New Zealand Legislation: Bills

31 New section 136 substituted

• Section 136 is repealed and the following section substituted:

  “136 Contracts relating to provision of water services

  • “(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 35 years.

    “(2) If a local government organisation enters into a contract under subsection (1), it must—

    • “(a) continue to be legally responsible for providing the water services; and

    • “(b) retain control over the following matters:

      • “(i) the pricing of water services; and

      • “(ii) 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.”