Local Government Act 2002 Amendment Act 2014

12 New section 17A inserted (Delivery of services)
  • After section 17, insert:

    17A Delivery of services
    • (1) A local authority must review the cost-effectiveness of current arrangements for meeting the needs of communities within its district or region for good-quality local infrastructure, local public services, and performance of regulatory functions.

      (2) Subject to subsection (3), a review under subsection (1) must be undertaken—

      • (a) in conjunction with consideration of any significant change to relevant service levels; and

      • (b) within 2 years before the expiry of any contract or other binding agreement relating to the delivery of that infrastructure, service, or regulatory function; and

      • (c) at such other times as the local authority considers desirable, but not later than 6 years following the last review under subsection (1).

      (3) Despite subsection (2)(c), a local authority is not required to undertake a review under subsection (1) in relation to the governance, funding, and delivery of any infrastructure, service, or regulatory function—

      • (a) to the extent that the delivery of that infrastructure, service, or regulatory function is governed by legislation, contract, or other binding agreement such that it cannot reasonably be altered within the following 2 years; or

      • (b) if the local authority is satisfied that the potential benefits of undertaking a review in relation to that infrastructure, service, or regulatory function do not justify the costs of undertaking the review.

      (4) A review under subsection (1) must consider options for the governance, funding, and delivery of infrastructure, services, and regulatory functions, including, but not limited to, the following options:

      • (a) responsibility for governance, funding, and delivery is exercised by the local authority:

      • (b) responsibility for governance and funding is exercised by the local authority, and responsibility for delivery is exercised by—

        • (i) a council-controlled organisation of the local authority; or

        • (ii) a council-controlled organisation in which the local authority is one of several shareholders; or

        • (iii) another local authority; or

        • (iv) another person or agency:

      • (c) responsibility for governance and funding is delegated to a joint committee or other shared governance arrangement, and responsibility for delivery is exercised by an entity or a person listed in paragraph (b)(i) to (iv).

      (5) If responsibility for delivery of infrastructure, services, or regulatory functions is to be undertaken by a different entity from that responsible for governance, the entity that is responsible for governance must ensure that there is a contract or other binding agreement that clearly specifies—

      • (a) the required service levels; and

      • (b) the performance measures and targets to be used to assess compliance with the required service levels; and

      • (c) how performance is to be assessed and reported; and

      • (d) how the costs of delivery are to be met; and

      • (e) how any risks are to be managed; and

      • (f) what penalties for non-performance may be applied; and

      • (g) how accountability is to be enforced.

      (6) Subsection (5) does not apply to an arrangement to the extent that any of the matters specified in paragraphs (a) to (g) are—

      • (a) governed by any provision in an enactment; or

      • (b) specified in the constitution or statement of intent of a council-controlled organisation.

      (7) Subsection (5) does not apply to an arrangement if the entity that is responsible for governance is satisfied that—

      • (a) the entity responsible for delivery is a community group or a not-for-profit organisation; and

      • (b) the arrangement does not involve significant cost or risk to any local authority.

      (8) The entity that is responsible for governance must ensure that any agreement under subsection (5) is made publicly available.

      (9) Nothing in this section requires the entity that is responsible for governance to make publicly accessible 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.