(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.