(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).