the assessment.
(3) In making an assessment under section 125, a territorial authority must use its best endeavours to make a full and balanced assessment.
(1) This subpart applies to a local government organisation that provides water services to communities within its district or region—
(a) at the commencement of this section:
(b) at any time after the commencement of this section.
(2) A local government organisation to which this section applies must continue to provide water services and maintain its capacity to meet its obligations under this subpart.
(3) In order to fulfil the obligations under this subpart, a local government organisation must—
(a) not use assets of its water services as security for any purpose:
(b) not divest its ownership or other interest in a water service except to another local government organisation:
(c) not lose control of, sell, or otherwise dispose of, the significant infrastructure necessary for providing water services in its region or district, unless, in doing so, it retains its capacity to meet its obligations:
(d) not, in relation to a property to which it supplies water,—
(i) restrict the water supply unless section 193 applies; or
(ii) stop the water supply unless section 194 applies.
(4) This section—
(a) does not prevent a local government organisation from transferring a water service to another local government organisation; and
(b) does not override sections 131 to 137.
(1) Despite section 130(2), a local government organisation may, in relation to a water service that it is no longer appropriate to maintain,—
(a) close down the water service; or
(b) transfer the water service to an entity representative of the community for which the service is operated.
(2) A local government organisation must not close down or transfer a water service unless—
(a) there are 200 or fewer persons to whom the water service is delivered and who are ordinarily resident in the district, region, or other subdivision; and
(b) it has consulted on the proposal with the Medical Officer of Health for the district; and
(c) it has made publicly available in a balanced and timely manner—
(i) the views of the Medical Officer of Health; and
(ii) the information it has received in the course of—
(A) undertaking a review, assessment, and comparison under section 134(a) and (b); or
(B) preparing a management plan and making assessments under section 135(a), (b), and (c); and
(d) the proposal is supported, in a binding referendum conducted under section 9 of the Local Electoral Act 2001 using the First Past the Post electoral system,—
(i) in the case of a proposal to close down a water service, by 75% or more of the votes cast in accordance with subsection (3); and
(ii) in the case of a proposal to transfer a water service, by more than 50% of the votes cast in accordance with section 132.
(3) For the purpose of subsection (2)(a), a certificate signed by the chief executive of the local government organisation as to the number of persons to whom the water service is delivered in the district, region, or other subdivision at any date is conclusive evidence of that number.
A person is eligible to vote in a referendum conducted under section 131(2)(d) if the person is qualified as either—
(a) a residential elector under section 23 of the Local Electoral Act 2001 and the address in respect of which the person is registered as a parliamentary elector is a property serviced by the water service that is the subject of the referendum; or
(b) a ratepayer elector under section 24 of the Local Electoral Act 2001 and the property, for the purposes of section 24(1)(a) or (b) of that Act, is a property serviced by the water service that is the subject of the referendum.
(1) The territorial authority that is responsible for conducting a referendum under section 131(2)(d) is the territorial authority in whose district the majority of persons eligible to vote in that referendum is on the roll of electors of that territorial authority.
(2) The electoral officer of a territorial authority responsible for conducting a referendum under subsection (1) must prepare a special roll of the persons eligible to vote under section 132.
(3) The provisions of the Local Electoral Act 2001 apply, with any necessary modifications, to the conduct of a referendum under section 131(2)(d).
A local government organisation may only close down a water service under section 131(1)(a) if it has first—
(a) reviewed the likely effect of the closure on—
(i) the public health of the community that would be affected by the closure; and
(ii) the environment in the district of that community; and
(b) assessed, in relation to each property that receives the water service, the likely capital cost and annual operating costs of providing an appropriate alternative service if the water service is closed down; and
(c) compared the quality and adequacy of the existing water service with the likely quality and adequacy of the alternative service referred to in paragraph (b).
A local government organisation may only transfer a water service under section 131(1)(b) if it has first—
(a) developed a draft management plan under which the entity representative of the community would maintain and operate the water service; and
(b) assessed the likely future capital and operating costs of the entity representative of the community to maintain and operate the water service; and
(c) assessed the ability of the entity representative of the community to maintain and operate the water service satisfactorily.
(1) Despite section 130(2), a local government organisation may enter into contracts for any aspect of the operation of all or part of a water service for a term not longer than 15 years.
(2) If a local government organisation enters into a contract under subsection (1), it must retain control over all matters relating to—
(a) the pricing of water services; and
(b) the management of water services; and
(c) the development of policy related to the delivery of water services.
(3) This section does not limit contracts in relation to water services that are entered into solely between local government organisations.
Heading: substituted, on 7 July 2004, by section 13 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
(1) In this section,—
joint arrangement means an arrangement entered into by 1 or more local government organisations with 1 or more bodies that are not local government organisations for the purpose of providing water services or any aspect of a water service
joint local government arrangement means an arrangement entered into by 2 or more local government organisations for the purpose of providing water services or any aspect of a water service.
(2) Section 130(2) does not prevent a local government organisation from entering into, for the purpose of providing water services,—
(a) a joint arrangement for a term not longer than 15 years:
(b) a joint local government arrangement for any term.
(3) However, before a local government organisation enters into a joint arrangement or joint local government arrangement, it must,—
(a) in the case of a local government organisation that is a local authority, have undertaken consultation in accordance with the procedures set out in Part 6; and
(b) in the case of a local government organisation that is not a local authority, have undertaken consultation in accordance with the procedures set out in Part 6 as if it were a local authority; and
(c) in the case of a local government organisation that is a local authority, have regard (where relevant) to its policy under section 102(4)(e) (which relates to partnerships between the local authority and the private sector).
(4) If a local government organisation enters into a joint arrangement under subsection (2)(a), it must retain—
(a) control over all matters relating to—
(i) the pricing of water services; and
(ii) the management of water services; and
(iii) the development of policy related to the delivery of water services; and
(b) throughout, and after the end of, the joint arrangement, ownership of all the infrastructure associated with the water service, whether that infrastructure was—
(i) provided by the local government organisation at the beginning of the joint arrangement; or
(ii) developed or purchased during the joint arrangement.
Section 137 heading: substituted, on 7 July 2004, by section 14(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(1): substituted, on 7 July 2004, by section 14(2) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(2)(a): amended, on 7 July 2004, by section 14(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(2)(b): amended, on 7 July 2004, by section 14(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(3): amended, on 7 July 2004, by section 14(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(3): amended, on 7 July 2004, by section 14(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(3)(c): amended, on 7 July 2004, by section 14(5) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(4): amended, on 7 July 2004, by section 14(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(4)(b): amended, on 7 July 2004, by section 14(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(4)(b)(i): amended, on 7 July 2004, by section 14(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
Section 137(4)(b)(ii): amended, on 7 July 2004, by section 14(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
(1) A local authority proposing to sell or otherwise dispose of a park or part of a park must consult on the proposal before it sells or disposes of, or agrees to sell or dispose of, the park or part of the park.
(2) In this section,—
dispose of, in relation to a park, includes the granting of a lease for more than 6 months that has the effect of excluding or substantially interfering with the public's access to the park
park—
(a) means land acquired or used principally for community, recreational, environmental, cultural, or spiritual purposes; but
(b) does not include land that is held as a reserve, or part of a reserve, under the Reserves Act 1977.
Section 138: substituted, on 28 June 2006, by section 13 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
(1) In this section and section 139A, regional park—
(a) means land—
(i) owned by a regional council; and
(ii) acquired or used principally for community, recreational, environmental, cultural, or spiritual purposes; and
(b) includes land within the meaning of paragraph (a) that is—
(i) reserve within the meaning of section 2(1) of the Reserves Act 1977; or
(ii) otherwise held or administered under the Reserves Act 1977 or any earlier corresponding enactment.
(2) For the purpose of enabling a regional council to protect a regional park or part of a regional park in its region, the Governor-General may, by Order in Council made on the recommendation of the Minister, declare the park or the part of the park to be protected in perpetuity from disposition (by sale or otherwise).
(3) The Minister must not make a recommendation unless the regional council has requested the Minister to do so.
(4) An Order in Council does not prevent a regional council from disposing of part of the regional park to which the order applies—
(a) to make a minor boundary adjustment to it:
(b) for the more efficient administration of it.
(5) However, subsection (4) applies only if—
(a) the retention of the land would not materially enhance the conservation or recreational value of the park; and
(b) the regional council has used the special consultative procedure in the process of determining whether to dispose of the land.
(6) Any land within the meaning of subsection (1)(b) that is included in an Order in Council—
(a) retains its classification under the Reserves Act 1977; and
(b) remains subject to that Act; and
(c) if the land is to be sold or disposed of under subsection (4) of this section, must first be dealt with under sections 24 and 25 of that Act.
(7) An Order in Council must specify the regional park or the part of the regional park to which the order applies—
(a) by name and legal description, if it is practicable to do so; or
(b) by name and a detailed description of the location of the land, in any other case.
Section 139: substituted, on 28 June 2006, by section 14 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
(1) An Order in Council made under section 139 may be varied to include a reference to any land included in the regional park after the Order is made.
(2) The provisions of section 139 apply, with all necessary modifications, to an Order in Council varied under subsection (1).
Section 139A: inserted, on 28 June 2006, by section 14 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
(1) In this section and section 141, property—
(a) means real property of every type; and
(b) includes every type of estate and interest in property.
(2) This section and section 141 apply to property or part of a property vested in a local authority in trust or as an endowment.
(3) The property must be retained by the local authority for the purpose for which the property was vested in the local authority.
(4) However,—
(a) the Minister may approve in writing additional or different purposes—
(i) for which the property may be used; or
(ii) for which income derived from the property may be used; or
(b) unless expressly prohibited by the instrument that vested the property in the local authority, the local authority may sell or exchange the property and use the proceeds of the sale or exchange for a purpose identified by the local authority in accordance with section 141.
(1) A local authority must not exercise the power in section 140(4)(b) unless—
(a) the proposed use of the proceeds of sale of the property, or of the property received in exchange, is consistent with the purpose of the endowment; and
(b) the local authority has first—
(i) included in its draft long-term council community plan a statement of—
(A) its intention to sell or exchange the property; and
(B) the use to which the proceeds of the sale or exchange will be put; and
(ii) adopted the long-term council community plan in accordance with the requirements of Part 6; and
(c) in a case where the Crown was the donor of the property, the local authority has notified the Minister for Land Information and the Minister in Charge of Treaty of Waitangi Negotiations of the local authority's proposal to sell or exchange the endowment land; and
(d) in other cases, the local authority has—
(i) made a reasonable attempt to notify the donor of the property, or his or her successor, as the case may be, that the local authority intends to sell or exchange the property; and
(ii) provided the donor with a reasonable opportunity to comment on the intended sale or exchange.
(2) To avoid doubt, notification of a proposal to sell or exchange a property under subsection (1)(c) does not oblige a Minister to take any action in relation to the proposal to sell or exchange the property.
(3) If the local authority is subject to reorganisation, the proceeds of a sale or exchange of property must be applied to the district or districts of the new local authority or authorities arising from the reorganisation of which the local authority formed part.
Compare: 1974 No 66 s 230
If a local authority or a council-controlled organisation provides a library for public use, the residents in the district or region are entitled to join the library free of charge.
Compare: 1974 No 66 s 601(4)
This Part provides the powers necessary for local authorities—
(a) to make bylaws:
(b) in relation to enforcement,—
(i) to enforce all regulatory measures made under this Act, including bylaws and infringement offences; and
(ii) to undertake, or contract out the administration of, those enforcement powers:
(c) to undertake certain activities on, or in relation to, private land, including powers in relation to owners and occupiers, and powers to recover for damage to certain local authority property caused wilfully or negligently:
(d) to undertake activities in relation to water services, including discharge of sewage and trade wastes:
(e) to require development contributions:
(f) to apply for and enforce removal orders.
The Bylaws Act 1910 prevails over this Part and Part 9.
Compare: 1974 No 66 s 679
A territorial authority may make bylaws for its district for 1 or more of the following purposes:
(a) protecting the public from nuisance:
(b) protecting, promoting, and maintaining public health and safety:
(c) minimising the potential for offensive behaviour in public places.
Without limiting section 145, a territorial authority may make bylaws for its district for the purposes—
(a) of regulating 1 or more of the following:
(i) on-site wastewater disposal systems:
(ii) waste management:
(iii) trade wastes:
(iv) solid wastes:
(v) keeping of animals, bees, and poultry:
(vi) trading in public places:
(b) of managing, regulating against, or protecting from, damage, misuse, or loss, or for preventing the use of, the land, structures, or infrastructure associated with 1 or more of the following:
(i) water races:
(ii) water supply:
(iii) wastewater, drainage, and sanitation:
(iv) land drainage:
(v) cemeteries:
(vi) reserves, recreation grounds, or other land under the control of the territorial authority:
(c) subject to sections 20 to 22 of the Forest and Rural Fires Act 1977, of preventing the spread of fires involving vegetation.
(1) In this section,—
liquor has the meaning given to it in the Sale of Liquor Act 1989
public place—
(a) means a place—
(i) that is under the control of the territorial authority; and
(ii) that is open to, or being used by, the public, whether or not there is a charge for admission; and
(b) includes—
(i) a road, whether or not the road is under the control of a territorial authority; and
(ii) any part of a public place.
(2) Without limiting section 145, a territorial authority may make bylaws for its district for the purpose of prohibiting or otherwise regulating or controlling, either generally or for 1 or more specified periods,—
(a) the consumption of liquor in a public place:
(b) the bringing of liquor into a public place:
(c) the possession of liquor in a public place:
(d) in conjunction with a prohibition relating to liquor under paragraphs (a) to (c), the presence or use of a vehicle in a public place.
(3) A bylaw made under this section does not prohibit, in the case of liquor in an unopened bottle or other unopened container,—
(a) the transport of that liquor from premises that adjoin a public place during any period when, under the Sale of Liquor Act 1989, it is lawful to sell liquor on those premises for consumption off the premises, provided the liquor is promptly removed from the public place:
(b) the transport of that liquor from outside a public place for delivery to premises that adjoin the public place, provided the premises are licensed for the sale of liquor under the Sale of Liquor Act 1989:
(c) the transport of that liquor from outside a public place to premises that adjoin a public place—
(i) by, or for delivery to, a resident of those premises or by his or her bona fide visitors; or
(ii) from those premises to a place outside the public place by a resident of those premises, provided the liquor is promptly removed from the public place.
Compare: 1974 No 66 s 709A
(1) Before making bylaws under section 146(a)(iii), a territorial authority must send a copy of the proposed bylaws to the Minister of Health for his or her comments.
(2) Before sending proposed bylaws to the Minister of Health under subsection (1), the territorial authority must, at least 2 months before the making of the bylaws, give public notice of its intention to make the bylaws, stating—
(a) the trade wastes to which the bylaws will relate; and
(b) that copies of the draft bylaws may be inspected free of charge at the place specified in the notice and may be obtained on payment of the charge specified in the notice; and
(c) that the territorial authority is prepared to receive and consider any representation about the bylaws made to it in writing by, or on behalf of, owners or occupiers of trade premises within its district at the time specified in the notice, being not less than 2 months after publication of the notice.
(3) Before making the bylaws, the territorial authority must consider any representation received in accordance with the notice given under subsection (2).
(4) The territorial authority must, before making the bylaws, consult any body of persons the Minister of Health specifies to the territorial authority as being representative of—
(a) the interests of the owners or occupiers of trade premises in the district of the territorial authority; or
(b) any class of those owners or occupiers.
(5) A territorial authority—
(a) must enter on a register the name and postal address of an owner or occupier of trade premises who serves on the territorial authority a written request for registration; and
(b) must ensure that a copy of a notice required under subsection (2) is sent to the persons registered under paragraph (a); and
(c) may remove from the register the name of a person who has ceased to be the owner or occupier of trade premises within its district, or who has requested the local authority in writing to remove his or her name from the register.
(6) Nothing in this section limits the provisions of the Health Act 1956 or the Resource Management Act 1991.
(7) The requirements in this section are in addition to the requirements in section 156, but a territorial authority may comply with both sections by using a single process.
Compare: 1974 No 66 s 492
Section 148(7): substituted, on 20 September 2007, by section 5 of the Local Government Act 2002 Amendment Act 2007 (2007 No 69).
(1) A regional council may make bylaws in relation to the following matters:
(a) forests that the regional council owns or controls, whether or not the forest is within the region of the regional council:
(b) parks, reserves, recreation grounds, or other land that the regional council owns or controls:
(c) flood protection and flood control works undertaken by, or on behalf of, the regional council:
(d) water supply works undertaken by, or on behalf of, the regional council.
(2) Without limiting the generality of subsection (1), bylaws may be made in relation to the matters listed in subsection (1) for the purpose of managing, regulating against, or protecting from, damage, misuse, or loss, or for preventing the use of,—
(a) the real and personal property owned or controlled by the regional council; and
(b) sites or places on land of the regional council that have cultural, historical, recreational, scientific, or other community or amenity values.
Compare: 1974 No 66 s 586
(1) A local authority may prescribe fees or charges payable for a certificate, authority, approval, permit, or consent from, or inspection by, the local authority in respect of a matter provided for—
(a) in a bylaw made under this Act; or
(b) under any other enactment, if the relevant provision does not—
(i) authorise the local authority to charge a fee; or