Local Government Act 2002 Amendment Bill

  • enacted
21 Part 10 replaced

  • Replace Part 10 with:

    “Part 10
    “Powers of Minister to act in relation to local authorities

    “253 Outline of Part

    • This Part confers powers on the Minister to—

      • “(a) assist local authorities in certain situations; and

      • “(b) intervene in the affairs of local authorities in certain situations.

    “253A How this Part works

    • “(1) This section is a guide to the overall scheme and effect of this Part. It does not affect the interpretation or application of the other provisions of this Part.

      “(2) Subpart 1 of this Part provides the Minister with a range of options in relation to a local authority that has a problem. The options are available only in relation to the local authority itself, and not to any entity that the local authority may control or have an interest in.

      “(3) The options vary according to the nature and scale of assistance or intervention required to address the problem.

      “(4) The options are not a hierarchy of actions that the Minister must employ sequentially in relation to a local authority.

      “(5) Accordingly, the Minister may exercise an option in relation to a local authority without having previously exercised 1 or more of the other options.

      “(6) Subpart 2 of this Part sets out general provisions applying to all the options the Minister may exercise under subpart 1.

      “(7) The provisions in subpart 2 of this Part are largely procedural in nature and cover matters including notification of the assistance or intervention, reporting requirements, and payment and protection for the individuals carrying out the assistance or intervention.

    “253B Application of this Part

    • The Minister may appoint a Ministerial body under subpart 1 of this Part only to a local authority and not to any entity that the local authority may control or have an interest in, for example, a council-controlled organisation, council-controlled trading organisation, council organisation, or other subsidiary of the local authority.

    “254 Interpretation

    • In this Part,—

      “Commission means a commission appointed under section 258D

      “Ministerial appointee means a person appointed under subpart 1 of this Part as a Crown Manager or a Crown Observer, or as a member of a Crown Review Team or of a Commission

      “Ministerial body means a Crown Review Team, a Crown Observer, a Crown Manager, or a Commission appointed under subpart 1 of this Part

      “problem, in relation to a local authority,—

      • “(a) means—

        • “(i) a matter or circumstance relating to the management or governance of the local authority that detracts from, or is likely to detract from, its ability to give effect to the purpose of local government within its district or region; or

        • “(ia) a significant or persistent failure by the local authority to perform 1 or more of its functions or duties under any enactment; or

        • “(ii) the consequences of a state of emergency (within the meaning of section 4 of the Civil Defence Emergency Management Act 2002) affecting, or recently affecting, the local authority's district or region; and

      • “(b) includes—

        • “(i) a failure by the local authority to demonstrate prudent management of its revenues, expenses, assets, liabilities, investments, or general financial dealings in terms of any parameters or benchmarks prescribed by regulations made under section 259(1)(dc); and

        • “(ii) a potential problem within the meaning of paragraph (a)(i) or (ia) subparagraph (i) of this paragraph; and

        • “(iii) to avoid doubt, 2 or more problems within the meaning of paragraph (a) or subparagraph (i) or (ii) of this paragraph

      “public notice, in relation to notice given by the Minister,

      • “(a) means a notice published—

        • “(i) in a newspaper circulating in the district or region of the local authority; and

        • “(ii) on the Internet site of the department responsible for the administration of this Act; and

      • “(b) includes any other notice that the Minister thinks desirable in the circumstances

      “significant, in relation to a problem of a local authority, means that the problem will have actual or probable adverse consequences for residents and ratepayers within the district or region of the local authority.

    “Subpart 1—Ministerial powers of assistance and intervention

    “Minister may require information from local authority

    “255 Minister may require information

    • “(1) The Minister may, by notice in writing, require a local authority to provide to him or her information on the nature and extent of a problem and how the local authority is addressing or planning to address the problem if the Minister believes, on reasonable grounds, that—

      • “(a) a problem relating to the local authority may exist; and

      • “(b) the local authority—

        • “(i) has not publicly acknowledged the nature and extent of the problem; or

        • “(ii) may be unable or unwilling to effectively address the problem.

      “(1A) The Minister may, by notice in writing, require a local authority to provide to him or her information on how the local authority is addressing or planning to address a problem—

      • “(a) after the expiry of the term of a Ministerial body appointed to assist or intervene in relation to the problem; and

      • “(b) for the purpose of the Minister assessing whether further action under this Part is required.

      “(2) A notice under this section must state—

      • “(a) the problem; and

      • “(b) the information required by the Minister; and

      • “(c) the form in which the information is to be provided; and

      • “(d) the date by which the information is to be provided.

      “(3) A local authority must respond to a notice received under this section—

      • “(a) by the date stated in the notice; or

      • “(b) by any other date to which the Minister has agreed.

      “(4) The Minister may require a local authority to provide information under this section—

      • “(a) by instalments at specified dates:

      • “(b) by instalments at specified intervals.

      “(5) The Minister may require a local authority to provide information under this section in relation to a problem on which information has already been requested and provided under the section.

    “Minister may appoint Crown Review Team

    “256 Minister may appoint Crown Review Team

    • “(1) The Minister may appoint a Crown Review Team to a local authority if—

      • “(a) the local authority has received a notice from the Minister under section 255 section 255(1) and, for no good reason, has not provided the information required by the notice by the stated or agreed date; or

      • “(b) the Minister concludes, from information provided by the local authority under section 255 or otherwise, that there may be a significant problem that the local authority is unable or unwilling to effectively address; or

      • “(c) the Minister believes, on reasonable grounds, that—

        • “(i) a significant problem relating to the local authority may exist; and

        • “(ii) the local authority is unable or unwilling to effectively address the problem; or

      • “(c) the Minister believes, on reasonable grounds, that a significant problem relating to the local authority may exist and—

        • “(i) the local authority is unable or unwilling to effectively address the problem; or

        • “(ii) a Ministerial body currently or previously appointed to the local authority has recommended the appointment; or

      • “(d) the Minister has received a written request from the local authority to do so.

      “(2) Before the review begins, the Minister must give notice of the appointment—

      • “(a) to the local authority, in writing; and

      • “(b) by notice in the Gazette.; and

      • “(c) by public notice.

      “(3) Each notice must comply with section 258M.

      “(4) The A Crown Review Team must, to the extent authorised by its terms of reference,—

      • “(a) investigate and report on the nature and extent of the problem; and

      • “(b) make recommendations to the local authority and the Minister on how the local authority could address the problem.; and

      • “(c) make recommendations to the Minister on whether the Minister should take further action in relation to the local authority, including whether the Minister should appoint any other Ministerial body to the local authority; and

      • “(d) ensure, as far as practicable, that the existing organisational capability of the local authority is not diminished.

      “(4A) If applicable, and to the extent authorised by its terms of reference, a Crown Review Team must also investigate, and report on, any related matter as recommended by a Ministerial body currently or previously appointed to the local authority.

      “(5) The A local authority must—

      • “(a) co-operate with the a Crown Review Team so that it may fulfil its terms of reference; and

      • “(b) comply with any reasonable request of the Crown Review Team to provide any relevant information that the local authority holds.

      “(6) The A Crown Review Team must produce a final report that complies with section 258O, as soon as practicable after the a review is completed.

      “(7) This section is subject to section 258K.

    “257 How Crown Review Team appointed

    • “(1) A Crown Review Team comprises 1 or more members.

      “(2) If a Crown Review Team comprises 2 or more members, the Minister must appoint 1 member as the chairperson.

      “(3) The Minister must appoint each member of a Crown Review Team by notice in writing. The notice must include the following information:

      • “(a) the terms of reference of the Crown Review Team, including—

        • “(i) an outline of the problem in relation to which it has been appointed; and

        • “(ii) the extent of its authority; and

      • “(b) the start and end dates of the member's appointment; and

      • “(c) the start and end dates of the review period.

    “Minister may appoint Crown Observer

    “258 Minister may appoint Crown Observer

    • “(1) The Minister may appoint a Crown Observer to a local authority if—

      • “(a) a Crown Review Team appointed to the local authority has recommended that a Crown Observer be appointed to the local authority; or

      • “(b) the Minister believes, on reasonable grounds, that a significant problem relating to the local authority exists and that the appointment of a Crown Observer is—

        • “(i) necessary to enable, or better enable, the local authority to effectively address the problem; or

        • “(ii) necessary to enable, or better enable, the Minister to monitor the local authority's progress in addressing the problem; or

      • “(b) the Minister believes, on reasonable grounds, that a significant problem relating to the local authority exists and—

        • “(i) the appointment of a Crown Observer is necessary to enable, or better enable, the local authority to effectively address the problem; or

        • “(ii) the appointment of a Crown Observer is necessary to enable, or better enable, the Minister to monitor the local authority's progress in addressing the problem; or

        • “(iii) a Ministerial body currently or previously appointed to the local authority has recommended the appointment; or

      • “(c) the Minister has received a written request from the local authority to do so.

      “(2) Before the observation period begins, the Minister must give notice of the appointment—

      • “(a) to the local authority, in writing; and

      • “(b) by notice in the Gazette.; and

      • “(c) by public notice.

      “(3) Each notice must comply with section 258M.

      “(4) A Crown Observer must, to the extent authorised by his or her terms of reference,—

      • “(a) assist the local authority to—

        • “(i) address the problem; and

        • “(ii) implement the recommendations of the Crown Review Team, if applicable; and

      • “(a) assist the local authority to address the problem; and

      • “(b) monitor the local authority's progress in relation to the problem; and

      • “(c) make recommendations to the Minister on whether the Minister should take further action in relation to the local authority., including whether the Minister should appoint any other Ministerial body to the local authority; and

      • “(d) ensure, as far as practicable, that the existing organisational capability of the local authority is not diminished.

      “(4A) If applicable, and to the extent authorised by its terms of reference, a Crown Observer must also assist the local authority with, and monitor progress on, any related matter as recommended by a Ministerial body currently or previously appointed to the local authority.

      “(5) The A local authority must—

      • “(a) co-operate with the a Crown Observer so that he or she may fulfil his or her terms of reference; and

      • “(b) comply with any reasonable request of the Crown Observer to provide any relevant information that the local authority holds.

      “(6) The A Crown Observer must produce a final report that complies with section 258O, as soon as practicable after the an observation period ends.

      “(7) This section is subject to section 258K.

    “258A How Crown Observer appointed

    • The Minister must appoint a Crown Observer by notice in writing. The notice must include the following information:

      • “(a) the terms of reference of the Crown Observer, including—

        • “(i) an outline of the problem in relation to which the Crown Observer has been appointed; and

        • “(ii) the extent of his or her authority; and

      • “(b) the start and end dates of the appointment; and

      • “(c) the start and end dates of the observation period.

    “Minister may appoint Crown Manager

    “258B Minister may appoint Crown Manager

    • “(1) The Minister may appoint a Crown Manager to a local authority if—

      • “(a) a Crown Review Team or a Crown Observer appointed to the local authority has recommended that a Crown Manager be appointed to the local authority; or

      • “(b) the Minister believes, on reasonable grounds, that a significant problem relating to the local authority exists and, for no good reason, the local authority has not adequately implemented a recommendation of a Crown Review Team or Crown Observer in relation to the problem; or

      • “(c) the Minister believes, on reasonable grounds, that a significant problem relating to the local authority exists and the nature or extent of the problem is such that the local authority is unlikely to effectively address the problem without the appointment of a Crown Manager; or

      • “(c) the Minister believes, on reasonable grounds, that a significant problem relating to the local authority exists, and—

        • “(i) the nature or extent of the problem is such that the local authority is unlikely to effectively address the problem without the appointment of a Crown Manager; or

        • “(ii) for no good reason, the local authority has not adequately implemented a recommendation of any other Ministerial body in relation to the problem; or

        • “(iii) a Ministerial body currently or previously appointed to the local authority has recommended the appointment; or

      • “(d) the Minister has received a written request from the local authority to do so.

      “(2) To avoid doubt, the Minister may appoint a Crown Manager to a local authority without having first appointed a Crown Review Team or a Crown Observer to the local authority.

      “(3) Before the management period begins, the Minister must give notice of the appointment—

      • “(a) to the local authority, in writing; and

      • “(b) by notice in the Gazette.; and

      • “(c) by public notice.

      “(4) Each notice must comply with section 258M.

      “(5) A Crown Manager must, to the extent authorised by his or her terms of reference, direct the local authority to act to address the problem.

      “(5) A Crown Manager must, to the extent authorised by his or her terms of reference,—

      • “(a) direct the local authority to act to address the problem; and

      • “(b) make recommendations to the Minister on whether the Minister should take further action in relation to the local authority, including whether the Minister should appoint any other Ministerial body to the local authority; and

      • “(d) ensure, as far as practicable, that the existing organisational capability of the local authority is not diminished.

      “(5A) If applicable, and to the extent authorised by its terms of reference, a Crown Manager must also direct the local authority on any related matter as recommended by a Ministerial body currently or previously appointed to the local authority.

      “(6) The local authority must comply with the Crown Manager's directions and any reasonable request he or she makes to provide any relevant information that the local authority holds.

      “(6) A local authority must—

      • “(a) co-operate with a Crown Manager so that he or she may fulfil his or her terms of reference; and

      • “(b) comply with the directions of a Crown Manager; and

      • “(c) comply with any reasonable request of a Crown Manager to provide any relevant information that the local authority holds.

      “(7) The A Crown Manager must produce a final report that complies with section 258O, as soon as practicable after the a management period ends.

      “(8) This section is subject to section 258K.

    “258C How Crown Manager appointed

    • The Minister must appoint a Crown Manager by notice in writing. The notice must include the following information:

      • “(a) the terms of reference of the Crown Manager, including—

        • “(i) an outline of the problem in relation to which the Crown Manager has been appointed; and

        • “(ii) the extent of his or her authority; and

      • “(b) the start and end dates of the Crown Manager's appointment; and

      • “(c) the start and end dates of the management period.

    “Minister may appoint Commission

    “258D Minister may appoint Commission

    • “(1) The Minister may appoint a Commission for to a local authority if—

      • “(a) the Minister believes, on reasonable grounds, that—

        • “(i) a significant problem relating to the local authority—

          • “(A) is impairing, or likely to impair, the good local government of the local authority's district or region; or

          • “(B) is endangering, or likely to endanger, the public health or safety of the people within the local authority's district or region; and

        • “(ii) the local authority is unable or unwilling to effectively address the problem; and

        • “(iii) the problem is such that appointing a Crown Review Team, a Crown Observer, or a Crown Manager to the local authority is unlikely to prevent the consequences described in subparagraph (i); or

      • “(b) a Crown Review Team, a Crown Observer, or a Crown Manager appointed to the local authority has recommended that a Commission be appointed for the local authority and the Minister is satisfied that the appointment is necessary to effectively address a significant problem; or

      • “(c) the local authority refuses or is unable to comply with a direction of a Crown Manager given under section 258B(5); or

      • “(ca) the Minister believes, on reasonable grounds, that a significant problem relating to the local authority exists and a Ministerial body currently or previously appointed to the local authority has recommended the appointment; or

      • “(d) the Minister has received a written request from the local authority to do so.

      “(2) Before the Commission begins its term, the Minister must give notice of the Commission's appointment—

      • “(a) to the local authority, in writing; and

      • “(b) by notice in the Gazette.; and

      • “(c) by public notice.

      “(3) Each notice must comply with section 258M.

      “(4) A Commission must perform the functions and duties and exercise the powers of the local authority, and its members, under this Act and any other enactment,—

      • “(a) subject only to any limits on its authority set out in the terms of reference; and

      • “(b) to the exclusion of the members of the local authority.

      “(4) A Commission must perform the functions and duties and exercise the powers of the local authority, and its members, under this Act and any other enactment,—

      • “(a) to the exclusion of the members of the local authority; but

      • “(b) subject to—

        • “(i) section 258F; and

        • “(ii) any limits on its authority set out in the terms of reference.

      “(5) To avoid doubt, a Commission—

      • “(a) must perform any functions or exercise any powers directly conferred on the mayor or chairperson, or any other member, of the a local authority by or under any enactment; and

      • “(b) may exercise all the powers of the local authority to set, assess, and collect rates and charges within the district or region and expend their proceeds; and

      • “(c) may appoint members of the local authority to a committee or subcommittee established under Schedule 7 of this Act.

      “(5A) A Commission must also, to the extent authorised by its terms of reference,—

      • “(a) make recommendations to the Minister on whether the Minister should take further action in relation to the local authority, including whether the Minister should appoint any other Ministerial body to the local authority; and

      • “(b) if applicable, implement the recommendations of a Ministerial body currently or previously appointed to the local authority.

      “(5B) A Commission must ensure, as far as practicable, that the existing organisational capability of the local authority is not diminished.

      “(6) The A Commission must produce a final report that complies with section 258O, as soon as practicable after the term of the Commission ends.

      “(7) This section is subject to section 258K.

    “258E How Commission appointed

    • “(1) A Commission comprises 1 or more members.

      “(2) If a Commission comprises 2 or more members, the Minister must appoint 1 member as the chairperson.

      “(3) The Minister must appoint each member of a Commission by notice in writing. The notice must include the following information:

      • “(a) the terms of reference of the Commission, including—

        • “(i) an outline of the problem in relation to which it has been appointed; and

        • “(ii) any limitations on the extent of its authority; and

      • “(b) the start and end dates of the member's appointment; and

      • “(c) the start and end dates of the Commission's term period in which the Commission is to perform the local authority's functions and duties and exercise its powers.

    “258F Application of this and other enactments during Commission's term of appointment

    • “(1) This section applies during the period in which a Commission is appointed for to perform the functions and duties and exercise the powers of a local authority under section 258D.

      “(2) This Act applies, with any necessary modifications, as if the Commission were the local authority.

      “(2) This Act and any other enactment applies, with any necessary modifications, as if the Commission were the governing body of the local authority and responsible for the decision-making of the local authority.

      “(2A) Without limiting subsection (2), clauses 31, 32, and 32A of Schedule 7 apply as if the members of the Commission were elected members of the local authority.

      “(3) For the purposes of clauses 31, 32, and 32A of Schedule 7, but not otherwise, this Act applies as if members of the Commission were elected members of the local authority.

      “(4) A document that is required to be executed under the seal of the local authority may be executed under the seal and verified by the signature of the chairperson of the Commission, or the Commission, if there is no chairperson.

      “(5) All acts done by the Commission in the purported exercise of the powers of the local authority under this or any other enactment, whether the powers have been expressly limited in the terms of reference or not, are, except in the case of fraud, as valid as if the Commission had not been appointed and the acts had been done by the local authority in the ordinary course of its business.

    “258G Minister may postpone general election when appointing Commission

    • “(1) The Minister may, at the same time as appointing a Commission for a local authority under section 258D, postpone the next triennial general election for members of the local authority.

      “(1) The Minister may postpone the next triennial general election for members of a local authority—

      • “(a) at the same time as appointing a Commission to a local authority under section 258D; or

      • “(b) at any time during the period in which the Commission is performing the local authority's functions and duties and exercising its powers.

      “(2) Subsection (1) applies only if the term of the Commission extends more than 120 days beyond the date of that election as determined under section 10 of the Local Electoral Act 2001.

      “(3) If the Minister acts under subsection (1), he or she must, before the term of the Commission ends, call a general election of the local authority by notice in the Gazette.

      “(3) If the Minister acts under subsection (1), he or she must—

      • “(a) give public notice of the postponement; and

      • “(b) before the term of the Commission ends,—

        • “(i) call a general election of the local authority by notice in the Gazette; and

        • “(ii) give public notice of the calling of the election.

      “(4) The notice must specify the date on which the election is to be held, which must be no later than 7 days before the date on which the term of the Commission ends.

      “(4) Each notice given under subsection (3)(b)—

      • “(a) must specify the date on which the election is to be held, which must be no later than 7 days before the date on which the term of the Commission ends; and

      • “(b) if section 258GA applies, must include a statement setting out the effect of the Minister's decision under that section.

      “(5) The Local Electoral Act 2001 applies, with any necessary modifications, to the conduct of an election called by the Minister under this section as if the election were a triennial general election.

      “(6) Despite subsection (5), the electoral officer responsible for the election must give notice of the election under section 52 of the Local Electoral Act 2001 no later than 7 days after the Minister gives notice of the election under subsection (4).

      “(6) Despite subsection (5), the electoral officer responsible for the election must give notice of the election under section 52 of the Local Electoral Act 2001—

      • “(a) no later than 7 days after the Minister gives notice of the election under subsection (3)(b); and

      • “(b) if section 258GA applies, must include a statement in the notice setting out the effect of the Minister's decision under that section.

    “258GA Timing of election following postponed election

    • “(1) This section applies if—

      • “(a) the Minister postpones a triennial general election for members of a local authority under section 258G; and

      • “(b) the date on which the postponed election is subsequently held is less than 3 years before the date of the next triennial general election for members of the local authority as determined under section 10 of the Local Electoral Act 2001 (the next triennial election).

      “(2) The Minister must decide whether the election for members of the local authority following the postponed election must be held on the date of—

      • “(a) the next triennial election; or

      • “(b) the next subsequent triennial general election as determined under section 10 of the Local Electoral Act 2001 (the second triennial election), in which case subsections (3) to (5) apply.

      “(3) A general election for members of the local authority must not be held on the date of the next triennial election. Instead, the next general election for members of the local authority must be held on the date of the second triennial election.

      “(4) A member of the local authority elected at the postponed election holds office until he or she vacates office, in accordance with section 116 of the Local Electoral Act 2001, for the second triennial election.

      “(5) Subsection (4) applies unless the member sooner vacates his or her office under clause 5 of Schedule 7 of this Act.

    “258H Local authority members remain in office but must not act during term of Commission

    • “(1) Subsection (2) applies to each member of a local authority, including the mayor or chairperson, from the date on which a Commission appointed for to the local authority under section 258D begins its term.

      “(2) A member remains in office but must not act, and is not entitled in that capacity to be paid any salary, allowances, or expenses under this Act or any other enactment, but remains in office or to use any property of the local authority, until the earliest of the following events occurs:

      • “(a) the Commission ends its term, in which case the member resumes full power to act:

      • “(b) a triennial general election is held for the local authority under section 10 of the Local Electoral Act 2001, in which case the member vacates office in accordance with section 116 of that Act:

      • “(c) a general election is held for the local authority under section 258G, in which case the member vacates office on the date that the member would have vacated office in accordance with section 116 of the Local Electoral Act 2001 had the triennial general election not been postponed:

      • “(d) a general election is held for the local authority under section 258J, in which case the member vacates office in accordance with section 116 of the Local Electoral Act 2001:

      • “(e) the member vacates his or her office in accordance with clause 5(1)(a), (b), (c), or (e) of Schedule 7.

      “(3) However, if a Commission appoints a member to a committee or subcommittee in accordance with Schedule 7, the person—

      • “(a) may accept the appointment, in the capacity as a person who has the skills, attributes, or knowledge that will assist the work of the committee or subcommittee; and

      • “(b) is entitled to receive payment for holding office as a member of the committee or subcommittee in that capacity.

      “(4) In subsection (2), act means to exercise or purport to exercise a power, right, or entitlement, or perform or purport to perform a function or duty, conferred or imposed on the member in his or her capacity as a member of the local authority by this Act or any other enactment.

    “258I Extraordinary vacancy when Commission appointed or during term of Commission

    • “(1) This section applies if an extraordinary vacancy (within the meaning of clause 5 of Schedule 7) is created during the term that a Commission is appointed to a local authority.

      “(1) This section applies if an extraordinary vacancy (within the meaning of clause 5 of Schedule 7)—

      • “(a) exists at the time a Commission is appointed to a local authority; or

      • “(b) is created during the term that a Commission is appointed to a local authority.

      “(2) The vacancy is not required to be filled, and any preparations made by any person towards filling the vacancy in accordance with sections 117 to 120 of the Local Electoral Act 2001 must be abandoned, if the Commission's term ends after the date of—

      • “(a) a triennial general election for the local authority under section 10 of the Local Electoral Act 2001; or

      • “(b) a general election for the local authority under section 258G or 258J.

      “(3) The vacancy must be filled in accordance with sections 117 to 120 of the Local Electoral Act 2001 in any other case except that if the vacancy occurs more than 90 days before the end of the term of the Commission, the vacancy must be treated as if it occurred on the 90th day before that date.

    “Minister may call general election

    “258J Minister may call general election

    • “(1) The Minister may, by notice in the Gazette, call a general election of a local authority if the Minister believes, on reasonable grounds, that the membership of the local authority is such that the local authority is unable or unwilling to perform its functions and duties and exercise its powers or there is a significant or persistent failure by the local authority to do so in respect of 1 or more of those functions, duties, and powers.

      “(2) The notice must specify the date on which the election is to be held, which, to avoid doubt, may be a date that is earlier than the date of the next triennial general election for members of the local authority as determined under section 10 of the Local Electoral Act 2001.

      “(3) The Minister must give the local authority a copy of the Gazette notice as soon as practicable after its publication.

      “(3) The Minister must—

      • “(a) give the local authority a copy of the Gazette notice, as soon as practicable after its publication; and

      • “(b) give public notice of the calling of the election and the date on which the election is to be held.

      “(4) The Local Electoral Act 2001 applies, with any necessary modifications, to the conduct of an election called by the Minister under this section, as if the election were a triennial general election.

      “(5) Despite subsection (4), the electoral officer responsible for the election must give notice of the election under section 52 of the Local Electoral Act 2001 no later than 7 days after the Minister gives notice of the election under subsection (1).

    “Subpart 2—General provisions applying to Ministerial powers conferred under subpart 1

    “258KAA Minister may consult any person

    • “(1) The Minister may, but is not obliged to, consult any person, organisation, or group—

      • “(a) when determining what action, if any, to take under subpart 1 of this Part:

      • “(b) when appointing a Ministerial body under subpart 1 of this Part:

      • “(c) when formulating the terms of reference for a Ministerial body.

      “(2) The Minister may, but is not obliged to, consult any person, organisation, or group—

      • “(a) when postponing a general election under section 258G; or

      • “(b) when calling a general election under section 258J.

    “258KAB Minister must publish list in Gazette

    • “(1) The Minister must publish in the Gazette, and on the Internet site of the department responsible for the administration of this Act, a list of matters relevant to determining what action, if any, to take under subpart 1 of this Part.

      “(2) Without limiting subsection (1), the list must include the following matters:

      • “(a) guiding principles that the Minister is likely to adopt when making decisions under this Part:

      • “(b) matters or circumstances relating to the management or governance of local authorities that the Minister considers are likely to detract from the ability of local authorities to give effect to the purpose of local government within their districts and regions:

      • “(c) the types and sources of information that the Minister is likely to consider when making decisions under this Part.

      “(3) The Minister must review the list no later than 5 years after the date on which the list is published and, subsequently, at intervals of no more than 5 years after the most recent review.

      “(4) The list must be republished after each review.

      “(5) Before publishing or republishing a list, the Minister must consult Local Government New Zealand and may, but is not obliged to, consult any other person, organisation, or group.

      “(6) The first list must be published no later than 31 March 2013.

    “258KAC Minister must have regard to published list

    • “(1) The Minister, when determining what action, if any, to take under subpart 1 of this Part, must have regard to the list published under section 258KAB.

      “(2) To avoid doubt, the Minister may act under subpart 1 of this Part and appoint a Ministerial body to a local authority even if the problem in relation to the local authority does not relate to a matter featured in the list.

    “258K Notice to local authority of proposed appointment of Ministerial body

    • “(1) Before appointing a Ministerial body, the Minister must—

      • “(a) give the local authority concerned written notice that he or she intends to make the appointment; and

      • “(b) state in the notice the reasons for the proposed appointment in terms of section 256(1), 258(1), 258B(1), or 258D(1) and the proposed terms of reference; and

      • “(c) give the local authority an opportunity to satisfy the Minister of the following matters, as applicable, by a date specified in the notice, being no earlier than 10 working days after the date on which notice is given to the local authority:

        • “(i) the reasons for making the appointment do not exist:

        • “(ii) the local authority is acting effectively to address the problem:

        • “(iii) for any other reason, the appointment should not be made:

        • “(iv) a different Ministerial body should be appointed.

      “(2) The Minister must—

      • “(a) notify the local authority, in writing, if he or she decides not to appoint a Ministerial body; or

      • “(b) act under section 256(2), 258(2), 258B(3), or 258D(2) in any other case.

      “(3) This section does not apply if—

      • “(a) the local authority has requested the Minister to make the appointment; or

      • “(b) the problem in relation to which the Minister intends to make the appointment relates to the consequences of a state of emergency and the Minister believes, on reasonable grounds, that the public health or safety of the people within the local authority's district or region is, or is likely to be, endangered.

    “258L Notice to local authority of proposed general election

    • “(1) Before calling a general election under section 258J, the Minister must—

      • “(a) give the local authority concerned written notice that he or she intends to call the election; and

      • “(b) state in the notice the reasons for the proposed election in terms of section 258J(1); and

      • “(c) give the local authority an opportunity to satisfy the Minister of the following matters, as applicable, by a date specified in the notice, being no earlier than 10 working days after the date on which notice is given to the local authority:

        • “(i) the reasons for calling the election do not exist:

        • “(ii) for any reason, the election should not be called:

        • “(iii) a Ministerial body should be appointed instead.

      “(2) The Minister must—

      • “(a) notify the local authority, in writing, if he or she decides not to call the election; or

      • “(b) act under section 258J(3).

    “258M Notification of appointment of Ministerial body

    • “(1) A notice of appointment of a Ministerial body under section 256(1), 258(1), 258B(1), or 258D(1) must state the following:

      • “(a) that the Minister has appointed a Ministerial body; and

      • “(b) the terms of reference of the Ministerial body; and

      • “(c) the start and end dates of the Ministerial body's appointment; and

      • “(d) the names of each member of the Ministerial body; and

      • “(e) if applicable, the name of the chairperson of the Ministerial body.

      “(2) Subsection (3) applies if—

      • “(a) the notice of appointment relates to a Commission; and

      • “(b) the Minister has, at the same time, postponed the next triennial general election for members of the local authority under section 258G.

      “(3) The notice of appointment must also state that the Minister has postponed the next triennial general election for members of the local authority and that the Minister will call a general election, by notice in the Gazette, before the term of the Commission ends.

    “258N Notification of change of membership of Ministerial body

    • The Minister must notify any change in the membership of a Ministerial body by notice in the Gazette.

    “258O Final report of Ministerial body

    • “(1) A final report produced by a Ministerial body must include the following:

      • “(a) a narrative description of the activities of the Ministerial body in relation to its terms of reference; and

      • “(b) in respect of the problem in relation to which the Ministerial body was appointed, an assessment of progress in addressing the problem; and

      • “(c) any final recommendations of the Ministerial body to the Minister, the local authority, or both; and

      • “(ca) without limiting paragraph (c), any final recommendations of the Ministerial body to the Minister on whether the Minister should take further action in relation to the local authority, including whether the Minister should appoint any other Ministerial body to the local authority; and

      • “(d) any other matter required by the Ministerial body's terms of reference.

      “(2) The Minister must, as soon as practicable,—

      • “(a) give a copy of the report to the local authority; and

      • “(b) make the report publicly available, excluding any information that it is necessary to withhold for any of the reasons stated in section 6 or 7 of the Local Government Official Information and Meetings Act 1987.

    “258P Remuneration and expenses of Ministerial appointees

    • “(1) A Ministerial appointee is entitled—

      • “(a) to receive remuneration for services as a member of a Ministerial body as determined by the Minister in accordance with the fees framework; and

      • “(b) to be reimbursed for actual and reasonable travelling and other expenses incurred in carrying out his or her office as a member in accordance with the fees framework.

      “(2) In this section, fees framework means the framework determined by the Government from time to time for the classification and remuneration of statutory and other bodies in which the Crown has an interest.

    “258Q Recovery of expenses from local authority

    • “(1) A local authority owes as a debt to the Crown any expenses that the Crown incurs for the appointment of a Crown Manager or a Commission to the local authority, including the payment of remuneration and expenses to the Crown Manager or a member of the Commission.

      “(2) Any expenses that the Crown incurs for the appointment of a Crown Observer or a Crown Review Team to a local authority, including the payment of remuneration and expenses to the Crown Observer or a member of the Crown Review Team, may be recovered by the Crown from the local authority if—

      • “(a) the Minister decides that to do so is reasonable in the circumstances; and

      • “(b) the terms of reference authorise the recovery.

      “(3) The Crown may recover expenses under subsection (2) as a debt to the Crown.

    “258R Minister may terminate Ministerial body or Ministerial appointee

    • “(1AA) The Minister may terminate the appointment of a Ministerial body at any time by notice in writing.

      “(1AB) The Minister must give notice of the termination—

      • “(a) to the local authority, in writing; and

      • “(b) by notice in the Gazette; and

      • “(c) by public notice.

      “(1) The Minister may terminate a Ministerial appointee's appointment at any time by notice in writing, and no compensation is payable to the person as a result of the termination.

    “258S Protection from liability for Ministerial appointees

    • “(1) A Ministerial appointee is not liable for any act done or omitted to be done by him or her in good faith in the performance or intended performance of his or her functions, responsibilities and duties, or the exercise of his or her powers as a Ministerial appointee.

      “(2) To avoid doubt, this includes—

      • “(a) acts done or omitted to be done by a Crown Manager when directing a local authority to act; and

      • “(b) acts done or omitted to be done by a Commission member when performing the functions and exercising the powers of a local authority or its members.

    “258T Disclosure of information held by local authority

    • “(1) For the purposes of this Part, information held by a local authority may be disclosed to the Minister or a Ministerial appointee body despite anything to the contrary in the Official Information Act 1982, the Local Government Official Information and Meetings Act 1987, or the Privacy Act 1993.

      “(2) However, the Minister, the Ministerial body, or a Ministerial appointee must not publish or disclose that information to any other person except in accordance with those Acts.

      “(3) In this section, Minister includes the Minister's officials and Cabinet.

    “258U Decisions and directions of Crown Manager or Commission remain in force until local authority decides otherwise

    • “(1) Subsections (2) and (3) apply to a local authority on and from the expiry of the term of a Crown Manager appointed to the local authority.

      “(2) A direction given to the local authority by the Crown Manager ceases to have effect.

      “(3) Despite subsection (2), any decision made by the local authority giving effect to the direction continues in force unless and until the local authority revokes or amends the decision.

      “(4) Subsection (5) applies to a local authority on and from the expiry of the term of a Commission appointed to the local authority.

      “(5) A decision of the Commission continues in force as if it were a decision made by the local authority unless and until the local authority revokes or amends the decision.”