For the purposes of this Act there shall be a Commission, to be called the Local Government Commission.

The Commission shall consist of 3 members, to be appointed by the Minister, of whom—

The powers of the Commission shall not be affected by any vacancy in its membership.

No person shall be deemed to be employed in the service of Her Majesty for the purposes of the State Services Act 1962 or the Government Superannuation Fund Act 1956 by reason of his being a member of the Commission.

The Chairman of the Commission shall be appointed for such term, not exceeding 5 years, as is specified in his appointment.

Every member of the Commission other than the Chairman shall be appointed for such term, not exceeding 3 years, as is specified in his appointment.

Every member of the Commission shall be eligible for reappointment.

Any member of the Commission may at any time be removed from office by the Minister for disability, bankruptcy, neglect of duty, or misconduct proved to the satisfaction of the Minister, or may at any time resign his office by writing addressed to the Minister.

If any member of the Commission dies, or resigns, or is removed from office, his office shall become vacant.

Any vacancy under this section shall be deemed to be an extraordinary vacancy, and shall be filled in the manner in which the appointment to the vacant office was made.

Every person appointed to fill an extraordinary vacancy shall be appointed for the residue of the term for which the vacating member was appointed.

Where the Chairman of the Commission is incapacitated or likely to be incapacitated by reason of illness, absence, or other sufficient cause and it appears to the Minister that the incapacity is likely to continue for a period of more than 14 days, or is incapacitated under subsection (7) of this section, the Minister may appoint a deputy to act for the Chairman during that incapacity. The deputy of the Chairman shall, while he acts as such, be deemed to be a member of the Commission and, notwithstanding that there is a Deputy Chairman of the Commission under section 7 of this Act, to be the Chairman of the Commission.

Any appointment of a deputy of the Chairman made under subsection (1) of this section may be at any time revoked by the Minister.

The Minister shall from time to time, on the nomination of the New Zealand Counties Association Incorporated, appoint a person as the deputy of the member of the Commission appointed under section 3(2)(b) of this Act.

The Minister shall from time to time, on the nomination of the Municipal Association of New Zealand Incorporated, appoint a person as the deputy of the member of the Commission appointed under section 3(2)(c) of this Act.

Every appointment of a deputy under subsection (3) or subsection (4) of this section may be revoked at any time by the Association by which he was nominated for appointment.

A deputy appointed under subsection (3) or subsection (4) of this section shall act as a member of the Commission only when the member for whom he is the deputy—

If the Commission decides to consider a proposal affecting the district of any local authority and a member of the Commission is also a member of that local authority, the member shall be deemed to be incapacitated from performing the duties of his office in respect of that proposal.

Every deputy appointed under subsection (3) or subsection (4) of this section shall, while he acts as such, be deemed to be a member of the Commission.

No appointment of a deputy and no acts done by him as such, and no acts done by the Commission while any deputy is acting as such, shall be questioned in any proceedings on the grounds that the occasion for his appointment had not arisen or had ceased.

The Minister shall from time to time appoint one of the members of the Commission to be Deputy Chairman thereof.

Subject to section 6 of this Act, the Deputy Chairman shall have and may exercise and perform all the powers and duties of the Chairman—

No acts done by the Deputy Chairman acting as the Chairman shall in any proceedings be questioned on the ground that the occasion for his so acting had not arisen or had ceased.

If the Commission is to consider a proposal affecting a local authority other than a territorial authority, it may request the Minister to appoint a person having special knowledge of the functions undertaken by that local authority to be a temporary member of the Commission for the purposes of that proposal.

This Part of this Act, so far as it applies to members of the Commission, shall apply, with the necessary modifications, to any person appointed by the Minister to be a temporary member under this section.

The first meeting of the Commission shall be held on a day to be appointed in that behalf by the Chairman.

Subsequent meetings of the Commission shall be held at such times and places as the Commission or the Chairman thereof from time to time appoints.

At all meetings of the Commission a quorum shall consist of 2 members, including the Chairman or the Deputy Chairman.

The Chairman shall preside at every meeting of the Commission attended by him. Subject to section 6 of this Act, in the absence of the Chairman from any meeting the Deputy Chairman shall preside.

At any meeting of the Commission the Chairman or Deputy Chairman presiding shall have a deliberative vote, and in the case of an equality of votes, shall also have a casting vote. The decision of the Commission on any matter shall be determined by a majority of the valid votes recorded thereon.

Subject to this Act, the Commission may regulate in such a manner as it thinks fit the procedure of the Commission.

There shall be paid out of money appropriated by Parliament for the purpose to the members of the Commission (including deputy members and temporary members acting as such and any conciliator appointed under section 27 of this Act) remuneration by way of fees, salary, or allowances and travelling allowances and expenses in accordance with the Fees and Travelling Allowances Act 1951, and that Act shall apply accordingly as if the Commission were a statutory Board within the meaning of that Act.

The Commission may invite any officer of the Public Service or any other person or a representative of any body who or which, in the opinion of the Commission, has expert knowledge which is likely to be of assistance to the Commission to attend any meeting or discussion held under this Part of this Act and to take part in the proceedings.

There may from time to time be appointed under the State Services Act 1962 a Chief Executive Officer of the Commission and such other officers as may be required for the purposes of this Part of this Act.

Any person may hold any office under this section in conjunction with any other office in the Public Service.

The Commission shall be deemed to be a Commission of Inquiry under the Commissions of Inquiry Act 1908, and, subject to this Act, the provisions of that Act (except sections 2 and 4a and sections 11 to 15), as far as they are applicable, shall apply accordingly.

The Chairman of the Commission, or any other member or the Chief Executive Officer of the Commission purporting to act by direction or with the authority of the Chairman, may issue summonses requiring the attendance of witnesses before the Commission, or the production of documents, or may do any other act preliminary or incidental to the investigation or consideration of any matter by the Commission.

Commission may receive as evidence any statement, document, information, or matter that may in its opinion assist it to deal effectively with the matter being dealt with, whether or not the same would be otherwise admissible in a Court of law.

Subject to the foregoing provisions of this section, the Evidence Act 1908 shall apply to the Commission and the members thereof and to all proceedings before the Commission in the same manner as if the Commission were a Court within the meaning of that Act.

The functions of the Commission shall be—

In inquiring into any proposal for a scheme, the Commission shall have regard to the general public opinion in the area proposed to be affected by the scheme.

In inquiring into any proposal for a scheme, the Commission shall take into consideration the following matters so far as, in the opinion of the Commission, they are applicable to the particular circumstances of each case, namely:

The Chief Executive Officer of the Commission, or any other person authorised by the Chief Executive Officer, may from time to time investigate and report to the Commission on such matters as the Commission directs.

Every person commits an offence who, having the custody or possession of any books, papers, accounts, or documents that are relevant to the investigation, refuses or fails without lawful excuse to allow to have access thereto any person investigating any matter under subsection (1) of this section, or who without lawful excuse obstructs any such person in the making of the investigation.

It shall be a principal function of the Commission to prepare regional schemes for the constitution of regions (otherwise than by the union of 2 or more regions) so as to ensure that the district of every territorial authority, by not later than the 31st day of December 1979, or as soon thereafter as may be, is included in a region:

Provided that this subsection shall not apply to the County of Chatham Islands.

The Commission may provide in its regional schemes that—

Where the Commission decides to consider a proposal that a regional scheme be prepared for the constitution of a region (otherwise than by the union of 2 or more regions), it shall convene a meeting of representatives of all the local authorities likely, in the opinion of the Commission, to be affected by the proposal, for the purpose of discussing the proposal.

Any 1 or more members of the Commission may represent the Commission at that meeting, which shall be presided over by the Chairman of the Commission if he is present, or in his absence by some other member of the Commission appointed by him.

After the Commission has ascertained the views of the local authorities likely to be affected by the proposals, the Commission may undertake, in such manner as it thinks fit, further investigations and negotiations in relation to the proposal separately or jointly with 1 or more local authorities or other interested bodies or persons, and may consult any authority established by any Act having jurisdiction in respect of any matter included in the proposal.

After the Commission has completed its investigations and negotiations in accordance with the foregoing provisions of this section, it shall—

If the Commission prepares and gives public notice of a statement under section 18(4)(a) of this Act, it may hold 1 or more public meetings in the proposed region for the purpose of discussing the proposal to which the statement relates.

Not less than 1 month before it holds any such public meeting or meetings, the Commission shall give public notice thereof. Every such notice shall state that representations on the proposal may be made by any person either in writing or at the meeting or meetings.

The Commission shall also give notice of every such public meeting to the Minister, to the local authorities likely in the opinion of the Commission to be affected, and to such other bodies and persons as the Commission thinks fit:

Provided that failure to give notice under this subsection shall not affect the validity of any scheme prepared following the public meeting or meetings.

After holding any such public meeting or meetings, the Commission shall—

As soon as practicable after a provisional regional scheme has been prepared by the Commission, the Commission shall give public notice of the scheme and of the place or places where it may be inspected and of the right of objection hereinafter provided for, and shall also give notice thereof to the Minister, to every local authority likely in the opinion of the Commission to be affected by the scheme, and to such other bodies and persons as the Commission thinks fit.

In the preparation of a provisional regional scheme, the Commission shall prepare and publish, either separately or as an appendix to the provisional scheme, an explanatory statement specifying considerations taken into account by the Commission in preparing the scheme, reasons for any provisions of the scheme, and any other matters that the Commission considers relevant. Such a statement shall be deemed not to form part of the scheme.

Any person or body interested shall have a right of objection to any provisional regional scheme, and may give notice in writing to the Commission of the objection and of the grounds thereof at any time within 2 months after the first public notification of the scheme, or within such further time as may in any case be allowed by the Commission.

The Commission shall as soon as practicable consider all such objections, and may for that purpose—

The Commission shall not consider any objection to the provisional regional scheme, unless reasonable notice of the date and time when the objection is to be considered and of the place where it is to be considered has been given to the objector, who, if present at the appointed time and place, shall be entitled to be heard in support of his objection.

At any meeting or discussion at which any objection is being considered or any representations are being received, no cross-examination shall be allowed except with the consent of the Commission, but the Commission may ask questions relating to the objection or the representations.

In determining any objection, the Commission may uphold the objection wholly or partly, and may abandon or modify the scheme accordingly, or may dismiss the objection.

Notice in writing of the decision of the Commission on any objection, setting out reasons for its decision, shall be given by the Commission to the objector and also to all the local authorities concerned.

The Commission may at any time, in its discretion, decide not to proceed with a provisional regional scheme.

After all objections to a provisional regional scheme have been considered and any further investigations or inquiries or negotiations considered by the Commission to be necessary or desirable have been made or carried out and all such objections have been determined, or if no objections to the provisional regional scheme have been received, the Commission may approve the scheme as publicly notified or as modified as a result of any such objections or further investigations or inquiries or negotiations, and the scheme shall thereupon become a final scheme:

Provided that notwithstanding that an objection may be dismissed, the Commission may, in its discretion, modify the scheme to make provision for any matter arisng out of that objection:

Provided also that the Commission may, if it thinks fit, prepare one or more further provisional regional schemes in substitution for that to which objection has been made. All the provisions of this Part of this Act with respect to provisional regional schemes shall apply with respect to every substituted scheme so prepared.

Section 20(2) of this Act (relating to the publication of explanatory statements with respect to provisional regional schemes) shall apply with respect to a final regional scheme.

As soon as practicable after a provisional regional scheme has been approved as a final regional scheme by the Commission, the Commission shall give public notice of the scheme and of the place or places where it may be inspected, and shall also give notice thereof to the Minister, to every local authority affected by the scheme, and to such other bodies and persons as the Commission thinks fit.

Within 1 month after receiving under section 23 of this Act notice of a final regional scheme, the Minister may refer the scheme back to the Commission for reconsideration of such of the provisions of the scheme as the Minister specifies, and shall advise the Commission of his reasons for so doing. In reconsidering the scheme, the Commission shall have regard to those reasons.

The Commission shall reconsider any final regional scheme referred back to it under this section, and may make such amendments to the scheme as it thinks fit with respect to the provisions specified by the Minister and any consequential amendments to the scheme, or may decide that no amendments to the scheme will be made, and shall notify the Minister accordingly.

On the Minister being so notified by the Commission, effect shall be given under section 36 of this Act to the final regional scheme with any amendments made pursuant to subsection (2) of this section.

A reorganisation scheme under this Act may provide for 1 or more of the following:

The Commission may from time to time, of its own motion, initiate or, at the request of the Minister or of any local authority of any of the classes specified in Part I of the First Schedule to this Act, or on any request under section 49 of this Act, consider a proposal that a scheme be prepared, in relation to any local authority of any of the classes specified in the said Part I, providing for any of the matters specified in section 25 of this Act.

The Commission may from time to time—

Provided that no scheme prepared pursuant to a proposal under this subsection shall provide for any reorganisation of the district of any territorial authority.

For the purposes of subsection (2) of this section, the term ‘appropriate Minister’—

Either before or immediately after a request is made to the Commission under subsection (1) or subsection (2) of this section, the Minister or local authority making the request shall serve a copy of the proposal on every local authority to which the proposal relates.

Where a request or recommendation is made under any enactment other than this Part of this Act to the Governor-General or to any local authority or other person, whether by petition or in such other manner as may be prescribed or permissible, asking for or recommending any action to be taken for the purpose of or with a view to giving effect to any proposal which could be provided for in a reorganisation scheme under this Part of this Act, the request or recommendation shall be referred to the Commission, and no such action shall be taken under the enactment unless the Commission so recommends.

Where the Commission does not make any such recommendation in respect of any such proposal, the Commission shall deal with the request or recommendation as if it were a request made under subsection (1) or subsection (2) of this section.

Where the Commission is to consider any proposal under section 26 of this Act, it shall, in accordance with this section, ascertain whether or not all the local authorities likely in the opinion of the Commission to be affected are in agreement on the proposal.

The Commission shall, as a first step, appoint not more than 2 persons (whether members of the Commission or not) to be a conciliator or conciliators to make such inquiries, conduct such negotiations, and obtain such information (hereinafter referred to as conciliation proceedings) as he or they think necessary or desirable, or as the Commission directs, for the purpose of inducing the local authorities concerned to come to a fair and reasonable agreement in respect of the proposal.

Before commencing conciliation proceedings the conciliator or conciliators, after consultation with the Commission and the local authorities concerned, shall prepare a statement setting out those matters in respect of which conciliation is proposed and shall forward copies of the statement to the Commission and the local authorities.

After the conciliator or conciliators have concluded conciliation proceedings under this section, he or they shall report to the Commission, in such form and within such time after commencing conciliation proceedings as the Commission directs, the result of those proceedings.

Where, after considering the report of the conciliator or conciliators, the Commission considers that further negotiations should take place between the conciliator or conciliators and the local authorities, it shall direct the conciliator or conciliators accordingly, and the conciliator or conciliators shall take such steps as may be necessary to give effect to the directions of the Commission.

After considering the final report of the conciliator or conciliators, the Commission, if it considers that the proposal warrants further consideration, may in its discretion, convene a meeting of representatives of all the local authorities likely in the opinion of the Commission to be affected by the proposal, for the purpose of discussing the proposal.

The Commission may undertake, in such manner as it thinks fit, any other investigations and negotiations in relation to the proposal, separately or jointly with local authorities or other interested persons.

After the Commission has completed its investigations and negotiations under this section, it shall—

Where the Commission decides under subsection (8)(a) of this section to prepare a provisional scheme,—

Subject to this section, where the Commission gives notice under section 27(9)(a) of this Act that it is considering preparing a provisional reorganisation scheme to provide—

a request, in writing, signed by not less than 15 percent of the electors of the district proposed to be united with any other district or districts, or of the district proposed to be abolished, or that separately described area, as the case may be, that a survey of the electors of that district or that separately described area be taken in order to ascertain the extent of public opposition to the Commission’s proposal may be delivered or sent to the principal officer of the territorial authority at the office of the territorial authority at any time within 1 month after the date of the giving of the notice:

Provided that where the final day of the 1 month within which a survey may be requested falls within the period commencing on the 24th day of December in any year and ending with the 31st day of January in the next year, the date by which a survey may be requested shall be not later than the 10th day of February in that next year.

Every signatory to the request shall against his signature state his full name and the address in respect of which he possesses his qualification as an elector.

Notwithstanding anything in subsection (1) of this section, the taking of a survey may not be requested on any proposal to alter the boundaries of any territorial authority district or districts where the alteration has been agreed to by all the territorial authorities whose district boundaries are affected thereby.

Where the Commission proposes to prepare a provisional scheme for the alteration of the boundaries of the district or districts of 1 or more territorial authorities, the Commission shall state in the notice under section 27(9)(a) of this Act whether or not the alteration has been agreed to by all the territorial authorities affected thereby, and such a statement shall, unless the contrary is proved, be sufficient evidence thereof for the purposes of this Part of this Act.

If the principal officer is satisfied that the request for a survey to be taken is valid, he shall, not later than 2 months after the date of public notification under section 27(9)(a) of this Act, or not later than the 10th day of March in any case where the period for requesting a survey be taken has been extended by the proviso to subsection (1) of this section, deliver the request for a survey to the Returning Officer for the district of the territorial authority.

The principal officer of the territorial authority, if he is satisfied that the requirements of subsection (1) of this section have not been met, shall as soon as practicable give public notice accordingly.

For the purpose of determining the minimum number of electors who are required to sign a request under subsection (1) of this section,—

as stated in each case in a certificate by the principal officer of the territorial authority, whose certificate shall be final.

Subject to this section and to regulations made under this Act, the Local Elections and Polls Act 1976, as far as it is applicable and with the necessary modifications, shall apply to every survey taken pursuant to a request under section 28 of this Act as if the survey were a poll of electors.

Notwithstanding anything to the contrary in this Act or any other enactment, it shall be the duty of the Returning Officer to advise the electors, in such manner as he sees fit, that the purpose of the survey is only to ascertain the extent of public opposition to the proposal.

The day on which the survey is to be taken shall be fixed by the Returning Officer of the territorial authority, being not later than 49 days after the date of receipt by him of the request for the survey:

Provided that where the request for a survey is received by the Returning Officer on any day after the 8th day of November and before the 27th day of December in any year, the day to be fixed shall be a day not later than 49 days after that 27th day of December.

Where any such survey is required to be taken of the electors of any part of the district of a territorial authority which is not a riding, ward, or other subdivision for electoral purposes, the principal officer of that territorial authority shall cause to be prepared a special roll comprising the names of all persons in that part who are entitled to vote at any election of the members of the territorial authority; and that roll shall be prepared in accordance with the appropriate provisions of this Act.

Notwithstanding anything in section 66 of the Local Elections and Polls Act 1976, but subject to any regulations made under this Act, any survey under this section shall be taken in accordance with Part III of the first-mentioned Act as if it were a poll to be taken by postal vote.

The validity of any election or poll taken by postal vote shall not be questioned on the ground that the Returning Officer conducts in conjunction with the election or poll any survey taken pursuant to this section.

The Returning Officer who conducts a survey under section 29 of this Act shall, as soon as practicable after the taking of the survey, send to the Secretary a certificate stating the number of electors on the roll used for the purposes of the survey, and the number of electors who at that survey have validly recorded their opposition to the proposal.

Where at a survey conducted under section 29 of this Act the number of electors who have validly recorded their opposition to the proposal is more than 50 percent of the number of electors on the roll used for the purposes of the survey, the Commission shall not proceed with that proposal.

Where a proposal is rejected at a survey taken under section 29 of this Act and the Commission considers that as a result any part or parts of the proposal not affecting the district or part of the district in which the survey was taken may proceed, with or without modification, the Commission shall prepare and issue a provisional reorganisation scheme relating to that part or those parts of the proposal accordingly.

As soon as practicable after a provisional reorganisation scheme has been prepared by the Commission, the Commission shall give public notice of the scheme and of the place or places where it may be inspected and of the right of objection hereinafter provided for, and shall also give notice thereof to the Minister, to every local authority likely in the opinion of the Commission to be affected by the scheme, and to such other bodies and persons as the Commission thinks fit.

In the preparation of a provisional reorganisation scheme providing for any of the matters specified in paragraphs (a) to (c) of section 25 of this Act, the Commission shall prepare and publish, either separately or as an appendix to the provisional scheme, an explanatory statement specifying considerations taken into account by the Commission in preparing the scheme, reasons for any provisions in the scheme, and any other matters that the Commission considers relevant. Such statement shall be deemed not to form part of the scheme.

In the preparation of any other provisional reorganisation scheme, the Commission may, if it thinks fit, publish an explanatory statement setting out such details as it considers desirable.

Section 21 of this Act (relating to objections to a provisional regional scheme) shall, with the necessary modifications, apply with respect to every provisional reorganisation scheme, as if every reference in that section to a provisional regional scheme were a reference to a provisional reorganisation scheme.

Sections 22 and 23 of this Act (relating to a final regional scheme) shall, with the necessary modifications, apply with respect to every final reorganisation scheme, as if references in those sections to a final regional scheme were references to a final reorganisation scheme.

Subsections (2) and (3) of section 32 of this Act shall apply with respect to every final reorganisation scheme, as if references in those subsections to a provisional reorganisation scheme were references to a final reorganisation scheme.

In preparing any scheme, the Commission shall include in the scheme such provisions as it thinks necessary for the purposes of the district thereby created or altered, or for the discharge of the functions of the local authority of the district, or for any other matter rendered necessary through the carrying into effect of the provisions. In particular, it shall include in the scheme such of the provisions of the Second Schedule to this Act as are applicable, and may include in the scheme provisions—

In exercising the powers conferred by subsection (1) of this section, the Commission may provide for the application, with such modifications as may be necessary or desirable, of any provisions of any Act for the time being in force which in its opinion are appropriate to the particular matter.

In exercising the powers conferred by subsection (1) of this section, the Commission may include in the scheme provisions—

Subject to section 37h of this Act, where under this section provision is made in a scheme for any function to be transferred to or assumed by a united council or regional council, no provision shall be made for the payment of compensation to the local authority from which that function is transferred or assumed.

In this section the expression ‘new district’ includes a district formed by the union of 2 or more adjoining districts, whether districts of the same kind or not; and also includes a district converted into a district of a different kind.

Subject to this Act, effect shall be given to every proposal in a final scheme either—

The Order in Council or any other instrument made under section 36 of this Act, or a separate or subsequent Order in Council or instrument, may—

No Order in Council or other instrument issued for the purpose of giving effect to any final scheme shall affect any separate rate or special rate, and every such rate shall continue to be charged upon the whole of the area of land upon which it was charged before the making of the order or the issue of the instrument, and shall not by reason thereof become a charge upon any additional area; and the area within which and the purposes for which any unexpended loan money may be expended shall not be affected by any such order or instrument.

No such Order in Council or other instrument shall be invalid on the ground that it is inconsistent with the provisions of the final scheme, if the inconsistency relates solely to matters of a verbal or formal nature or the correction of clerical or typographical errors.

Where any party to the proceedings or the Minister is dissatisfied with any determination or decision of the Commission in any proceedings before the Commission as being erroneous in point of law, he may appeal to the Supreme Court by way of case stated for the opinion of that Court on a question of law only.

Every such appeal shall be heard and determined by the Administrative Division of the Supreme Court.

The provisions of Part IV of the Summary Proceedings Act 1957, as far as they relate to appeals by way of case stated on questions of law only, shall apply, as far as they are applicable, to every appeal under subsection (1) of this section. In the application of those provisions, they shall be read as if—

For the purposes of subsections (1) and (2) of this section, every local authority affected by the determination or decision and every objector who has appeared before the Commission in the proceedings shall be deemed to be a party to the proceedings.

Proceedings before the Commission shall not be held bad for want of form, and, except as provided in subsection (1) of this section, no appeal shall lie from any determination or decision of the Commission:

Provided that nothing in this subsection shall be construed—

An Order in Council or other instrument giving effect to any proposal contained in a final scheme may be issued under the authority of this Part of this Act, or of any enactment applied for the purpose, notwithstanding that the requirements of any enactment, other than this Part, as to the particular matter in relation to which the instrument is issued may not have been complied with.

Any such order or instrument shall, for all purposes not inconsistent with this Part of this Act, be deemed to have been issued under the authority of such other enactment as is named therein, as fully and effectually as if the provisions of that enactment precedent to the making of the order or the issue of the instrument had been fully complied with.

Every Order in Council or instrument under this Part of this Act shall have effect according to its tenor notwithstanding anything in any other enactment.

In any case where pursuant to a final scheme—

the local authority that, pursuant to the scheme, assumes jurisdiction over an area formerly comprising or forming part of a separate district, or takes over the functions of a previous local authority, shall have and may exercise, subject to any provisions which the Governor-General may, by Order in Council, make to the contrary, all the powers which were previously exercised by the controlling local authority or would have been so exercised by it if it had remained in existence or in control of that area, and shall be subject to the same duties, obligations, and liabilities as were or would similarly have been imposed on or incurred by that controlling local authority.

In any case where, pursuant to a final scheme,—

the local authority that, pursuant to the scheme, assumes jurisdiction over an area formerly comprising a separate district, or, as the case may be, formerly constituted a defined part of the district from which it was excluded, shall have and may exercise, subject to any provisions which the Governor-General may, by Order in Council, make to the contrary, all the powers to raise the loan, including the power to raise a supplementary loan under section 44 of the said Act, or such part of the loan or any supplementary loan as has not already been raised, that could have been exercised by the local authority that was authorised to raise the loan if it had remained in existence or in control of the part excluded from its district, and shall be subject to the same duties, obligations, and liabilities as were or would have been imposed on that last-mentioned authority.

Where pursuant to an apportionment under section 37f of this Act on the severance or addition of any area from or to the district of a territorial authority, any liability is imposed on the Corporation of the district, it shall be lawful for the territorial authority to raise a special loan under the Local Authorities Loans Act 1956 by special order and, notwithstanding anything in section 34 of that Act, without the consent of the ratepayers, for the purpose of meeting the liability so imposed.

Where on the addition of any area to the district of any territorial authority any liability is imposed on the Corporation of the district, any special rate made and levied as security for any loan raised under subsection (2) of this section may be made and levied over the whole district or, if the special order to raise the loan so provides, over the area so added.

Where part of a district is excluded therefrom and included in another district,—

Where any district of a territorial authority is abolished and included in any other district or districts, or any part of a district is excluded therefrom and included in any other district or districts, every community in the abolished district or, as the case may be, in that part shall become a community of the district in which the abolished district or that part is included.

Subject to this Part of this Act, this section shall apply where, pursuant to an Order in Council or other instrument giving effect to a proposal in a final reorganisation scheme under this Part of this Act,—

and the provisions of this section shall have effect, notwithstanding anything in the Municipal Corporations Act 1954 or in the Counties Act 1956 or in any other provision of this Act.

Where any such Order in Council or other instrument does not make provision for the apportionment of the assets and liabilities of the territorial authorities affected by the order or other instrument, those territorial authorities may by agreement determine the manner in which those assets and liabilities shall be apportioned.

If no such agreement is entered into by the territorial authorities concerned within 3 months after the date of the coming into force of the order or other instrument, any territorial authority directly affected by the constitution of the new district or alteration of boundaries may apply to the Commission for an order apportioning assets and liabilities, and the Commission, having regard to such matters as the Governor-General, by Order in Council, specifies, shall make an order directing the manner in which assets and liabilites are to be apportioned as between the’ territorial authorities concerned.

For the purpose of deciding any application to the Commission under this section, the Commission shall consult with the Audit Office and with the territorial authorities directly affected, and may make such inquiries as it thinks fit, and may obtain advice from any other person who, in the opinion of the Commission, has expert knowledge concerning any aspect of the matter to be decided.

Every order of the Commission under this section may be enforced as if it were an agreement between the territorial authorities concerned.

This section shall apply to the apportionment of assets and liabilities between regional or united councils as if every reference herein to a district were a reference to a region and every reference herein to a territorial authority were a reference to a regional council or united council, as the case may be.

Where—

the said loan liabilities shall, notwithstanding anything to the contrary in the Local Authorities Loans Act 1956 or any other enactment, become the loan liabilities of the local authority whose district is formed by the union of the 2 or more districts, or, as the case may be, the local authority in which the district of the other local authority was included, or the local authority to which the functions of the abolished local authority were transferred.

Where—

then, notwithstanding anything to the contrary in the Local Authorities Loans Act 1956 or in any other enactment, those loan liabilities shall be apportioned among those local authorities in the manner determined by agreement among the local authorities affected.

If no agreement under subsection (2) of this section is entered into by the local authorities affected before or within 14 days after the coming into force of the Order in Council or other instrument or, in any case where any one or more of those local authorities are new local authorities, within 14 days after the first meeting of each such new local authority or local authorities, assessors shall be appointed as follows to determine how the loan liabilities to which that subsection applies shall be apportioned, namely:

After making such inquiries as they think fit, the assessors shall, within 2 months after their appointment, determine how the loan liabilities are to be apportioned. Any matters upon which the assessors cannot reach agreement shall be referred from time to time to the arbitrator for decision and that decision shall form part of the assessors’ determination.

The determination of the assessors shall be final and shall have the same force as if it were an agreement between the local authorities affected.

Every person having the possession or custody of any relevant books, papers, accounts, or documents shall allow the assessors and the arbitrator to have access thereto for the purpose of this section.

Notwithstanding anything to the contrary in the Local Authorities Loans Act 1956 or in any other enactment, a certificate under the common seal of each of the local authorities affected shall be accepted for all purposes as sufficient evidence and verification that the local authority named in the certificate has acquired from the other local authority the duties, obligations, and liabilities (including liabilities under stocks or debentures) and powers in respect of the loan liabilities therein specified, and a copy under the seal of each local authority affected shall be lodged with the Registrar of Stock under the Local Authorities Loans Act 1956.

Notwithstanding anything to the contrary in this Act, where pursuant to an Order in Council or other instrument a local authority is abolished, that local authority shall continue in existence, for the purposes of this section, until a certificate under subsection (7) of this section has been lodged with the Registrar of Stock.

All principal and interest payable in respect of any stock or debenture issued in respect of any loan or part thereof to which this section applies shall constitute a debt due by the local authority which has assumed responsibility therefor to the registered holder of the stock or holder of the debenture, and the repayment of that principal and interest shall be pledged on the revenues of that local authority.

Subject to section 180 of this Act, where a local authority has made a special rate for the purpose of securing any such loan and the interest thereon, that rate shall be deemed to have been made by the local authority assuming responsibility for the loan, and may be levied each year by the last-mentioned local authority until that loan and any charges associated therewith are paid off.

The Registrar of Stock shall, on written application under the seal of the local authority assuming responsibility for the loan liability, substitute the name of that local authority in the stock register for the name of the local authority by which the loan was originally raised.

The Registrar of Stock shall continue to act as Registrar of the loan or part thereof in terms of the agreement originally made with the local authority which originally raised the loan, as if that agreement had been entered into between the Registrar and the local authority which assumed responsibility for the loan liability.

Where a local authority has established a sinking fund for the purpose of providing money for the repayment of any loan the liability for which is transferred to any local authority pursuant to this section, the Commissioners of that fund shall transfer to the Commissioners of the local authority which assumed responsibility for that loan all money and other real and personal property held by them for that purpose.

The Sinking Fund Commissioners of the local authority by whom the sinking fund is transferred under subsection (13) of this section shall go out of office on the coming into force of the Order in Council or other instrument to which subsection (1) or, as the case may be, subsection (2) of this section applies, but shall continue in office after that date for the purposes of completing any transfer under the said subsection (13).

Where before the commencement of this Act the loan liabilities or part of the loan liabilities of a local authority have been transferred to another local authority or apportioned among several other local authorities pursuant to an Order in Council or other instrument or by agreement or other arrangement between the local authorities concerned made or entered into for the purpose of giving effect to a final scheme, and the transfer or apportionment would have been valid if this section had been in force when the transfer or apportionment was made, that transfer or apportionment is hereby declared to be and always to have been validly made.

Where, pursuant to subsection (3) of this section, assessors and an arbitrator are appointed, the local authorities affected shall, in proportion to the apportionment of the loan liabilities determined under this section, pay to each assessor and the arbitrator remuneration and travelling allowances and expenses in accordance with the Fees and Travelling Allowances Act 1951 as if the assessors and the arbitrator were members of a statutory Board within the meaning of that Act.

This section shall apply where, pursuant to an Order in Council or other instrument giving effect to a proposal in a final reorganisation scheme under this Part of this Act,—

and any proceeds of a petroleum tax levied under Part XI of this Act are distributed among the territorial authorities affected by the proposal in accordance with the said Part XI.

Notwithstanding the requirement of the said Part XI that those proceeds shall be distributed according to the proportion which the total rate revenue of each such territorial authority for the immediately preceding financial year bears to the total rate revenue of all the component authorities within the meaning of the said Part XI for the preceding financial year, the territorial authorities whose districts have respectively been increased and decreased in area and the territorial authority for the newly constituted district, as the case may require, may by agreement determine the basis on which those proceeds shall be distributed among them until the expiration of the year commencing on the 1st day of April on or after the day on which the Order in Council or other instrument comes into force.

Subsections (3), (4), and (5) of section 37e of this Act shall apply as if an order of the Commission under that section were an order determining an issue under subsection (2) of this section.

Nothing in this section shall have effect so as to alter the provisions of Part XI of this Act in respect of the proportion of the proceeds of any tax distributed under that Part to any constituent authorities whose districts are not altered by the Order in Council or other instrument.

Where an Order in Council or other instrument giving effect to a final scheme contains provisions for the transfer of a trading undertaking or part thereof from any territorial authority to any—

then, if that territorial authority continues in existence, the territorial authority may, by notice in writing to the council, or the council may by notice in writing to the territorial authority, require that assessors (in this section and in the Third Schedule to this Act referred to as the assessors) be appointed to determine whether or not any payment in respect of the transfer of that trading undertaking or part thereof shall be made under this section by the council to the territorial authority or by the territorial authority to the council and, if so, the amount of that payment that is to be made, and the provisions of the Third Schedule to this Act shall apply accordingly.

Nothing in this section or in the Third Schedule to this Act shall be construed as limiting in any way or permitting or requiring a postponement of the transfer of a trading undertaking or part thereof from a territorial authority to a council pursuant to an Order in Council or other instrument giving effect to a final scheme.

In this section and in the Third Schedule to this Act—

The Commission shall furnish to the Minister a report of its proceedings and operations during each year ending with the 31st day of March as soon as practicable after the end of that year.

A copy of the report shall be laid before Parliament as soon as practicable after its receipt by the Minister.”